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War Damage Rehabilitation by means of Urban Renewal Law, 5786-2026

חוק שיקום נזקי מלחמה בדרך של התחדשות עירונית, תשפ"ו-2026

Published: 2026-04-05Consolidated Hebrew text as of 2026-08-13 · Last amended 2026-04-05✓ Amendment status checked against the Knesset legislation record on 2026-09-28
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

This English text was translated from the official Hebrew using a range of translation tools, and it undergoes ongoing checks and updates. It is not a certified translation.

Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.

Chapter I: Purpose and Interpretation

Purpose§

1.

The purpose of this Law is the rehabilitation of areas that have been harmed by war damage by means of urban renewal, while striking a balance between the public interest in the rapid, efficient and optimal promotion of urban renewal and the preservation of the individual's right of ownership.

Interpretation§

2.
(a)In this Law –

"rehabilitation and renewal area" – as its meaning in section 3;

"condominium" – one of the following:

(1)as its meaning in Chapter VI of the Land Law;
(2)a building as its meaning in Chapter VI-A of the Land Law;

"building" – as defined in the Planning Law, except for a structure as referred to in paragraphs (1) and (2) of that definition;

"destroyed building" – a building that has sustained war damage, and the engineer of the local authority within whose area the building is situated has determined, for the purposes of this Law, that by reason of that damage it has been destroyed or is to be destroyed;

"apartment owner" – as defined in the Evacuation-Construction Law, including the holder of a right in real property in a rehabilitation and renewal area who, on the eve of the occurrence of the war damage, owned an apartment in a building in a rehabilitation and renewal area;

"plot owner" – an owner, including a long-term lessee, of a plot as its meaning in section 4(3);

"substitute apartment" – one of the following, as the case may be:

(1)an apartment in a new building to be constructed within the framework of an urban renewal project in a rehabilitation and renewal area, which will be given to an apartment owner in a building that has been demolished within the framework of such a project, in exchange for the sale of that owner's rights in the apartment on the eve of its demolition;
(2)the renovated apartment of an apartment owner in a building that is to be densified within the framework of an urban renewal project, which will be renovated within the framework of an urban renewal project in a rehabilitation and renewal area, in exchange for the sale of that owner's rights in that apartment on the eve of the densification of the building;

"alternative housing expenses" – as their meaning in regulation 2(c) of the Property Tax Regulations;

"damage rehabilitation expenses" – as defined in the Property Tax Regulations;

"organisation agreement" – an agreement for the organisation of an urban renewal transaction as defined in the Agreements for the Organisation of Transactions Law;

"exit agreement" – an agreement between a developer and an apartment owner in a rehabilitation and renewal area pursuant to which the apartment owner undertakes to sell all of that owner's rights in the real property to the developer for the monetary consideration referred to in section 38(a)(1) or 43(a)(3)(a), as the case may be;

"enhanced exit agreement" – an exit agreement to which the provisions of section 38 apply;

"the Preferred Complexes Committee" – the National Planning and Building Committee for Preferred Complexes, established pursuant to section 5 of the Preferred Complexes Law;

"the Objections Committee" – as its meaning in section 9a(b) of the Land Acquisition Ordinance;

"Privacy Protection Law" – Privacy Protection Law, 5741-1981;

"Agreements for the Organisation of Transactions Law" – Urban Renewal (Agreements for the Organisation of Transactions) Law, 5777-2017;

"Real Property Taxation Law" – Real Property Taxation (Appreciation and Acquisition) Law, 5723-1963;

"Property Tax Law" – Property Tax and Compensation Fund Law, 5721-1961;

"Land Law" – Land Law, 5729-1969;

"Preferred Complexes Law" – Law for the Promotion of Construction in Preferred Complexes (Temporary Provision), 5774-2014;

"Evacuation-Construction Law" – Evacuation-Construction Law (Encouragement of Evacuation-Construction Projects), 5766-2006;

"Government Authority Law" – Government Urban Renewal Authority Law, 5776-2016;

"Planning Law" – Planning and Construction Law, 5725-1965;

"rehabilitation developer" – a developer approved as a rehabilitation developer pursuant to section 40;

"organiser" – as defined in the Agreements for the Organisation of Transactions Law;

"planning institution" – the local committee or the Preferred Complexes Committee;

"declaration date" – the date on which the declaration of a rehabilitation and renewal area enters into force;

"urban renewal project" – as defined in the Government Authority Law;

"Property Tax Administrator" – the Administrator as defined in the Property Tax Law;

"Urban Renewal Authority Administrator", "the Administrator" – the Administrator of the Urban Renewal Authority appointed pursuant to section 5 of the Government Authority Law;

"war damage" – as defined in section 35 of the Property Tax Law;

"transaction with an apartment owner" – a contract between a developer and an apartment owner in a rehabilitation and renewal area pursuant to which the apartment owner undertakes to sell all of that owner's rights in the real property to the developer for the purpose of constructing a new structure or densifying an existing structure, in accordance with a rehabilitation and renewal plan, which includes, inter alia, all of the following:

(1)the principles for determining the consideration to be received by each apartment owner under the contract;
(2)the maximum dates for approval of a rehabilitation and renewal plan, for receipt of a building permit and for delivery of the new apartment to the apartment owner in accordance with the contract;
(3)particulars regarding the entity that will carry out the construction works in accordance with the contract, or conditions for the selection of such entity, including with regard to that entity's experience in the field;
(4)an undertaking on behalf of the developer to provide, for the benefit of the apartment owner, guarantees to secure the developer's obligations under the contract;

"transaction with a plot owner" – a contract between a developer and a plot owner in a rehabilitation and renewal area pursuant to which the plot owner undertakes to sell that owner's rights in the plot for the purpose of implementing a rehabilitation and renewal plan;

"transaction under a strengthening plan" – as defined in the Agreements for the Organisation of Transactions Law;

"evacuation-construction transaction" – as defined in the Evacuation-Construction Law;

"rehabilitation transaction" – a transaction with an apartment owner or a transaction with a plot owner;

"Land Acquisition Ordinance" – Land Acquisition (Public Purposes) Ordinance, 1943;

"the Advisory Team" – as its meaning in section 10;

"density" – net density or gross density, as defined in the Integrated National Master Plan for Building, Development and Conservation (National Master Plan 35);

"special majority of apartment owners" – one or more of the following:

(1)a majority of the apartment owners in a rehabilitation and renewal area who own a majority of the apartments in each of most of the buildings in that area, provided that every building referred to in section 4(2) is one of those buildings;
(2)apartment owners in a rehabilitation and renewal area who own at least four-fifths of all the apartments in that area;

for the purposes of this definition, a plot that does not contain a building as referred to in section 4(3) shall be deemed a plot containing one apartment;

"Urban Renewal Authority" – the Government Urban Renewal Authority, as defined in the Government Authority Law;

"rehabilitation and renewal plan" – a local outline plan or a detailed plan whose boundaries are identical to the boundaries of a rehabilitation and renewal area declared pursuant to section 3, the purpose of which is evacuation for the purpose of construction or densification of construction in a rehabilitation and renewal area; for this purpose, the boundaries shall be deemed identical even if they do not include the public plots that were included within the boundaries of the declaration pursuant to section 4(4);

"Property Tax Regulations" – Property Tax and Compensation Fund (Payment of Compensation) (War Damage and Indirect Damage) Regulations, 5733-1973.

(b)Every term used in Chapters II and III shall have the meaning ascribed to it in the Planning Law, unless expressly stated otherwise.

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Chapter II: Rehabilitation and Renewal Areas

Section A: Declaration of a Rehabilitation and Renewal Area

Declaration of a Rehabilitation and Renewal Area§
3.
(a)The Government, or a ministerial committee it has authorised for this purpose pursuant to subsection (d) (in this Law – the Government), may declare, by Order, on the recommendation of the Advisory Team, an area in which a destroyed building is situated, alone or together with other destroyed buildings, as a rehabilitation and renewal area whose boundaries shall be determined in accordance with the provisions of this Chapter, if it has found that there is justification for the promotion or implementation of an urban renewal project in that area, by means of applying the provisions of this Law, in whole or in part.
(b)Without derogating from the provisions of subsection (a), the Government, on the recommendation of the Advisory Team, may declare, by Order, an area as a rehabilitation and renewal area whose boundaries shall be determined in accordance with the provisions of this Chapter, even if it does not contain a destroyed building, if it has found that there is justification for the promotion or implementation of an urban renewal project in that area, provided that all of the following conditions are met:
(1)the area includes at least three buildings which together contain at least 12 apartments;
(2)according to a professional opinion of the engineer of the local authority within whose area the buildings referred to in paragraph (1) are situated, and of an engineer on behalf of the Property Tax Administrator, significant war damage has occurred causing harm to the physical condition of a building as referred to in paragraph (1), to its stability and safety, which will require a lengthy period of time to rehabilitate.
(c)Where the Advisory Team's recommendation has been submitted to the Government pursuant to section 13 in respect of a declaration under subsections (a) or (b), the Government may approve the Advisory Team's recommendation in its entirety or reject it.
(d)The Government may authorise a ministerial committee with the Government's powers under this Law, provided that such authorisation specifies that the ministerial committee is empowered to make decisions with the approval of the Government.
Boundaries of a Rehabilitation and Renewal Area§
4.

The boundaries of a rehabilitation and renewal area shall include the plot or plots in which a destroyed building as referred to in section 3(a), or buildings as referred to in section 3(b), is situated, and the following additional plots may be included in that area, all in accordance with the recommendation of the Advisory Team:

(1)a plot containing a building that has sustained war damage and is not a destroyed building, and in respect of which a professional opinion of the engineer of the local authority within whose area the building is situated has been given, including reference to the physical condition of the building, the stability or safety of the building, inter alia by reason of the war damage, the works required for the rehabilitation of the building other than by its demolition and reconstruction, their cost and the estimated time required for their execution, and the Advisory Team has determined, inter alia on the basis of that professional opinion, that there is justification for its demolition;
(2)a plot containing a building in respect of which the conditions referred to in paragraph (1) are not met, provided that all of the following conditions are met:
(a)according to a professional opinion of the district planner, there is a clear necessity to include the plot in the rehabilitation and renewal area for the purpose of promoting an urban renewal project in the area, inter alia on the basis of the need to regulate access and accessibility in public areas and infrastructure, for the expansion of a plot area for the purpose of vertical construction, or where at least two sides of the plot adjoin a plot containing a destroyed building or a plot as referred to in section 3(b), all where there is no possibility of providing a planning response without including the plot in such area (in this section – clear necessity);
(b)the number of buildings on plots to be included in the rehabilitation and renewal area pursuant to this paragraph shall not exceed 25% of the total number of buildings included in that area;
(3)a plot that on the eve of the occurrence of the war damage did not contain a building, provided that according to a professional opinion of the district planner there is a clear necessity to include it in the rehabilitation and renewal area for the purpose of promoting an urban renewal project in the area; where the area includes a plot pursuant to this paragraph, the area of the plots to be included in the area pursuant to this paragraph and paragraph (2) shall not exceed 40% of the area of the rehabilitation and renewal area;
(4)public plots adjoining plots as referred to in this section where there is planning justification for including them in accordance with a professional opinion of the district planner; in this paragraph, "public plot" – a plot designated for public purposes as defined in section 188(b)(1) of the Planning Law, which is owned by the State, the Development Authority, Keren Kayemeth LeIsrael or a local authority.
Content of the Declaration of a Rehabilitation and Renewal Area§
5.

A declaration of a rehabilitation and renewal area pursuant to section 3 (in this Section – the declaration) shall include all of the following, all in accordance with the recommendation of the Advisory Team:

(1)the boundaries of the area, the plots included therein, including the block and parcel numbers, the name of the neighbourhood and street, as well as the building numbers included in the area;
(2)the minimum density in the area; different densities may be set for different types of plans, provided that the density so set shall not be less than the density set in a national master plan applicable to the area.
The Date for the Declaration of a Rehabilitation and Renewal Area§
6.
(a)A declaration of a rehabilitation and renewal area pursuant to section 3 shall be made no later than 60 working days from the date of occurrence of the war damage to the building or buildings referred to in that section.
(b)The chairperson of the Advisory Team may extend the period referred to in subsection (a) by one or more additional periods not exceeding 10 working days in total.
(c)The Minister of Finance may, by Order, extend the period referred to in subsection (a) by one or more additional periods not exceeding 45 working days in total, on account of special circumstances, including on account of a special situation in the home front as its meaning in section 9c of the Civil Defence Law, 5711-1951; where the chairperson of the Advisory Team has extended the period as referred to in subsection (b) by one or more additional periods, that extension shall be counted within the number of days referred to in this subsection.
(d)Notwithstanding the provisions of subsection (a), where war damage as referred to in that subsection occurred during the period from the 17th day of Sivan 5785 (13 June 2025) until the eve of the commencement of this Law, the counting of the period referred to in that subsection shall commence on the day of commencement of this Law.
Publication on the Internet Website§
7.

Notice of a declaration pursuant to section 3 shall be published on the internet website of the Planning Administration and shall include the particulars pursuant to section 5.

Publication by the Local Authority§
8.
(a)The local authority within whose area the rehabilitation and renewal area is situated shall publish, within three working days of the declaration date, a notice in the format and text directed by the Urban Renewal Authority Administrator as referred to in section 60; the notice shall include all of the following:
(1)notice of the declaration, containing the particulars pursuant to section 5;
(2)particulars regarding the mechanism for the acquisition of rights in real property from apartment owners in that area by a rehabilitation developer, under this Law, within the framework of an exit agreement, including the manner of giving consent to the acquisition of rights within the framework of that agreement and the consequences of giving such consent, including the conditions upon the fulfilment of which the acquisition of an apartment owner's rights as aforesaid by the rehabilitation developer will be completed and the purchase amount will be paid to that owner;
(3)particulars regarding the conditions that a rehabilitation developer must satisfy in order to receive assistance from the State pursuant to section 45;
(4)the right of apartment owners in that area to transmit to the Chief Government Valuer data relating to the preparation of the valuation pursuant to section 33(a), and the manner of transmitting them;
(5)the right of apartment owners in that area to submit an objection to the valuation, pursuant to section 34, and the manner of submitting it.
(b)Publication as referred to in subsection (a) shall be by means of a sign in a prominent place in the said area, having regard as far as possible to the situation in the area that has been declared as such, inter alia by reason of the war damage, and on the internet website of the local authority.
(c)In addition to the methods referred to in subsection (b), the local authority shall act to deliver notices, inter alia by electronic mail and by text message, to an apartment owner or a plot owner in a rehabilitation and renewal area, if it has in its possession the electronic mail address or the mobile telephone number of that owner.
Rehabilitation and Renewal Area – Evacuation-Construction Complex§
9.

A rehabilitation and renewal area declared pursuant to section 3 shall also be deemed an evacuation-construction complex declared pursuant to section 14(a)(1) of the Government Authority Law, and the provisions of section 14(f) of that Law shall apply to it, with the following modification: instead of "the Authority Administrator" read "the Government".

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חוק שיקום נזקי מלחמה בדרך של התחדשות עירונית, תשפ"ו-2026

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