What is TAMA 38 in Ramat Gan?

What is Tama 38? A General and Comprehensive Explanation

Tama 38 is a government program for urban renewal throughout Israel, designed to strengthen existing buildings, improve quality of life in old neighborhoods, and create improved public spaces. The program allows developers and property owners to carry out vacate-and-rebuild (demolition and reconstruction) or building reinforcement of existing structures, while providing economic incentives and tax relief.

In the city of Ramat Gan, which was developed in the early 20th century and has a substantial stock of existing multi-family residential buildings, Tama 38 serves as a central tool for neighborhood renewal and construction upgrading. For residents in Tama 38 projects in Ramat Gan, it is important to understand their rights, the procedural process, and the legal implications of participating in the program.

The attorneys at our firm, Mendelbaum, Gur, Witzman-Gur and Partners, have over 18 years of experience in real estate and property law, assisting hundreds of residents and developers in urban renewal programs. On this page, we will review the principles of Tama 38, residents' rights, the reinforcement process, and how to protect yourself throughout this process.

What is Tama 38 for Residents? Rights and Things You Must Know

As a resident in a multi-family residential building included in a Tama 38 program, you have specific legal rights protected by law. The law requires the developer and property owner to maintain a balance between the need for building reinforcement and the rights of existing residents.

Key rights of residents in Tama 38:

• Right to participate in decisions: Residents are entitled to participate in shareholders' meetings or homeowners association meetings, and vote on decisions concerning the renewal project.
• Right to notice and to object: A developer must notify residents of reinforcement plans, provide engineering and financial documentation, and allow residents to raise objections.
• Right to compensation upon relocation: If the project involves temporary or permanent relocation of residents, they are entitled to compensation for rental payments, moving expenses, or return to an improved apartment under equivalent or better conditions.
• Right to participate in value increase: In certain cases, residents are entitled to participate in the increase in property value following the improvement, in accordance with the agreement and applicable law.
• Right to legal consultation: Residents are entitled to independently engage an attorney to protect their rights and ensure that agreements are fair.

In the city of Ramat Gan, where many projects involve multi-family buildings constructed many years ago, protection of residents' rights is essential. Our firm has represented residents before developers, property owners, and mortgage companies to ensure fair terms are obtained and transparent agreements are created.

Tama 38 in Ramat Gan: What to Do When You Receive Notice of a Project?

When residents in Ramat Gan receive notice that their buildings are included in a Tama 38 program, the process may seem confusing or threatening. Here are the typical steps:

1. Receipt of formal notice: The developer or property owner sends notice to residents, typically through the homeowners association or by registered mail, describing the project, its objectives, and the expected timeline.
2. Residents' meeting: A meeting of shareholders or residents is held to discuss the proposal. Representatives of the developer, engineers, and contractors participate in this meeting.
3. Submission of plans and engineering documents: The developer is required to present construction plans, cost estimates, timeline, and division of responsibilities between residents and the developer.
4. Objection phase: Residents may raise questions, request modifications, and demand compensation. At this stage, legal consultation is essential to ensure your claims are protected.
5. Agreement signing: After discussions are completed, residents sign a project agreement, which defines their obligations, rights, payments, and conditions of relocation or remaining in the property.
6. Commencement of Work: Following final approval (usually from the municipality and local authority), reinforcement or evacuation and construction work begins.

At each stage, it is important to be aware of your rights and not to agree to any agreements without legal counsel. Our office in Ramat Gan assists tenants at every stage of the process, from the initial reading of the notice through to the signing of the final agreement.

Structural Reinforcement in Ramat Gan: What It Is and Why It Is Required?

Structural reinforcement is an engineering and construction process designed to improve the safety, stability, and durability of an existing structure. In the city of Ramat Gan, where multi-family residential buildings were constructed primarily in the 1930s through 1960s, structural reinforcement is often a legal and security necessity.

Common reasons for structural reinforcement:

• Earthquake resistance: Older buildings were not designed in accordance with modern earthquake resistance regulations. Structural reinforcement adds columns, steel beams, and diaphragms to improve resistance to seismic activity.
• Natural wear and tear: Over time, concrete, steel, and other building materials deteriorate. Structural reinforcement restores the building and prevents collapse.
• Updated regulatory requirements: Israeli building codes are updated every several years. Older buildings do not comply with new regulations, and structural reinforcement brings them into compliance with requirements.
• Increased built area: Sometimes, structural reinforcement is combined with the addition of stories or expansion of the property, which adds value for both residents and developers.

In Tama 38 projects, structural reinforcement is generally part of the larger urban renewal project. In certain cases, residents may choose reinforcement alone (without demolition and reconstruction), remaining in their apartments during the work.

Tama 38 for Residents: Costs, Payments, and Expenses You Must Know

One of the most important questions for residents in a Tama 38 project in Ramat Gan is: "How much will it cost me?" The answer depends on the project details, but the main categories of expenses can be described as follows:

• Reinforcement payment: Residents typically pay a portion of reinforcement costs according to the size of their apartment (square meters) and property value. This payment can be made in cash, through a bank loan, or as part of the increased value of the apartment after improvement.
• Temporary relocation expenses: If residents are required to vacate their apartments during the work, they are entitled to compensation for temporary rent, moving, and storage expenses.
• Engineering and management costs: Residents may be required to contribute to the costs of a supervising engineer, legal consultants, and project management.
• Property appreciation tax: After improvement, residents may be liable to pay property appreciation tax on the increased value of their property. Property appreciation tax is calculated based on the difference in value before and after the improvement.
• Increased management fees: During a Tama 38 project, the common area maintenance fees for the multi-family building may increase to cover additional management costs, construction insurance, and supervision.

It is important to emphasize that there is no standard payment for Tama 38 projects. Each project is calculated separately, taking into account the size of the property, the type of reinforcement, the developer's contribution, and local market conditions. Our firm can help you understand your project budget and ensure that payments are fair and compliant with the law.

Tama 38 and Housing Company: The Role of the Housing Company in the Process

Housing company (collective ownership company of a multi-family building) plays a central role in Tama 38 programs in Ramat Gan. The housing company is essentially the "representative body" of apartment owners and has the authority to make decisions on behalf of all residents.

Roles of the housing company in Tama 38:

• Receiving notice from the developer: The developer contacts the housing company (usually through the company director) to notify of the project proposal.
• Scheduling meetings: The housing company convenes meetings of shareholders (residents) to discuss the proposal.
• Signing agreements: After approval by a majority of residents, the housing company signs an agreement with the developer on behalf of all residents.
• Payment management: The housing company is responsible for collecting payments from residents and transferring them to the developer.
• Supervision of Works: During the project, the mortgagee company is interested in supervising the quality of work, schedule, and compliance with approved plans.

Individual residents may feel a lack of control over the process, since the mortgagee company reflects the voices of the majority. Therefore, it is very important to participate in meetings and pressure the mortgagee company to be transparent. If you feel that the mortgagee company is not properly representing your rights, you are entitled to contact a lawyer to protect yourself.

Urban Renewal in Ramat Gan: The Broader Context of TAMA 38

TAMA 38 is part of a larger government urban renewal program in Israel. In the city of Ramat Gan, urban renewal serves as a strategic tool for upgrading neighborhoods, increasing building density, creating public spaces, and upgrading existing structures.

Objectives of Urban Renewal:

• Upgrading building safety (structural reinforcement)
• Increasing building density and creating new housing
• Improving living conditions for existing residents
• Creating public spaces, gardens, and shops
• Increasing municipal assets and tax collection

For residents in Ramat Gan, urban renewal can be an opportunity to improve an old apartment, but also a legal and economic challenge. Our office helps residents understand the connection between TAMA 38 and broader urban plans, and how it affects their rights and the value of their property in the future.

Comparison Table: Tama 38 vs. Other Options

When residents of a multi-unit building in Ramat Gan face a choice between Tama 38 and other options, it is important to understand the differences. The following table compares Tama 38, independent strengthening, and other alternatives:

As can be seen from the table, Tama 38 is a complex option that offers significant relief but requires a long-term commitment from residents. Our firm can help you evaluate whether Tama 38 is the right choice for your situation.

Why Choose Mendelbaum, Gor, Witzman-Gor & Co. for TAMA 38 in Ramat Gan?

Our office is located in Ramat Gan and has over 18 years of experience in real estate, property law, and TAMA 38. Here's why we are the right choice for you:

• Local Expertise: We know the real estate market in Ramat Gan, the neighborhoods, local developers, and municipal authorities. This gives us a significant advantage in understanding the dynamics of every project.
• Specialists in Real Estate Law: Our office specializes in real estate and property law, not criminal law or other areas. This means we are deeply knowledgeable on the subject and up-to-date with all legal and regulatory changes.
• Representation of Residents Only: Unlike other offices, we represent residents only in TAMA 38, not developers or mortgage companies. This ensures we work in your best interest without conflicts of interest.
• Free Initial Consultation: We offer a free initial consultation so you can understand your situation and decide whether you want to continue with us.
• Personal and Dedicated Service: We are not a large firm. We are a boutique family office founded in 2008 by attorney Keren Mendelbaum. Each client receives personal and dedicated attention, and we invest time in understanding your situation.
• Proven Results: Over the years, we have successfully helped hundreds of residents in TAMA 38 achieve fair conditions, protect their rights, and obtain fair compensation.

Next Steps: How to Get Started with Our Office

If you are a resident in a shared building in Ramat Gan located in TAMA 38, or if you are considering participating in such a program, here are the steps you can take:

1. Contact Us: Leave your details in our contact form, or call our office directly. We will arrange an initial consultation meeting with you.
2. Initial Consultation Meeting: In the first meeting, we will listen to your story, review your documents (notice from the developer, preliminary agreements, etc.), and provide you with an initial legal opinion.
3. Strategy Planning: If you wish to continue with us, we will develop a legal strategy tailored to your needs. This may include negotiation with the developer, review of agreements, or filing objections.
4. Full Representation: We will represent you through all stages of the process, from initial discussions through final signature and commencement of work.
5. Ongoing Support: Even after signing, we will continue to support you, supervise the implementation of the agreement, and handle any issues that may arise.

Remember: Do not sign any agreement or document without legal advice. This could cost you hundreds of thousands of shekels in the future. Our office is here to protect your rights from the very beginning.