TAMA 38 and Urban Renewal in Bik'at Ono — Updated Guide 2026

What happened to TAMA 38 in Kiryat Ono — and what comes next?

TAMA 38, Israel's national outline plan for earthquake-proofing buildings, officially expired in August 2024 after nearly 20 years. However, in cities that submitted replacement plans — including Kiryat Ono, Holon, Herzliya, and Rehovot — the program continues until May 2026 or until the new plan is approved.

Kiryat Ono went further by developing a unique model. The city includes older buildings that don't qualify for TAMA 38 within nearby pinui-binui (evacuation-reconstruction) plans. Developers receive additional building rights in the pinui-binui project and, in return, renovate and strengthen the older buildings — adding safe rooms, balconies, and new facades. This means even residents in buildings that don't meet TAMA 38 criteria can benefit from building renewal.

This model is unique to Kiryat Ono. In other Ono Valley cities — Ganei Tikva, Yehud, and Or Yehuda — urban renewal proceeds primarily through standard pinui-binui.

Three pathways: TAMA 38/1, TAMA 38/2, and Pinui-Binui explained

Many property owners confuse the different tracks. The differences are significant and affect your finances, timeline, and risk level.

In practice, most new projects across the Ono Valley are pinui-binui — large-scale compound redevelopments creating entirely new neighborhoods. TAMA 38 remains relevant only in Kiryat Ono, mainly for projects that already received permits or are in execution.

Urban renewal projects across the Ono Valley — the complete map

Here's an overview of major projects in each city, based on planning committee publications, public company filings, and official sources.

In total, more than 10,000 new apartments are expected across the Ono Valley in the coming decade — a fundamental transformation of the region, particularly in Or Yehuda and Yehud-Monosson where the scale is largest.

Tenant rights in TAMA 38 and pinui-binui — what you're entitled to

This is the most critical section for property owners. Your rights are enshrined in law and no developer can diminish them.

You receive a new, larger apartment — in pinui-binui and TAMA 38/2, you get a brand-new apartment that's bigger than your current one, with a safe room (mamad), sun balcony, parking space, and storage unit. In TAMA 38/1, you get additions to your existing apartment — typically a safe room and balcony.

The developer pays alternative rent for the entire construction period — from the day you vacate until you receive Form 4 (occupancy permit). Payment begins 90 days before actual evacuation. According to a 2025 Tax Authority position paper, this rental income is tax-exempt.

You're protected by bank guarantees — the developer must provide an unconditional bank guarantee covering 12 months of rent, or an equivalent insurance policy. Late payments beyond 7 days trigger contractual penalties.

Full tax exemptions apply — original owners are exempt from capital gains tax (mas shevach), purchase tax (mas rechisha), and betterment levy (hetel hashbacha). A landmark October 2025 Supreme Court ruling confirmed that TAMA 38 rights are counted in the property's prior state — meaning no betterment levy can be collected.

How urban renewal affects property prices

Property values increase significantly through urban renewal. According to appraiser data, apartments in completed TAMA 38 projects appreciate by 30%–60% on average. An apartment worth NIS 1.5 million before the project could reach NIS 2 million or more afterward.

Even during the process — before construction begins — prices rise by approximately 20% once an agreement with a developer is signed and planning approval is obtained. Buyers price in the future potential.

There's an additional factor: the Purple Line light rail, expected to reach the Ono Valley by 2028. Research indicates 5%–15% price increases near light rail stations. Combined with urban renewal, this creates a compounding effect on property values.

If you own an older apartment in the Ono Valley and are considering selling, check first whether your building is in an urban renewal pipeline. Selling before approval could mean leaving significant money on the table.