The fourth lottery of the "Discount Apartment" program of the former government is underway

The fourth lottery of the "Discount Apartment" program, which was promoted by outgoing Minister of Construction and Housing Ze'ev Elkin, is underway - just before the government's swearing-in, probably tomorrow. According to a report by the Ministry of Construction and Housing and the Israel Lands Authority, approximately 6,000 discounted housing units will be raffled in 13 localities: Jerusalem, Ashdod, Haifa, Yehud-Monson, Ramla, Kadima-Zoran, Ofakim, Sderot, Nahariya, Nof HaGilil, Elkana, Horns of Samaria and Immanuel.
Registration for the lottery, the last one under the outgoing government, will close next Sunday (January 8, 2023). The Ministry of Housing states that a certificate of eligibility for registration can be issued until this Sunday, at the beginning of the new civil year (January 1, 2023), after which it will not be possible to issue certificates until registration for the lottery closes. The results of the lottery are expected to be delivered to the winners during the month of January.
In a notice published by the Ministry of Housing last month, it was reported that during the month of December registration will open for a lottery that is expected to include about 9,000 housing units, and at the beginning of the month the report referred to 7,000 apartments. Now, as mentioned, there has once again been a decrease in the number of discounted apartments that will be drawn in the fourth lottery. In today's announcement it was still stated that "the list of cities and the number of housing units are not final and may change".
The rest of the apartments that were subtracted from the current lottery were postponed to the fifth lottery, which is planned for March. This is, of course, on the assumption that the designated housing minister, Yitzhak Goldknopf of Torah Judaism, will continue to promote the affordable housing program. It is estimated that affordable housing programs will continue to be promoted in the Ministry of Construction and Housing, as there are quite a few such tenders on the shelf.
The reason for the postponement lies, apparently, in the fact that some of the contractors who won the tenders will not have enough to pay the state the initial sums for the lands. For example, in the third lottery there were supposed to be about 3,500 discounted housing units, as the Ministry of Housing reported before the holidays, but in real time the number was reduced to 3,300 apartments. In any case, the number of apartments in the current lottery should slightly increase the chance of winning compared to the previous lottery.
Those eligible to register for the lottery are homeless people with a valid eligibility certificate. As was the case in previous lotteries, those eligible can register for three cities, and for all the lotteries in these cities. Also, the date of registration for the lottery is not important. According to the ministry's data, this year over 21 thousand households have already won the opportunity to purchase an apartment at a discount, as part of the lotteries of various programs for affordable housing, and in total in 2022 about 30 thousand households are supposed to win the lotteries.
It is important to note that the winners do not receive a ready-made apartment, but win the right to purchase an apartment in a new project that has not yet been built. Contractors who win state tenders, including discounted apartments, advance the planning and licensing procedures with the local authority - and when the project is close to receiving a building permit, those eligible are invited to register and choose the relevant apartments. The winners are prohibited from selling the apartment they won for 5 years from the day they received the key or 7 years from the day they won the lottery, but it can be rented out.
Minister Elkin said: "Along with the steps to dramatically expand the number of land marketings to 100,000 housing units per year, which we reached in 2021-2022, it was clear to us that we must also return the discounted housing programs for young couples, in order to give them the opportunity to purchase an apartment right now At a discount of hundreds of thousands of shekels at the state's expense. After a two-year hiatus, we brought back the lotteries of the Ministry of Construction and Housing. Next year, following the plans that were launched in recent months, the ministry will succeed in producing another 45,000 apartments at a discount, assuming that the new Minister of Construction and Housing does not stop it. In fact, in the years 2022-2023, about 75 thousand young couples out of a total of about 120 thousand who participate in the lotteries will have the opportunity to buy an apartment at a discount."
The director general of the Ministry of Construction and Housing, Aviad Friedman, added: "With the beginning of the new civil year, thousands more households will be able to purchase an apartment at a significant discount, and start 2023 off on the right foot. The upcoming lottery is a direct continuation of all the steps and moves promoted by the ministry in the recent period, including breaking records in construction starts and the number of marketings for the second year in a row. These are figures that have not been seen for many years in the real estate industry, promoting tenders in long-term rental housing, removing barriers with local authorities and signing roof agreements with them. I know that there is still a lot of work to be done, but I can safely say that the processes that we have carried out and promoted in recent times will already bear fruit in the nearest".
Rami's CEO, Yanky Quint, noted: "The fourth lottery, which marks the year 2022, will allow thousands more families to enjoy an apartment discounted by tens of percent of market prices. Just yesterday, target price tenders for thousands of housing units in Rishon Lezion, Yavne, Netivot, Petah were closed Tikva, Nof HaGalil, Haifa, Beer Ya'akov and more, which will buy discounted apartments for thousands of families. RMI will continue to act as it has done in the past two years to accelerate the increase in the supply of residential land, and to find discounted and varied solutions for the benefit of families and young people who do not yet own a residential apartment."