In peripheral cities and communities where older buildings are at greater risk in the event of an earthquake, urban renewal often struggles to get off the ground due to a lack of economic viability. As a result, plans are not being advanced in these cities. Keren Kayemeth LeIsrael–Jewish National Fund (KKL-JNF) now intends to help address this gap.
These areas and municipalities face two challenges. On the one hand, they have older buildings that do not meet current building standards and face significant seismic risks. On the other hand, low land values make many urban-renewal projects less attractive to the private sector.
Even when the government is prepared to provide funding, implementation is not always straightforward. One of the barriers is the lack of detailed plans that establish in advance where urban renewal can take place, how much can be built, what infrastructure and public facilities are required, and what could make a project economically viable.
To address this, KKL-JNF will fund and lead the preparation of dedicated plans for each municipality included in the initiative. The plans will define urban-renewal areas, building rights and development capacity, infrastructure and public-space needs, and seek to create the planning and economic foundation that will enable municipalities and developers to move forward with projects.
KKL-JNF is also connecting the initiative to the protection of open spaces. Urban renewal within existing cities can help strengthen peripheral communities and increase the housing supply without expanding construction into forests and open areas.
The cost of preparing a plan for a local authority is estimated at up to NIS 3 million, with a total program investment of up to NIS 33 million over 2026–2027. The municipalities included in the initiative and the level of investment in each will be determined according to needs and professional criteria, in coordination with the local authorities.
KKL-JNF Chairman Eyal Ostrinsky said: “Israel has reached a situation in which urban renewal is struggling to get off the ground דווקא in the places that need it most. In the periphery, there are older buildings, real risks in the event of an earthquake, and municipalities that want to renew and develop, but the market alone cannot always provide the solution. Our role is to step in precisely in these places, remove barriers, and create the conditions that will allow projects to move forward. For us, this is what strengthening the periphery means: not just talking about the gaps, but using KKL-JNF’s capabilities and resources to create change on the ground, while protecting forests and open spaces. This initiative is part of KKL-JNF’s broader strategic plan to enter the field of urban renewal in peripheral cities.”