Finance Minister Moshe Kachlon has signed an order authorizing local authorities to build public facilities that would be rented out for less than the market price. The facilities, to be used as student dormitories and for assisted living facilities, would be available for 20 percent below market price.
The facilities will be built on areas zoned for public use. Generally, such areas are dedicated to parks or other recreational facilities. The new order signed by Kachlon will allow local authorities to make their own decisions on what to use the areas for, obviating the need to go through various regional and national panels and committees to get building permits.
Among the institutions that can be built on the areas will be old-age homes, courts, offices for local authorities, hostels for handicapped individuals, and other facilities. Besides providing lower-cost options for these facilities, Kachlon hopes that locating them in these areas will reduce pressure on the rental market, lowering costs in the market overall.