Litzman Drafts Proposal to Overhaul Housing Financing

Minister of Construction and Housing Rabbi Yaakov Litzman has made a far-reaching proposal for restructuring the government’s entire housing policy in an effort to provide viable solutions for young families and first-time buyers.

Rabbi Litzman’s plan would essentially use housing in central Israel to subsidize affordable housing in the country’s peripheral areas, according to Globes on Tuesday.

Tenders for land for moderately-priced homes would be subsidized by tenders for premium-priced land. In addition, first time buyers purchasing homes in the periphery will be entitled to loans and reduced bureaucracy at the Israel Land Authority as well as a lower purchase tax, Globes explained.

The existing Buyers Fixed Price program, which has been a disappointing attempt to solved the same problem, will be canceled. Those who have already signed up for the program will not be affected.

It was noted also that Rabbi Litzman submitted the idea in a letter to Minister of Finance Yisrael Katz rather than in a formal presentation.