The Commander of the Central Command signed a military order this week that applies Israeli urban renewal laws to West Bank settlements. This means that government budgets can now be directed to assist in the planning and implementation of eviction-rebuild projects or other urban renewal projects in settlements, and to encourage massive, high-density construction. In recent years, settlements have begun to build high-rise buildings, even towers. The new military order will make it easier for settlers to advance construction plans in built-up areas using the evacuation-reconstruction method, so that both the developers, the current homeowners, and the settlement enterprise will benefit from the change, while Israeli interests will lose out.
Peace Now: This is yet another step in the annexation process by Netanyahu and Smotrich’s government. Israel loses twice from this law: first, by taking resources from the periphery of Israel and transferring them to the settlements, and second, by normalizing the settlements and deepening the political crisis Israel is in. Instead of striving to end the conflict and reach an agreement with the Palestinians and the countries in the region, the government continues to entrench us deeper in occupation and bloodshed.
Construction in the settlement of Beit El
In recent years, several laws have been enacted in Israel to encourage urban renewal projects and the densification of construction to increase the number of housing units. These laws (Evacuation-Reconstruction Law, Government Authority for Urban Renewal Law, Urban Renewal Law (Agreements for Organizing Transactions)) have provided tools for the government and local authorities to encourage developers to initiate evacuation-reconstruction projects or construction densification. The laws established the Government Authority for Urban Renewal, which assists in financing plans and helps developers and residents, and in certain cases, even funds the actual construction to make the projects financially viable, ensuring they are executed and built.
The military order signed this week establishes a “Government Authority for Urban Renewal in the Judea and Samaria Area,” which is essentially the same urban renewal authority as in Israel, the same people, and the same budgets, but formally, since these areas are not part of the State of Israel, it is referred to as the authority “in the Judea and Samaria Area.” This means that funds currently allocated for construction assistance in Israel’s periphery will be redirected to the settlements.
Additionally, the urban renewal authority will be able to designate areas in the settlements as evacuation-reconstruction zones, where developers and residents will benefit from significant tax breaks worth millions of shekels, ranging from VAT exemptions on construction to exemptions from purchase and capital gains taxes. In this way, the government hopes to encourage very large projects to add housing units in the settlements, significantly increasing the settler population and maintaining attractive housing prices.
Media reports cited officials from the Settlement Administration established by Minister Smotrich in the Civil Administration, estimating that about 10,000 new housing units could be advanced within a year. According to Peace Now, this estimate is likely exaggerated, but the change could still accelerate large and significant projects in the settlements.
It should be noted that the new order does not affect the planning process. To prepare a building plan for evacuation-reconstruction or significant housing additions, developers will still need to have the plan approved by the Higher Planning Council. However, it is important to remember that about a year ago, the government abolished the requirement for political approval before discussions on plans, so this is not a significant obstacle, and the planning process can proceed quickly through the regular planning channels without political interference.