Most who will receive housing subsidies are ultra-Orthodox

More than half of housing subsidies will defacto be given to ultra-Orthodox residents, who make up less than 10% of the general population in Israel. Housing Minister Ariel Atias continues to design biased systems instead of fair ones.

24/07/2011 14:50

Tags: Housing subsidies and ultra-Orthodox · Ariel Atias · Uri Regev

Housing Minister, Ariel Atias from Shas in the Knesset.08.03.2010. Photo: Miriam Ulster, Flash 90

While Israelis throughout the country are pitching tents in opposition to sky high housing prices that prohibit so many from purchasing housing, the ultra-Orthodox population enjoys the lion’s share of subsidies from the government.

According to the research done by "Mamon" economic supplement of Israel’s popular daily newspaper Yediot Achronot, most of the beneficiaries of subsidized apartments are ultra-Orthodox. More than half of the proposed units for this program are intended for ultra-Orthodox occupants (1,570 out of 2,807). If units added in Beit Shemesh are included, the percentage intended for ultra-Orthodox families rises to 56%. In 2009, 64% of the subsidized apartments were allocated to ultra-Orthodox families, who make up approximately only 9% of the Israeli population.

More than half of the apartments rented through housing subsidies programs are effectively intended for the ultra-Orthodox population.

The Ministry of Finance opposed the plan in its current form since it is clear that most apartments will be rented to ultra-Orthodox residents, in large part because the criteria focuses so heavily on number of children, which is more common to ultra-Orthodox families than other groups. If the Housing Minister does not come to an agreement with the Treasury by the end of the month, Atias will demand Netanyahu furthers the program himself.

Hiddush Director Rabbi Uri Regev called on the State Comptroller to examine the new housing subsidy criteria and programs, whose goal is to help the general Israeli public purchase apartments. However, Regev says the criteria is “designed to favor the ultra-Orthodox population. Housing Minister Ariel Atias of Shas authored these new criteria after being criticized for his preferential treatment of the ultra-Orthodox population in the past, but the new criteria is intended to achieve the same under a new guise. He acts not for the good of the public at large, but rather on behalf of his constituency, the ultra-Orthodox."

Housing Minister Ariel Atias of Shas authored these new criteria after being criticized for his preferential treatment of the ultra-Orthodox population in the past, but the new criteria is intended to achieve the same under a new guise. He acts not for the good of the public at large, but rather on behalf of his constituency, the ultra-Orthodox.

The Ministry of Housing updated the criteria in the beginning of this month, but still eligibility is largely based on number of children in a family: 30% of family apartments are for families with seven of more, 30% of family apartments are for families with four to six children, 20% of family apartments are for families with one to three children. 20% of the apartments are for married couples with no children. That is to say, 60% of the apartments are reserved for families with four or more children.

About a year and a half ago, the government made available housing units in a secular area of Modi'in, which sits halfway between Jerusalem and Tel Aviv. Modi'in's mayor, Chaim Bibas, was excited by the possibility of the project as it would give young people the ability to purchase their own homes, but after reading the new criteria, he realized he was mistaken. "I was shocked", Bibas told "Mamon". "This is meant to be affordable housing, but the criteria make no sense. Families with many children take precedence, even though these apartments are only three room properties that [families of that size] will not be able to live in. This is how ultra-Orthodox families have bought up properties in Modi'in--with government subsidies--and young secular couples won't be able to access the Center [of the country, i.e. Jerusalem and Tel Aviv].

* In a subsequent expose by Channel 2 investigative reporter revealed that scores of ultra-Orthodox purchased subsidized apartments in Modi’in, paying 600,000 NIS, and immediately put them up for sale for the market price of 1,150,000, thereby denying the local young families of the opportunity to obtain affordable subsidized housing.