Tama 38: Israel’s Innovative Earthquake Readiness and Urban Renewal Program

Historical Context and Evolution

Tama 38 (National Outline Plan 38) was formally established in 2005 following growing concerns about Israel’s earthquake preparedness. The catalyst was a government-commissioned engineering assessment that revealed alarming statistics: approximately 810,000 residential units in 25,000 buildings constructed before 1980 were built according to outdated standards that would not withstand a significant seismic event. Given that Israel sits along the Syrian-African Rift Valley, a seismically active zone that has historically produced destructive earthquakes, this represented a major national safety concern.

Rather than implementing a traditional government-funded retrofitting program, which would have required enormous public expenditure, Israeli policymakers crafted a market-based solution. The program’s genius lay in linking earthquake safety with the chronic housing shortage, creating economic incentives for private developers to fund the necessary improvements.

The program has undergone several significant amendments since its inception:

Original Tama 38 (2005): Focused primarily on structural reinforcement with limited additional building rights
Amendment 1 (2007): Expanded building rights to allow closing balconies and adding protected rooms
Amendment 2 (2010): Significantly increased development rights, allowing up to 2.5 additional floors
Amendment 3 (2016): Introduced demolition and reconstruction options (Tama 38/2)
Amendment 4 (2019): Further increased building rights while adding more municipal oversight

Technical Details of Implementation

Structural Reinforcement Techniques

Tama 38/1 (strengthening) projects employ several engineering approaches:

Column Reinforcement: Existing columns are wrapped with steel jackets or carbon fiber to increase strength and ductility
Shear Wall Addition: New concrete walls are added at strategic locations to absorb lateral seismic forces
Foundation Strengthening: Existing foundations are reinforced to support additional loads
Diaphragm Enhancement: Floor connections are strengthened to improve whole-building performance
Flexible Connections: Modern flexible joints are added between structural elements to absorb seismic energy

The engineering approach varies significantly based on the original building’s construction method. Buildings from the 1950s often require different solutions than those from the 1970s due to evolving construction techniques during Israel’s development decades.

Technical Standards and Requirements

Projects must comply with:

Israeli Standard 413: The nation’s earthquake resistance code
Israeli Standard 2413: Guidelines for reinforcing existing structures
Protected Space Requirements: Addition of mamad (reinforced security rooms) to protect against both conventional attacks and provide earthquake safety
Accessibility Standards: Requirements for elevator installation and accessibility accommodations
Fire Safety Upgrades: Modern fire protection systems and escape routes

The Approval Process in Detail

Step 1: Feasibility Assessment

Engineering evaluation of the existing structure
Financial modeling to determine economic viability
Preliminary architectural concepts
Initial resident outreach

Step 2: Resident Organization and Agreement

Formation of a tenant committee (usually 3-5 apartment owners)
Selection of professional advisors (typically lawyer, engineer, and architect)
Negotiation of terms with developer
Collection of signatures (minimum 66% required)

Step 3: Local Committee Approval

Submission of detailed plans to the municipal engineering department
Review against local master plans and zoning requirements
Public objection period (60 days for neighbors to raise concerns)
Committee hearing and conditional approval

Step 4: Detailed Design and Permitting

Complete architectural and engineering plans
Building permit application with detailed specifications
Payment of betterment taxes and development fees
Final permit issuance

Step 5: Implementation

For Tama 38/1: Phased construction while residents remain
For Tama 38/2: Temporary relocation and complete reconstruction
Municipal inspections at key construction phases
Completion certificates and occupancy permits

The Economic Model Explained

The financial viability of Tama 38 projects depends on a complex calculation involving multiple factors:

Value Creation Mechanisms

Additional Floor Area: The primary value driver is the right to build additional apartments
Expansion of Existing Units: Rights to enclose balconies (typically adding 10-15 square meters per unit)
Tax Benefits: Significant exemptions from various taxes (purchase tax, betterment tax, VAT on certain components)
Reduced Land Costs: No need to purchase land, which typically represents 30-40% of development costs in Israel

Typical Cost Structure

Construction Costs: For strengthening, renovations, and new construction
Professional Fees: Engineering, architectural, legal, and project management
Financing Costs: Interest on construction loans during the 18-36 month project duration
Tenant Compensation: Temporary housing costs or compensation payments during construction
Municipal Fees: Reduced but not eliminated entirely

Break-Even Calculation

For a project to be viable, the formula must satisfy:

Value of New Units > Costs of Construction + Existing Unit Improvements + Overhead + Profit Margin

In high-value areas like Tel Aviv and central Jerusalem, this equation works easily. In peripheral areas, the economics often fail to work, creating an implementation disparity across regions.

Regional Implementation Variations

Tel Aviv and Central Region

Highest implementation rate with thousands of completed projects
Premium specifications often included (high-end finishes, smart home features)
Typical addition of 2-3 floors, sometimes with setbacks for penthouses
Strong municipality involvement with design guidelines
Often includes significant architectural improvements to building facades

Jerusalem

Implementation complicated by historical preservation considerations
Varied by neighborhood with strong activity in areas like Rehavia and Baka
Often includes stone cladding to maintain Jerusalem’s architectural character
Special height restrictions in certain view corridors
Religious considerations incorporated into designs (sukkah balconies, Shabbat elevators)

Haifa

Adapted to topographical challenges with terraced solutions
Lower market values requiring more units to achieve viability
Often combined with neighborhood improvement initiatives
Special adaptations for buildings on steep slopes

Peripheral Cities

Limited implementation due to insufficient value creation
Some successful projects in cities like Ashdod and Netanya
Often requires additional development rights beyond standard Tama 38 provisions
Sometimes combined with government subsidies in priority areas

Legal Complexities

Property Rights Challenges

Registration of new units in the Land Registry (Tabu)
Creation of new condominium agreements
Allocation of common property rights
Adjustments to property tax assessments

Contractual Framework

Sophisticated Tama 38 agreements typically address:

Detailed specifications for improvements to existing units
Completion guarantees and timelines
Penalty clauses for delays
Temporary housing arrangements
Warranty periods for construction quality
Dispute resolution mechanisms
Special provisions for elderly or vulnerable residents

Dispute Resolution

Common conflicts include:

Construction quality complaints
Timeline extensions
Specification changes during construction
Disagreements between existing residents
Contractor bankruptcy or financial issues

These are typically resolved through:

Mediation clauses in original agreements
Specialized arbitration processes
Legal proceedings in housing courts

Social Dimensions

Community Impact

Tama 38 creates significant changes in neighborhood composition:

Economic diversity shifts as new apartments typically sell at premium prices
Generational changes as older buildings often house elderly residents while new units attract younger buyers
Potential gentrification effects in transitioning neighborhoods
Creation of mixed original/new resident communities with different expectations

Challenges for Vulnerable Populations

Elderly residents often struggle with construction disruption
Language barriers for immigrant populations during negotiations
Economic pressures from increased maintenance costs after renovation
Accessibility needs during construction phases

Future Direction: From Tama 38 to Urban Renewal 2.0

As Tama 38 transitions to newer frameworks, several trends are emerging:

Increased Municipal Control: Shifting from national outline plan to locally-tailored urban renewal districts
Infrastructure Integration: Better coordination with transportation, education, and utility planning
Social Housing Components: Requirements for affordable units in some renewal projects
Sustainability Focus: Higher energy efficiency standards and green building elements
Neighborhood-Scale Planning: Moving from individual building approach to coordinated area renewal

Case Studies of Successful Implementation

Case Study 1: Rothschild Boulevard, Tel Aviv

A 1960s apartment building on Tel Aviv’s prestigious Rothschild Boulevard underwent a Tama 38/1 renovation that maintained the Bauhaus-inspired facade while adding two luxury floors. The project involved:

Seismic reinforcement with minimal visual impact
Addition of underground parking using specialized engineering techniques
Installation of a high-speed elevator in the existing light well
Restoration of historical architectural elements
Addition of two setback floors creating premium penthouses

Original residents received comprehensive unit renovations, enclosed balconies adding 12 square meters each, and protected rooms. The building’s common areas were completely redesigned with lobby art installations and rooftop gardens. The project received architectural awards for sensitive integration of new elements with the historical character.

Case Study 2: Kiryat Hayovel, Jerusalem

A Tama 38/2 project in Jerusalem’s Kiryat Hayovel neighborhood demolished a deteriorating 4-story, 16-unit building from 1955 and replaced it with an 8-story, 32-unit modern structure. The project showcased:

Complete redesign with Jerusalem stone exterior
Underground parking solving neighborhood congestion issues
Solar energy integration for common area electricity
Community garden with playground facilities
Accessibility features throughout

Original residents received apartments approximately 25 square meters larger than their original units, with modern specifications including underfloor heating, smart home systems, and panoramic views from higher floors. The project catalyzed several neighboring buildings to pursue similar renewals, creating a domino effect of neighborhood improvement.

Statistical Impact on Israel’s Housing Market

According to the Urban Renewal Authority, between 2005 and 2023:

Approximately 17,500 buildings entered the Tama 38 process nationally
About 8,200 projects received full approval
Roughly 5,400 projects have been completed
Over 145,000 housing units were strengthened against earthquakes
Approximately 53,000 new housing units were added to the market
Tel Aviv alone accounts for about 35% of all implementations

The program has added housing units equivalent to a medium-sized Israeli city without consuming new land, while simultaneously addressing critical earthquake safety concerns—a remarkable achievement for a program that required minimal direct government funding.

Despite its scheduled phaseout, Tama 38’s market-based approach to solving multiple urban challenges simultaneously represents a globally unique policy innovation that continues to influence Israel’s approach to urban development and housing policy