The Israeli government announced the launch of “Renovating in Unity” in late June, a plan to fast-track the restoration of property damaged during the recent 12-Day War with Iran. Iranian missile attacks during the 12-Day War resulted in $1.47 billion (NIS 5 billion) of property damage in Israel, according to the Israel Tax Authority’s compensation department. This figure, totaling roughly double the entire cost of damages from the October 7 attacks and the ensuing war, stems from some 45,000 property damage claims filed by Israeli homeowners.
“These are amounts we have never seen for direct damage,” Amir Dahan, director of the Tax Authority’s compensation department, told the Knesset Finance Committee of the high cost.
Under the framework of “Renovating in Unity,” announced jointly by the Ministry of Finance, the Ministry of Construction and Housing, the Israel Tax Authority and the Israel Builders Association, the damage will be broken down by jurisdiction, and local governments will assign each damaged apartment complex to be repaired by a large contracting company. The repairs will be paid for entirely by the Israeli government.
This arrangement is intended to streamline the repair process. Rather than individual claims being handled separately within a single apartment complex, entire complexes being repaired in single, larger-scale projects means only these large contractors will coordinate with the local government. This eliminates the bureaucratic complications and red tape that may arise from individual homeowners trying to make repairs.
“There is no need to deal with contractors, receive price quotes, or monitor work,” said the Israeli ministries and associations in their announcement of the project. “The entire process is managed by the state, including financing, supervision, and execution.”
Because each apartment complex will be repaired under a single contractor, all residents will have to agree on a unified standard and design of the repairs. Israelis can opt out of the plan and have their home repaired individually at the government’s cost, but they may encounter significant delays.
Of the 45,000 claims filed, property damage ranges from broken windows to entire buildings reduced to rubble; 35,000 of the claims are for structural damage. Cities with the most damage claims include Tel Aviv, Ashkelon and Haifa. The war, which also killed 28 Israelis, forced more than 11,000 to evacuate from their homes due to this damage. In addition to private homes, vehicles and possessions, significant damage was also done to the Weizmann Institute of Science in Rehovot, the Bazan oil refinery in Haifa and the Soroka Medical Center in Be’er Sheva. Israelis who lost possessions in the war are also eligible for additional compensation from the government.
Critics of “Renovating in Unity” argue that the government’s restoration plan is inefficient and also takes work away from smaller contractors. Because construction contractors known for large projects are executing the repairs, smaller contractors specializing in renovations have been excluded, according to Association of Renovation Contractors chairman Eran Siv.
“The state made a deal with the big contractors in the market,” Siv told Israeli publication Davar. “They’ll transfer workers from small contractors to the big companies, and instead of letting us do quality work, they’re giving the jobs to a construction contractor who has no renovation experience.”
Siv argued that, contrary to the government’s claims, using large construction contractors to repair apartment buildings will not be fast and will result in a lower-quality outcome. “Construction contractors are not trained in managing renovations, and the whole plan is based on some preliminary assumption that says, because of the situation, homeowners will agree to a lower standard,” he said. “Why would anyone agree to return to an apartment in worse quality than before the attack? Why give up the ability to design and make changes during the renovation, and most importantly, to be in direct contact with the contractor who is doing the work?”
Siv added that giving individual homeowners government grants to go about repairs the way they see fit is a better strategy.
Government officials are enthusiastic about the plan. “The ‘Rebuilding in Unity’ project represents a paradigm shift in how we respond to war-related damage,” said Yehuda Morgenstern, director general of the Ministry of Construction and Housing. “We’re bringing the knowledge and expertise of Israel’s top contractors directly into people’s homes,” Finance Minister Bezalel Smotrich said. “Instead of bureaucracy, service. Instead of delays, action. This is an innovative model that brings together all the key players, lifts the burden off citizens, and supports them from start to finish: from renovation to returning home.”
In addition to direct damage, Israel’s economy took a hit during the 12-Day War as a result of business closures during much of June. Businesses will be eligible for grants from the government depending on their size and how badly their business was hit due to the war, and employees placed on unpaid leave will receive payments from the government as well. According to Israel’s Statistics Bureau, 35% of businesses said they expected to lose more than 50% of revenue in June.
Despite this economic hit, Israelis are hopeful that the damage done to Iran’s nuclear facilities during the war will spark a sense of optimism for the potential reshaping of the Middle East, helping the stock market and encouraging investors by lowering risk. “We are removing an existential threat and also an economic threat, as well as geopolitical risks,” said Shmuel Abramzon, the Finance Ministry’s chief economist.
It is this optimism that underscores “Renovating in Unity” as well. Israelis rebuild. “I’m not leaving Israel,” wrote journalist and TV reporter Shanna Fuld, whose Tel Aviv apartment was destroyed by an Iranian missile, in an article for The Jerusalem Post. “Not now, not after a missile from Iran decimated my apartment. The entire purpose of terrorism against Jews is to push us out, to scare us into leaving this land. I refuse to fulfill that mission for them.”
Photo Caption: Israeli Flag
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