What is TAMA?
TAMA (or “National Outline Plan”) 38 is a nationwide seismic reinforcement project. In addition to protecting existing buildings against the threat of earthquakes, it also offers residents a unique opportunity to enjoy a significant upgrade in their quality of life. The plan was approved in 2005 and covers structures for which a building permit was granted before 1980.
Note: There are two types of projects that fall under the TAMA 38 umbrella. TAMA 38/1 reinforces existing buildings, while TAMA 38/2 involves demolition and then new construction, as outlined below:
TAMA 38/1
Residents’ Rights
The residents (rights holders) benefit from the protection and peace of mind that comes from improving the building’s resistance to earthquakes. In addition, they benefit from additional construction that adds up to 25 sqm per apartment from an extra room / safe room, balcony and/or storage room.
If it is technically feasible, a modern elevator and modern parking facilities are also installed in the building.
All building infrastructure is upgraded. The building exterior is renovated, as are the stairwell, lobby, and garden.
Residents’ Consent
In order for a TAMA 38 project to be implemented, the original initiative must come from either the residents or the developer. Following preliminary checks that the building meets the required criteria, the residents hold a vote and submit their written consent to the project.
It is important to highlight the fact that the TAMA project can go ahead with the consent of a two-thirds majority (66% of residents). There is no need to secure agreement from all residents.
Residents have extensive rights within the framework of a TAMA 38 project, but, to avoid potential pitfalls, it is always important that the residents take appropriate steps to maintain those rights, such as appointing an attorney, construction supervisor, and real estate appraiser to act on their behalf. The residents are also entitled to come together and elect a representative who will be responsible for advancing the project on their behalf.
Work performed within the project framework:
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Construction of a safe room for each apartment (depending on building lines)
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Construction of a sun balcony for each apartment (depending on building lines)
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Renovation of the building facade
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Reinforcing the building foundations against earthquakes (in line with SII 413)
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Cladding the building with Jerusalem stone (according to urban renewal regulations for the city of Jerusalem)
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Replacing all common infrastructures
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External development – construction of fences, renovation of the garden, and establishment of access paths
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Renovation of the entrance lobby
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Installation of a new elevator (if technically feasible) or renovation of the existing elevator
Transfer Tax & Improvement Levy
It is true that a TAMA project increases the value of apartments in the building and, therefore, residents profit from the building rights that were granted to them as part of the project. However, the good news is that residents are exempt from paying transfer tax – as long as the following conditions are met:
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The developer provides the residents with everything the company is obligated to provide under the TAMA plan.
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The consideration for granting rights is given to the tenants through the renovation of the building, and not by any other means.
In addition, the law stipulates that, in regard to TAMA 38 projects, residents will be exempt from the improvement levy.
TAMA 38/2
The TAMA 38/2 amendment was created after it was discovered that many buildings would not be able to comply with SII 413, even after receiving reinforcement work under TAMA 38/1.
The amendment allows for the demolition and reconstruction of the existing building, in line with strict standards. As the new building will be higher than the previous one, it therefore contains a larger number of apartments (the maximum height of the building and the exact number of additional apartments are subject to the local authority’s policy).
As a result of a TAMA 38/2 project, residents enjoy the benefit of living in a completely new building, with a new modern apartment that has been meticulously planned and is larger than the previous apartment.
Similar to a Vacate & Build project, TAMA 38/2 ensures that residents are moved from their current apartments and housed in temporary apartments, with the rent being paid by the developer. In fact, the main difference between TAMA 38/2 and Vacate & Build projects is the scope – TAMA 38/2 projects can be performed on a relatively small scale (as little as 22 apartments).
COHEN SHMUEL GROUP
CSG has been a recognized leader in the TAMA 38 field for many years, both within Jerusalem and further afield. Therefore, choosing CSG for a TAMA 38 project gives residents complete peace of mind, as they know that all of their rights under the project will be exercised fully and completely.
