A bill of the Ministry of Social Cohesion and Family passed by the Parliament on Tuesday includes, among other things, a new incentive framework that aspires to activate dormant properties, utilize public land and increase the supply of affordable housing in a market still squeezed by high prices and reduced availability.
At the core of the new housing strategy are: full tax exemption on property leases available for social housing or supported living housing, creation of approximately 2,000 social houses in inactive military camp, acceleration of land use changes and buildings for housing, and reformation of the Demographic Development Program with more attractive conditions for relocation.
It is a package that attempts to use tax policy and urban planning regulations as a lever to increase housing supply, rather than relying solely on demand-side subsidies.
Although the public debate has focused primarily on permanent interventions for people with disabilities, the economic interest of the bill lies in the provisions that attempt to increase the available housing stock, mobilize private capital and leverage public property through a network of tax and urban planning incentives.
