What is TAMA 38?

What is TAMA 38 ?

A unique construction program in Israel to rebuild old apartment buildings.
Invest in a TAMA project and earn exceptional returns in a short timeframe.

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  • Israel is subject to earthquakes that could create devastating damage
  • There are over 300,000 older apartment buildings in Israel that could be severely damaged or destroyed in an earthquake or missile attack. These buildings were built with old building standards; pre1980.
  • The government gives incentives to builders and apartment owners to renovate their buildings to the new TAMA 38 standards to protect against earthquakes.
  • Incentives entice builders to re-enforce the structure of a building, add a safe room (mamad), elevator, re-face the building and other renovations that substantially increase the value of the building and the existing apartments.
  • As compensation for their reinforcement work the developers are given rights to build additional apartments on top of the buildings. The sales of these new apartments produces substantial profits.
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TAMA in ACTION

The first building has had TAMA renovations The middle building has not yet been renovated The back building is in the process of being renovated.

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TAMA Construction 1

Note how the pillars are being strengthened. The new apartments will actually sit on those pillars.

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TAMA Construction 2

The mamads (saferooms) are built first. The new balconies go between the mamads. In bigger projects we use a crane to speed up construction (notice the base of the yellow crane).

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Tens of Thousands of projects

There are literally over 200,000 older apartment buildings that qualify for TAMA renovations. Decades ago, entire neighborhoods were all built the same, and badly need upgrades.

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Old Buildings badly in need of repair

All of these older buildings have very poor plumbing and electrical services. The TAMA renovations bring them up to current standards and safety.

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Old Buildings badly in need of repair

The concrete in most of these buildings is literally starting to rot and break down. The building materials and methods in the 1950s were inferior to today’s standards. These buildings must be renovated and upgraded to make them safer and nicer.

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The Result of TAMA (1)

Two identical side by side buildings. The right-side building has been renovated under TAMA. It is nicer, safer, bigger and worth at least 30% more than the original building. Fortunately the neighboring building (on the left) is also undergoing a TAMA renovation.

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The Result of TAMA (2)

Two identical side by side buildings. The lef-side building has been renovated under TAMA. It is nicer, safer, bigger and worth at least 30% more than the original building. Fortunately the neighboring building (on the right) is also undergoing a TAMA renovation.

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Parking Solution

Many TAMA buildings have computerized parking elevators that can hold multiple cars in one “footprint”. This generates much more parking in the limited spaces below the buildings.

Everyone WINS

  • A) Tenants get a safer and nicer building, more living space and their property value increases.
  • B) Developers earn profits on sales of new apartments.
  • C) Government gets buildings up to TAMA 38 safety standardsm and increased tax revenue.
  • There is a shortage of apartment units in the cities where TAMA 38 building projects are being developed (primarily Tel Aviv & Jerusalem)
  • These are very high demand markets with extremely limited land for new developments – so the solution is to build UP
  • TAMA buildings are usually located in the highest demand neighborhoods. They were the earliest buildings in these neighborhoods – so they have excellent location, but they were built small. (the standard design for an apartment building in Israel in 1950 was 3 or 4 stories. Now that population has more than quadrupled, these buildings need to become 5 or 6 stories)
  • Incentives entice builders to re-enforce the structure of a building, add a safe room (mamad), elevator, re-face the building and other renovations that substantially increase the value of the building and the existing apartments.
  • As compensation for their reinforcement work the developers are given rights to build additional apartments on top of the buildings. The sales of these new apartments produces substantial profits.

The Developer gets to own and sell

  • a) the best apartments (brand new, American style, top floors with the best views and largest balconies),
  • b) in the best locations (high demand neighborhoods),
  • c) in newly renovated buildings that are the nicest looking and buildings on the street (now with elevators) and are the safest buildings on the street
  • d) with relatively inexpensive building costs (no cost of land)

The incentives offered to homeowners through Tama 38 can potentially raise their property value by approximately 30%. These incentives are provided completely free of charge and include:

  • a) Expansion (additional rooms) of existing apartment units by up to 25 sq. meters per home
  • b) Addition of secure rooms (each apartment gets a mamad that can be used as a bedroom or den, etc
  • c) Exterior and interior building design and renovation (new facing on building)
  • d) New elevator
  • e) New lobby
  • f) Refurbished gardens or parking
  • g) Sun patios or porches
  • h) Moreover, Tama 38 contains a full exemption from various tax requirements; namely, capital gains tax, amelioration tax, sales tax, and value added tax.

Who wouldn’t want these FREE upgrades to their apartment?

Tenants (owners) live in a nicer, safer building that is worth 30% more - with no cost to them

Articles About TAMA 38

Here are various articles about TAMA 38

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