Gaza Envelope Communities Blocked From Purchasing Temporary Caravans
The Israeli government's attempt to sell temporary mobile homes to Gaza envelope communities has stalled after the Ministry of Finance banned the use of state grants for the purchases, shifting the units to the Settlement Division.
The Israeli government is attempting to secure payments from Gaza envelope communities that wish to continue using hundreds of mobile homes (caravans) set up as temporary housing following the October 7 massacre. An initial attempt to sell the structures to the local councils failed after the Ministry of Finance imposed a strict condition prohibiting the use of state grants for the purchase, forcing communities to fund tens of millions of shekels from independent sources.
Following the failed sale, the management of the mobile homes was transferred to the Settlement Division of the World Zionist Organization. The division is currently formulating a track to offer the caravans for rent, prioritizing Gaza envelope communities, though ownership will remain with the division. If demand is insufficient, the Settlement Division will be authorized to deploy the surplus homes to other geographic areas at its discretion.
The Settlement Division operates as an arm of the World Zionist Organization. While not a direct government body, it is financed by the state budget and serves as an executive arm of the Ministry of Settlement and National Missions, headed by Minister Orit Strock. The division has contributed to the rehabilitation of the Gaza envelope through its work with the Tkuma Administration, but it is also active in Judea and Samaria, supporting young settlement outposts and farms.
The Ministry of Finance Restriction
The Tkuma Administration originally purchased approximately 680 mobile homes for temporary neighborhoods established for evacuated kibbutz members, at a cost of roughly 1.1 billion shekels. As residents prepare to return to their permanent homes, Tkuma issued a call for proposals allowing envelope communities to purchase the remaining 560 caravans, with 120 already acquired by hosting communities such as Mishmar HaEmek and Revivim.
The state priced the units at a 50% discount, aiming to collect around 200 million shekels if all units were sold. However, the Accountant General at the Ministry of Finance insisted on a clause forbidding communities from using government support funds or Tkuma grants for the purchase, effectively blocking the local councils from raising the necessary funds.
"The Treasury's condition prevents envelope communities from acquiring the caravans purchased for them, effectively redirecting state assets and acting as an indirect budget cut from the Tkuma Administration," local officials noted.
Future Deployment of Surplus Units
The Settlement Division stated that the management of the evacuated structures will adhere to government policy. The units will be designated for rental only through a transparent process. Meanwhile, the Ministry of Finance defended the policy, stating that the arrangement offers a 50% discount to encourage regional growth, while surplus units will be repurposed elsewhere if local demand is not met.
