KKL-JNF Allocates NIS 33M to Boost Urban Renewal in Israel's Periphery
The Jewish National Fund approved a 33 million shekel budget for 2026-2027 to fund detailed urban planning in Israel's northern periphery, tackling seismic risks and market failures.
The paradox of urban renewal in Israel is well known: precisely in the areas where the danger to buildings is highest, namely peripheral settlements adjacent to the Syrian-African Rift, urban evacuation and reconstruction or building reinforcement projects are almost non-existent. The reason is not a lack of willingness from residents or local authorities, but a structural market failure: low land values in the periphery render these projects economically unviable for private developers, leaving thousands of old buildings under a real seismic threat.
Now, the Jewish National Fund (KKL-JNF) is attempting to step into this vacuum. The KKL-JNF board of directors approved this week a dedicated budget allocation of up to 33 million shekels for the years 2026-2027, aimed at removing one of the central barriers to the realization of projects: the detailed planning stage.
Focusing on the Northern Periphery
The initiative focuses on settlements in national priority areas that have been mapped as facing exceptional seismic and structural challenges, including Kiryat Shmona, Katzrin, Hatzor Haglilit, Safed, Tiberias, and Beit Shean.
Although government assistance budgets exist in some cases, the primary practical obstacle begins with the absence of detailed plans. Without a clear definition of building rights, infrastructure burdens, public needs, and designated complexes, the private market struggles to assess economic feasibility and avoids entering the process. Under this move, KKL-JNF will finance and lead the preparation of dedicated statutory plans for each participating authority, at an estimated cost of up to 3 million shekels per authority.
"A reality has been created in Israel where precisely in the places that need renewal most of all, it struggles to get off the ground," said KKL-JNF Chairman Eyal Ostrinsky. "In the periphery, there are old buildings, a real risk in the event of an earthquake, and authorities that want to renew themselves, but the market alone cannot always provide the answer."
Environmental and Strategic Value
Beyond the safety imperative, KKL-JNF explains that the move is based on a direct environmental consideration. The densification and renewal of the existing urban fabric provide a response to population growth and housing demand without encroaching upon open spaces, forests, and natural values surrounding the settlements.
Ostrinsky added that the current step constitutes a first pillar in a broader strategic plan by the organization to enter the field of urban renewal in the periphery. The final budget allocations to the authorities will be determined in accordance with professional criteria and in direct coordination with the heads of the local authorities.
