AFFORDABLE HOUSING FOR PALESTINIANS IN BEIT HANINA, EAST JERUSALEM MAIN ISSUE ALLOCATED IRREGULAR BUDGET (2009) East Jerusalem, 7% primarly Palestinians Average unit size is 100 m2 125,000 71,300 38,500 Area (du) of Je- Area (du) of East Area of Palestinian rusalem Jerusalem Neighbourhoods 80.0 70.0 60.0 372,000 50.0 Total Arab 40.0 30.0 Population (2013) 20.0 10.0 0.0 1967 1970 1972 1980 1990 2000 2003 2007 2011 2013 Palestinains (%) Israelis (%) West Jerusalem, 93% primarly Jewish Ref: Bimkom, 2014 Population distribution between Palestininans and Israeli in Jerusalem (1967-2013) Source: JIIS, 2013: 9, ACRI. 2013; ARIJ, 2010:100 MASSIVE NEED FOR HOUSING “In Jerusalem ,there are 360,000 Palestinians living in 54,000 Housing Units, while 520,000 Israelis are living in 215,000 Housing Units. Khader Qirresh UJHA – Union of Jerusalem Housing Assembly 1 : 6.4 vs 1 : 2.4 Housing Palestinians Housing Israelis unit per unit per “The average price in 2011 was US$290,000, while the median gross household income was just $1,722. By international standards this price is unaffordable in comparison to average salaries.” (IPCC East Jerusalem Housing Review, 2013) PROJECT CONCEPT To develop a model of low-cost housing, on land owned by a non-profit association, mandated to Taxes Taxes improve housing and services for Palestinians in 15% 15% East Jerusalem. Developer Developer Profit Profit Core Concept: 15% We aim to reduce the cost of housing by reducing developer profit and upfront land costs. The project An example for non-profit housing of assocation. is built on land owned by a non-profit, and zoned Ariel photo for Engineers Housing in Beit Hanina for housing. The model reduces the cost of housing through non-profit development and long-term land Licensing & Licensing & rental. Construction Construction Land cost The model is replicable, with variations, on Family NPHA Waqf, Religious Waqf and non-profit land. Elements may be adaptable on larger tracts of privately-owned Developer CLT land, with purchase groups. cost 55% 55% Developing a hybrid approach of housing tenure Proposed hybrid model Land Land based on: 15% Existing local practice + International model Non-profit Housing of Associations in EJ + REGULAR PROJECT PROPOSED PROJECT Community Land Trust COST ELEMNETS COST ELEMENTS SITE ANALYSIS Atarot Airport Al-Ram Atarot Industrial Zone Site location FUTURE LIGHT TRAIN Bir Nabala - Al-Jeeb LINE (BROWN LINE) Begin Road Ramallah- Old City Jerusalem Road Separation Wall dunum37 Area C Nave Yacoub - According to today’s TABA 3458A, the area is determined for Original residential land use and allowed Neighborhood Beit Hanina SITE building rights are 75% and up to three floor and 6 apartments. - Today, changing landuse allows up to 320% building rights. - Av Plan, allows up to 720% build- Road 20 ing rights for lands adjacent to light Pisgat Zae’v Road 60 train line. - The model assumes 500% build- ing right as an average. Ramout Ramat Shlomo Shoufat Anata - Anatot PROPOSED PROJECT PROGRAM 37DU 14.8 DU 22.2 DU 111,000M2 740 360,000 LAND ALLOCATION RESIDENTIAL BUILDING RIGHTS APARTMENTS MARKET PRICE OF AREA OF 40% FOR AREA OF 14.8 OF 500% OF 100 M2 APARTMENT IN BEIT PUBLIC USE DONUM AVERAGE SIZE HANINA PROPOSED BUSINESS PLAN ALTERNATIVES FOR REDUCING COST BASIC SUBSIDIZED COMMERCIAL A ALTERNATIVE B ALTERNATIVE C ALTERNATIVE 50 YEARS LAND RENT 50 YEARS LAND RENT 25 YEARS LAND RENT MONTHLY MONTHLY MONTHLY PAYMENT PAYMENT PAYMENT 25 YEARS $930 25 YEARS $720 25 YEARS $875 - LAND SHARE - LAND SHARE - NO LAND SHARE $83 PER MONTH X 50 YEARS $83 PER MONTH X 50 YEARS MARKET SUBSIDIZED - ADDITION OF COMMERCIAL - APARTMENT COST PRICE PRICE SPACES (3,500 SQ.M.) $260,000 33% 67% - APARTMENT COST - DOWNPAYMENT - APARTMENT COST $260,000 + $60,000 $360,000 | $210,000 $6,500 (COMMERCIAL) - LOAN - DOWNPAYMENT - DOWNPAYMENT FOR $190,000 $60,000 $60,000 2% INTEREST PALESTINIAN BANKS - LOAN - LOAN 25 YEARS PERIOD FOR $143,000 FOR $207,000 2% INTEREST 2% INTEREST - PAYMENT PALESTINIAN BANKS PALESTINIAN BANKS LAND SHARE $83 25 YEARS PERIOD 25 YEARS PERIOD LOAN $817 SERVICES $30 - PAYMENT - PAYMENT LAND SHARE $83 LOAN $845 LOAN $607 SERVICES $30 SERVICES $30 NEXT STEPS - TAX REDUCTION AND RAISE FUINDS KEY INSIGHTS Investigating major financial elements that hugely affecting the business 1- This project could be implemented on Waqf or association lands. model in order to reduce the apartment cost: 1- Purchaser tax which forms up to 25% of the apartment price. 2- The proposed model needs large plot of lands to sustain large number of Postponing the purchase tax for the next selling or attempting to apartments to reduce land rent cost. reduce its percentage. 2- Betterment tax which adds up to 15% of the apartment price. Attempting to reduce its percentage. 3- There are serval aspects in the project that can be funded from interna- tional funds in order to reduce project cost..