Israel unveils plan to rebuild war-damaged neighborhoods
According to Katz, the bill “strikes a balance between property rights and the urgent need to restore damaged areas,” while also clearing bureaucratic hurdles


The Ministerial Committee for Legislation approved on Sunday a bill designed to accelerate the reconstruction of urban areas damaged during Operation Lion’s Awakening.
Backed by Finance Minister Bezalel Smotrich and Construction and Housing Minister Haim Katz, the proposal marks a significant advance in the national plan to rehabilitate affected neighborhoods.
Drafted by an interministerial task force that includes the Finance, Justice, and Housing ministries, working in coordination with the Urban Renewal Authority and the National Planning Service, the bill lays out a fast-track, comprehensive framework for rebuilding entire districts.
It aims to sharply cut administrative delays, strengthen the involvement of municipalities, and reinforce property-rights protections through fair and timely procedures.
A central feature of the legislation is what officials describe as “unprecedented” safeguards for residents. This includes an innovative compensation package offering a “Buy Out” option: homeowners may either participate in the renewal project or receive an immediate replacement home.
According to Katz, the bill “strikes a balance between property rights and the urgent need to restore damaged areas,” while also clearing bureaucratic hurdles to allow for long-term improvement of local urban infrastructure.
Smotrich called the measure “a vital national step,” stressing the need to rebuild quickly and intelligently, using the crisis as an opportunity to enhance quality of life for the future.
Yehuda Morgenstern, Director General of the Housing Ministry, praised the proposal’s “unified and efficient” process for expediting planning and permitting. The objective, he said, is straightforward: “to return families to normal life as soon as possible, while reinvigorating the urban landscape.”