The Housing Ministry has announced, in reply to a request by MK Rabbi Yaakov Asher, an amendment to the uniform contracts made between contractors and apartment buyers which fall under the framework of the "Mechir Lamishtaken" purchase contracts, that these include a clause of a halachically proper Heter Iska. This program involves special auctions of land for building in which contractors compete by offering the best Mechir Lamishtaken, meaning the lowest price to the buyer. Typically these attractively-priced apartments are given out by lottery since there is more demand than supply.
Administrators of this housing project group obligate the contractors and buyers to sign standard uniform purchase contracts which include customary clauses established by the Housing Ministry. One of the clauses of these contracts incorporates a payment process reflecting interest and linkage to the Cost of Living Index, a clause which raises problems vis-a-vis the Torah prohibition of interest. From now on these arrangements will be made in the framework of an halachic hetter iska.
Alongside the comprehensive parliamentary activities for housing projects at a reasonable cost for the chareidi public, the need has arisen to adapt the purchase contract to the Torah requirements of same by amending the clauses of interest and linkage through a proper Heter Iska arrangement.