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IN-DEPTH FEATURES
Breaking New Ground
Just before Pesach 5757 (1997), 730 residents of the Ramat
Shafat building project in Yerushalayim's new Ramat Shlomo
neighborhood had a pleasant surprise upon receiving letters
informing them that after a final accounting, the Ramat
Shafat company that had constructed their new homes was left
with a thirty-five million shekel surplus, which it would be
refunding to its customers.
This translated into a refund of over ten percent of the
price they had paid and was without precedent in the annals
of the Israeli construction industry, even among other
similar projects run by nonprofit organizations rather than
by private contractors. News of the surplus created a
tremendous kiddush Hashem, besides the fact that most
of the apartments had been handed over to their purchasers
way ahead of the scheduled completion date. It is not
presumptive to attribute this achievement to the company's
founding by Degel Hatorah and the consequent ongoing
coordination of all its operations with its rabbinical
advisory board.
Neither is this the only saving that Degel Hatorah has
managed to secure for the public in its housing projects.
Rabbi Menachem Blumenthal, one of the company heads,
estimates the overall saving to their clients at no less than
forty million dollars, due mainly to the appreciably lower
prices that Binyan Shaleim charges, and the wide gulf between
the prices of apartments on the general market and those sold
by Degel Hatorah in Yerushalayim.
In the fifteen years that have passed since Binyan Shaleim's
founding by the Housing Committee of Degel Hatorah,
Yerushalayim, over 2,800 families have moved into apartments
built by the company in a range of projects in chareidi
centers all over the country: in Yerushalayim, Modi'in Illit,
Elad, Beit Shemesh and Beitar Illit. The company's new
flagship project, a huge neighborhood with thousands of
housing units in the southern city of Yeruchom, is scheduled
to begin construction very soon (see accompanying box).
Widen the Site of Your Tent
When Degel Hatorah was founded in 5749 (1989), its leaders
met in Yerushalayim to discuss the very difficult housing
situation that the chareidi community faced. Yerushalayim,
Bnei Brak and Ashdod, the main centers, were straining at the
seams. Several smaller communities were scattered much
further out, in faraway corners of the country. The first
chareidi neighborhood in Beit Shemesh was in the early
planning stages, and the cities of Beitar Illit and Modi'in
Illit were at very rudimentary stages of construction. Elad
and Ramat Beit Shemesh were still unknown.
It was decided to establish a housing committee to seek ways
of alleviating the pressure. The Binyan Shaleim housing
company was founded as its executive branch, with the
encouragement and support of gedolei Yisroel, who gave
the venture their blessings with prayers for its success.
Degel Hatorah chairman Rabbi Avrohom Ravitz was serving as
Deputy Housing Minister at the time, and on his initiative,
cheap plots of land were allocated to Binyan Shaleim in
Yerushalayim's northeastern suburb of Neve Yaakov and in the
new neighborhood of Ramat Shlomo (which was then still known
as Reches Shuafat).
Although its first projects were in Yerushalayim, the ongoing
pressure to provide affordable housing led Binyan Shaleim to
undertake projects in many other locations around the
country. It has become a model of honesty and reliability in
the chareidi housing market. The prices it charges are the
lowest on the market and take all the factors relevant to its
clientele into account. Particular attention is paid to
developing infrastructure that is socially and economically
suited to Torah communities.
Binyan Shaleim does not do the actual construction itself. It
organizes and plans the neighborhoods, but it hires outside
contractors to do the work.
Binyan Shaleim accompanies the projects and the buyers
through every stage of the construction and handing over. It
supervises the quality of the building, provides necessary
legal coverage and assists clients with any claims they may
have against the contractors. The company's involvement has
led to discounts adding up to hundreds of thousands of
shekels that have been achieved by cutting costs and avoiding
linkages; this shows in the contracts that have been signed
with the developers.
New Neighborhoods, New Cities
Binyan Shaleim's first project, the construction of ninety
apartments in Neve Yaakov, got underway in 5751 (1991) and
introduced a new standard in housing for the chareidi
community. The project was planned by representatives of
Binyan Shaleim and applicants were processed according to
clear criteria such as families of bnei Torah,
economic standing etc. The apartments were allocated by
drawing lots, a method that was duplicated in future projects
and that has been adopted by the Ministry of Housing in low
cost projects. Most of the families who bought in Neve Yaakov
are still occupying their apartments, which cost them $36,000
— less than the regular market price at the time.
A year later, construction began on 730 apartments in the
main, central building project in Ramat Shlomo. The work,
which lasted several years due to the huge scope of the
project, was carried out through the Ramat Shafat
organization that was founded by Degel Hatorah. The same
methods were employed for the processing of applications and
allocation of apartments as in Neve Yaakov. The project won
wide publicity, both because of the low prices and the refund
to the residents after they had moved in. The effect of the
prices of Binyan Shaleim in the new neighborhood was such
that when another organization started building and asked
much higher prices for its apartments, it was quickly forced
to back down and reduce its prices.
In 5755 (1995), before the completion of the project in Ramat
Shlomo, Binyan Shaleim started building a completely new
area: the first 420 apartments in Achuzat Brachfeld, to the
north of Kiryat Sefer in Modi'in Illit. (In fact, it was
Binyan Shaleim that gave the Kiryat Sefer-Brachfeld region
the name Modi'in Illit, which has since been adopted by the
local authorities.) After many delays, the necessary permits
were obtained, with great siyata deShmaya, finally
enabling Binyan Shaleim's agreement with the firm Tzifcha
International to build the new area to be implemented.
This was the first project in the area where Jerusalem stone
was used to encase the buildings. Here too, the cost of the
apartments was significantly cheaper — by $10,000
— than the cost of other apartments in the area at the
time. In addition, upon moving into their new homes, each
family received a IS 15,000 refund.
With the arrival of the first residents, Tzifcha
International constructed temporary batei knesses, in
keeping with its undertaking to Binyan Shaleim. The beis
haknesses and the neighborhood were named after the Rosh
Yeshiva of Ponovezh, HaRav Dovid Povarsky zt'l, who
passed away at that time. The residents moved into the
beis haknesses' permanent building several months
ago.
Shortly thereafter, in 5757 (1997), Binyan Shaleim built a
hundred apartments in Ramat Beit Shemesh B, in the framework
of the Housing Ministry's distribution of land in the area.
These apartments were appreciably cheaper than those built in
Ramat Beit Shemesh A.
Two years later, Binyan Shaleim initiated the construction of
the 160 apartments in the Yefe Nof project, adjacent to the
chareidi area of Beit Shemesh, into which the residents moved
two years ago. The Rassido construction company which built
the neighborhood owned its own tracts of the land in the area
and, due to low demand, agreed to lower its prices. The
company invested huge sums in the project, which today is
admired for its beauty.
Beitar — Planting a Swiftly Growing
Seedling
A year later, in 5759 (1999), after its senior members had
met with HaRav Eliashiv and received his blessing, Degel
Hatorah made its first appearance in the city of Beitar Illit
when Binyan Shaleim signed an agreement with the construction
company B. Yair to build 291 apartments on Givah A.
The low prices in the area attracted the heads of Binyan
Shaleim, even though there had not been a sizable community
of bnei Torah in Beitar beforehand. This project
proved to be the groundbreaker for a series of similar
ventures that were undertaken in the years that followed.
Hundreds of families of bnei Torah have since settled
in Beitar. All along the way, from the first project to the
latest ones, assistance and support were extended by Rabbi
Yitzchok Pindrus, who originally served as a deputy head of
the local Council for Degel Hatorah, and who is now the
city's mayor.
Binyan Shaleim was instrumental in bringing a caravan trailer
to the area that served as a Torah center for the entire
area. When the Rosh Yeshiva of Chevron, HaRav Simchah Zissel
Broide zt'l, passed away, the beis haknesses
that was erected there was named Derech Simchah in his
memory.
Residents began moving into Beitar's new Gefen (Givah
B) neighborhood in 5763 (2003). A strong group of
families of bnei Torah was present from the beginning
and with a view to strengthening the local communities,
Binyan Shaleim entered into an agreement with the Dona
construction company to build seventy-six housing units. Here
too, Binyan Shaleim's representatives joined the planning
team and the prices asked were very cheap indeed —
$73,000 for a two- bedroom apartment (compared with a hundred
and $115,000 for a similar apartment on the general market),
attracting many clients to the project. The superlative
planning gave the project a good reputation and all the
apartments were sold before the first foundations were laid.
The residents were able to move into their new homes a year
ago.
New Horizons
Three years ago, Binyan Shaleim signed an agreement with the
Cheftsiba construction company to erect a building project to
the east of Modi'in Illit. Here again, Binyan Shaleim led the
way in the construction of a new area. The Cheftsiba and
Solel Boneh companies who owned the land realized that they
would not be able to break into the market in a new area on
their own and owing to Binyan Shaleim's experience in
building up new areas, Cheftsiba sought its assistance.
Against a background of rising apartment prices in the area,
an agreement was reached to provide cheap apartments on easy
terms.
For example, a two-bedroom apartment in Nachalat Cheftsiba
cost only $73,000, compared with $95,000 in other projects.
All the apartments were sold within a short time and are
shortly expected to be ready for handing over.
At the same time, Binyan Shaleim was making its first foray
into the new city of Elad. This project encountered
considerable delays in receiving building permits, caused by
political difficulties on the part of certain groups. The way
forward was eventually found and the families who purchased
the 104 apartments are expected to be moving in very soon.
A further 320 units have also been erected in two of Binyan
Shaleim's projects on Beitar's Givah B — Achuzat
Miriam and Kiryat Degel Hatorah-Beitar on the hill's southern
slopes, with a stunning view. Sales have now begun for
another two projects in the neighborhood, where 200
apartments are to be built, costing just $82,000 for a two-
bedroom apartment, including a storage room.
These figures add up to a total of $2,800 housing units in
chareidi centers across the country — a formidable
achievement. So far, 820 apartments have been built in
Yerushalayim, 900 in Beitar Illit, 690 in Modi'in Illit, 260
in Beit Shemesh and a hundred in Elad.
by R. Collins
Families began moving into their new apartments in Kiryat
Degel Hatorah-Modi'in Illit several months ago and hundreds
more apartments are now in the final stages of completion.
The high standard of construction, the superlative planning
of the apartments and the excellent conditions of purchase
have made this new project much-sought-after. To all
appearances, it will become the most dominant housing project
in Modi'in Illit and one of the preferred chareidi locations
in the country.
In light of the project's great success we put several
questions to Rabbi Avraham Rubinstein, Deputy mayor of Bnei
Brak, who is well acquainted with the history and development
of the new neighborhood.
YN: When was the project launched?
Rabbi Rubinstein: Several years ago, [when] the Kiryat
Degel Hatorah organization reached an agreement with the Neot
Hapisgah company to construct a first stage containing 200
housing units [and] a second stage [that] would bring the
total number of units to 400.
According to Rabbi Rubinstein, construction began two years
ago and in Menachem Av 5765 — just four months ago
— the first residents were able to move into their new
apartments.
YN: What are the advantages that are drawing so many
families to the new neighborhood?
Rabbi Rubinstein: This project has many pluses, some
of which are exclusive. First, the price. The planners and
directors decided to make the prices lower even than those of
other projects in Modi'in Illit itself. In addition, the
applicants are very high level bnei Torah, and
residents are being chosen according to responsible and
serious criteria by a special committee that has been set up
for the purpose. Virtually all the newcomers are affiliated
with the Degel Hatorah sector.
YN: Don't the low prices suggest that the quality of
the construction has been compromised?
Rabbi Rubinstein: Quite the reverse is true. Despite
the prices, the caliber of the building is of the highest and
also the dearest. The apartments are very spacious indeed.
Each building has a large entrance lobby and the facades of
the apartments are particularly pleasant to look at. Most
important is the fact that every family enjoys a finished
apartment that satisfies any criteria of quality and fine
finish.
YN: How was the idea for the project first
conceived?
Rabbi Rubinstein: There were a number of
considerations, the main one having been the need to meet the
ongoing demand in the area. The underlying idea was to assist
avreichim in purchasing apartments by lowering prices.
It seems that the initiative was taken at the right time.
Many of the units have already been sold and more sales are
in progress at present.
YN: What about the sort of problems that usually
accompany any new neighborhood, such as a dearth of communal
buildings etc.?
Rabbi Rubinstein: If one wants to register another
point in the project's favor, I think it would be the
preparedness of the planners with regard to educational and
communal facilities. A beis haknesses was opened in
the neighborhood on the first day that residents moved in.
Kindergartens were also opened immediately, to meet the needs
of the new arrivals. The project management is alert to the
residents' needs and does all it can to respond suitably
— in fact, all the necessary facilities are being
provided.
YN: How is the project expected to develop?
Rabbi Rubinstein: Everything points to tremendous
interest on the part of the public, boruch Hashem. It
looks like the plan to build 400 apartments will be
implemented very soon. In view of its great success, we hope
that the project will continue its growth and will expand
further with the construction of additional hundreds of
apartments.
Binyan Shaleim's major project, Neot Ha'irussim (Iris Oasis)
is to be constructed in the city of Yeruchom, in the Negev.
Nothing less than a new city is being planned, of high
standard and on a huge scale, with the sole aim of
alleviating the chareidi community's housing shortage. HaRav
Eliashiv wished the planners success in their endeavors and
encouraged them. He said, "It will be a great relief for the
public and will im yirtzeh Hashem be successful."
HaRav Aharon Leib Steinman, HaRav Moshe Shmuel Shapira. HaRav
Michel Yehuda Lefkowitz, HaRav Chaim Kanievsky, HaRav Shmuel
Auerbach and HaRav Nosson Tzvi Finkel all gave the initiative
their blessings.
The project, of unprecedented size and scope, will be located
next to the thriving chareidi community of Yeruchom, which is
led by its rov, HaRav Mordechai Krausz. The new project aims
to provide quality housing at substantially cheaper prices
than in the main cities and even in the various housing
projects for bnei Torah. It is hoped that by providing
affordable apartments on a large scale, the project will
effect a turnabout in the housing situation, finally putting
an end to the terrible difficulties undergone by so many. For
this reason it has merited the fervent blessings of the
gedolei Yisroel.
Planned for inclusion in Neot Ha'irussim are a large yeshiva
gedoloh of distinction, tens of kollelim,
employment opportunities for women and high quality building
and infrastructure. All this will be available for
approximately half the price of an apartment in a similar
chareidi project and with an initial payment of just several
thousand dollars.
There are plans to build a Shabbos generator to supply the
city over Shabbos and have it operational by the time the
first families move in. The spiritual foundations of the new
city are already present; the level of the area's spiritual
life compares favorably with any of the large cities. The
Torah community of Yeruchom has produced several generations
of avreichim and bnei Torah who have raised
fine families. Yeruchom's chareidi educational institutions
are among the finest in the chareidi centers across the
country.
The construction of 4,000 (!) apartments is planned for the
first stage. These will be spread out over a large area and
will include large, spacious, high-quality apartments, parks
and complexes providing all necessary services.
The project's best feature is the price: according to the
planners, a two-bedroom apartment, ninety square meters (900
square feet) in size, with air conditioning and the shell of
an extra room will cost just $52,000, after the reduction of
the special grants for Negev Development. This would make
Neot Ha'irussim the cheapest housing option available
anywhere in the country. The low price and the special
payment plans will mean that when purchasing an apartment for
a young couple, each side will only have to put down three
thousand dollars.
On a daily basis, gedolei Yisroel witness the distress
of parents marrying off their children and yearning for some
respite from the financial pressures. They have therefore
encouraged the planners to speed up the implementation of the
project, which they see as providing relief and assistance to
families of bnei Torah and establishing a strong Torah
beacon that will illuminate the entire Negev region.
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