Builders Seek Expanded Supreme Court Hearing on Discount-Housing Permit Fees

Ofek Sheli and the Israel Builders Association, Bonei Ha’aretz, are seeking an additional Supreme Court hearing before an expanded panel over construction-permit fees for government discount-housing projects. Their request, disclosed on November 5, challenges a September ruling that made a project-specific approval a condition for recovering half the fees paid to municipal authorities. The dispute concerns developers in the Mehir Lamishtaken program. The applicants argue that participation in the state’s discounted-housing tenders should establish that the homes are intended for young couples, without a separate certificate from the Housing Ministry or the relevant local authority. Lawyers Michael Rosen and Alon Lowenstein, who represent them, described the ruling’s legal basis as a “strained and weak legal construction.” The applicants contend that the certification requirement undermines the legislation’s social purpose and increases building costs. They also say developers may have to pursue approvals while facing limitation deadlines. Their account describes potential consequences for hundreds of projects and hundreds of millions of shekels; those figures are the applicants’ assessment of the dispute’s reach. The underlying case arose from an Ofek Sheli project in Beit Shemesh. The company paid about NIS 178,000 to avoid delaying its permits and sought half back. In May 2024, the Jerusalem District Court accepted its position that participation in the program was sufficient. The Supreme Court reversed that approach in September 2026. The new request seeks reconsideration by an expanded panel; no hearing or decision date has been announced.