Here's a startling fact: it’s more expensive to
buy an apartment in Tel Aviv today than in Manhattan. The housing situation in
the rest of central Israel is not much better – overcrowded and expensive – and
well beyond the means of average Israelis, especially young families. Social
unrest throughout the country two years ago added further voice to argue for
greater economic and housing opportunities, and shed light on the ongoing
struggle the middle-class experiences to obtain a better quality of life.
The situation
has been referred to as “one of Israel’s biggest political issues of all
time.” So the question remains, where can young Israelis, who are
contemplating the prospects for a better life, move?
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In the Central Arava
at Hatzeva Moshav where new houses are to be built: Back
row L-R: Elliot Nory, Jeff Schwartz, Yehuda Richman, Rick Krosnick. Front
row L-R: Ravit Greenberg, Rubin Pikus, Noa Zer, Marc Kelman, Joe Wolfson.
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The Arava
Desert region is not the first place they would think of. Yet, Jewish
National Fund (JNF)'s Housing Development Fund, comprised of a dedicated
group of American Zionists and business leaders, is looking to attract people
to move to a place that, for most Israelis, may seem to be the end of the
world. This new initiative is part of JNF’s Blueprint Negev campaign, which
was launched 12 years ago to help develop the Negev Desert in a sustainable
manner to make it home to Israel’s next generation.
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“There is a
great demand for housing outside of central Israel and we have to provide
alternatives for people to move from there to the north and south where
communities want to expand,” said JNF Chief Development Officer Rick
Krosnick. “The average person cannot afford to own a home in the center as it
is an issue of supply and demand. The Negev is 60% of Israel’s land with only
eight percent of its population. Our focus at JNF is to look at development
in the south and north in a holistic way, and create new housing, job,
education, healthcare and quality of life opportunities.”
Be’er Sheva,
once a small backwater town in Israel’s South, is now undergoing exceptional
development. As more and more ambitious projects for Be’er Sheva come to
fruition, JNF and its partners have expanded their efforts to include Central
Arava, an arid desert region considered the most remote part of the country.
As you descend
the winding road from Dimona to the Arava Valley you may well wonder how
anyone could survive in this barren environment. Located between the towering
Edom Mountains of Jordan and the hills of the Negev, much of Central Arava is
still pristine wilderness with dramatic natural beauty.
Then you catch
sight of the greenhouse communities, iridescent in the winter sun, a signal
that you have entered the “Silicon Valley” of Israeli agriculture. Comprised
of five agriculture moshavim (cooperative agricultural communities) and two
other communities that focus on tourism and services, all together, only 830
families – 3,300 residents -- live in the region.
While there may
be a lack of natural resources, industry, and employment opportunities, the
primary source of income for area residents is sophisticated agricultural
practices that yield impressive results. The region’s 500 farming families
produce an astounding 65% of all of Israel’s fresh vegetable exports and 13%
of its cut flower exports, despite an average yearly rainfall of a mere two
inches.
With the
advancement of green thinking and sustainable practices, the local
eco-tourism industry has taken off in recent years. Currently the Arava
region’s 300 tzimmers (bed & breakfasts) are often fully booked and the
number of tourists is increasing all the time. If you’re seeking a quiet
scenic refuge with great expanse within Israel’s borders, this is the place
to explore.
All seven
Central Arava communities, as well as the Reform Movement’s Kibbutz Yahel
further to the south, have goals to expand. “We have a lot to offer here, and
people would love to come to live here if there were smart solutions to the
housing and jobs issues,” said Noa Zer, Arava’s regional council development
director.
But, though there are waiting lists of people genuinely interested in moving
to the Arava region, the communities don’t have the capital to develop the
physical infrastructure (water, roads, sewer, electricity) for new residents
to build homes.
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In Ein Yahav, overlooking a view of construction in a new neighborhood,
Tete Degani, construction director of Central Arava, refers to housing plans. |
Enter JNF’s
Housing Development Fund, a plan to help solve the immediate financial and
bureaucratic problems regarding the building process. Israeli banks won’t
loan the money without collateral, but JNF is establishing a $25 million
revolving fund to provide bridging loans to these communities to carry out
the basic infrastructure so they can then start marketing residential
properties. Once the lots are sold, the money will be returned and passed on
to the next community.
Several members
of the Housing Development Fund task force were in Israel in February on a
working mission to check out the development of the plan and the
possibilities for future communities.
These are not
donors who simply write a check for a particular charity or project. They are
real estate professionals with considerable experience in the building trade
who know what questions to ask. Jeffrey Schwartz, a builder from Philadelphia
and chair of the Housing Fund, explained: “I’ve built more than 3,000 houses
during my career and I use those skills and the knowledge I’ve accumulated to
really be involved in the process. We have stakeholders back home who expect
results and we’re performing our due diligence to deliver.”
“This is a
different perspective for me, as well,” said real estate developer Rubin
Pikus from Manhasset, Long Island and Palm Beach, Florida. “I’ve been
involved in projects here, like reservoirs and parks. But this fund has a
‘boots on the ground’ mentality. If you want to build a house today you have
to have the right plan, permits and financial stability to carry it out. This
is not always the way building in Israel has worked.”
Pikus added
that the housing project will help drive people to make the move to a place
away from crowded urban centers. “I really believe this means saving lives,”
he said. “It will bring people together to grow careers in agriculture and
other professions. If this is something that can be productively and
economically achieved, in the very near future, then why not give Israelis
this opportunity?”
Marc Kelman, a
commercial real estate developer from Phoenix, Arizona, has been involved in
JNF and Blueprint Negev for years. “We want to build a better quality of life
for Israel,” Kelman said. “We’ve made huge strides towards achieving our goal
of encouraging 500,000 people to relocate to the Negev. I’m amazed at the
progress we’ve made. Be’er Sheva has developed beautifully and now we’re
working on other outlying areas.”
“Our focus isn’t
just the Arava or the Negev,” said Joe Wolfson, an attorney from
Philadelphia, who explained that the Housing Fund is for both the north and
the south. “There are a number of good reasons why it’s important for
Israelis to move to these areas. There are young professionals and successful
Israelis who can’t afford to live in the center of the country. While they
may choose to go abroad, Israel can’t afford a brain drain of the next
generation of future leaders in technology, business and government. We must
respond to the current socio-economic crisis and the obvious solution is to
create new opportunities to ensure they remain in the country. Simply stated,
what we’re doing is stepping in to help relieve the housing problem by
creating new prospects for today’s generation to keep tomorrow’s firmly
planted in Israel.”
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