Histadrut Launches $25 M Program for Housing for Young Israeli Families

A $25 million mortgage fund for the financing of 5000 housing units for young Israeli couples will be established by Histadrut, Yehoshua Levy, Histadrut treasurer, reported at a meeting of the Board of Directors of the Israel Histadrut Foundation. Histadrut’s housing authority, Shikun Ovdim, will build the 5000 low-cost apartments.

Levy stated that the acute housing shortage in Israel hits the young married folk especially hard, as it is difficult for them to obtain mortgage money at reasonable rates. Most of the young families consist of army veterans and come from the Oriental, low-income communities.

Dr. Sol Stein, president of the American based Foundation, proposed participation in this venture by American donors, who would be asked to raise $5 million in 1000 units of $5000 each through Histadrut Charitable Annuity Trusts. In return, the donors would receive 8.5 percent annually on the contribution for life. Upon demise of the donor, the capital gift would revert to the Israel Histadrut Foundation for its health, educational and social welfare programs in Israel.

In his report to the board, Dr. Stein revealed that during the past fiscal year, the Foundation had received new commitments of $4.2 million in the form of wills, bequests and annuity agreements. This is an increase of $1.4 million over the previous year. The cumulative total of long-term commitments to the Foundation since its inception 12 years ago is now $25.7 million, made possible by 1511 individuals. A goal of new commitments of $6 million for the fiscal year 1972-73 was set.