In a discussion held today (February 5, 2008), the Knesset Constitution, Law, and Justice Committee adopted recommendations by the Association for Civil Rights in Israel (ACRI) and other organizations for a legislative amendment to the Execution Law that would protect mortgage borrowers from eviction if they have no other housing alternatives. Previously, banks were permitted to evict residents for failure to meet mortgage payments, even in case where the residents had nowhere else to live. Over 700 Israeli families are evicted from their homes each year for non-payment of mortgage installments.
The Knesset Constitution, Law, and Justice Committee discussed an amendment to Section 38 of the Execution Law. This section stipulates that, in the event that the Execution Office orders the eviction of a resident from his home, proof will be required that the debtor and family members living with him have a reasonable place to live or an alternative arrangement. However, this section, as currently worded, allows banks and other lenders to exclude it from their contracts with mortgage recipients. The recipients have no choice but to accept the terms of the contract, even though in many cases they are unaware of their significance. The result for thousands of families annually has been to remove the protection granted by the law-the provision of alternative housing by the bank in the event that the residents are evicted due to non-payment of mortgage installments-and to place these families in real danger of having no roof over their heads.
In a position paper presented to the committee by ACRI Atty. Gil Gan-Mor prior to the discussion, ACRI demanded the revocation of the law’s provision allowing banks to evade their obligation to guarantee alternative housing to evicted families. Banking representatives, on the other hand, voiced their opposition, even in cases in which the debtor is faced with being literally thrown onto the street. The Committee Chairman, Prof. Menahem Ben-Sasson, was harshly critical of the banking representatives, who refused to reveal data on the anticipated economic impact of the amendment’s passage.
In their jointly submitted position paper, ACRI, Yedid (The Association for Community Empowerment), Halev (The Movement for Living in Dignity), and other organizations, emphasized that the eviction of a resident who has no alternative place to live is a serious violation of the right to shelter-a basic right that is anchored in Israel’s Basic Law: Human Dignity and Liberty. The organizations also claimed that at the base of the social interest lies an obligation not to deprive entire families of housing. The recommendations were fully accepted by the committee.
In future sessions, the committee members will discuss the need to define exceptions to this regulation and determine the extent of guarantees for alternative housing.
ACRI commends the Constitution, Law, and Justice Committee on its decision to adopt the proposed amendment to the Execution Law and protect mortgage recipients from forced eviction.
