The report also found that as of February 2025, many temporary housing projects remained incomplete, leaving displaced residents in unstable living conditions.
By Sveta Listratov, TPS
Bureaucratic delays, political disputes, and housing shortages have stalled reconstruction in Gaza-area communities, leaving many displaced Israeli residents in limbo despite promises of swift rehabilitation and essential funding, Israel’s State Comptroller said in a biting report released on Monday.
Tens of thousands of residents of southern communities were forced to evacuate after Hamas’s October 7 attack.
“The findings reveal failures in government preparedness, temporary housing solutions, and long-term reconstruction. It is inconceivable that political disagreements and bureaucratic obstacles prevent the allocation of a NIS 5 billion [$1.4 billion] development budget,” said State Comptroller Matanyahu Englman.
The comptroller, also known as the state ombudsman, periodically releases reports auditing Israeli preparedness and the effectiveness of government policies.
In the aftermath of October 7, the government established the Tekuma Directorate to oversee reconstruction of homes and infrastructure.
But the comptroller’s investigation revealed significant obstacles in implementing these initiatives.
According to Englman’s report, government agencies failed to establish a comprehensive emergency housing strategy. Delays in defining the geographical scope of the affected region created legal and financial barriers, to allocating Tekuma’s NIS 5 billion ($1.4 billion) budget.
The report also found that as of February 2025, many temporary housing projects remained incomplete, leaving displaced residents in unstable living conditions.
The report highlights specific cases where makeshift homes lacked essential infrastructure, posing safety hazards and prolonging the suffering of evacuees.
Sharon Segev, a resident of Kibbutz Be’eri told The Press Service of Israel, “There is a feeling that something new is starting, a great expectation that things will improve, but within all of this, there is also a sense that we are still not truly seen.”
Kibbutz Be’eri was one of the hardest-hit Gaza-border communities during Hamas’s October 7 attack. More than 100 terrorists infiltrated the kibbutz that day, killing more than 100 residents and abducting over 30. Many homes were burnt during the fighting.
Since then, around 1,000 residents of the kibbutz spent months at a hotel by the Dead Sea before most relocated to Kibbutz Hatzerim in August.
“We were invisible during the long hours we were locked in our safe rooms on October 7, and even now, from the state’s perspective, it seems as if we are taken care of—placed in hotels, with temporary housing being built in Hatzerim,” Segev said.
Further compounding the situation, a leadership vacuum in the Tekuma Directorate has exacerbated operational inefficiencies.
According to the report, Tekuma, which was established in October 2023 has lacked a permanent director, and that temporary appointments have hindered decision making and coordination among various government ministries.
Residents of the hardest-hit communities told the State Comptroller that the absence of clear leadership has directly affected the speed and quality of reconstruction efforts.
The report also criticizes the government’s failure to expedite legislative measures necessary for funding and development. Despite a strategic rehabilitation plan being approved in December 2023, political disputes delayed its implementation.
The report warned that without urgent intervention from the Prime Minister, critical projects may remain stalled, jeopardizing their long-term viability.
Meanwhile, a separate report released last week by the Tekuma Directorate, marking 500 days since the war, provided an official update on reconstruction progress.
According to the report, Tekuma’s five-year budget amounts to NIS 19 billion ($5.3 billion), with NIS 7 billion ($1.96 billion) already allocated throughout 2024.
Efforts have focused on infrastructure, security, and rebuilding public facilities.
Of the approximately 64,000 residents initially displaced, 83% have returned to their homes, with 92% of those who face no security or rehabilitation obstacles already back.
However, 13 communities still face restrictions preventing a full return, Tekuma reported. To support those unable to return, hundreds of temporary housing units have been established, with 99% of the necessary interim solutions provided within the first year.
Large-scale reconstruction work is ongoing in heavily affected communities such as Ein HaShlosha, Keren Shalom, Nahal Oz, Nirim, and Re’im.
In some cases, the rebuilding efforts are progressing ahead of schedule, while others — such as Kibbutz Nir Oz — still await full rehabilitation plans. The restoration of homes in Re’im is expected to conclude by the end of March 2025, with Nirim following by the end of April.
“The residents of the Gaza border communities and western Negev have endured one of the most severe disasters in Israel’s history. Their rehabilitation and the development of their communities must be a top priority for the Israeli government,” said Englman.
At least 1,200 people were killed, and 252 Israelis and foreigners were taken hostage in Hamas’s attacks on Israeli communities near the Gaza border on October 7. Of the 63 remaining hostages, 36 are believed to be dead.
