For the first time ever, the State of Israel signed a comprehensive development agreement with a local Arab municipal authority. On Sept. 13, the town of Umm al-Fahm signed an agreement with the Finance Ministry and the Israel Land Authority to add 15,000 new housing units to the town over the next few years, as well as several commercial and employment centers on both state- and privately owned properties. The total cost of the deal is estimated to run to 800 million shekels ($250 million).

The deal is a milestone for the residents of Umm al-Fahm and all of Arab-Israeli society. For years, Arab-Israelis have suffered from a severe housing shortage as well as a sharp rise in violence and crime, issues that state and local authorities have seemed to ignore. The Sept. 13 agreement will expedite the development and growth of Israel’s third-largest Arab town by creating housing solutions for its residents.

As a result of this agreement, the population of Umm al-Fahm, which now stands at 57,000, is expected to double. Development will include the construction of a bridge connecting the different parts of the city, the paving of new roads, repairs to the drainage system and the creation of parks and other public spaces.

Today, many of Israel's Arab towns and villages look like overcrowded local ghettos, suffering from high population density and poor services. Illegal construction is inevitable, given the lack of available options. Not only do an estimated 50,000 to 60,000 homes in the Arab sector lack building permits, but a dearth of land for housing construction can be linked directly to the rise in crime. Families feud over each available piece of land. Without mortgage and construction loan options through local banks, some turn to the black market for loans.