Ara can grant interest-subsidy loans for the new construction, renovation and purchase of housing. Parliament decides each year on the amount and emphases of the available lending, after which the Government confirms the regional and other grounds for granting the related loans, in the budget allocation table.
Renovation subsidies and special-needs investment subsidies for improving the housing conditions of various population groups, are granted from state funds.
Subsidies are also granted for building infrastructure in new residential areas, the demolition of rental Arava buildings, the development of residential areas and housing advice activities.