The Jewish National Fund (JNF) plans to build up to 3,000 residential units on land it owns in the greater Tel Aviv area.
TheJewishPress.com reported here last week that the JNF owns land worth approximately $1.75 billion.
It plans to raise hundreds of thousands of dollars for the new project following an approval of the new policy last month.
No timetable has been announced, Globes reported, but building on its own land will save the cost and bureaucracy of having to deal with Israel Land Authority tenders.
However, it will have to apply for building permits on land where there are no existing apartments or which needs to be re-zoned, meaning it could be years before final approval is received.
The bureaucratic procedures may be shorter than usual because the plan has been coordinated with the government, which has promised that it will ease the housing shortage in the metropolitan Tel Aviv region.