Elad is located between Rosh Ha'ayin and Ben Shemen and restricted to residents "of religious character."

In effect, the secular petitioners charged, the region was earmarked for haredim and offered "location loans" for those eligible for housing subsidies and special marketing terms guaranteeing below-market purchase prices.

According to Justice Dorit Beinisch, non-haredi home buyers met the same socioeconomic criteria, yet the only ones receiving the location loan were the 2,000 haredi families who bought in Elad.