There was an interesting court case in the town, or suburb, of Savyon.

The local Savyon Chabad shliach, Rav Shmuel Bistriztky, opened a Chabad house in his home. 

Over time some of his neighors did not like the Chabad house functioning in the middle of their neighborhood, on ther street or whatever, and started to file complaints against the Chabad house. they complained about the traffic it was bringing to their streets, the lack of adequate parking, causing decrease in property values, and ultimately zoning violations as the house is zoned for residential.

The municipal Planning Board that deals with land use and zoning issues discussed the complaints agaist the Chabad House and decided it was a violation of the zoning and was illegal usage of the property.

Eventually a compromise was reached between the munipality and Rabbi Bistritzky, signed off on by the courts, to disallow using a private house as a Chabad House.

Bistritzky eventually changed his mind and appealed the compromise he had previously agree to. He appealed to the courts to reverse the decision. Rav Bistritzky is concerned that this agreement would have a negative impact on Chabad Houses across the country. It might also cause roblems for anybody around Israel who might want to hos a minyan in his house - because he does not believe at all in the zoning rules and does not want his compromise to pull the rug out from anyone else who might be trying the same thing.

The attorney for the municipality responded to the court saying this was a certified and verified compromise that Rabbi Bistrizky is now trying to get out of.

Rabbi Bistritzky's attorney responded that this would set a serious precedent in Israel. Even in the Supreme Court there are minyanim and services, do you want to send us back to the times when we had to hide and pray in secret places?

source: Haredim10

The argument is funny. The Supreme Court building is not a private house in a residential neighborhood. And either there is a room designated for services in the building (like in the Knesset) or the minyanim there are ad hoc, not formalized. And, nobody is saying it is illegal to pray and forcing them to go underground - the issuze is simply zoning. Get an allocation of land designated for public use and build a Chabad House on it, or buy/take over a public building that is available. Praying is nt illegal, and an ad hoc minyan here and there in someone's house will likely be ignored. Turning a home on a quiet street into a busy public institution is the problem. 

MK Galit Sital Abtaryan's bill allowing public expression of religion has not passed yet, but even if it had I dont think it would help this case. This is simply a zoning issue regarding misuse of private property.. 

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