They can't live in Katzir.And Israeli- Arabs can live in any city, or area they wish, they did and they still choose to do so.
Katzir is one of 695 so-called “cooperative associations,” communities mostly established since Israel’s creation in 1948, whose chief purpose is to bar non-Jews from residency.Get real, dude.
In October, the Israeli parliament moved to enshrine in law the right of these associations, comprising nearly 70 percent of all communities in Israel, to accept only Jews.
The Constitution, Law and Justice Committee approved a private members’ bill that will uphold the right of the communities’ admissions committees to continue excluding Palestinian Arab citizens, who make up one-fifth of the population. The bill is expected to pass its final reading in the coming weeks.
Not a state thing is it, just a housing association thing. A bit like the one sweeping through the US at the moment banning radio hams from 75% of housing associations and 90% of care homes/vets housing. There is no law that says you have to sell/lease your home to anyone you don't want to, and you don't have to give a reason for your refusal