Jerusalem (CNN) -- In a move likely to further strain relations between the United States and Israel, the municipality of Jerusalem has given final approval for a controversial Israeli housing project in the heart of a Palestinian neighborhood in East Jerusalem. Approval of the project paves the way for construction of 20 apartments being developed by American millionaire Irving Moskowitz on land that he purchased in the Sheikh Jarrah neighborhood. Moskowitz, an avid supporter of Jewish building in East Jerusalem, purchased the land in 1985. To make way for the new housing units the historic Shepherd Hotel which was built in the 1930s by a prominent Palestinian family would be torn down.
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Controversial Israeli housing project approved in Palestinian neighborhood in East Jerusalem
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Move likely to further strain relations between United States and Israel
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Obama and Netanyahu met Wednesday in Washington to discuss Israel's housing plans
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U.S.-Israeli relations hit rough patch after row over future building in East Jerusalem
Netanyahu echoed the same arguments in defense of the Israeli announcement two weeks ago to build 1,600 units of housing in a different @placeholder neighborhood.