The Yemin Yehuda non-profit association is building 200 housing units in the eastern Jerusalem Sheikh Jarra neighborhood, on 18 dunams in the Shimon HaTzaddik compound.

National Union-National Religious Party MK Benny Elon says the project is meant to create a Jewish continuum around the Old City of Jerusalem, to combat the spread of PLO building in the area.  Elon believes the neighborhood should be buttressed by national parks, preventing illegal and invasive construction by local Arabs.  In 2004, Jerusalem Mayor Uri Lupolianski sought permission to strengthen the connection between Jewish neighborhoods in eastern Jerusalem by building a Jewish community adjacent to Shimon HaTzaddik.

A Jewish neighborhood existed at the Shimon HaTzaddik compound until 1948, when the Jewish inhabitants were driven out by Arabs during Israel's war of independence. The area was subsequently taken over by Arabs..