Construction has begun on 200 new housing units in the Jerusalem Shimon Hatzaddik development, between the Old City and the northern areas of the capital. The project is to be constructed on 18 dunams (just under 4.5 acres) in the neighborhood which is also known as Sheikh Jarrah. 

It is meant to strengthen Israeli continuity around the center of Jerusalem.

The Yemin-Yehuda non-profit organization is behind the building initiative in the reclaimed Jewish neighborhood. Jews lived and worshiped in the area, in proximity to the 2,400-year-old tomb of Shimon Hatzaddik - Simon the Pious, who is mentioned in Ethics of the Fathers (1:2) as "among the last of the Great Assembly" - until the War of Independence in 1948, when they were expelled by invading Jordanian forces. Arab squatters subsequently took over the Jewish properties.

Reclamation of the neighborhood by Jews began in 1998 with an afternoon prayer organized by Knesset Member Benny Elon (Moledet/National Union) in the local synagogue, which had stood empty for 50 years. Since that time, formerly Jewish lands were purchased from the Arab squatters and several Jewish families moved into the area.

Explaining the current construction in the Shimon Hatzaddik neighborhood, MK Elon said that it is meant to strengthen Israeli continuity around the center of Jerusalem, the Old City, by surrounding it with Jewish areas. "Building Jewish neighborhoods next to public spaces will prevent invasion and illegal construction by Palestinians who live near the Old City," Elon added.

The planned construction includes multi-story apartment buildings and would necessitate the removal of several Arab families from the area. The families, who are renting from the organization currently holding property rights, lost a Supreme Court battle over the ownership of the property two years ago.

Observing the successive purchases of the Jewish Shimon Hatzaddik properties from Arab residents by Jews, a spokesman of the Moledet faction of the National Union party called it "voluntary transfer - plain and simple."