you can’t build housing for Palestinians in Jewish Jerusalem. By Israeli law, Arabs are effectively prohibited not only from building new homes but even from buying old ones in the Jewish parts of the city.
Meanwhile, Jews can buy and build in the capital wherever they want – in the Jewish parts and the Arab parts. This has been going on since the end of the Six Day War, and now about 200,000 Jewish residents live on the “liberated” side of Jerusalem. Ramat Shlomo would increase their population by another 10,000 or so.