There is no legal basis for these claims read the Jordan-Israel Armistice agreement and Ramat Shlomo is a fully Jewish neighborhood which doesn't block any Arab neighborhoods. When Jews can't build but non-Jews can it is called Antisemitism.

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Build the housing and let whoever wants to live in it, if they can afford it, move in. Just write into every sales or lease contract that if any member of a household is charged and convicted of a terrorist act or supporting terrorism, that family will be removed from the property and ownership will automatically revert to the builder. Any Jews or Arabs inclined to do something 'nationalistic' will know up front that their actions alone will determine if their family is thrown out on the street. It's only when Jews and Arabs can live together that peace will come.

israel does not tell americans where they can live or build. ramat shlomo is part of jerusalem and will never be relinquished.