Didn't Israel say that Jerusalem is on the negotiating table? Do the Arabs have ears? Housing units is not an issue, unless of course, the Arabs cannot accept the Jewish demand that Jerusalem remain under Israeli control. In that case, why enter in negotiations with a people that cannot accept that Jews have any right to their eternal, undisputed, historically grounded capital. I declare it simply, take the hit in the International arena, and state openly, there is no point in talking about a 2-state solution.
Rocket attack kills 15 in Yemen hotel for officials, troops (AP)
from the article: Biden: East Jerusalem plan undermines peace talks