The plan will evict two Palestinian families.
The Construction and Planning Committee approved two plans to build around 16 homes in separate sites in the district, which has seen several protests after Palestinians were evicted to ensure settler homes, Joseph Alalo, a municipality councilman from the Meretz opposition party told the AFP.
He said that there are two Palestinian-owned homes at the sites, but one of them is uninhabited and the other was occupied.
Local residents say the plan will have several Palestinian families residing there evicted.
Separately, the same committee is discussing confiscating more Palestinian land in southern Jerusalem in a plan designed to build a road linking the Har Homa settlement with Jebel Abu Ghunaim.
The Israeli Haaretz newspaper said the plan was put to the planning board by Chime Silverstein, a figure known among right-wingers, adding that all of the companies behind it are registered in the US.
The step is likely to be followed by more property purchases by the city, Haaretz said.
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