JERUSALEM, Dec. 12 (UPI) -- Palestinian officials offered harsh criticism Wednesday for a proposed housing construction project by the Israelis in Jerusalem.

Ynetnews.com said that during the two sides' first official peace meeting since 2001, Palestinian officials strongly opposed the Israeli government's plans for a new housing settlement in one of Jerusalem's Jewish neighborhoods.

Israeli officials have defended the proposed Har Homa housing project, saying the construction effort would take place well within Jerusalem's municipal boundaries.

Israeli representatives at Wednesday's meeting in the Israeli capital also took time to admonish their Palestinian counterparts for not taking action against ongoing rocket and terror attacks on Israel.

Rockets have repeatedly been launched into Israeli territory from the Gaza Strip and Israel has been the target of several recent terror attacks that have been blamed on Palestinian security forces.

Ynetnews.com said that Wednesday's meeting represented part of the two countries' agreement to continued peace negotiations that originated from last month's summit in Annapolis, Md.