The explosion shattered windows throughout the walled compound, which housed mostly Arab residents as well as some Westerners, according to officials and witnesses.
Israeli law also discriminates between Jewish and Arab residents of Jerusalem regarding rights to recover property owned before the dislocations created by the 1948 Arab-Israeli War.
After Israel's subsequent annexation of East Jerusalem, vacant property there was expropriated from Jewish and Arab residents for security and future settlement purposes.
Most of its Jewish and Arab residents are considered squatters and have been gradually evicted over the years.
The aging proprietor had grown up in Jaffa before 1948, when most Arab residents of "the Bride of Palestine" fled during the Jewish conquest.
Some of the Kurdish and Arab residents said rebels had forced them to flee before the Iraqis entered the town.
The board raised funds from Lebanese and Arab residents and Lebanese emigrants, and were able to purchase the present campus of Ahliah from the Scottish mission.
The organization works to improve relations between Jewish and Arab residents of Israel.
Others demolished houses that had already been vacated by their Arab residents.
This also applies to most Arab residents in East-Jerusalem and the Golan Heights who are not in possession of Israeli citizenship.