WASHINGTON--The Obama White House is "deeply disappointed" in the decision of the Israeli government to expand settlement housing in East Jerusalem.

UPDATES
Link to Jerusalem Post story on the regarding the Gilo housing controversy is HERE
Headline was revised to reflect the disputed construction is in a Jerusalem neighborhood. END UPDATE

White House Press Secretary Jay Carney at the Tuesday briefing:

Q. Does the White House have any response to the new announcement of 1,000 -- or 1,100 settlements in East Jerusalem?

MR. CARNEY: Yes. The administration of the United States government is deeply disappointed by that announcement. We have maintained all along that each side in the dispute between the Palestinians and the Israelis should take steps that bring them closer to direct negotiations to resolve the issues that stand in the way of Palestinian statehood and a secure Jewish state of Israel.

When either side takes unilateral action, it makes it harder to achieve that. We make our views known, just as we did, obviously, with regard to the Palestinian action at the United Nations.

Q Jay, was that a surprise?

MR. CARNEY: I'd have to refer you to the State Department, but I'd say that we're disappointed by it.

Q The Palestinians say that this is a direct repudiation to the Quartet statement. Is that the U.S. view?

MR. CARNEY: I would only characterize it the way I have, which is to say that we're disappointed and that we have called on both sides to take steps that improve the prospects of direct negotiations getting underway because, in the end, the only way forward is through direct negotiations that result in the two-state solution that both sides seek, one that allows for a sovereign Palestinian state and a secure, Jewish state of Israel.