The only decent solution for this problem in Jerusalem would be to house the millions of refugees streaming out of next door Syria. Israel has accepted none so far.
The US and Saudi Arabia who created this mess in the first place are accepting none so far. Anti muslim sentiment is growing across Europe exactly because Merkel invited these refugees over without asking anyone and then imposed refugee quotas on other EU countries. Now we have nutcackes like Marine LePen and Geert Wilders gaining in popularity and threatening with Fr/Nl exits that would most likely break the EU apart.
If we take a country similar in population size to Israel - Sweden - we can see that they have taken in 2-3% of their population. Israel should at least match that - they are next door! That would mean at a minimum of 300,000 refugees. Open up Israel.