The apartments are only available to Arab Christians and Muslims, not Jews.
The land originally belonged to Arabs before 1948.
To be sure, this is a very small project that took ten years to come to fruition. The housing is still expensive (roughly $400,000 per unit, much cheaper than comparable but hardly low income housing.)
The point is that the one sided vilification of Israel as always stealing land from Arabs is simplistic nonsense. Israel is a complex place and the people who hate Israel don't want you to know that things are not as simple as gets reported.