Okay! Don’t demolish the house. Award it to the victim’s family to use or sell to whichever Yeshiva they want to sell it to... No need for a new building permit that would piss off Washington, the criminal and his family are made to feel the pain, and the neighborhood gets better in that there are fewer Arabs and those that are left are terrified of the next annexation/terrorist incident and are motivated to stop it before it happens. Just saying...
Oh yeah. I forgot. Deport the terrorist family to an Arab country. I hereby volunteer to give up my Right of Return claims on the house my family had in Sharab Yemen before they were forced to leave in 1948.
No way to avoid pissing off Washington. It’s a given. Do it anyway, though. You’re right.