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Probably only with permission from the building officials and from any home-owners' association with jurisdiction. Zoning or building laws often have restrictions on construction on or close to the property line, often requiring notice (if not permission) from the other other. At the very least, you could argue that there is a bigger fire hazard (or other life and safety issue: more bedrooms mean bigger septic problem etc) created by the new structure, if not a "general welfare" issue (less light, obstructed view, aesthetic decline, and indirect impact on school budget, tax assessments, etc).

If you were to combine the two properties into one, you might be able to do so. Or divide the properties differently so that the appropriate setbacks can be met.

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