This is something liberal city leaders talk about all the time. I think it’s typically built in some corner of a decent neighborhood that was already blighted. I can think of places on the north side of downtown Denver where they’ve done this. The units there were heavily subsidized and the price was proportional to income, but were unaffordable unless you made no income.
The area around those complexes are being developed much slower than others.
I’ve seen several suburbs solve the “we need affordable housing for poor people” by building buildings and small neighborhoods for 55+. It is government subsidized housing for old people on limited incomes. Neighbors approve because it looks like you’re helping old people, while old folks on limited incomes don’t fill the schools or generate crime.