I think a better answer than public housing is the way Phoenix has been doing it for years, with a "housing choice" voucher. Essentially program participants are able to take the voucher to any landlord willing to participate in the program and the city pays the rent. One of the main points was to keep from having slum areas and it's debatable whether or not it worked to that degree, but at least it gives people options if they don't want to live in a project.
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Mr. K the monopoly man
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