My state has laws that say every new housing development must have affordable housing as a small percentage of the new housing that developers build.
Developers choose to ignore those laws completely, partially because the affordable housing is protested against by the people who live by, or plan to live in, the new luxury housing. They instead just build all of the luxury housing they want to, with none of the affordable housing required by law.
This has nothing to do with government projects, but stipulations for all new development.