Look at how Vienna works. Contrary to other places, they did government housing blocks really well there.
The blocks are spread throughout the whole city. That means, there’s no really bad place where all the undesirables are concentrated. This mixes the population. For example, I went to a school in one of the inner districts. In my class we had fresh immigrants that could hardly speak German. We had kids from poor families. We had middle class kids. We had kids who’s parents were immigrants but who were born there. We had a kid who’s parents played in the Vienna Philharmonic. We had two really rich kids descending from former nobility. We had a kid who was the son of a well-known lawyer.
The blocks do have an income limit when you get the flat, but that limit is very high (it easily covers everyone in the middle class) and it only applies when you move in. If your income increases afterwards you can still stay in that flat and still pay the same as anyone else. That means that you got a decent mix of people living in these blocks. There’s not only poor people there.
Most of the blocks are actually really nice. There’s parks between the blocks with nice, old trees. Many of the blocks even have swimming pools or other special extras.
Look at how Vienna works. Contrary to other places, they did government housing blocks really well there.
Check out for example this one here: https://en.wikipedia.org/wiki/Alterlaa
It can be done well. It doesn’t have to be crap.