It sounds like terrorists who are here legally might not be affected. Only the criminal aliens are. It shouldn't have taken the shift in funds to get them to obey the law.
However, this says nothing about the criminal aliens living in the projects. They aren't on Section 8. Nor does it say that the ones being removed from Section 8 will not be moved to the projects.
What do you want to bet they aren't turning the criminals over to the cops?
My guess is they are just moving them to the projects.