This proposal is a federal version of rent control. We already have Section 8 housing in which private landlords receive subsidies to rent to low income individuals. Section 8 housing has many problems for landlords, tenants, and communities. Increased crime is a notable feature of Section 8 housing. If your neighborhood experiences unexpected new levels of crime, investigate the location of Section 8 housing.
This new proposed program just eliminates the private landlord so the government will be vastly increasing its local real estate holdings. I suspect government ownership will be worse than privately owned Section 8 housing. Besides the increased crime, lowered property values, and higher property taxes (federal government does not pay property taxes), this new approach will create an even stronger housing entitlement. If the housing has any desirable features, I expect tenants to establish defacto property rights, much like rent control in NYC. Tenants will never leave, claim other units through proxy ownership, and even lease their units at much higher rates.
Welcome to Chicago public housing