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I don't think the problem is with subsidized housing entirely. There are places where they will have like one project and then the rest of it is a regular neighborhood. When they put them right on top of each other is when it's almost destined to become a ghetto.
Also, saying that "we should focus on ending blight altogether" or anything of the like is an utopian appeal at best. Should blight be eliminated? Yes. Should re-devolopment an re-urbanization take a back seat to that? No. Not at all, in my opinion.
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Love Conquers All
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