This is a moral argument that does not fit the facts we know, and hence can't have a morally good outcome.
I also question if the people fighting for this outcome are the same low income residents affected, because I have a hard time believing actual low income residents in line for the units would prefer an outcome where no units gets build in order to make a moral point.
Why is it morally good to make an idealistic stand that cause no units to be build? To me that seems factually wrong.
Even if such a development existed, I would not take the word of the builders that it was annoying poor people that doomed it, without taking a closer look all the things that can cause such a project to fail, including the competing actions of other greedy rich people.