I've been wondering for a while, how do we deal with projects? I remember reading in the Death and Life of Great American cities that they need to be woven into the urban fabric of surrounding neighborhoods, but that doesn't solve the crime and social problems that occur in them.
Personally, I think most of the buildings in the projects need to be demolished. The roads need to be torn down, and rebuilt to connect w/ surrounding neighborhoods. New development (once desirability rises) will be included on the land occupied by the project. A few buildings would be left intact for public housing.
However, the residents would not be kicked out once they reach a certain income level, their rent will increase as their income increases, and eventually the rent will stop rising once their income hits a certain level. Moving out will be left up to the residents.
Also, participation in crime could also get you to lose your residency in the public housing area.