It’s happening as soon as this September, and no, they’re not designated for low-income housing.
The owner of the Golden Hotel (on 10th between J and K) is converting some of the rooms into little apartments. They’re about 150 square feet, and he thinks they’ll go for about $600 per spot. They will be available fully furnished, but won’t have a kitchen or bathroom in the actual unit. There will be a communal bathroom, shared between 3 apartments.
The cheap price may not be a benefit though, when you break it down to a per-square-foot cost. While these places seem like a good deal at $600 with the average apartment downtown going for $1,747, and the average midtown apartment going for a touch over $2k, the actual cost-per-square-foot is about $2.30, whereas the $600 150 square-foot place is about $4 per square-foot.
But still, if you want to live alone, and you’re ok with not having a kitchen or bathroom, and $600 is in your price range (or if you’re just curious), you can see more details here.