It's not clear to me from that article: Did the plan that they were opposing provide any assurances that the houses built would be good quality? The people quoted state that their concern is that overcrowded or low quality public housing[1] would be built. If the law addresses their stated concerns and they still oppose it then I think that it's fair to criticize them. However, I don't think it's fair to just assume that they are lying about the reason for their opposition.

[1] I could see criticizing public housing being code for "we don't want anyone who isn't upper middle class"; which of course is unreasonable. However, on the other hand I've lived in places where the public housing took the form of a massive tower block that was like something out of Judge Dredd; so I think its understandable that people would be concerned about it if they aren't given any assurances.