Is City-Worker Housing Legal?

Santa Barbara City Council approved 7-0 a plan by the public Housing Authority to pursue development of exclusive housing at Carrillo and 101 on taxpayer-owned land with taxpayer funding. Residents of units would benefit from the Housing Authority’s exemption from paying property taxes while receiving equitable City Fire, Police, ambulance, and other services at the expense of property tax payers: you and me.

The housing would target, prioritize, people who are
employees of government and nonprofit organizations in the city, and people who
are RV parking clients of New Beginnings Counseling Center.

Is this legal? Aren’t tax-subsidized public housing units to be open to all income qualified persons on a first-come, first-submitted-application basis?