Political Memes

That's just... what your average county/municipality/local government already does, except with higher income tax/wealth redistribution.

Well, except that in reality you can't ignore externalities and that quickly makes the "leftist commune" look a lot less like an idyllic hobbit village. Everybody must pitch in for national rail and highways, even if they aren't the ones benefiting. Cities generate a LOT more wealth/capita and almost incalculably more wealth/km² than rural areas, are way more resource efficient and don't contribute as much to the erosion of natural habitats, yet they are utterly dependent on rural areas. How does a hypothetical "small government communist" society deal with this fairly so that urban and rural communes don't literally go at war with each other?

Here in Belgium the municipalities are, in principle, legally obligated to provide a certain amount of subsidized low-income housing. That's exactly what you're advocating for, and it's great! ... Well, except for the part where many rich municipalities simply refuse to build any such housing out of NIMBYism and would rather pay the fines. Making government "local" does not, unfortunately, lead to the left-wing utopia that some people think it would. This is not "big guberment" or "capitalism" or corporate lobbying, it's the mundane evil of your average citizen voting against the interests and wellbeing of their less fortunate (would be) neighbors.