the artist formerly known as dancingthrulife04
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It was being developed and Kenny Ortega (HIGH SCHOOL MUSICAL, THIS IS IT) was attached to direct. Universal got new management and cleaned house on a lot of projects, this being one of them.
I can't recall where it was, but recently Lin-Manuel said there was renewed interest and it was still in the works. I wouldn't hold your breath, though.
As mentioned above, on November 7, 2008, Universal Pictures announced that they planned to adapt the Broadway musical IN THE HEIGHTS as a feature film for release in late 2011 or Spring 2012. Kenny Ortega was set to direct the film and Lin-Manuel Miranda would be reprising his role of Usnavi, which was slated to begin filming on location in New York City in summer 2011. Unexpectedly, the project was canceled in March 2011, when Universal opted not to produce the IN THE HEIGHTS film adaptation. Lin-Manuel Miranda has stated in interviews that the film is still a possibility, so it could happen one day. Maybe another 25 years like most film adaptations of Broadway musicals: CHICAGO, THE PHANTOM OF THE OPERA, DREAMGIRLS, etc.