I found out about this project in a very unlikely place - on tvtropes.org (which is kind of like a wiki - user generated content). There is an article there on Katawa Shoujo -
http://tvtropes.org/pmwiki/pmwiki.php/V ... tawaShoujoHere in description we can read that "Also worth noting are Missing Stars and Love Despite (now shelved), Visual Novels set in a school for students with Physical/Mental Disorders being developed by fans of KS as Spiritual Successors."
At this point I'm not even sure what this visual novel is going to be about... only today I figured the girls are supposed to be... mentally disabled in one way or another?
The idea seems great. There is a possibility to screw up even the best of ideas, but I feel like this has the potential to be even better than Katawa Shoujo.
EDIT:
Ok, not as unlikely a place as I originally thought. Just 1 post above we have the same source mentioned... >_<
And again 3 posts above... And there is more...