If you want to compare apples to apples, look no further than Golden who passed this type of bill quite a long time ago. Purely opinion here, but I don't think they took a hit on any scale of livability.  Your example is almost comical, it's so far off. 

However, assuming you are right that some of the housing needs to be replaced, do a bunch of single family homes need to be replaced by monstrous buildings?  If so, why? 

This ordinance won't impact someone wanting to scrape and build a new house. 

What part of the industry are you in? Real estate or contracting?