This is one of many problems that disincentivizes construction projects.<p>To build a new condo in San Francisco is rarely profitable:
1) Unlike other cities, when your building plan fits all criteria, it is not effectively automatically approved. To get your permit, you must comply AND be very lucky. In other cities, you generally must ONLY comply.
2) Once your building has been approved, small community groups may oppose it and the government will reject you if you do not.
3) A substantial percentage of your building must be sold at a loss for affordable housing.<p>Development projects here are effectively the highest risk and highest cost. On top of this, most buildings can only be 4 or 5 stories tall. Of course, the only way to stay afloat is to build luxury overpriced condos.<p>The question is how do you overcome the rich and entrenched voters who effectively control these policy.