The idea is that voters would be incentived to change zoning laws to allow more density in response to your listed situations. > Thus you're effectively penali

The idea is that voters would be incentived to change zoning laws to allow more density in response to your listed situations. > Thus you're effectively penalized for not improving your home. This is good. If the area you own land in becomes valuable you should be incentivised to make the best possible use of your land.