No the idea is they can replace a 4 unit 2 story rent controlled building with a 4 story 8 unit building that now has 4 rent controlled and 4 market rate units.

No the idea is they can replace a 4 unit 2 story rent controlled building with a 4 story 8 unit building that now has 4 rent controlled and 4 market rate units. This is due to another Byzantine quirk of SF zoning where the neighborhood is zoned 40X (~40ft or 4 stories) but if you try to build a 4 story building you have to notify all your neighbors and they get the chance to demand discretionary review, forcing your project to go before the planning commission for a vote. People also pull this crap for simple additions to existing houses. At any rate the state is demanding reduced setbacks, elimination of neighbor notification and DR, etc. This would apply to other normal projects too, turning a lot more stuff into "by-right" approval: if you meet the set standards you can get a rubber stamp at the permit desk and no one can block you.