>Why are you trying to make this complicated? Just get rid of density caps so that developers build more apartments. Problem solved with zero cost to taxpayers.

Because "better a thousand rental units go un-built than let one slum lord construct a substandard basement apartment" or some other garbage like that.

Basically people keep trying to set a quality floor that society mostly isn't rich enough to afford and most land can't be developed enough to justify then acts surprised when the actual densification that happens is only a slow trickle.