This is a contentious issue and in case you are not from SF and wondering why Y Combinator is taking a stand on it, it has to do with the politics of the tech boom. The plain truth is that the housing crisis is a combination of too much sudden demand fueled by the tech boom and too little supply. The tech community likes to deflect criticism of their sudden influx of relatively high-income workers and say "don't blam…
While I'm generally in favor of development I think that this simplistic approach of just going around local planning departments is just going to lead to more problems. I think it would be better to cut state and local funding of counties if they don't match growth targets that region commits to. This way we incentivize communities to embrace growth while letting the residents still have a strong say in how and where their community grows. Letting developers call the pace hasn't made for good urban planning in other parts of the country and there is no reason to expect it to do a lot better here. Let's incentivize these parties to work together rather than giving one all the power to drive the process.
[1] http://www.tomtom.com/en_gb/trafficindex/list [2] http://www.sfchronicle.com/bayarea/article/BART-gets-candid-... [3] http://www.caltrain.com/Page3882.aspx