Even if you tried, you could not come up with such idiotic process. Even the spirit of Franz Kafka would throw the towel rather than deal with such amount of bizarre political surrealism.
To summarize: The developer wants to build 74 unit building on his property which at least 7 of those units will be reserved by law for low-income families. So, 7 families that could have good and affordable housing will not have it because the crazy people of the Mission district and the city of San Francisco government oppose that some white guy would actually make a profit on property that belongs to him and would even generate taxes for the city.
I swear the mother of all tsunamis cannot clean that city.