[addicted]

If we assume that there is no way around this, and the options you suggest are the only options available. Actually, for the sake of argument, let’s further assume that the only option is the worse option. Razing and putting SFH instead.

That still doesn’t mean anything. Nearly any action, private, public, regulatory, or otherwise, will always have impacts that are on their own negative. The real question is how common your scenario is and as a result how do the negatives weigh against the benefits of the action.