I just checked out the presentation the committee will see tomorrow, which gives a few examples of the kinds of rental units the program is designed to address. According to the city's Department of Planning and Development, a less-stringent state law passed with the blessing of both landlord and tenant advocates this year—which bars only housing that directly threatens tenant's health or safety--would not allow the city to deny a rental license to the owners of any of these units.
A tenant living in a downstairs space in between the walls of a house:
A room without a ceiling:
A crawl space "unit" with a dirt floor:
An apartment with the toilet in the kitchen:
I get that tenant advocates want to prevent the closure or destruction of low-income housing, but it's hard to see how anyone benefits from the preservation of units like these.