Actually, this is how I would see the letter:

Dear [enter player name],
Unfortunately due to the limited amount of housing, we have to ask you to relinquish and extra plots you have. We will compensate you the amount you paid in full and ask that you choose a plot to keep. We are deeply sorry for any inconvenience this may cause.

Sincerely,
[Enter Dev Name]

Sounds more professional and actually helps the problem. And they can still take them and change their stance as they see fit. Instead of having to work around the people who bought up all the houses, just take them back first allowing for other players to fill the wards. And T bh I think you underestimate the greed cause I'm also positive people bought multiple games and took over extra plots as well making that 8 go even higher. But take the extra's away and then you put on a world limit and there you go. Saves a lot of problems and helps others to be able to purchase a house. And I started at launch but took a break before the release of the housing. But I came back 2 weeks after its release. Subdivision has always existed but yes there were only 5 wards. Then upped to 12, then 18, then to 21 then current. So I'm off by 2. Either way, the amount of houses purchased by either dead FC's, never been FC's and alts is ridiculous and should be addressed. SE is just allowing it to continue because they dont want backlash from those who are doing it. But they need to grow a pair, and just do it.