They should have kept the current split and left it at that. All new housing would be personal. Combined with auto demolition this is fine. But now FCs get screwed over once more. Eventually the FC housing would have filled up, but due to people complaining about a few empty small houses, FCs screwed over for the foreseeable future.

Well, at least it's good in the long run for myself and my 2 FC workshops at least. Less competition and more money from submarine loot. Thanks Yoshi P!