Yes the article mentions that a 3 unit building in South Berkeley was rejected for no good reason. There is demand in that area and it would alleviate overall housing costs to build more there.
Note that just because these areas are not as trendy as others, they are still very expensive.
"Arreguin recently joined a Council majority in rejecting a three-unit project at 1310 Haskell Street in South Berkeley that met applicable zoning laws. This was after a previous rejection caused the city to be sued. The city settled the suit and agreed to another hearing. Despite the city attorney warning the Council that they would again be sued if they did not grant approval, the Council voted it down again."