This essay tells the story of an extended and complex conflict between San Francisco and HUD and the creative solution that emerged from their negotiations. The conflict concerned the application of a community preference to a proposed senior housing development that would be located in a traditional African American neighborhood in San Francisco and its potential violation of federal fair housing law. After a brief background discussion of some of the policy and legal issues raised by community preferences, the essay tells the story of the conflict and its resolution. The essay concludes with reflections on the potential value of the solution to other similarly situated cities in the context of ongoing gentrification and displacement.