Does little old lady own her house? If yes, what's the problem with taxing the increase in value of her property caused by the environment becoming more desirable? All in all she's neither losing nor gaining anything.
Edit: by money I mean income. She owns her house because years ago she (with her now dead husband) at one time had enough income to buy and pay off the house. Now that she is retired she has much less income despite having assets like a house that are in theory worth a lot of money that cannot be accessed.