The problem with rent control policies is the value of properties have gotten away from what the rents justify. For a normal investor this means evicting everyone and rebuilding. For a coop that is trying to keep things rented it means that they are unprofitable.

In LA for example, you can never get a rent controlled rent back to market. If someone is paying $600 for a 1 bedroom you're never going to catch back up to $1800.

All that said, I don't know why it has to be non profit. What you described is a just a real estate developer. Zoning is a more limiting factor than anything else.