You missed the part where it would be made with containers. I assume they do not know what they are doing.
http://weburbanist.com/2008/05/26/cargo-container-homes-and-...
That said I agree that this looks like its a very idealistic project that lacks an actual plan besides "cool ideas + money = awesome."
The biggest price will be land.
Interestingly: http://containerhouse.info/how-to-buy-container-home/
I do think they would run into trouble with the local building codes and inspectors.
YIKES!!
Building a 3 container cabin I believe wound up costing the guy $25,000
I've been thinking of making a tin-can-cabin, some sort of summer-vacation spot but I can't imagine trying to make a all-year-livable space in new york with containers. May as well buy an old building and pay to clean out all the asbestos.