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jayashree1412
A 1964 ordinance in the city of Pittsburgh increased the number of people who had been allowed to occupy a single-family dwelling in a residential neighborhood.

The sentence is about an event in past, So option B "who are allowed to occupy", the use of present tense in the sentence is unclear.

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jayashree1412

ordinance was indeed passed in past..but what its effect is presently also true and is being followed.

So use of present tense is perfect here.
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jayashree1412
A 1964 ordinance in the city of Pittsburgh increased the number of people who had been allowed to occupy a single-family dwelling in a residential neighborhood.

The sentence is about an event in past, So option B "who are allowed to occupy", the use of present tense in the sentence is unclear.

Posted from my mobile device
The intended meaning is that the number of people has increased. the did no increase in the past. Hence "are" is the correct usage.
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A 1964 ordinance in the city of Pittsburgh increased the number of people who had been allowed to occupy a single-family dwelling in a residential neighborhood.

(A) increased the number of people who had been allowed to occupy a single-family dwelling
- ''had been allowed'' implies that at some point in the past, this fact ceased to exist. This is not the intended meaning of the passage; the passage intends to discuss about something that occurred in the past and whose effect/presence is still felt today.

(B) increased the number of people who are allowed to occupy a single-family dwelling - has no error. Hence, (B) is the right answer choice.

(C) increases the number of people who have been allowed to occupy a single-family dwelling
- since the effect of ''increase'' took place in the past, we need to use the past tense.

(D) increased the number of people who had been occupying a single-family dwelling
- has the same error as described in (B).

(E) increases the number of people allowed foroccupation in a single-family dwelling
- to ''allow for'' means ''to accommodate''. Hence, (E) introduces the following structure: "....increase the number of people to accommodate occupation''. it does not make any sense to ''accommodate occupation''.
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