Here is
the site in question on Streetview. It very much appears to be the former driveway. The 'standard' lots here are 33' wide and 100' deep (10x30 m), whereas this one is about half of that (the 12' refers to the width of the house, not the lot). The street, by the way, is only 40' wide, much narrower than the typical 60' & 66' widths found elsewhere.
The intriguing thing is that this isn't the only whacked-out property in the area;
directly across the street you'll notice a red pick-up truck. Well that truck is occupying pretty much the entire width of his property - at the street. The red house at the back is on the same plot, but there the property is wider, reaching around behind the driveway of the house to the right.
At any rate, I expect the novelty of this house will soon wear off in the neighbourhood and that in all likelihood its two neighbours will one day be knocked down and turned into clones of this place.
Maria Cook's article quotes the neighbour (I think the one to the right/east) saying that she doesn't mind since it blocks the wind and snow, but looking at this pair together I'd have to conclude that the eddying of air over this house will actually end up dumping extra snow on her roof, increasing the risk of a roof collapse (this is actually a serious issue for some infills and in some places has led to a developer having to reinforce the roof of a neighbour).