The ROOM Act

What is the ROOM Act?

The ROOM Act (Restoring Options in Occupancy Models) expands access to inherently affordable housing by legalizing co-living / single-room occupancy (SROs) and shared dwelling models of many types — from renting a spare bedroom in a single-family home, to small boarding houses, to premium co-living in converted offices or multifamily buildings. It restores choice in housing options long constrained by exclusionary zoning, outdated building codes, and discriminatory occupancy rules.

SROs were once a ubiquitous and accepted part of America’s housing landscape. From spare bedrooms to boarding houses, these flexible options provided affordable, dignified shelter for workers, students, and new arrivals. But in the mid-20th century, local zoning codes and housing regulations effectively banned SROs, eliminating an important housing option for many people. This has directly contributed to today’s homelessness crisis and a housing market where even well-paid professionals in high-demand cities must crowd into informal roommate arrangements in accommodation never designed for that purpose.

By pre-empting exclusionary zoning ordinances, clarifying building code requirements, and protecting occupants and property owners from discriminatory enforcement, the ROOM Act strengthens housing resilience in high-demand areas and helps low- and moderate-income households access more affordable, flexible living arrangements without subsidization. This bill frees the market to restore old, proven housing typologies, and to pioneer new ones we have yet to imagine.

This model legislation was developed by the Institute for Justice.

Bill Text:

Section 1. Legislative Findings.

The Legislature makes the following findings:

(a) [State] is currently experiencing a housing availability and affordability crisis.

(b) Co-living, also known as Single Room Occupancy (SRO), is a residential property with sleeping units that are independently rented and provide living and sleeping space, in which residents share kitchen and/or bathroom facilities with residents of other units.

(c) Because of their smaller size and limited amenities, SROs historically have offered rental housing at the lowest per-unit cost typically available on the private housing market.

(d) Starting in the early 20th century, local governments began adopting restrictive zoning and other land use and building regulations that prohibited or made it impractical to build or operate SROs, causing the numbers of such units to dramatically decrease.

(e) Today, many cities and counties either exclude co-living from most residential zones or impose zoning and regulatory requirements that render the development or conversion of co-living properties economically or physically infeasible.

(f) Co-living provides additional options for people who:

1. wish to lower their housing expenses by paying less for a smaller home;
2. value shared community spaces that facilitate social connections;
3. wish to trade space for location and the ability to live in a high-opportunity neighborhood that would otherwise be out of reach; or
4. want a more private alternative to having a roommate in a traditional rental.

(g) Recent studies show that in cities where co-living remains legal, monthly rents for co-living average 40 percent lower than rents for studio apartments.¹

(h) While co-living is often associated with single-person households, adding smaller, affordable
units increases overall housing supply and triggers the economic process known as filtering, in
which additional supply reduces competition for larger family-sized homes and eases pressure
on rents across the market.

(i) Co-living is well suited for the conversion of office buildings, hotels and other underutilized commercial properties to housing, because such conversions typically require less plumbing and fixtures for kitchens and bathrooms, thus enabling the adaptive reuse of buildings which would not be economically feasible to convert to standard apartments.

(j) Co-living may provide income-earning opportunities for property owners, furthering housing
affordability and economic mobility.

(k) Enabling the creation of co-living near downtowns, transit hubs, employment centers,
commercial areas and public amenities can increase walkability, shorten commutes, curtail
sprawl, limit growth of traffic and reduce the pressure to develop farmland and the natural
environment.

Section 2. Short Title.

(a) This Act shall be known as the Restoring Options in Occupancy Models (ROOM) Act.

Section 3. Definitions.

For the purposes of this Act:

(1) “Co-living property” means a residential property that includes one or more sleeping units that are independently rented and lockable, with residents sharing separate kitchen and/or bathroom facilities with other sleeping units in the building. Municipalities may use other terms to refer to co-living, including, but not limited to, boarding house, congregate living facilities, group home, lodging house, micro units, or single room occupancy. The term does not include a unit in a hotel, motel, or other establishment in which more than half of the units are intended to be used for transient accommodations.

(2) “Co-living conversion” means the alteration of an existing building, or portion of a building, for the purpose of creating two or more sleeping units that have access to shared kitchen and/or bathroom facilities, whether by reconfiguring interior space, changing the use or occupancy classification, or adding sleeping units to a structure previously used for another purpose.

(3) “Co-living occupancy agreement” means a written residential agreement that grants an individual the exclusive right to occupy a sleeping unit in a co-living property and the shared right to use common amenities and facilities in exchange for payment of rent. A co-living occupancy agreement is a residential tenancy for purposes of [State Residential Landlord-Tenant Act], except to the extent that this Act provides different rules.

(4) “Housing organization” means a trade or industry group consisting of local members primarily engaged in the construction or management of housing units, a nonprofit organization that provides or advocates for increased access or reduced barriers to housing, or a nonprofit organization that is engaged in public policy research, education, litigation or outreach that includes housing policy-related issues and advocacy.

(5) “Mixed use” means a type of development that combines residential uses with commercial, entertainment, institutional, office, or other uses within a single building, parcel, or development area.

(6) “Sleeping unit” means a room within a co-living property that is identified and intended for sleeping purposes by a single occupant or two occupants living as a household, whether or not the room is currently occupied, leased, or in active use. A sleeping unit may include limited food preparation or sanitation facilities, but typically does not contain both a full kitchen and a full bathroom.

(7) “Transit station” means a stop on a municipal, tribal, intrastate, or interstate public transportation system providing fixed route services.

Section 4: Co-living Allowed By Right.

[DRAFTER’S NOTE: To permit co-living only in multifamily, commercial, or mixed-use zones, strike “single family” from subsection (a), and strike (i) from subsection (c).]

(a) Notwithstanding any provision to the contrary, a municipality shall allow co-living properties as a permitted use by right on each parcel that is zoned for single family, multifamily, commercial, or mixed use, or in any area where residential is permitted.

(b) Approval of co-living properties shall not be subject to discretionary review, special use permits, conditional use permits, planned unit developments, public hearing processes, or variance requirements.

(c) A municipality shall allow as a permitted use co-living properties:

(d) A municipality shall not treat a sleeping unit within a co-living property as more than one-quarter of a dwelling unit for purposes of calculating dwelling unit density.

(e) A municipality shall subject a co-living property to the least restrictive bulk, lot, and height requirements applicable to any residential use within the same zoning district.

(f) A municipality shall not require any design or code standards for co-living properties that are more restrictive than those required for other residential uses in the same zone.

(g) A municipality shall not require co-living properties to incorporate any aesthetic, functional, or recreation facilities other than those required for other residential uses in the same zone.

(h) An ordinance under this section shall not require co-living properties to:

(i) A municipality shall not limit the people who may occupy a co-living property or sleeping unit based on:

(j) A municipality shall maintain and make publicly available, on at least an annual basis, a record of new co-living properties and conversions, including:

(k) This section supersedes and preempts any ordinance, resolution, regulation, policy, or other local action that conflicts with or frustrates the purposes of this Act. A municipality may not enforce any zoning or land-use restriction that is inconsistent with this section.

Section 5. Building Code adjustments for Single Room Occupancy.

(a) A municipality shall not require a co-living property to include a commercial-grade kitchen, as defined by [Section] of [applicable municipal or building code].

(b) A municipality shall not require a co-living property, or sleeping unit, to adhere to standards beyond those contained within 24 C.F.R. § 982.605.²

(c) A municipality shall not require a co-living conversion of more than 8 sleeping units to incorporate operable windows in the sleeping units.

(d) This section supersedes and preempts any municipal building code requirement that conflicts with or frustrates the purposes of this Act. A municipality may not adopt or enforce any building code restriction that is inconsistent with this section.

Section 6. Co-Living Occupancy Agreements and Removal of Disruptive Occupants

[DRAFTER’S NOTE: Optional section to be included, amended or omitted based on existing state tenant protection laws.]

(a) Occupants under co-living occupancy agreements are tenants for purposes of [State Residential Landlord-Tenant Code], except to the extent this section provides different rules.

(b) Notwithstanding any other law, a co-living property owner may terminate a co-living occupancy agreement for the following reasons, which constitute good cause for eviction in any co-living property:

(c) A municipality may not require more than:

(d) In any eviction action from a co-living property based on the grounds in subsection (b), the court shall set trial, if required under the laws of this state, not later than 21 days after filing, absent good cause. Local laws imposing additional pre-suit conciliation, mediation, or administrative review requirements do not apply to such actions.

(e) A municipality may not adopt or enforce any ordinance, resolution, or regulation that, as
applied to co-living occupancy agreements or sleeping units in a co-living property:

(f) Nothing in this section shall be construed to preempt:

Section 7. Other Conforming Changes to Landlord-Tenant Law.

(a) A municipality shall not require the owner or operator of a co-living property to subject prospective tenants to background checks, credit checks, or personal references mandated by ordinance or as permit conditions.

(b) A municipality shall not require the owner or operator of a co-living property to collect or retain a security deposit from any tenant.

(c) A municipality shall not require the owner or operator of a co-living property to maintain or submit to the municipality any roster, registry, or report of tenants or guests other than those required of other residential landlords under generally applicable law.

(d) Nothing in this section shall prohibit a co-living property owner from performing background checks or requiring security deposits.

Section 8. Co-living Property Usage.

(a) A municipality shall not require any co-living property, regardless of number of sleeping units, to construct, employ, operate or incorporate:

(b) A municipality shall not require a co-living property containing eight or fewer sleeping units to employ, operate, or incorporate:

(c) A municipality shall not impose any management, operational, or tenancy requirement on a co-living property that is based on the presumed social, economic, or behavioral characteristics of its residents, or that has the purpose or effect of discouraging the construction or operation of co-living properties.

(d) A municipality shall not require a co-living property to participate in any affordable housing program, inclusionary zoning program, or rent stabilization or control program, nor condition approval upon compliance with any such plan.

(e) This Act does not prohibit a municipality from imposing a limit on the number of people who may occupy a dwelling or sleeping unit based on health and safety standards contained in:

(f) Nothing in this section shall be construed to prohibit a municipality from enforcing generally applicable health, safety, or building standards that are applied equally to all residential uses.

Section 9. Applicability.

(g) A municipality shall adopt or amend by ordinance and incorporate into their development and zoning regulations the requirements of this Act to take effect no later than __; if it fails to do so, the requirements of this Act will prevail.

(h) Any municipal regulation that imposes requirements uniquely upon co-living properties, or that has the effect of excluding co-living from otherwise permitted residential zones, shall be presumed unreasonable and inconsistent with this Act.

(i) Nothing in this Act shall be construed to prohibit the enforcement of private covenants, deed restrictions, homeowners’ association rules, or other private agreements applicable to a property.

(j) The provisions of this Act do not apply to state or local regulations governing the construction or operation of halfway housing, substance abuse rehabilitation centers, sober living, re-entry housing, on- or off-campus university dormitories, homeless shelters, or dedicated housing for the elderly or disabled.

(k) A co-living property lawfully existing on the effective date of this Act is a conforming use and may continue, be maintained, repaired, or reconstructed, notwithstanding any contrary local ordinance or regulation.

Section 10. Enforcement.

(a) An applicant, property owner or housing organization aggrieved by a municipal action inconsistent with this Act may seek declaratory or injunctive relief and shall be entitled to reasonable attorney’s fees and costs as a prevailing party.

(b) For purposes of this section, a party prevails if it obtains any form of judicial or administrative relief, including a judgment on the merits, declaratory relief, injunctive relief, a preliminary injunction, a consent decree, or if the litigation is a material contributing factor in achieving the requested relief through voluntary action by the municipality.

Section 11. Severability.

(a) If any provision of this Act or its application is held invalid, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application.

¹ Flexible Co-Living, 5Boro, October 2023: https://fiveboro.nyc/wp-content/uploads/2023/10/Flexible-Co-Living-Housing_Oct2023.pdf?

² 24 CFR § 982.605 – SRO: Housing quality standards, https://www.law.cornell.edu/cfr/text/24/982.605