What about home owners convert their N family house into N+1 (or N+2) family houses and rent out the floor(s)? In fact I'm pretty sure it's very common to do.

What about home owners convert their N family house into N+1 (or N+2) family houses and rent out the floor(s)? In fact I'm pretty sure it's very common to do. I've even seen houses with 2 floors, but 5 mailboxes. I'm sure the government would also get taxes from the increased property taxes and reported income of people doing that. The hotel chains aren't evil, but they have their interests and I don't doubt they're giving the extra push for this to go through.