Ha. Thanks for doing my homework for me. I honestly don't know what my original sources were... I've been aware of the existence of "brothel laws" for ages. I lived in a large intentional community (read: commune, but avoiding sexual connotations at least in a US context) for a long time and running afoul of brothel laws in the past was something I learned about there.
Funny but they have these affordable housing laws in the us and I know of at least on suburb whos answer was rescinding these type of laws. In in some ways their affordable housing solution was roommates.