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San Francisco’s Department of Building Inspection is investigating whether a start-up company has violated housing code rules by setting up so-called “sleeping pods” as a residential alternative to traditional rental housing.

Brownstone Shared Housing provides miniscule sleeping arrangements — described in a Forbes report as “essentially stacked, coffin-like bunks” — that can be rented for $700 per month. The rental costs include communal cooking and living spaces along with WiFi and other utilities.

The rent is far below San Francisco’s median of $3,000 for a one-bedroom apartment. However, the location for this new endeavor – a former branch of the San Francisco Fire Credit Union in the city’s downtown – is in a section of the city that is zoned for office use and not residential dwellings. The company announced this location was opening in a June tweet, but city officials were reportedly not informed that the company was offering these accommodations.

“We are aware of the issue and have opened an investigation to determine if there is a code violation,” said Patrick Hannan, a spokesperson for the San Francisco Department of Building Inspection, adding his agency will conduct a “site visit” in the near future.

Booking.com

Brownstone Shared Housing has similar properties in the California cities Palo Alto, San Jose and Bakersfield.

Photo courtesy Brownstone Shared Housing

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