I have to agree with them on this case. The government has absolutely no right to tell you who is allowed to live on private property unless it becomes a public health problem (i.e. 50 people living in one house).
hmm.. I don't know if I agree with your statement. In a way this is actually cool from my viewpoint. The strongest government should be at the local level. If we are to have any form of government whatsoever. Really, that is what most affects us and we have the most control over. In this case it was the city council. (Please don't flame me, I'm not saying wheter the decision was right or wrong).