Again, AHJ judgement has to enter the fray. As Reno said, Grandma's area transitioned from a 'sleeping area' (in a pinch probably) to a storge area (pantry).
We had and still have 'flippers' and we also have HO's that finish basements, some of which are used as sleeping rooms, although they signed affadivits that NO sleeping rooms would be within the basements.
As I said above, after a 'pass' on the final insp., I have no further jurisdiction.
