Brownstone Shared Housing, which aims to provide low-cost accommodation in expensive cities, rents out tiny pods furnished with a twin mattress, privacy curtains, lighting, and charging ports.

The company’s facility in a former downtown bank was flagged for code violations last year. Although initially approved earlier this year, the city rescinded the approval due to a misrepresentation on the application regarding the number of affordable housing units, San Francisco Chronicle reports.

Despite these setbacks and the city’s insistence that no new tenants move in until the issues are resolved, the demand for affordable accommodation remains high, with nearly 20 people vying for each available pod. The company is also working on opening a second, larger location in San Francisco and already offers similar pods in Palo Alto for $800 (c. £617) per month.