The assessor could have many options if Larry's sister and family moved out of the house. He/she could advise Larry to find a replacement family, or have many more children of his own, or adopt. (Would pets count for any kind of space allocation, Roger?)

Maybe Larry could rope off the part of the house allocated to his sister's family and use it for the public good - a place of exhibition for the works of unknown painters and photographers, a halfway house for troubled writers.

Or maybe Larry could have a business going at home, like the living room could be a cafe where people come to look at the view of San Jose, savor overpriced fancy coffee drinks and engage in political and philosophical debate. The proceeds from the business could be donated to the tax assessor and Larry would benefit from the additional stimulation in his life.