Aunt Esther is fed up with her husband, Woodrow and has decided to end her marriage. She has become convinced that he's seeing other women behind her back and becomes even more convinced when Fred tries to hook him up with a swinger. Refusing to live in the same house with Woody, Esther moves in with Fred and Lamont.

Julio's house has been transformed into Fred and Lamont's boarding house called The Sanford Arms. Now they've come to the task of finding some boarders and soon find themselves bombarded with an endless supply of crazies, including a hooker, an ex-con, a hippie, a newlywed couple, and Hoppy's eccentric mother.