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.

Fred's sister, Frances and her white husband, Rodney have been having some hard times and they stop by to ask Fred if they could stay with him for awhile. Meanwhile, problems at the Sanford Arms has Fred considering giving Rodney a job as general manager. But Rodney may not accept it since he's scheduled to perform in an act at a nightclub.