I agree with Jeri.

It is bureacracy without conscience and not blatant discrimitation but all things considered, they should allow it. Whats the harm?

Is there an appeal process in regards to zoning regulations?

I don't think its fair to ask people to 'open their homes' to complete strangers. Just because you share the same religion doesn't mean you're ready to take on the responsibility of housing a family dealing with medical problems.

Its not fair to the families requiring accomodations, either. When a loved one is hospitalized, you need some private space so you can cry if you feel like it. You also need quiet time.