IRVINE, CA—The deep divide between the federal government and agrowing number of states when it comes to the matter ofmarijuana legalization has placed those involvedwith the housing industry in a very vulnerableposition. The issue has become increasingly complex, as littleguidance has been handed down on how to comply with contradictoryobligations regarding tenant rights and other housing-relatedmatters in an increasing number of states where marijuana has beenlegalized.

Over the course of nearly two decades, state after state haslegalized marijuana for medicinal purposes. In 21 states and theDistrict of Columbia, medical marijuana is legal. And four otherstates have passed legislation paving the way for certain medicalpatients to legally use cannabis extracts.

Yet another layer has been added to the marijuana debate, nowthat two states have legalized pot for recreational use and othersare looking to do the same, citing the potential to generatemillions in tax revenue. The first two months of legal recreationalmarijuana sales in Colorado brought in more than $3.8 million intax revenue. And state-licensed pot retailers say they are on trackto collect nearly $100 million in tax annually, which is more thandouble the nearly $40 million brought in by tax revenue fromalcoholic beverages in Colorado in 2013.