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It is discretionary on the part of each individual creditor as to what they require in order to report the account of another consumer to a credit report. There are no provisions under the FCRA governing addition of authorized users.
The only formal requirement currently in place was added by the CRAs a couple of years ago as part of the settlement agreement between themselves and the offices of the AG of several states. In that settlement agreement, and also incorporated into the CRAs internal policy statement in their National Consumer Assistance Plan, the date of birth of the consumer must be provided to the CRA in order to add an AU.
Prior reluctance to add the credit history of a party other than the named consumer to their credit report has resulted in some creditors requiring that there be a clear family relationship between the parties, but I know of no situation where the same address is explicitly required as a pre-condition.