Off campus housing and food are eligible expenses for a 529 distribution, but the amount is limited to the lesser of your actual cost or what the school charges on campus students for R&B (technically the school's "allowance for cost of attendance" for financial aid purposes).
References:
https://www.glassjacobson.com/blog/529-off-campus-housing/
http://turbotax.intuit.com/support/iq/Education/Information-about-Form-1099-Q/GEN12272.html
So, it basically doesn't matter how you and your parents structure the ownership of the real estate. Your tax free (if any) and penalty free distribution amounts will be limited to the "allowance for cost of attendance" and scholarship numbers.
