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The original set of requirements for IPA and SSSD included the requirement to factor in the source host of the connection in the hoist based access control decisions. Unfortunately the actual implementation showed that it can't be done reliably because source host information is not consistently passed through the stack to the component that needs to make a decision. As a result the implementation suffered failures that were hard to troubleshoot and/or avoid. As a result the client side SSSD made a decision to deprecate the support of source host. However the server side - IPA still allows defining rules that include source host. 

This bug calls for deprecation/removal of the support of the source host in IPA, both in UI and CLI. It is very confusing and should be removed as soon as possible.

Upstream ticket:
https://fedorahosted.org/freeipa/ticket/3528

Fixed upstream

master:
b8b573a966f4be268031ccca5abce09767928ff7
d03255571c9d4c81d92c692fd0b6db6539856cf8
39982f6696267706b70f598ee80ce87924cc34a4

ipa-3-1:
0d5e310231962fb10a5396477bbcd2ce99b4e544
592db35c87ea8eee0f28b87c12dd889fead98701
e7954e267282fc4fa61aa004da5489fe42763a3a

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory, and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

http://rhn.redhat.com/errata/RHBA-2013-1651.html