Apartment Due Dilligence Turns Up Missing Occupancy Permits

[Tony C.]

Investors, I’m in the processes of purchasing an apartment building and during my diligence period, I've turned up over half of the tenants do not have occupancy permits on file with the local agency. The previous PM/Owner did not apply for occupancy permits for more than 20 tenants with current leases.

How can I remedy this? Not sure of how to request compensation as I'm not looking to walk away from the deal.

[Jean Bolger]

This must be a local regulation? Or a section 8 thing? I'm not familiar with 'occupancy permits for tenants'. Can you explain how that works?