Here is an update. Bit of a long story because I have to explain a bit more than I did in the initial message (clearly there is a lot more to this story, but hopefully the cliff notes version will suffice).
Here are the code violations: exterior paint (it's a brick house, so only talking trim here, and yes it definitely needs it), repair downspout (round gutter hole has rectangular downspout in it), repair spalling or bulging concrete on walkway, driveway, steps. There were two interior violations that have already been fixed-no smoke detectors in vacant unit (because it was being painted), and no handrail on stairs (apparently there had never been one there).
The neighbor feels that the downspout in question (with the code violation for needing repair) drains into an underground pipe that is broken (apparently he invited someone onto the property at some point and they used dye packets and his own hose to confirm his suspicion-I tried to called the sewer folks but they didn't feel this is something they would have done), and the water drains through his retaining wall, which he feels is damaging it.
The building inspector is aware of this belief but the violation doesn't state anything about the underground pipe-I think underground might be outside of the scope of his work? Regardless, I think he's on my side and is trying to help broker the peace.
Per a conversation with the building inspector, re-routing the downspout into another drain and capping off the driveway drain will be a suitable fix. The neighbor's biggest obsession seems to be the retaining wall, which he owns per a complaint he tried to make in 2015 that I saw in the code enforcement website, he had a survey done and the findings were that he owns the wall.
The building inspector called me on Monday 7/31 and said he'd give me more time for the other violations if I re-route that downspout as my next project-stated-they've been getting a lot of contact from my neighbor and he's trying to help me avoid litigation. I agreed to work on it this weekend, 8/5.
Also on Monday 7/31, I spoke with the health department lead abatement folks and they were generally unconcerned about the paint situation, which made me feel a lot better.
Last weekend, I spent all day (7/29-7/30) Saturday and Sunday working on the property. The neighbor sat outside and literally watched me (with dagger eyes) paint for 6 hours on Saturday, and didn't say a word to me...but when I went inside to grab some water, he took pictures of the person helping me paint, stating that he, 'needs the photos for court.' He was back inside his house by the time I got back outside.
Later that night, I made the decision to sell the house, because the harassment simply isn't worth the money. I contacted my real estate agent and he says I'll have no problem selling once the code violation repairs are done.
Sunday night, I was at my home and was sticking an envelope in my mailbox to send out, and discovered one of those papers that says the USPS tried to deliver certified mail to me sometime between 7/25-7/28 and I hadn't noticed the little slip.
Assuming the note from USPS was a legal notice, I contacted an attorney, then went to pick up the letter on Tuesday 8/1...turns out it was a handwritten letter from the neighbor, complaining that I hadn't fixed the downspout concerns yet, and grumbling that it'll probably cost him more to file suit than it will to fix the violation.
So I guess he was watching me paint but seething because I wasn't fixing the downspout issue that day/he assumed I had gotten his certified mail...?
Communication skills are so critical. His primary focus, the retaining wall, got lost in all of his other complaints, and I couldn't tell that it was the most important thing to him. Obviously I could have fixed that specific thing first (it's cheaper to re-route the downspout and cap the drain than it is to confirm that the underground pipe is actually broken, and based on the verbiage in his letter, he appears to feel the re-route is an acceptable resolution to his concerns).
I met with an attorney friend, and he feels that the neighbor's behavior is harassment, and that now is the time to send a letter from an attorney telling him to knock it off. I have zero interest in litigation, so I'm hopeful that he will stop, I'll be able to finish fixing up the house, and sell it without further issue. I truly do not believe he is capable of 'letting it go,' so I feel that selling the house is the best way to get out of the situation without litigation.
I can give more context if the above descriptions don't make sense.