We just discovered a crack in the concrete slab foundation that is a borderline major problem:- It is a vertical crack about 1/8 inch wide that is at least 9ft long, which is causing a 3/4 inch drop in the flooring and some evidence of old (luckily) limited moisture and termite intrusion. - BUT, it also appears old and probably a symptom of the original house settling.

The only way that works is if they have fully connected utilities and it is sitting on some kind of foundation and not on a trailer.Some folks think they are cool, but you really limit yourself on demographics.

Is there a housing shortage or is there really a problem with the BARRIERS caused by productivity, land use, zoning and mandates that limits construction?  

You are currently sitting in Los Angeles's entertainment mecca and Mid Term rentals/30+ day rentals are a great alternative to the STR limitation.

It's outside Scottsdale city limits (Maricopa County jurisdiction) so it is not subject to Scottsdale's restrictions.It does, however, have a shared well agreement with one other parcel (as almost all in this area seem to).

And yep, I was made aware a couple of years ago of that 12 person max and/or I think 4,000 sq ft limitation (or some size anyway) that requires a sprinkler system for all new construction.I don't think they're that wrong for implementing the requirement. 

By way of example, a lender may charge retainage, only release soft costs upon C/O, may limit loans to a set number of draws or only allow draws once a certain dollar amount of work has been completed.

I evaluate the market every year especially now that limits are being placed on how much of an increase is allowed in certain areas. 

There is no limit, they do monthly/yearly bonuses and pretty much they make it able to make money to invest in real estate.

Years ago I saw homes in areas like Lemon Grove with large floorplans and limited rooms.