It means the association has let their FHA status expire and they need to start from square one to get re-approved.

They probably fell into the service side of loan status servicing under the CFPB guidelines and decided to no longer play that game due to compliance requirements, that may have an impact on others too.

Specific to the underlined portion below  "However, tenants who would otherwise have protected status may be evicted if the unit is the only rental unit owned by the landlord in the building"- how would this impact a duplex where the new owner moves into one unit and a protected tenant is in the other unit?

“Essentially, they are cutting in line,” Mills said, referring to the super-lien priority status over a mortgage.

See my BP blog posthttps://www.biggerpockets.com/blogs/8070/51492-why-is-zillow-so-far-off-in-utah-what-is-a-non-disclosure-stateZillow is a great "first pass" data tool, but it is negatively impacted by Utah's status as a non-disclosure state. 

So far I have over a dozen debt deals with POL mature between end of 2016 and Mid 2017; None of them is in foreclosure status

In RE we have value buys and every city across the US is always in a different status   Why not take profits from one area and push to another to achieve a profit?  

They are managing a property I own in Cleveland, but wont release the rent money to me and will not inform me of what the status is with this property by providing timely reports. 

They are an elderly couple whom have resident status in another state and are looking to sell due to the failing health of the husband.

I was an out of state investor at the time living in LA full time so I gave him General Partner status to make decisions on maintenance etc.