This packet should have contained all the vital info. needed to determine the health of the HOA, as it should contain budgets, minutes, etc. 

Is this a property that is or was recently habited or the seller was paying a mortagage on an uninhabitable property?

After that they will have trouble suing since as a landlord you have a duty to provide a habitable residence and you performed your duty by looking into the issue and cleaned it up once aware of the issue.

I have owners that fix everything and owners that I must fight with to keep the homes in habitable condition.

I have owners that fix everything and owners that I must fight with to keep the homes in habitable condition.

Once they have bad habits, they need a hard reboot.Factor full transitions into your budget.

I am thinking that at this point I need to encourage him to find a new place to take his cat and his habit to live.

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If you don't have the ability to do that, then you need to seriously focus on your spending habits before you even think about investing in real estate.

Further, there are minimum habitability standards set by your state's Board of Health and maybe even the local code enforcement office.