Given that I need to live in the home legally, I am planning to move into the smaller unit that is currently brining in the under-market rents.

You even indemnify GPs against false claims and sign to cover legal cost.

Who is buying/selling (legal) stuff with it? 

@Mario Morales if by non-conforming you mean the unit is not legal to rent so not on your tax assessment they may consider that in appraisals. 

However, if they continue to refuse and there's no resolution, you may eventually have to look into the legal steps for eviction.

Your not licensed to be handling that kind of information legally.

Anyways, even if a gap lender comes in, if it’s even an allowable second position (A lot of lenders won’t do that and Silent 2nds are a No-No) they add so much additional risk to the deal, potential legal ramifications and all around  generally dangerous feet’s.

If you did not deliver the proper Notice to the tenant, missed deadlines or tried something else that is not legal, your eviction case will be thrown out.A normal eviction for non-payment of rent should be settled in a month, I can only imagine that your property management company does not know how to follow the law - and I hate to say it, I know several, that do not even meet the necessary license requirements and therefore no surprise they don't know.

If you have any legal questions, contracts, financing, etc. 

Go on the offensive and find her responsible, and pursue legal recourse.