Adjust your message or target different neighborhoods if necessary.

The SFR + ADU is worth less than a Duplex because the ADU is viewed as an amenity rather than an additional unit so your appraisal will look for other SFRs with ADUs and provide line item adjustments for homes with and without ADUs much like having or not having a pool or a garage.

I'm a big advocate of that market and still believe it offers the best risk-adjusted returns today.Lots of folks are still writing off Detroit but more and more are waking up to the opportunity there.

Could an inspector look at the house at that point and certify that there are no asbestos materials inside?

All you have to do now is to adjust your mindset.

They will adjust the plans as well as coordinate for structural engineering review. 

Do we need to cover ourselves, and contact the housing authority via certified letter or email so this doesn't come back to bite us?   

I would put even less weight if a 'financial advisor' is doing other services such as taxes / insurance because he / she is looking to make money in anyway possible.I personally think if you want some financial advice, you should seek someone with the CFP(certified Financial Planner) designation. 

We just notify them certified mail and provide MHA the request form, 3 comps and proof that the tenant was notified of the increase 60 days prior.

For a more involved approach, suggest that tenants track their appliance usage for a more accurate and cooperative adjustment of payments.