It won't be as much death benefit as you have now, but it's better than losing the money completely.  

In the years that I've represented primarily BUYERS, I find that there has been challenges navigating transactions where the seller is a For-Sale-By-Owner (FSBO) AND inexperienced in handling a real estate transaction.

If not sold at development completion, who manages the asset?

I’d prefer to buy as large of a MF property as possible because of economies of scale and having to complete less transactions, but I haven’t closed or underwritten a deal that large before.

Should I just completely ignore the FHA loan and try to get approval with a smaller down payment?

If you want to be completely self-sufficient, you're willing to build an Earthbag home or another building that can be earthquake proofed but can still be run without public utilities, you can spend a ton of money on a well and can have that well water processed to remove contaminated mine crap, you have a great off-road vehicle and you can figure out how to deal with the flooding without redirecting that water onto someone else's land then you can definitely live there.If it's an Investment you're after, give that up.

The news cycle notes that the limited availability of affordable homes is primarily due to a significant gap between the demand for housing and the supply. 

They actually have pretty limited reach as of now and focus primarily on major metro areas.

Keep any plants or tree/branches away from the house even the roof.

I've worked in property management and managed my own properties and HOA's definitely keep a close eye on that cap so the community is primarily owner-occupants.