Ben,First from a Bankers point of view you are over extended from an LOC perspective and its hurting your DTI and future approvals. 

Also make sure you understand everything about adding an ADU including value of the ADYPU, financing, impact from rent control, duration between initial expense and initial income, true cash flow (know the 50% rule, at 50% rent ratio initial property tax will be near 20% of income)- educate.  

Just make sure that it isn't turned off for an extended amount of time.

It is up to the CPA to determine if the taxpayer is an "Affected Taxpayer" and if so which date/dates are being extended.

The RE agent stated some properties on the river in the past did not get their lease extended to provide better river access.  

I've seen where people add so many loan extensions with optional payment.Say 1k gives you a 1 or 2 year extension and this can be done 4 or so times.This agreement could be changed so many ways to make it work.You could offer a higher interest rate after 7 years to extend to 15 years.

But I wouldn't be surprised to see us settle in the low 6.00% range.I have some aggressive bets in stocks and long duration bonds that will benefit if/when that happens.

The appeal period was extended until today, 12/2.

These borrowers are typically out of the market for extended periods of time, have limited contacts in the debt world, lack understanding of how different loan programs work, and are susceptible to working with the one bank / credit union loan officer that they know through their family, friends, church group, college, etc.

.: Quote from @James Hamling:Fraud for property generally involves material misrepresentation or omission of information with the intent to deceive or mislead a lender into extending credit that would likely not be offered if the true facts were known.