It's got to be an environmental concern...have you checked with the EPA...local and state.

BEWARESuperior environmental conditions- Just as the wine industry one must have the right terroir to grow the best products which includes the right elevations and sun exposure.

Within the existing foot print, can you add a bathroom or another bedroom?

Have you heard about CPTED (crime prevention through environmental design)?

This opportunity is a "social impact fund" developed by a group that "[...] is a vertically integrated, minority and women-owned workforce and affordable housing investment firm" with an overall goal to to "build community and enrich lives through serving as a vehicle for social impact, environmental sustainability, and financial alpha — generating attractive risk-adjusted returns for all stakeholders" and for their investment objectives to include "[...] create, renovate, and preserve workforce and affordable housing in high growth markets throughout the US that have demonstrated the ability to outperform jobs, real wage growth, population growth, renter household formation; and exhibit a supply/demand imbalance"Well, there you go. 

For any commercial properties, I order a Phase One environmental report, which summarizes what has occurred on the property. 

We put in new flooring, appliances, windows, painted exterior and interior, redid the bathroom layout to make more spacious and add a tub (it had been used as an office before so it only had an accessible toilet but a big footprint), added a laundry room to a rough utility room and updated all of the lighting fixtures.

This was commercially zoned as an office so the bathroom was an accessible toilet only but a big footprint.

Differential settlement adding footprint may be an issue, unless well designed (another expense).  

If there is an environmental fining when the Phase 1 is conducted ..are there remedies for that too  and how expensive could they get  as a worst case scenario ?