I would like to know more about the role of zoning attorneys and the potential costs of involving them in organizing and submitting the proposal to the appropriate departments.

I am concerned that he/she is either filing bogus small expenditures OR performing services himself/herself and making profit.

If you don't have the money in your hands on day 46, I would call them and demand they transfer the funds immediately to the new PM or you will file a complaint with the state: https://www.dre.ca.gov/consumers/filecomplaint.htmlThat should motivate them to move immediately.

Another option can be using a Hard Money Lender, a lot of times there is just less red tape involved.

But no income coupled with personal use (your mother) would make it doubtful that it would pass if you were audited.If you have not filed your tax return for 2023 it might be worth looking at actually renting it to your mom for 2023. 

What would you recommend as the best strategy for accounting for this situation as we file taxes for the 2023 tax year.

Also understand that just because its in foreclosure does not mean it will go to foreclosure. the borrower can work something out with the lender or file bankruptcy as well.

This way you know you are in good hands and that it will take minimal involvement from your end on all aspects of your investment.

Google "IRS tax rates" for your filing status. 

The owner filed for eviction it was thrown out without prejudice because they didn't give enough time before filing.