Are some of your bigger buildings more than 16 units (requiring an onsite manager)?

The system is what's really broken:1) S8 should have a time limit - get free housing to get your life in order and move on.2) S8 should have strong requirements for taking care of the home taxpayers are paying the rent for. --- We haven't seen a S8 inspection report in over a decade that required a tenant to fix damages they obviously caused.

Home was nice 4 Bed 3Bth under $550K with a decent size lot/yard and it only required 5% down as a New primary.Now I am not sure how big of a home you need but as you can see $100K covers much more in a scenario like that one above. 

If you aren't, there are other options that don't require those.

Quote from @Michell Chase: I am working with a hard lender on a purchase/reno and they require a builders risk policy even though 1 unit of the 3/4 will have a tenant.  

Moving walls usually requires figuring out what is or isn't load bearing and likely putting a large and usually expensive header.

If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee.

Why would capital requirements be any less than traditional development? 

It's easy to obtain, costs very little, and doesn't require extra, on-going effort to maintain.

Here is text from sb13 “the violation is not necessary to protect health and safety, as determined by the enforcement agency, subject to specified requirements.”