Are there liners that one could install at least for a semi-permanent fix? 

When I turn the construction loan into a permanent loan, its done at 75% LTV, which is where I can pull put any equity generated in the project.  

Have you considered looking around for permanent furniture for the units.

I'm guessing you are using $60k of your loc and plan to refinance at a higher balance and/or doing a 15 year on your permanent note? 

I'm thinking it's similar to college student housing in some ways but a little different.Not sure how to vet the organization,players,and situation.Players may be rotating thru housing as some will be permanent and some temporary.Any advice would be appreciated.

We will live in the property for a few months while looking for a permanent home then plan to find a renter.  

So: if this hypothetical situation was permanent, then yes!

Is this a temporary setback they can recover from or something permanent where waiting is going to make the losses and situation much worse??

Needs to be permanently affixed to a permanent foundation and be no older than June of 1976.  

When there is a construction component, it will be structured as a 50% 1st from bank/lender, 2nd interim/bridge and an permanent SBA loan offering through debenture upon completion of construction as they will not fund their loan until the property is fully constructed, a Certificate of Occupancy is issued, and the Lender provides certification that both the 1st TD and interim loans are fully disbursed.