If you misuse zoning, city can fine you.

However, they usually can't do much unless it's pretty clear-cut legal (not moral) contravention or misuse of funds.I would recommend on something specific like that, that you ask if you can get an eMail and save it) or something written to the effect they understand what you want and are trying to avoid.  

What happens typically is in tough times like the Covid 19 situation we are in, bad luck tends to find its victims.2) The internet is a place where you leave your digital footprint and that can be misconstrued or misused against your by foe and friend alike.

@Jerel Ehlert Thank you for taking time to post all that helpful information, I would like to clarify, I may have misused the word passive, I throughly enjoy real estate and it’s a true passion of ours, we enjoy the Hunt, Reno process and even being a landlord and managing our properties, we are leaning more towards either using leverage to buy many SFR or Multi-Family.

@Bruce C.The penalty for misuse of funds is 150% of the original principal loan amount, as well as federal charges.

Aloha,A fundamental flaw with every subsidy program I have worked with is the issue of removing a tenant that has failed to fulfill the terms of the Landlord's Rental Agreement, whether by not paying their portion, damaging property through misuse or by intent, or causing other issues in the building/complex in violation of rules.

I have a tenant that the wife has a clear back ground, but her husband has a felony for a misuse of debit card for $32?!

The most common way I see people misusing money is when they spend it mindless or on things that they don't truly value.

The washer is definitely from tenant misuse but unfortunately got included in the lease. 

If the diagnosis is unsuccessful but the professional determines the problem to be caused by tenant misuse/negligence, I bill the tenant for the service call.