No guarantee that people don't fudge the numbers, but since the expenses decrease their tax burden if they are getting creative they would be overstating expenses, not under.  

Truthfully, we'd do this even if we were paying a slightly higher rate, but the decrease made it all the more palatable.

I'm also basing my analysis on buying at a 20% discount with 25% down which decreases the mortgage payment substantially of course.  

i...FHA INFO #14-73December 10, 2014NEWS AND UPDATESTO:All FHA-Approved Mortgagees What’s New Expiration of the Federal Housing Administration’s Property Flipping WaiverToday, the Federal Housing Administration’s (FHA) Office of Single Family Housing announced that the temporary waiver of FHA’s regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition ,expires on December 31, 2014.

So even if your values decrease, your taxes may still increase.Working in a tax office, I can tell you, that house you are looking at could very well end up costing more in taxes at 75k next year than it does at 92k this year.

The way things are going the HOA will be bankrupt if we don't increase assessments and a bankruptcy will decrease the market value of units. 

Any opportunities to decrease expenses?

At no point was it requested/demanded by the housing authority or the tenant to cover the cost of their temporary relocation.

Going through the county website I found my neighbors property is assessed about 40K less then mine after a borough decrease.

Once the published data catches-up it will be interesting to see if we are experiencing an uncharacteristic spike arising from the temporary relaxation of lending practices a decade ago.