File a complaint with your state agency or their regulatory agency or the FDIC and move on.

Per the county, they do nothing to inspect the building - they only verify things like setbacks, impervious surface %.

Anyone that has ever read or communicated with a city, county or public regulatory authority can attest to the often frustrating and unclear answers that are received (think DMV) but multiply it by twelve when it has to do with sometimes illogical or biased short term rental permissions. 

Consider the time, effort, and expense to develop a concept plan to include site drawings, home types, homes per acre, site storm water retention plan, tree save areas, conservation areas, wetland setbacks, time considerations for meetings with county land use planners, negotiating easements for utilities, rezoning meetings with county council, revisions to your plans to meet demands of neighbors, planners and/or county council, and hopefully getting a final approval for your project.

They didn't account for regulatory changes or market saturation, which could lower prices.

The lender has no duty to the 2nd borrower and vice versa and in fact, the lender may be negligent to regulatory agencies, examiners, investors, the U.S.

A Self-Certified permit review would likely only take a few weeks; as compared to 4-6 Months for a project which is not "Self-Certified" and needs to go through the "Standard Plan Review" process.A Zoning analysis should be performed for your property ASAP using a Plat of Survey to ensure you would be allowed to build what you want to build, and check for any potential "Setback" concerns when it comes to adding Dormers...

The land, zoning, waste disposal system, in ground oil tank, elevations, liabilities, encumbrances, lot size, setbacks, and other issues that may have impact on an investment decision and any value add opportunities or lack of. 

Starting on page 90 there are references to existing zoning, which don't have ADU dimensions, and proposed zoning, which does reference setbacks, heights, etc.

A legitimate hardship for example is that the lot is now undersized and the set backs increased and you cannot build anything unless you get a variance.