It is imperative that you take this action to prevent fines and legal issues.

What would be the best course of action to sue them for non-payment? 

“Passing Good Cause is not only a step toward tackling these systemic issues—it is the vital foundation to any meaningful action.”In a free market economy, how will those providing housing react to a law that forces them to house non-paying tenants for free? 

 @Jason Dubon Jason, that’s awesome—you’re already taking action, which is half the battle!

Cheap money and low rates produce euphoria, which increases flow of money to an asset, which pushes up the price to uninvestable levels.I think it's going to get worse than better in the short term.Gino

Stats can be foundhttps://www.ramaui.com/housing-statisticsOr for all islands herehttps://www.hawaiirealtors.com/resources/housing-trends-2/Your realtor can produce more specific stats on your area of interest.

If I have a JV with other investors and we need to pursue legal actions, I always involve the other investors when interviewing attorneys.

It may not get the number of wind/hail storms like TX does, but when the storms do hit in MN, they're usually very large systems, and produce awful hail damage. 

When you go to sell the property, if you produce a certificate of inspection for the wrong number of units, buyer unless you are giving them a great deal and they will throw caution into the wind, would insist on the correct designations.

One big one is that scaling the lease option sale to a homeowner will attract both public regulatory scrutiny and private litigation, perhaps class action, once it reaches a certain threshold.