After Hurricane Sandy in NY the vast majority of the houses on the South Shore of Long Island were lifted through various government grant programs.

I mean, a filed lawsuit arguing to pierce a particular LLC is only worth the paper (of course most jurisdictions don't even allow paper filing of civil actions anymore) it's printed on.

I rely on personal care assistants (PCAs) for daily help, which are fortunately covered by government benefits.

Know that the market you're serving does exist, and is like an underlying current that's being held back by walled garden that the government has only recently scrutinize.Zillow, Redfin and Trulia has all attempted at disintermediation and increase market efficiency, but failed due to the market powers that maybe. 

I only sold a few amount of properties but the values of the homes have increased.The government is making less affordable homes(Impacts supply)A lot of the points you suggested such as selling costs and having to rehab the property before sale apply to both cheap homes and expensive homes

There is usually one for each State/Couty and a few Government DPA's that will cover down payment and closing costs as well.

Certainly not afraid of it -- the government red tape is Partly a question and difficulty removing a bad tenant is probably he biggest downside - that goes for any property though.   

Why would any landlord list their properties for LESS than what the government is willing to pay?

It just seemed like a good strategy since these were government backed rental payments

At year end it probably takes 2 hours to go through everything looking for errors and printing reports.