I'm not sure if it's a trick question, but when a seller asks for proof of funds, you provide proof of funds.

That being said, I don't think the bank is going to be sending folks to peep through your window to confirm you live there... but you obviously still shouldn't do anything misleading, hypothetical or not :) If you have utilities or some bills in your name headed to that address, that would adequately show a proof of residence to some capacity. 

The insurance company needs proof that the heating was turned on when the pipe burst, or else we are out the $10k. 

There is no proof for this other than a text message.

Most of these hard money lenders require some form of credit/proof of income and a fee for each submission.

Expect to shoulder the burden of copious proof - and even then it may not be granted. 

What do you mean by not having proof of income?

I don't see how any city/state could possibly enforce requiring proof that all work done in the house was permitted.

Operators of very small homes are taking home strong 6-figure incomes.It's essentially recession-proof as the supply of aging baby boom seniors needing care will be in place for the foreseeable future.Residents of an ALF are generally in need of assistance with "Activities of Daily Living", called ADL. 

If you are planning to use an insured mortgage (less than 20% down for example) they will want proof that you will be moving in the new property, and if the person with the qualifying income (your husband) is staying in BC that could cause some issues.