I think the interpretation would be that you did not move back into your primary residence. 

My client couldn't speak English and had to use an interpreter to close the transaction. 

My sense of humor is sometimes, shall we say, interpreted incorrectly.Second, I did a search and your name came up frequently (hence my comment).

I'm not an attorney, so the next couple sentences are just a layman's interpretation.

I posted here so I can learn how to accurately interpret the meaning of that statement in the application form.

And your pragmatically applicable interpretation would be...? 

I am sure the text for what one can and cannot do from the IRS and any other governing bodies is long and difficult to totally understand and may be open to interpretation - I know many things with the IRS are.  

@Michael Pursell following up on @Charlie MacPherson good comment you also may want to pay attention to the exact wording of this stuff and how its individually interpreted by the various building departments: Accessory Dwelling Unit, In-Law and other terms may mean something slightly different town by town and be treated differently, likewise if you owner occupy or not. 

Some interpret local laws differently than others and an investor friendly attorney may be more likely to give you the specific route to take rather than just  a general idea. 

LOL  A lot of interpretation of my short sentence here.A gutted property will require a lot of rehab and a lot of permits.