Rehab funds are typically escrowed and the borrow is reimbursed for rehab expenses as the portions of the rehab work are verified completed.

The term "cash revenues" shall mean all income resulting from the operation of the property, including but not limited to all rents and other sums deposited including, parking fees, common area charges, percentage rents, operating expense, real estate tax, and insurance premium reimbursements, late charges, security deposit forfeitures, and insurance claims proceeds" 3 Construction Supervision: Agent shall be paid a fee of (10%) of the total costs of any and all Tenant Improvements, Repairs, or Renovations for coordinating, supervising, and contracting for such work on behalf of the Owner.4 If  Agent is successful in obtaining a real estate tax assessment reduction for the property or any part thereof, Owner agrees to pay Agent a fee equivalent to fifty percent (50%) of the first year's real estate tax expense savings realized by Owner as a result of such reduction.

If your attorney's are sure the expungement would take then insure with exception, close now at some discount and escrow the 5-8K to reimburse?

It means you do the work and then they reimburse you.

I would simply tell them no to the electricity reimbursement.

I'd ask them to pony up all the fees you accrued on your way to closing (inspections, gas spent driving etc) and ask them to write you a check for reimbursement in return for not pursuing legal action.

@Elvis Vasquez , if the amount of the loan is more than your tuition, remaining is reimbursed to you.

There have recently been a few postings on some of the landlord forums I'm on of landlords who have had Section 8 tenants who lost their vouchers several months before yet, for some reason, the housing authority kept paying until they realized their mistake and are now requiring these landlords to reimburse back the rent provided. 

It sounds like the cost of this was billed to the seller, and the tenants were reimbursing the seller each month.

Also, if you ever get to court, I'm guessing his claim will be thrown out immediately because he is unlicensed and you will get a chance at a counter claim.Make sure you are reasonable in what you calculate your damages at. 20 days is not an unusual delay for any type of construction work and if your contract with him didn't have liquidated damages listed, I doubt you can get reimbursed on a per day basis.What was the total original contract amount?