Ha ha! 

Ha!

He hasn't responded ha ha, but the law says that then the local cities/counties can then decide if they want to require them all to be owner-occupied in order to rent the ADU and JADU.I guess the hope is that the cities/counties will have seen that things go just fine with non owner-occupied, but unless the law gets changed to say this is permanent, I'd hesitate to invest money building ADUs unless I planned on moving in after 5 years. 

In our area the HA requires us to give the tenant and the HA case manager at least a 60-day notice before raising rent.

He by himself ha a bit too much debt.

Albeit I'm  definitely a newbie @ real estate investing (mostly due to analysis paralysis ha), I've been watching the broader market and the economy for years, mainly driven by my own interest and partially driven by the nature of my day-time job. 

I've never actually had a title come back unable to be closed on, but I'm confident I have done less deals than you. ha.

At the end you sign a contract with the HA.  

Ha -  We had our discussions and I respect people if they want to pay all cash - but like the old country cliche goes - there's more than one way to skin a cat - and as a common person who wants bigger and better things - good luck saving up $1 million or more for a bigger deal in your lifetime if you want those big deals before you reach retirement age.   

Ha never again.