@John Jacobs I require my borrowers to have policies that cover replacement cost. 

If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee.

If so I would thoroughly ready this to see what they require and what you agreed to.I doubt you can keep your permit if you refuse their inspection.If you are doing everything as you should, you shouldn't have anything to worry about.

Permit eligibility is based on region (usually the west side of town) and density (quantity of surrounding STR's in the area) as well as percentage of landscaping and minimum parking requirements. 

., as Chris noted, the required documentation will be outlined in the LP Agreement you signed.

Tighten up your requirements.

One requirement for this loan product is that the rehab must be completed by a licensed and insured contractor approved by the lender.

Most individuals can originate the debt these projects require as well so its not as if your signature is opening the doors to properties these partners couldn't purchase on their own either.  

The capital required for Denver, and limited cash flow makes it a tough market to get your next one.

The deed transfers to the trust without triggering due on sale and that is the only item requiring recording in the process.