To make sure we had all our bases covered we called insurance, they sent a restoration crew out there to do full mitigation, cost $20,000 and my tenant was worried about mold etc.

There is so much value that needs to be restored in this town.

Vacancy and non-use of the building or structure, regardless of the intent of the owner, shall constitute discontinuance under this provision.e) Where a building or structure devoted to a nonconforming use is damaged to the extent of 50% or more of its current value, such building or structure, if restored, shall thereafter be devoted to conforming uses.

So, I would send the Tenant notice, citing the lease clause, and give them a timeline (if not defined in the lease) for completing repairs and/or restoring the property to it's normal condition. 

The property was gutted down to be completely restored.

The property was gutted down to be completely restored.

Full entitlement to a VA loan is only restored once you dispose of the property (the only exception being a one-time restoration that the VA must approve).  

Current estimates are around 3-5million (some say higher) for total restoration.

We originally had planned to clean it up and list it as a wholetail, but the couple we bought it from really wanted to see the home restored and go to a new family to enjoy, so we rolled up our (contractor's) sleeves and got the work done.

I went down to look at it and the buildings were not livable, the whole project to be scrapped and leveled down. most of the territory is unlivable and beyond any restoration.