I, like you it sounds like, would not be comfortable in that situation with a smaller spread. 

Needing some insight on a first time situation. 

Scaling that fast may work for a very few but for most that will be more stress and risk for not much more if even any extra reward. 

It's important to understand how the credits will affect your specific tax situation and when you can claim them.Recapture Rules: There are recapture rules in place, which may require you to repay some or all of the credit if you dispose of the property or change its use within a certain number of years after the rehabilitation.Overall, historic tax credits can be a valuable tool for property developers and owners looking to preserve historic buildings and lower the overall cost of rehabilitation projects.

I have a unique situation where a long time family friend inherited a single family house in Jersey City from her deceased mother.  

Unfortunately no one in this forum will be able to properly answer your question because of the unique situation. 

I am curious to learn more about the situation and see if there are any possible solutions.

Hoping someone has some guidance on a CMHA situation we're in.

Any BP’ers have experience with this type of situation?

The current situation in the Real State market can only be characterized as that of a monopoly with severe barriers to entry.