Like other cities Indy doesn't have progressive zoning and permitting laws.

If it were me I'd pass or do a substantial escrow holdback until you knew if things were properly permitted, etc.

How much value would I add with a permitted ADU?

We would handle the structure and property design, planning, permits, bids, sub-division (if needed) for the project.

Other exclusions are roof replacement, anything requiring a permit, exterior painting if more than 5% of surface, "maintenance related to the garden, lawn, or landscaping," anything covered by any of the various required insurance policies, etc.

Tax records have nothing to do with permits etc. 

Just to get started here in Chicago, there is a process through ComEd to assess, inspect, and permit submeters that took me 4 months to approve and install.

Obviously, there are permits and paperwork, etc.

Beyond removing the developable parcel from existing loan expect whomever finances the construction to want zoning, building permitting and utility connection approvals before the loan is originated (some will accept just zoning).

If they do not, the maintenance request will be canceled and I would start heading towards termination of their lease for failing to comply with state law and permit me to maintain the property.A large percentage of Section 8 tenants are entitled.