If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion? 

Bank Credit Line How did you add value to the deal?

Many community banks will give you credit for proforma rents.  

It may be too late.yup stop payment.. also for future reference if you cant pay cash for these kind of educational events don't do it.how are you going to do business if you have to charge this to even get started.. this is the very thing that really bugs me about the real estate education sector in the US>. talking people to go into credit card debt when they know full well only 10% or less of folks that try this or any kind of wholesaling / flipping/ notes / lending etc will do anything .. and especially if you have no capital.

Developers will not be able to get these bonus building permits without providing such TDR credits.  

I racked up debt, at times putting expenses like property taxes on a line of credit.

They always make sure to have line(s) of credit to get them through challenging periods.

the note is converted or exchanged for credits?  

Renting it out while strategically leveraging the equity could be the best path forward.As @Jaycee Greene said, DSCR looks at your credit rather than DTI.

Contractors, unless you have a working relationship with them, normally do not want you bouncing ideas off them.Understand what their hourly rate is, have a discussion with them that you are okay with paying them an hourly rate if they walk the property with you and provide you a scope of work along with an explanation of what you can/can't get away with in regards to improvements.ask them if you go with them, if they can credit you the amount that you paid.Once you develop a working relationship with a few contractors, you can bounce ideas off them and expect quality responses.I do not invest in New York.Best of luck.