Seth,One of my best friends is a home inspector so I feel I have a unique perspective and I agree with others who have posted on this thread, one shouldn't exclude the other. 

Its possible that she's an RN that works for herself through a 1099 so everything is take home pay but that doesn't exclude the fact that she can't verify income or show submitted taxes.

One thing I did notice,  and granted I don't know your market, but you excluded a W/D.   

I see two possible exemptions in the new law that could apply to your situation.The new law has a list of "properties and circumstances" that are excluded from coverage under this law. 

Obviously we can exclude the prohibited dog list.

The first question is whether I should choose Option 1 benefits, or Option 2 benefits (or exclude from class). 

Excluding new housing from the rent control regulation was intentional to encourage building new housing.  

@Austin Carr one other thing to be aware of is that the rules for fair housing are usually different if you have less than 4 units and are owner occupied (California and maybe other places excluded).

Exclude suicides.

At this point you definatly need an attorney but in the future I recommend that you don't exclude Section 8 but you do consider Section 8 as a portion of their income and they must still meet your income requirements.