The commercial lending departments will want to see bank statements/tax returns to underwrite the property, since they aren't really loaning on your credit, but the operations of the asset.Estoppel certs/certified rent roles are a great way to get on the same page with the tenant in terms of rent rate/security deposit, but, at lest in my experience, don't cut the mustard with the bank. 

I think someone is pulling your chain.Contact the Los Angeles Department of Building and Safety.

It would have been better to either separately meter each apartment with the water department, which can be quite costly to do.

I went ahead and called the offices where I was getting the run-around and asked who the supervisor was for their department and asked for their contact info.

There is nothing you can do but call the city utility department to fix it. 

I’ve been slacking in the networking department.

Hey BP,I have a duplex in south LA near USC and I’m interested in starting a co-living community, which is essentially a dorm style, work/live space for young professionals.I called the housing department and they didn’t seem to have any issues with it as long as I adhered to the rent control lease terms and max occupancy laws, but I wanted to double check that there wouldn’t be any zoning conflicts or other hidden unknowns.Anyone have any experience on the legal side of things?

Will,I like the suggestion, and it is one that I pursued before committing to this deal; however as you may know, working with the city and the public departments is not always such an easy task.

@Bhaskar Pusuluri I am in  residential loan department so don't know how commercial loan guidelines work. 

I think the security deposit needs to stay where it is and the new tenant should work something out with the departing tenant, but would like to hear some opinions.