There are numerous hardships such as your career forcing you to move out of the area that they have programs for.

This might impact your exit strategy. 

Thus, making the policy null and void...forcing me to get homeowners insurance?

In terms of appreciation, you can still have forced appreciation regardless of the area due to increasing income/lowering expenses. 

Lastly, 1. depending on where the property is located, you might be able to raise rents and still be inside the rent cap. 2. if the property currently has debt, most Agency debt have restrictions that survive the LURA and may further impact you ability to take the property out of the affordable housing stock. 3.Are you under and HAP agreement?

At this point you should have forced the value up significantly and have leverage when talking with banks to get a solid loan to value.Good luck. 

We must have appreciation, and in Mid West it is forced appreciation - it's the only flippin' way to make decent returns.

If you want as little out of pocket, then these additional coverage's are a must.As far as individual coverage's go, without making this post several pages long, the coverage that can have the largest impact on claims being paid out is Replacement cost or Actual Cash Value.Replacement Cost will replace your property no matter the age or value of the property lost. 

I have however, successfully gone back to court and dragged the tenant back in after eviction to force the payment issue. 

I've gotten behind on my new mortgage and current mortgage and it's a long way to completion (4 months), and my credit has been negatively impacted.