Push back and keep collecting or let it slide? 

If you are putting up a wall you likely need a permit but you will be surprised at how many things you need a permit for that the town tends to not enforce or let you slide on.

All of these groups have a sliding scale membership based on number of units that is quite reasonable, and membership includes state specific forms and leases.

Will my first mortgage foreclosure take priority and all subsequent liens (including the second mortgage) get wiped out?  

(b) During the second and subsequent years of the lease or during any renewal of the original lease the amount required to be deposited may not exceed one month's rent."

It isn't the bible, and in more expensive markets, or for those looking at Buy/Hold rather than Fix/Flip, that 70% might slide up to 80%.Your numbers:($150k*0.7) - $5k = $100k .

There is only one way to arrest the slide: since values have increased, we have to start paying more for houses, just like the rest of the market.

*Disclaimer* *Source is a MA tenant class I took, taken right off the instructors slide sheet, instructor is an attorney, I am not, please seek legal advice when dealing with this topic*

As an example, if a building was purchased at $35,000 and rehabbed and subsequently sold for $85,000, do they just use the $85,000 purchase price or will they assess based on the local market and comparables? 

I rapidly built up to 1000 apartment units during the 2000's and subsequently lost them in the downturn.