However, the ground-floor tenant has been doing some reading and has come to the conclusion that he doesn't feel safe having his family right above this equipment, so he turned off all the water heaters. 

Service them once a year to ensure they are clean, operational, and safe.

@Lawrence Hsu As long as your local law doesn't require you to accept the first qualified applicant,then you are safe to select the best one.

I assume your saying your home isn’t safe for your mom to move there instead otherwise you could sell hers instead. 

repaied by 9/13 for township re-inspection and not my inspector with previously anticipated closing date 9/14: - furnace repair- *electric repair- *basement smoke detectors replaced- *2nd floor bedroom battery for smoke detectorHowever, the local U&R requirement is just for safe occupancy and certainly not to the standards of this house at the time of sales agreement (house was agreed to over asking, AND above market value locally due to its great condition prior to the flood), and PA Agreement of Sales specifically states ("home must be in condition when it was agreed to").I have had numerous emails/info exchanged with my lawyer now.Any recommendation, pointers, insights?

That means you should figure out how to safely use it and educate your tenants and it should be fine.

He is probably a better bet b/c he isn't going to lose that compared to someone who has a job today, and doesn't tomorrow.  

A citywide homelessness action plan was recently approved by the city council that places a 200 person safe land/lot location on the outskirt of my subdivision. 

Working with an agent who has experience dealing in these types of properties is going to be your best bet. 

So he told her some of the rooms were not even safe to enter, its a level it house.