Have the mechanicals been updated? 

Yes, I went to my intake appointment last month and was told to save a designated amount for three months consecutively.

It is designed for properties that need work but can be used on rent ready properties as well. 

I don't think someone should expect a title problem any more than one should expect a doctor to take out the wrong kidney or a car mechanic to replace the alternator when the problem is the battery. 

You'll first need to hire an architect to design the unit.

No one is going to care that 3 people are in a bedroom "designed for 2 people".

Speak to the contractor's in-house architect and ask them what they need to see in the geo tech report in order to feel confident designing the house there.

Rethinking the design, the basement would likely also only have two bedrooms (perhaps each with their own bath for a higher rent) in order to accommodate the utilities.

I am an architect who uses generative design to streamline the production of mid-size projects but I am not a full-on programmer.

It is the policy design that matters.