I have also done some major tree cutting on the property.

Seeing the pending potential nightmare tenant situation looming, I decide to cut my losses and let her off the hook.

If so, I'd cut your losses and get rid of the place.It sounds like you might be considering throwing good money after bad.

Most government agencies have a legal hearing process before aid is cut off.

On the flip side, understand if they truly wanted they could knock on the door and work out their own deal and cut you out as though you have a contract, someone else could get them to do business with them and not you. 

Generally permits mean nothing, and having them does not provide any protection, other than the fact that NOT having them is a negative indicator that will go against you because a lawyer can insinuate very easily that you did shoddy work and were cutting corners.If you are careful about how you do things, and yes even how you treat people, you are less likely to be sued and found negligent.

They typically just screw into the studs on either side unless you have new construction windows which can be cut out. 

Just now I found another home I really like as well, and I called the first agent I worked with to make that $115 offer ( she works alongside that "manager" guy, so maybe this will get his attention and he will cut the BS.), so I told her I found another house I like and I would like her to make an offer for me, (since she was pretty quick to get me an offer contract last night).

I just pasted the screenshot, but the website usually cuts off the majority of the pictures I copy and paste.

Hopefully you can cut HIM out of the deal.