And what is the best source to get lease agreement forms and other necessary forms compliant with state/county laws and regulations? 

I don't deal in government backed loans, but I thought - with one exception - that the home had to be on a permanent foundation and attached to the land with the land in the deal.  

In Delaware state transfer taxes are waived if you buy a home from the government.  

That way you don't lose TONS of money with:Hard money WILL have regulations on credit and incomeYou will have to get an appraisalYou will have to show experience with previous investment properties (My area requires 4 deals)You WILL owe that balance at the end of the term (If not you will get buried in extension fees) POINTS!

Nothing the government does is quick.

As per commercial non consumer purpose loans, it would depend on the language of the specific state's laws, rules and regulations regarding loans, contracts, torts, etc., whether or not it is considered predatory lending or if lender liability can be invoked on some other issue.The real issue for me is that even if it passes muster in a particular state, what happens if the borrower files bankruptcy and does so utilizing Federal guidelines.  

There also seems to be government investment in revitalization of the neighborhood.  

Yet, on the same token, since there isn't any guidance from the FTB, you may be able to convince an FTB agent that your structure is within the bounds of the regulations.  

As part of the application, there needs to be an entire "narrative" about my intentions with the property, addressing dozens of regulations and other points of interest, site drawings, signs on the property, and even attending a public hearing about my proposal.

AirBnB is also a great idea, although it makes me a little nervous as a long term business model because you never know what your local city or county will do in the future as far as regulating them.