Any info on how this process is recorded with local authorities would be great.

If you was to do the deal you would also need to get an “authorization to lease” form from the rehabbers.

If your lease already has an at will capability to modify rules and regs, you can cite that as the authorization for the change and avoid an addendum.

@Nicholas Clement A buyer can’t negotiate a short sale with the bank.....unless the owner gives them written authorization, which is unlikely to happen.  

I'm trying the find a Colorado lender (or at least authorized to lend in Colorado) to work with who understands how I can qualify for an FHA loan without the 2 years of continuous work experience?

The housing authority had the “market rent” lower than what the market really was in the area for a high quality property.

The only time anything is sent in writing regarding a prospect's non-selection is when they've done an application, authorized background and credit screening and failed the standard. 

We built a ground up state of the art facility and covered the equity requirement through the sale of Low Income Housing Tax Credits the project was awarded by the Colorado Housing and Finance Authority (CHAFA) and sold the credits at a discount to a major national bank.We understood from the start that operating the facility required an entirely different skill set that those needed to plan and build it.

@Daryl Luc has the right way to do it, because only authorized law enforcement agents have access to it. 

If the regulatory authority declare the seller to be your client, then by attempting to purchase at a low price you are violating fiduciary responsibility.