Saying we "Push the first offer because we want it to sell quick" is an ethical violation and is calling integrity into question.

With HUD I must assume any POS violations but there was not POS inspection done.

You should have a clause in your lease that states the tenant must maintain utilities in good standing, I would give proper notice of lease violation and give them the chance to cure, whatever your state requires.

Finally, the bill provides that complaints alleging violations of the law can be filed with the Office of Human Rights. 

They violated everyones trust.

Aloha,I believe if it must not have life safetly violations, if it is okay than a "temporary certificate of occupancy" can be requested but there are some stipulations.Here from Chicago codes of ordinance: Sec. 22-22. - Certificate of occupancy—Sale or conveyance of title.If the inspection reveals violations of the City Code, excluding "life-safety" violations, as determined in the sole discretion of the code enforcement department, the subject property may be issued a "temporary certificate of occupancy" to permit the property owner to remediate said violations while occupying the property.

This same guy had a Broker submit a complaint to our local REI for an ethics violation for providing a letter of good funds on a contract with zero contingencies.  

OWNER shall not be liable to RESIDENT for any violation of such rules by any other RESIDENTS or persons.

However, one cannot refuse this tenant based on 8 people because it would be HUD violation, which has been established at 2 people/bedroom + 1 if there is a living room. 

I would echo what @Jay Dewberry said above and would also add that you should search for any outstanding liens / violations on the property.