Is this presented to the city prior to acquiring a property during the due diligence period or is a land use attorney or city planner used?

I know the buyer has the burden of due diligence prior to acquiring a property, but ethically a seller should disclose issues with the property.  

I've sold HUD Homes (as the buyer's agent) where the buyer's FHA appraiser required new floor coverings, new paint, roof inspections, a bathroom remodel, and a whole laundry list of repairs to meet the PCRs prior to closing. 

If you choose to wait to impose the fee in order to mitigate this risk, I would be wary of including prior months in arrears; so you may be forgoing the fee until the month you choose to actually impose it.

If a potential sponsor is too easy on investors, things can go wrong, so if he is too easy on you, avoid it.But the last one is outside your prior knowledge and if the deal has not closed and is not about to close, that is, the sponsor is holding the funds for no good reason, you should demand your funds back. 

The QI has to be in place prior to the closing of the sale so that 1031 documents can be prepared for the settlement statements of the closing. 

Ultimately the things that impact asset prices that can over ride what the free market pay for is- monitory policy- government/private sector credit expansion- fiscal policy- Interest rates set by (a private) federal reserve- then finally the consumer ( which is probably influenced by the three prior)- Investor/Consumer confidence

I find myself taking both sides of the "Rent Payment Rate at 95% of Prior Month" headline from an article like this.

IMHO, the agent doesn't know very much about 203k's, because the great thing about 203k's is that the property does NOT have to pass FHA MPR/MPS prior to closing.

Our "reference" for past tenants are lease dates and rent amount, whether tenant paid rent on time, gave appropriate notice prior to moving out and/or received their security deposit back.