Those would provide some safe harbor since they are government issued docs

In Texas, evicting a tenant is governed by Texas Property Code section 24 that a landlord must follow.

Government Programs Look into local government programs or grants designed to help property owners with essential infrastructure repairs.

So, your issue is with the county government based on what you just said because a home built by a licensed contractor would also have not been inspected.I'd be JUST as concerned about a contractor built home with no inspections as I would a homeowner built home with no inspections.

You could reach out to Kevin Kim at Geraci LLP in CA who's firm does securities and PML law in all states and is intimate with CA, OR, WA, and ID laws as well as corresponding state specific financial institutions governance (in WA it's called DFI or Department of Financial Institutions) and how to navigate their expectations accordingly... 

How concerned are those of you that have invested with Homeroom about the potential for local governments to shut this type of rental down?

I think the best approach is to have a free and open fast search engine that organizes all the delinquent property lists across all the 3,000 counties and links back to the Source of Truth at the government site.

I should explain that our little outfit has been investigated in the past by the federal government, due to our own stupidity, and so we also cooperate extensively with a few agencies today in our operations.

Thanks for responding and feedbackDan No, she probably realized she was going to get caught and decided to move on.ALWAYS get a government-issued ID and make a copy, front and back.

Building ADU , cynically, is like we're subsidizing California government for housing problem that they're created lol but that's my personal opinion.