Unless you''re able to buy early in the first release stages of a new development, the equity is difficult to capture.

(https://www.prnewswire.com/news-releases/brett-imm...)

Luckily I found a new buyer today willing to pay the same price, so we're just waiting on a mutual release from the buyers before moving forward and rendering this issue moot. 

The HAP contract has a provision for the Housing Authority to terminate in the event that program funding is not available but I do not this counts as the funding is there it just can't yet be released.

There are exceptions where you can do an escrow hold back if the "Cost to cure" is generally under $2K or you have a seller amendment to cover the cost and then they will hold it in escrow until repaired to release funds to vendor with proof or receipt.You have Fix & Flip loans but they an be a nightmare and the rates and points are excessive. 

If at some point you decide to sell or refinance the home, you will need to contact NACA to obtain a release of the lien.

I tell the tenant they need to authorize them to release information to me.

@Ryan CamenischYou do not need any reason to not release

The lien shall be released immediately upon payment in full of the certified amount.

Just do the work around them.I would require them to sign a general "release of liability and assumption of risk" form.