But it be harder to get into property at times with an FHA because of the rules and regulations on what they can loan on.also if you are doing less than 20% down you will eventually have to refinance to get the pmi to drop off on an fha loan.

Regulation defines what is illegal and helps you identify best practices. 

The violation or enforcement of those portions of any law or government regulation concerning:a. building;b. zoning;c. land use;d. improvements on the land;e. land division; orf. environmental protectionNow I haven't seen or read the OP's so I don't know if it's an HO's policy or if there is an exception to coverage which might affect the underwriter's liability if it's otherwise provided. 

Unlike, say, asbestos floor tiling where unless it’s cracked you really don’t have an issue.We were uncomfortable renting it—possibly to kids—without cleaning it, and it helped to make the numbers not work so we bailed.It feels right in between “oh cmon this is nothing” and “oops major problem” I think the trend is towards more regulation on that not less.

Moreover those states have regulations that not just favor tenants.My thought: from investor POV, eviction ban is always bad if you have bad tenants.Take away point:  Whether you house hack with room rental, duplex or fourplex, proper screening will be your most important key during this uncertainty.Hope this help!!

My property manager says resident manage cannot perform repairs on property, is there any sure regulation / law around it ?

Are there any new proposed regulations on the horizon ?

But it also means understanding the rules/regulations to do it.

Looking from the outside in, what mostly concerns me about NYC is the strict landlord regulations, high taxes, etc. 

Check state regulations as yours may vary.