It’s a market rate 2 bedroom 2.5 bath townhome in a community that’s a mix of market rate and work force homes.  

I have less than six months before I retire from the Air Force.

So, it  appear that the utility PGE is trying to force something not required by legislation.

Unless you are forcing equity in some way, you would be rather restricted on what cash would be available. 

Or (not condoning) force them to use your insurance provider for their rental insurance.

In addition, we're forced to pay ~1k/ month to help pay for the CAM upgrade fees. 

Husband is willing to accept the $550K but IF it cannot be paid then a FORCED SALE OF THE HOME MUST HAPPEN.

I say that because you may have different inspectors calling out different items at each inspection for instance you may do a rough electrical inspection with one inspector and do a final with a different inspector that see's things a little differently forcing you to redo work already inspected.

This way they have a good cashflow, a lot of credit for capital gain due to capital improvement and a forced appreciation of your asset. 

That type of thing and a $500 quote to replace a leaking irrigation valve that took me 4 minutes to fix forced me to throw my hands up and sell by owner.