I have looked over the HUD guidelines and am still unclear about whether I can institute these guidelines.I also would like to find out of if I can require that the tenant's rental insurance include coverage for dog bites.

They will be more private money, as opposed to institutional hard money that you see advertised here most often.

Do some quick googles and you’ll soon find out: sounds like it’s a small town so you may be an early adopter at which point the neighbors will likely be calling the cops often. 

Examples of businesses conducting eligible construction activities are residential remodelers; commercial and institutional building construction contractors; foundation, structure and building exterior contractors; structural steel and precast concrete contractors; and electrical, plumbing, heating and air-conditioning contractors.Here are some additional links I found:Home Builders Safe Harbor in Code Sec. 199Section 199 Real Estate Developers Stake Your ClaimSection 199 as it applies to Construction and Real Estate PDFCourt ruling on Substantial Renovation@Steve Hamilton

My expertise is on the institutional side, loans starting at $1M with a 5-unit minimum.

Also, sticking with one lending option/institution limits you as banks only offer the products they originate.

Seattle adopted this a few years ago.

For commercial development, at least on the east coast, in general financial institutions will not lend on unimproved land.

As we consider investment opportunities, especially ones where the potential off taker could be institutional (keep in mind that nearly 20% of even SFR is investment property) the ESG (Environmental, Social and Governance) mandates that are being both driven by large PE and institutional funding and now even the SEC will weigh in on the values of portfolios of properties going forward.   

They might have hit the pause button and adopted a wait and see approach.