So all R1 zoned lots (excluding a few criteria such as safety (must have I believe 4' from structure to property line), sewer, and 2 more that I cannot think of) can legally have 3 units (the primary, a JADU, and an ADU). 

In this form a “material defect” means a condition that would have a substantial adverse effect on the value of the residential real property or that would significantly impair the health or safety of future occupants of the residential real property unless the seller reasonably believes that the condition has been corrected.I think you have an uphill battle, unless the information from the foundation contractor shows it was still a problem after the repair, especially since you got a home inspection.Just my opinion.

I understand if there are major safety issues, but often inspectors note minor things: the roof will need to be replaced in 5-7 years or there is a loose handle. 

Safety is a real concern.

I've seen those work for people that would never take action themselves they essentially have to pay someone to take action for them.

Sellers aren’t wanting to list their home if they live in it for their own personal safety.

Creating a database and continuing to nurture and feed that database daily is an essential part of a successful career.

My thinking is that in order to stabilize the economy, the government need to make sure lenders are lending money and lenders won't do that if they essentially don't have an enforceable lien against the property (unless they are being HUGELY subsidized)So I think everyone has a dog in this fight (although not as much as you). 

How do you spur people to move to your city when it looks like a dump and you can't maintain safety.

They are also buying your duplex forYou essentially.