I would not make repairs if HUD has already inspected the unit; I would however, try to call the case worker and talk to them about planned repairs and if that would impact the rent you would get from the program. 

Be sure to consult with your CPA so you understand what the tax impact is going to be and it this would be worth it. 

The cost of the house he tries to buy will impact the answer.

I began out of state investing in Rochester NY in 2004 and soon discovered that even carefully crafted cash flow projections seldom capture the full impact of the repairs/maintenance you will incur, especially in the upper Midwest (Toledo, Cleveland, Buffalo, Rochester, Erie) where the winters can be absolutely brutal. 

But these things do not directly impact housing prices. 

If I depreciate property value on my tax return to deduct my net income, will that impact my mortgage borrowing power?

With the impact of COVID-19, I am now starting to question a flat fee selling commission vs the traditional MLS 4.5% to 6% real estate commission process.

I would try to segregate the expenses as operational cost as much as possible to create the rental schedule E loss rather than decrease schedule D gain for a better tax impact. 

The Class A development should not have a negative impact on your project.

However, if all 922 were foreclosed, what would be the impact?