Know your local zoning laws, building codes, and licensing/permitting regulations.2. 

because the delay issue is a cell phone based camera not connected to wifi at all only on a cell network.

My wife and I decided that we would rent out the house but because we have received a grant for the down payment and closing costs from the city of Baltimore, we are wondering if it’s okay to rent out the property without any issues or they would check to see if we live at the property or we did a mortgage fraud by renting out the property for not living it for 7-12 months.

I urge you to champion legislation that addresses these critical issues.

issue will be if they will not sign it.

I've found a resource that brilliantly addresses these issues, offering extensive information for investors seeking to enhance their understanding in this field.

One of the tenants appears mentally ill and another has anger issues.   

It also seems to imply that illegal units will get amnesty (note an ADU law providing fed a 5 year amnesty on unpermitted units, but this seems to be a perpetual amnesty).Thoughts?

@Gavin Jex seems like they are trying to help you out, but exposing you to tax issues.As @Chris Seveney already pointed out, one of you will be taxed on the 0% interest loan as a "gift".The other issue is that you will get the property at $170k roughly, and then be exposed to capital gains of the difference between that amount and the market value.Highly recommend you speak with an Estate Planner for possible better options.

Most areas are seller-friendly now so even if you can't make it assumable, what's the issue with a traditional sale?