If they have an issue with providing it they you have to ask yourself, "why aren't they providing it?"

We don't have any housing authorities with moratoriums. 

Buffering by $1k onto that to ensure you aren't short cash to close at the last minute isn't crazy at all. 

You can put all sorts of random people on title who aren't on the mortgage or the contract. 

Everyone has either had bad experiences and can't recommend one, or they have a good one and aren't sharing them... haha

In this scenario you would do your normal screening on the new applicant, and write an addendum to add them as an authorized occupant.If you feel comfortable releasing the tenant from the lease you can write a new lease with the new parties and transfer the deposit to that lease. 

Flat out tell them you aren't the buyer.

If you insist on getting your $5,000 when you aren't entitled to it under the law, and the taxpayer has made an issue of this, then you could be sued for refusing to let them redeem for the legal amount. 

My accounts aren't old enough t get approved for higher limits such as 25k and up.

The point I'm getting at is, if the numbers still work, then does it matter that the tenants aren't directly paying utilities?