We shall how/when the 'delivery chain' actually delivers what we ordered for the rehab... 

If so I would also hire someone trustworthy to be your eyes on the ground - doing rehabs/renos without being there seems to me to be an almost impossible thing to do given how hard it is to manage contractors and subs....What I would be doing is calling up the  food chain at the bank until you talk to someone in power that can figure out what happened.

I'd need to look at all of the various instruments in the chain to have a properly informed opinion but from what I've read in your posts a few things come to mind.I understand you purchased the property and received an Owner's Title policy. 

With a nice vintage gold frame? 

It seems these owners are not willing to back off their prices very much because they know their mediocre properties are like gold in this city.

My experience is that people with Section 8 do not want to lose their voucher, it's like gold to them.As Courtney said, contact the tenant and the caseworker to see what can be worked out and to get on record as having notified both the tenant and the Housing Authority of the violation. 

Once you have the chain of title you need to see how that flowed. 

If someone slips and falls on the property the lawyer will know which property is targeted and look at the chain of title presumably.

Adding 2, 3 4+ daisy chains makes them even tighter

COVID was still a huge issue in this market, then supply chain, then labor costs, then labor force.