What is the first move needed to be made on getting government housed tenants in a rental property? 

I've been hearing about the difficulty in dealing with local government + not so friendly with landlords .

I would pay no more than 100k a unit in my market.5+ weeds out all the wanna-be’s that can do a 0-3.5 government product.

The government does like to get tax money!

A part of me, and this very likely could be wishful thinking, has a hard time believing that someone, the city government, the state government, the co-op association, etc isnt going to step in and find a solution for this land lease situation.

Picture government ID, that's how. 

Even if you do find a contractor willing to do a 203k, they won't know the federal government guidelines, timelines, paperwork, and processes for the 203k and will be 'winging it.' 

The only requirement I've seen in my province in Canada is that you need a line in the contract that reads "The tenancy created by this agreement is governed by the Residential Tenancies Act and if there is a conflict between this agreement and the Act, the Act prevails."

There are so many variations in the greater Dayton area that I actually built a spreadsheet to keep track.Bottom line is, charges for any service provided by a government municipality is tied to the property, and subject to assessment to the property taxes if they are unpaid.Here's how we protect against unpaid tenant charges:With exception for some small multi families, the tenants are responsible for all utility charges.

Having "skin in the game" will give you credibility and make the bad deals like this easier to get through with investors if they know that you too suffered personal loss.5) Be transparent and have a high level of communication with investors.