This bank merged with UCB and the UCB bank isn't as (publicly) transparent on their lending requirements, but they are similar. 

She informed me that the owner of this house has had a fairly public discord with the HOA, who has recently withdrawn a claim to the property.

Matt,See IRS publication - https://www.irs.gov/taxtopics/tc701"If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse.

Can anyone refer me to an IRS publication that addresses this?

Im in Las Vegas too, might be able to give you a recommendation privately, not sure if thats allowed on here publicly! 

I apologize for any confusion that may have caused.3 - The Land Trust provides no liability protection, though it is a strong tool for asset protection due to it's ability to remove your name from public record.

Good neighborhood, walkable, and near public trans and major highways.

They are posting the deal publicly and it's not a 506(c)3.

I then looked up their information through the public county search to get more details on property history, size and I also looked on zillow to see neighborhood comps to find a price what would make the property a good deal for me if they potentially were looking to sale.

This is a thread about public policy as it impacts real estate, and thus on topic.If we're delving into talking about the choices / personalities / etc of elected officials, or offering our opinions on political parties, then we've moved from public policy that impacts real estate (on topic) to politics (off topic).