Purchased as legal multi-family, but now it’s not?

[Craig T.]

My property was listed as a multi-family duplex. County and City Parcel information online reflects the current use as multi-family duplex. The transaction forms used during the purchase were all multi-family. I even inherited two tenants. However, both electrical panels are located in one unit and utilities are paid under one bill, not separate. I got a permit with the city to add a second electric meter and had an electrician move a panel to the exterior of the building so the other unit would have access to their own panel. The dept of construction and inspections came out and failed me because they said it’s not legally a multi-family and that it’s a single family. It was built in 1939 as a “SFR,” but there’s no permits with the city that it was converted, but it was changed to a multi-family in their system at some point. If it’s not just a misunderstanding, who is liable for this mixup? And what should I do? I would appreciate any advice!