Any advice on how to proceed would be much much appreciated, as I am not getting my money until we resolve this!

If it smells like mildew, the problem is active and you will need to resolve the water issue and, what is causing it.Good Luck. 

Martin I think Minh and I have resolved any confusions.  

(hopefully it just a programming glitch) but, if this does not get resolved...

Not sure if this is a glitch but i hope its resolved soon.

The HVAC team can open the kitchen floor and resolve the issue, but this will cost me a few hundreds of dollars.My question is: can I make the seller pay for this since the issue was clearly caused by him?

But it had been resolved for at least 2 years now.

Clearly there is a NEED for daycare, but IMO this is another overreach by Sacramento to resolve their failings at solving community problems, just like the new change in 2017 forbids reporting evictions in public records.Glad I'm retired as of Mar 2016

Many local communities have rental inspection ordinances that are enforced arbitrarily and resolved slowly.

When they questioned our rights to that area, we told them that we just had a new survey done and were happy to take it up with our title insurance company, and so far that seems to have resolved the issue as they've left it alone since then.