If your still residing in the property then government and conventional financing would be available. 

Hi Debbie,That sounds like a really awesome setup and bravo to the local government to allowing this!

Or does the small footprint and lack of utilities basically make them glorified tents as far as the government's concerned?

I’m being told it’s due to Federal lending regulations?

I'd check with your local government to see what kind of programs they have for improving neighborhoods.  

I keep a spreadsheet of who will lend to LLCs and here's who I'd recommend:Servis1st BankCB&TSunmarkColony BankHere's some more that I haven't gotten around to asking yet:Heritage Bank of the SouthAmerican PrideState Bank & TrustMidSouth Federal CUBB&TAnother option is to put the building in your personal name and get a conventional loan....but then you are opening yourself up to all kinds of personal liability (times 10 since there are 10 units).You could also start asking about a regular business loan.  

Some states don't have specific laws on them, but Federal law still applies.

They're also going to make sure the offering of securities falls within a federal exemption from registration.

People who can't do for themselves cry for the government to help and the only tool that government seems to have is regulations and subsidizes and most of the time these tools actually make the problems worse.

Some townhomes are governed as a condo in FL according to association documents.