Yes, You are correct. I called HUD and complained. They said Michigan law says the max rental deposit (NO RETAINERS ALLOWED!) is 1.5 months.
Any chance you got the wonderfully expensive offers in writing?
If yes, you have the ammunition to file complaints. And I would take it a step further - go back to them and say I want to rent. I know the law says this and I know I qualify to rent here - you told me so yourself. So let's make a deal. 1.5 rent as deposit.
It's worth a try.
My law enforcement days are long retired; they didn't give proof, that was one of the main reasons I started calling all the autorities in the first place!
Good news though! A relative was complaining that an investment was only paying 2.9%, I offered 6% on five years to pay cash for a house! Without going into too many boring details, he took it. I added him to my life insurance policy, we close in 2 weeks! (Whew, two weeks to spare! That was too close!) . Win-win for both of us. Having it all drawn up legally so we both maintain the win-win!
Nice going, props to your relative.