It sounds as if your friend is in a redevelopment district. She may well need their sign off before a permit is issued. Have her call the Planning Department for clarification. I assume her inspector was private. Whether or not an illegally built unit is in compliance and a permit can be issued will depend on a number of factors, not simply bringing it up to code. She may need to consult a land use attorney if the PD cannot give her a straight answer or there are more issues. Without reading the Redevelopment language in LA, I can't go any further with this question.
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