The previous owner never had a permit to convert the garage, or the owner would not be being asked to demolish it.

If he writes to the city, or OC development and explains that he does not have the finances at this time, but that he will do it by such and such a date, and that the room will not be used as living space meanwhile they may be kind.

The reason they have to ask him to convert it back to a garage is because it is a fire hazard, so he probably doesn’t want to be using it as a room anyway. It is really unsafe, who knows how the previous owner has rigged up the electrical.