Kermitology, I'm pretty sure they can't have windows that close to your house. I sure couldn't on my garage. Is that going to be a patio door or something on the side? The wall would have to be fire rated, which it looks like it is. Soffits have to be non-vented and maintenance free siding.
That span over the front door should probably have a header beam of some sort, no? I'd call 311 right away before this goes to far. They should have had a foundation inspection and the property line issue must have been brought up then.
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