1. They just want the work done since amendment requires payment
2. They're concerned this may affect the value of the house (this seems unlikely as what's the "worst" that could happen).
3. It's a safety issue.
May you have a guess to which one it could be? Depending on the motivation - the approach to the mitigation could be different.
Thank you both for your prompt and kind answers.
Also, ask them if they will hold an escrow in order to have the work done as an alternative.