Careful here. Any time you read a story like "government attempts to liquidate real property to fund police department", your first thought should be "that's not the whole story", because (for the most part) that's not how the federal government operates. So, some issues with this story:
* This case is Sonya Rao, not Carmen Ortiz (though once again Ortiz oversees all the cases in her office).
* The hotel is, let's not sugarcoat it, a blighted flophouse. Don't take my word for it; here's TripAdvisor ("ROOMS BY THE HOUR: Hookers, drug addicts, drug dealers, need I say more") complete with picture: http://tinyurl.com/ta-caswell and here's Yelp ("Please don't bring your kids here.") http://tinyurl.com/y-caswell
* The owners of the hotel were warned repeatedly by local law enforcement and an intervention of local hotel owners; specific measures were suggested to minimize the problems at this place and weren't taken; the hotel had no security, and its drug countermeasures consisted of a list of persons not to rent to again.
* The hotel owners made no policy changes after a methamphetamine lab was discovered in one of their rooms.
* The hotel owners made no changes after the dead body of a heroin overdose victim was found in one of their rooms.
* Drug deals weren't simply occurring at the hotel; the Tewskbury PD repeatedly discovered drug dealers operating full-time out of rooms in the hotel.
* The owners of the hotel repeatedly admitted under oath that they had continuing knowledge of drug crimes occurring on their premises, and had no policies to investigate the use of their rooms.
There are places like this all over America and they're all neighborhood blights that need to be shut down (hey, by the way, still think there couldn't possibly be a difference between an apartment and a room up for temporary let on Airbnb?).
If all we're saying is that civil asset forfeiture is the wrong means to shut them down, I'm with you. But this case does not make my blood boil the way it does for you.