The short answer to that is no. Damage to a lot does not encompass loss of rent due to the lot being uninhabitable. “Damage to a lot or to common property” means physical damage, which the owner would then have to make good, or pay to make good.
Note in terms of enforcing that by-law (or any by-law) it has to be enforced by the OC, an individual owner can’t take action to enforce the by-law. The only thing they can do is seek to have the OC enforce it. But that by-law won’t help you here.
I agree with Jimmy, you should get a lawyer, or just move on. I think you do have a case, but the issues need sound legal advice.