Well from reading your story it seems you got off lucky if you ask me! (not about your son, thats terrible about the dog bites, i mean the reptiles)
You are lucky enough to have her warn you. The other reptile people should be responsible enough to not overload an apartment with more reptiles they can have space for. As much as everyone should be allowed to keep anything, I see nothing wrong with limiting someones collection in an apartment. At least she came to tell you to be careful and not tell you to get out!
The laws are such BS. It sucks but at least you are typing on the net and not packing boxes right now