These are slum conditions. And yes it should be reported. The owner should be forced in these situations to upgrade the suites to code and not allowed to evict the existing tenants for at least 1 year post upgrade to code. There is no reason however to let slum lords and their code violating units off the hook for fire and building code. Were a fire to break out it would be devastating. Life is more valuable. 

Charge the landlords to meet code on all units, with no evictions for at least a year post reno.