Yes you probably can remove the siding yourself but, why would you want to?
In the long run you will be much better off to have the job done by the pros.
I know the cost is alot more than doing it yourself but, let's look at the big picture.
Doing this job is a going to take you a long time by yourself.
Your neighbors will probably call the Health Department and even though you checked with the Building Inspector, you also called the Heath Office and she told you "NO". So she will most likely find a host of things that you are not doing right and/or come up with alot of safety precausions that she will make you do!
I strongly recomend that you double check with the state to make sure the law is still current.
You will need to make sure that everything is coverd and that you have a place to get rid of the siding.
If you hire a company that would know just what needs to be done and has the insurance needed to do the job, has a way to remove it and a place for it to go, the job will be done in a day or two and the risk to your loved ones would be minimal.