That's why you and "O" need to start collecting evidence. As trappers, we get called in to deal with hoarding situations sometimes. Hoarders tends to be more receptive to help from us than from Animal Control or City Bylaws, which are completely impotent in the case of animal hoarding situations, unless they have a huge amount of proof or are allowed into the residence by the home owner--which is often the hoarder themselves.
While our goal while trapping feral cats in a hoarding situation is, of course, rescuing the cats and helping the hoarder with a situation that has spiralled out of control, it's also important to document the condition of the residence and animals because, while having a clinical disorder, like hoarding, is a mitigating factor, the animals in these situations really do suffer, and that's not okay. Documenting evidence from inside the home means that, should the hoarder become uncooperative, or accumulate more animals--as many of them do, you have a way to, hopefully, prove a case of animal abuse.
In any case, I find it incredibly disturbing that this woman is so flippant about and openly admits to the abuse--like she's getting something positive from it and/or from the reactions of the people she tells. She actually sounds like a really scary individual!