The “residential paperwork” they’re talking about is some sort of thing you have to fill it when you move somewhere or something.
The “misreading” Neko does is her reading kanji by reading their constituent parts as if they were kana. So 今 becomes ヘ (he) and ラ (ra). 左右 becomes ナエナロ. 会合 becomes ヘニムヘーロ or something. Ignoring the fact that reading like that is silly, it’s doubly excusable because all of those are first-grade kanji.
Personally, I hope they introduce Miss Streaks-Sour soon. She’s like 76% of why I wanted to do this show.
Also, for the like, half a person who’s interested, the name of the book they read from is 肉食之説 (The Theory of Meat Eating — I don’t know if there’s a standard English translation) and if you want to (try to) read it, it’s available for free here.
Episode 02: Torrent