[@Bishop]


King merin being an open, happy, public relations sort of guy. You can expect that any policies that allow any strong Orwellian abuse to be squashed by him while he was in power.

Secret police aren't usually needed. The king has absolute authority, in terms of narrative, he has a right to put forward any policy he wants from..banning carrots to announcing a holiday where men walk around naked. So, unless a king comes into power that strongly values stealth and extensive control, over open mandate your special officers probably won't see a lot of actions outside of your houses lands.
 
Non humans can live in the houses, yes. Although they must be suitable for marriage and human relations, typically not TOO strange at least 75% humanese...maybe %60. The most monstrous and odd species would be from Geraing.

No. Not really. Generally as a rule humans don't have issues with monsters. A houses may have a philosophy off to them, but they will quickly become unpopular as Handon was always made of humans and none humans. They don't see a racial divide on their citizenship.