Vented gas cap-- ok in garage that is under the house?

I would park a car in there under precisely zero circumstances, if you have a gas water heater.

Yep. A very good call. I have an electric heater which makes me feel only a little better.

Before the 1970's emission controls, people parked cars with vented gas tanks in all kinds of garages. Some of which were surely under their houses. I don't recall ever hearing of gasoline fume explosions or any other problems caused by these vent-to-atmosphere fuel systems. Why do you think this will be a "problem" in 2017, when it was not a problem in 1967?

You're completely right about that...it sure seems like a terrible idea but somehow, it seems to have worked out.

People also used to breathe in leaded exhaust fumes all day long too. :D