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In order to apply for the OWP the PA would need to have a valid status. That would require applying for restoration of status before reapplying no?

Someone who is out of status still qualifies to apply for an OWP along with an inland application - they just won't benefit from the OWP pilot which grants the OWP within four months of the application being received. If you are out of status, the OWP will be approved after AIP.

Based on the info provided above, I've made the assumption it's too late in this case to apply for restoration. However if the applicant is still within 90 days of going out of status, they should by all means apply to restore.
 
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How does being "Out of status" at the moment affect her being in Canada? Is there a chance I will receive a letter asking me to leave? On my Decline letter, it stated clearly that if i wish to reapply, i can do that.

We will be reapplying for Sponsorship any day now.

Are you now living together full-time or are you still on the 2 week on/off schedule?