HostedEngine VM is down in Red Hat Enterprise Virtualization 3.5

Issue

• Two-node RHEV proof-of-concept cluster with a single HostedEngine instance on one host where the HostedEngine VM is not starting:

# hosted-engine --vm-status
Traceback (most recent call last):
  File "/usr/lib64/python2.7/runpy.py", line 162, in _run_module_as_main
    "__main__", fname, loader, pkg_name)
  File "/usr/lib64/python2.7/runpy.py", line 72, in _run_code
    exec code in run_globals
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_setup/vm_status.py", line 116, in <module>
    if not status_checker.print_status():
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_setup/vm_status.py", line 59, in print_status
    all_host_stats = ha_cli.get_all_host_stats()
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_ha/client/client.py", line 155, in get_all_host_stats
    return self.get_all_stats(self.StatModes.HOST)
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_ha/client/client.py", line 100, in get_all_stats
    stats = broker.get_stats_from_storage(service)
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_ha/lib/brokerlink.py", line 232, in get_stats_from_storage
    result = self._checked_communicate(request)
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_ha/lib/brokerlink.py", line 260, in _checked_communicate
    .format(message or response))
ovirt_hosted_engine_ha.lib.exceptions.RequestError: Request failed: <type 'exceptions.OSError'>