M2M or yearly lease sec8 tenant

[Linda Thomas]

Good evening BP,

i would like some advise please. 

section 8 tenant has been a PITA. Doesnt take care of the place and doesn't keep it clean either. 

has been there for 2 yrs and rhe lease automatically renews if she doesnt provide 60 day notice which is coming up 9/30.

I want to give her notice that we arent going to renew but now she owes over 600 for past due water bills and has applied for some type of assistance.  In order to let her leave i need to notify sec8 that she is in good standing but she isnt bc of the water bill. Can i switch to a M2M lease instead and once the water bill is caught up guve her notice to leave? Ive never done a m2m lease only yearly leases so im not familiar with them at all. Located in PA.

As always, thanks for all the help!!