Triplex in CA - Section 8 Tenants

[Rodney Manning]

I am in currently in contract on a triplex where two of the tenants are section 8. This wasn't disclosed until I received the estoppels today. Upon reviewing the disclosures I have a a couple questions regarding the Section 8 program as I've never dealt with it, and as I've only done SFH before I've never taken over a property with tenants in place.

1. The seller's agent in the private comments section of the listing stated that the rent on one of the units was going up by $175 effective August 1st, but the estoppel states it is only increasing by $85. My offer was originally based on the higher number, so I'm going to try and either reduce it or get some money back at closing. This tenant, 15 years at the property, is one of the section 8 tenants. As they are month to month when I acquire the property can I raise the rent again as part of a new lease, or do I have to wait a year until 2021 because of the section 8 adjustment? 

2. What is the process for updating the rent due with section 8? Do I just follow the normal notice of rent increase, or will I, or my property manager if I go that route, have to send something to the housing department? Based on the FMR the unit is undervalued, so there is room to increase.

3. The second Section 8 unit is also under the current FMR. They are currently month to month, but have lived in the unit for 7 years. It looks like the next reexamination is due 9/1/20. Can I give them a notice of rent increase, effective 60 days out, along with a new lease, or do I have to wait for the reexamination to state that I'm raising the rent?

During this whole mess it seems like a golden opportunity to have stable rent coming in, so I'm not looking for them to vacate. The numbers make sense even without these increases, but I want to make some improvements to the property (I like providing a nice property for people to live in) and the increases will help cover that as well as become more informed regarding renting to section 8 tenants.

If anyone has a website, or some other point of reference on this please point me towards it. Thanks in advance for taking the time to read this, and provide some advice based on your experience.