@Terry Lao if bad management continues, it will keep hindering potential buyers’ options for financing, therefore, keeping the market value of those units down as they aren’t “marketable” Only options for a potential buyer are private mortgage and/or pay higher rate.I had this scenario myself where I owned individual condos in buildings governed by associations.

I see you mentioned that the land is unincorporated, so I'm assuming it's outside of city limits so the governing municipality would be the county. 

The government owns a building next to it that they've put money into to fix it up and they aren't using it.

If you give them interest in the property directly, what’s  to stop the federal government from attaching a tax lien to it?

Some of these students have one month or more "rotations," or learning blocks which they float site to site at various teaching areas their last year of school- hospitals, outpatient community offices, government facilities, etc.  

Today, I got pre-approve for an FHA loan for $195,000 from Citi bank using all the government programs.

Here is some IRS information regarding the penalties for not filing the 1099s. https://www.irs.gov/government-entities/federal-state-local-governments/increase-in-information-return-penalties-2

Can I ask the section 8 individual to cover cost which I will reimburse once payment comes in or am i at the mercy of the government?

What is the rent control laws governing this property, if any? 

Personally I don't like dealing with the government and the difficulties it imposes and do not accept vouchers.