Perhaps the stress might then start getting to you and lead to an illness & expensive medical treatments that weren't fully covered by insurance.  

Also, this would give more time thus putting you in Long Term Capital Gains Exemption if you've lived in the home 2 of the last 5 years. 

LMHA is relocating residents from Dosker Manor due to mold, rodents, and crime.Dosker Manor will be torn down, and residents will be moved to other accommodations.LMHA surveyed residents; they need help with medical care, groceries, and financial management.Relocations will start in August, with around 600 residents moving over 18 months.The first 100 residents will move to LMHA-owned properties; the rest will go to low-income housing.LMHA is covering moving costs and offering reimbursements up to $1,300 for self-movers.

Of particular interest are: Multi-Family Complexes, Medical & Industrial Parks, Warehouse & Storage Facilities, RV & Mobile Home Parks, Sale and Triple NNN lease backs, Agricultural and Timber investments. 

Also, the medical infrastructure in Cleveland is booming and large hospital systems like the Cleveland Clinic and Metro are pouring billions of dollars into this area and creating tons of great jobs.

Is it possible it remove a homestead exemption and is it a good idea in the long run?

It does not look like late fees are something you get exempted from the limits on amount. 

If they are not paying ANY rent, and they've been having financial issues for a couple of years (unless is it due to medical bills), they've had plenty of time to get their act together or get assistance. 

STRENGTHS-  strong affordable housing market-  cool city with a great feel-  nicely mixed neighborhoods with properties in need of repair next to nice homes-  large university, robust medical community-  decent rents overall, currently trading at 8-10% cap rates-  Micron promises growthWEAKNESSES-  Micron hype is making people spend way too much on properties-  pesky code compliance inspections here too-  student housing area is incredibly compact and difficult to get in to-  difficult to predict if a property will benefit from renovation or not-  contractors are overwhelmed, difficult to get estimatesSummary: Syracuse is experiencing a lot of change right now, in a good way.

This derives from the rationale of the 15 year exemption.