The tenant was advised in writing and verbal "the lease will not be renewed unless  outstanding fees are paid within 5 days.

If they address the outstanding amounts owed within the 7-days the order is rescinded.  

A Section 8 applicant can usually not meet the standard criteria like verifiable income of 3x rent(does not matter the source), 2 years of employment history, Minimum credit scores, no evictions, no legal actions from a landlord, no outstanding debt to a utility company, etc. 

I had to leave some reserve in old account to cover any outstanding checks.

Also, the late fees come out of the first dollars paid in curing the default (late fee first, the balance is applied to the outstanding rent). 

Also, ask if they have any outstanding maintenance issues or other concerns that they would like addressed and let them know how it will be dealt with.We don't touch leases (unless there are outstanding issues like non payment or other violations) until we feel the management is under control.  

I think I see where you and @Jerry Bruckenheimer are confusing yourselves.Here's an example:An open account with an outstanding balance.If you close that account, here's what changes and what doesn't...Well, what doesn't change is your total indebtedness.

It could be the outstanding taxes, violation fines and/or liens.  

I don't buy anything with existing tenants for reasons just like this, but if you are going to, you need to have copies of the legal agreements with the tenants before you close, all legal funds held in care of the tenants (i.e. deposits) added to your funds disbursed or placed into escrow with a disinterested third party, with language stipulating access, affidavits of no outstanding mechanic's liens, etc. 

I understand the desire to get answers but I would think sending out the survey as is would open you up to further financial pain, this time from your tenants.Even if the attorney gives you the OK, I"m not sure that I would mention anything about the former management having issues.You may get your answers and be better protected with a more generic letter introducing the new and improved management team and encouraging the tenants to bring any outstanding issues to their attention right away.