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No, they are under no requirement to renew your lease. Perhaps they are phasing out Section 8 in their complex and doing it as the leases expire. My girlfriend managed a property that did that. They were more polite in notifying, but not all companies operate the same.
Once a lease expires, there is no requirement on the part of the landlord to explain why they are not renewing. I would check with your local Housing Authority to see if they know what the story is.