U.S Housing & Urban Development is suspending its relationship with Millennia Companies, which operates the much-maligned Memphis Towers, Serenity Towers and dozens more across the South.
“HUD usually takes this action after things have gotten very, very severe as they have with a portion of millennials portfolio,” said Bridgett Simmons, a lawyer for the National Housing Law Project.
Residents complained for months of numerous severe issues in the buildings, include mold, faulty appliances, no heat or A/C and disrespectful staff.
"Not only that — mistreatment from Millennia," Simmons said. "Harassment, retaliation, attempted evictions. It was only when HUD was shamed that they stepped in."
HUD is also taking steps to bar Millennia from all federal government programs, including the Section 8 program, for at least five years.
In a statement to the Atlanta Civic Circle, HUD said Millennia “...exercised financial mismanagement of tenant security deposit accounts and taxpayer funds providing housing assistance.”
While the move is welcomed by tenant advocates, it's also seen as too little too late for some. The decision won’t impact current residents, only when Millennia’s current contracts with HUD are up.
“HUD did not acknowledge their role in exacerbating the harm to these tenants, and it's not a past role — It's a current role that they're playing,” Simmons said.
Millennia has already announced plans to sell off Serenity Towers from its Mid-South holdings.