Fight over Forest Cove responsibilities in Atlanta heats up, HUD threatens company's funds in US

ATLANTA — The ongoing disagreements between City of Atlanta officials and the property managers of the troubled apartment complex Forest Cove Apartments grew decidedly more heated Wednesday.

Atlanta Mayor Andre Dickens threatened to destroy the now-vacant complex days after it caught fire again.

On Monday, Forest Cove Apartments was aflame, the fourth time since Oct. 7 that working fires occurred at New Town Circle, where the complex is located, according to documents obtained by Channel 2 Action News.

The troubled complex is the center of multiple stories Channel 2 Action News has reported on since 2015.

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Since the fire on Monday, Dickens released a statement thanking federal officials for their work to hold the property owners, Millennia Housing Management, accountable, while alleging the owners have “graduated from exploiting their residents to attempting to exploit the entire Thomasville Heights Community.”

Instead, Dickens said it would not be allowed to continue, “Not on my watch. Either they will tear this property down, or I will.”

The fiery comments from Dickens are the latest in a series of enforcement and legal actions against Millennia. The complex was ordered demolished in 2021, though it was delayed by a lawsuit between city officials and Millennia, and a class action lawsuit was filed in October on behalf of the City of Atlanta and the building’s former residents.

As previously reported by Channel 2 Action News, Millennia is also suing the City of Atlanta.

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U.S. Sen. Jon Ossoff has also pushed for an investigation of the landlords of Forest Cove, based on what he said were abuses of tenants by the company.

Counting various federal efforts to hold Millennia accountable, Channel 2 Action News obtained the following statement from the U.S. Department of Housing and Urban Development.

HUD Deputy Assistant Secretary for Multifamily Housing Programs Ethan Handelman told Channel 2 Action News that their investigation of Millennia Housing Management has shown the company “exercised financial mismanagement of tenant security deposit accounts and taxpayer funds providing housing assistance. As a result, HUD is holding them accountable by demanding repayment of misappropriated funds, seeking to impose civil money penalties on those responsible, and issuing a suspension and proposing debarment. That means the company and its President are immediately prohibited from entering into new business with any federal government agency, including HUD, and HUD is taking steps to bar Millennia CEO Frank T. Sinito and the Millennia Housing Management from all federal government programs, including the Section 8 program, for five years.”

Additionally, HUD told Millennia that they expect “to see any repairs or maintenance issues addressed at currently owned properties promptly and the suspension and proposed debarment does not impact those repair and maintenance issues directly. HUD will continue to monitor the Millenia properties and will address any areas of noncompliance.”

Currently, Millennia operates or manages four affordable housing properties in Georgia, in addition to their current ownership of Forest Cove in Atlanta. Those properties are:

• Ava Park in Griffin, Ga.
• Ballard Way/Hunter Haven Apartments in Columbus, Ga.
• Majestic Gardens/Wilshire Woods Apartments in Macon, Ga.
• Blossom Hill/Villa West Apartments in Macon, Ga.

As of a Nov. 15 report from HUD, the properties most recent physical inspection scores were:

• Ava Park in Griffin: 43 on Nov. 9, 2022
• Ballard Way/Hunter Haven Apartments in Columbus: 52 on Oct. 7, 2022
• Majestic Gardens/Wilshire Woods Apartments in Macon: 67 on June 23, 2023
• Blossom Hill/Villa West Apartments in Macon: 80 on Aug. 12, 2021

To pass a HUD physical inspection, properties must score 60 points or more. The most recently reported score at Forest Cove apartments, from February 2018, was a 32. The building was closed officially in December 2021 and condemned by Atlanta officials.

Channel 2 Action News has reached out to Millennia for a response to both Dickens’ comments and the statement from HUD. We are still waiting for their response.

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