The nation’s top housing authority has threatened to bar Forest Cove Apartments owner Millennia Housing Management and its chief executive, Frank Sinito, from doing any further business with the federal government—a move that could take the embattled Ohio-based mega-landlord out of the Section 8 housing game entirely.
The U.S. Department of Housing and Urban Development (HUD) on Tuesday told Atlanta Civic Circle that it has suspended Millennia’s ability to seek new government contracts or renew existing ones, while it considers completely cutting ties with the company. Millennia owns dozens of government-subsidized apartment complexes nationwide in addition to Forest Cove.
“HUD found that Millennia Housing Management exercised financial mismanagement of tenant security deposit accounts and taxpayer funds providing housing assistance,” Ethan Handelman, the agency’s deputy assistant secretary of multifamily housing programs, said in an exclusive statement.
“As a result, HUD is holding [Millennia] accountable by demanding repayment of misappropriated funds, seeking to impose civil money penalties on those responsible, and issuing a suspension and proposing debarment,” he continued.
“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,” Handelman said.
Unsafe conditions
Millennia has made headlines in Atlanta for its mismanagement of Forest Cove, a dilapidated and dangerous southside complex condemned by a municipal judge in December 2021 and then evacuated by Mayor Andre Dickens’ office in 2022. It has also earned notoriety in a number of other major cities over reports of unsafe living conditions.
Forest Cove has caught fire four times since October, and was a hub for violent crime—including multiple murders—well before tenants left.
The city of Atlanta has lodged housing code violations against Millennia, alleging it failed to secure the now-vacant property after the city-led resident relocation effort placed nearly 200 low-income families at other Section 8 complexes across the metro area—and HUD last summer revoked federal funding for Forest Cove
Other Millennia complexes have faced similar tribulations: A fire at one in Little Rock, Arkansas, killed three people in October 2022. A carbon monoxide leak at a Mississippi property left a mother and child dead in September 2022. And a gas leak explosion hospitalized seven people living at a Florida complex in 2019.
Millennia has maintained that the deaths and dangerous conditions at some of its properties are not representative of the company’s Section 8 portfolio at large, but critics have called Millennia a slumlord focused solely on collecting rent checks—especially from HUD.
The city of Atlanta, for instance, has accused Millennia of continuing to deposit HUD money meant to pay Forest Cove tenants’ rent for months after they were rehoused elsewhere.
Millennia’s response
Millennia recently filed a federal lawsuit against the city over Forest Coves’ condemnation. It claims the city unlawfully seized control of Forest Cove by securing the condemnation order and compromised a long-held plan to renovate the complex.
The company contends that its track record is largely good. “Millennia has a 30-year history of serving residents living in historically neglected properties through community rehabilitation and management services,” the company said in an emailed statement Tuesday.
“The company is aware of HUD’s concerns and, throughout 2023, has taken actions to address concerns and has initiated dialogue with HUD to work toward a resolution,” the statement continued. “Millennia continues to work to navigate the realities of our industry and the broader economic market, which are particularly challenging for all owners of real estate.”
The city—which wants Forest Cove demolished to make way for mixed-use, mixed-income development—and Millennia also have sparred in municipal court over who should secure the vacant property until what to do with it gets resolved. The city claimed that is Millennia’s responsibility, while Millennia said it’s the city’s job, and Atlanta Judge Christopher Portis earlier this month fined the company $7,500 for the code infractions.
Last week, HUD informed Millennia that the agency “expects 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,” Handelman said in the statement. “HUD will continue to monitor the Millennia properties and will address any areas of noncompliance.”
Mayor Dickens thanked HUD and the Biden administration for finally beginning to “hold this negligent landlord accountable” in a statement to Atlanta Civic Circle.
“From a demolition order, to fines, to a class-action lawsuit, this is the latest effort to bring Millennia into compliance and force them to do right by the thousands of residents they serve,” he said, adding, “Either they will tear this property down, or I will.”
Although they see HUD’s admonishment of Millennia as a major win for the company’s tenants, housing advocates continue to worry about what will happen to the thousands of people who live under the landlord’s roofs.
“It’s great that HUD has finally done something and to see that the pressure we’re putting on them is actually working, but it’s still unclear what this means for tenants,” said Foluke Nunn, a community organizer for American Friends Service Committee who has been monitoring the Forest Cove residents’ relocation.
“Given the scope of how horrendous Millennia has been, they need to go,” she said. “But it needs to be a process handled with care.”
HUD encouraged residents of Millennia-owned properties to contact the agency with any concerns about poor maintenance, health and safety dangers, or fraud. HUD’s Multifamily Housing Complaint Line is: 1-800-MULTI-70 (1-800-685-8470). English- and Spanish-speaking staff are available.
This story was updated on Dec. 20, 2023 at 10:27 a.m. to include comments from Atlanta Mayor Andre Dickens.
Good Afternoon, I would like to inform you, Atlanta, GA is not the only city and state Frank Sinito has robbed HUD money from. I work for an HVAC & Plumbing contractor in Willow Street, PA. Services provided to East Ridge Apartments, Harrisburg, PA, included digging up and replacing sewer lines and pipes, unclogging drains, unclogged toilets, etc. It has been over a year and we have not received any payment for services rendered. Now, I hear Millenia received yet another HUD grant, millions, to revitalize a senior living building in Harrisburg, PA. The local news did a report last year on the horrible living conditions at East Ridge. But yet HUD gave him even more money and I am sure the senior citizens are living in deplorable housing conditions and without a safe working elevator in a high rise building. Slumlord Sinito needs his assets frozen, sold, and debts need to be paid. $21,604.00 is a large chunk of change. If there is anything I can do to make him pay…………..please advise. Nothing would make me happier than to watch him live and eat s…. like his tenants have. The saddest part of all, his 2 adult sons still live at home with him. That means another generation of slumlords just like him will be there with their hands out and the know how to receive free money. Too bad he wasn’t on the Francis Scott Key Bridge and turned into fish bait.
Worked for these guys they are terrible upper management in the Iowa area is terrible there reputation is very off putting didn’t know any of this upon getting hired but as soon as I realized the sneaky stuff going I got out of there all there buildings have mechanics leins on them all of them.
Is Frank Sinito related to (the son of) notorious Cleveland crime boss Thomas Sinito?