An affordable housing company has slapped a $50 daily fee on any unit that doesn’t have working air conditioning after years of failing to fix problems.
Millennia Housing Management submitted a $95 million proposal to fix problems at its building in Memphis, Tennessee, but funding for the project was cut after the company reneged on its end of the agreement.
The housing association has come under fire for its Serenity Towers building after residents have complained about problems for years.
The problems were to be addressed through a major renovation that included implementing a new HVAC system, upgrading each unit and a facelift to the electrical system, according to a CBS affiliate WREG Reports.
However, financing the project could be a problem as it was revealed that a state housing agency withdrew $23 million after the company failed to take necessary steps.
“We have informed Millennia, the company, that we are revoking the conditional bond award we made to them in July,” said Ralph Perrey, executive director of the Tennessee Housing Development Agency.
According to Perrey, Millennia did not meet the conditions set out in the deal.
“It was a simple, basic business practice on our part,” Perrey said.
“If we want to provide so much financial support, we expect certain things from the partner, but they were not able to implement them to our satisfaction.”
Documents show that Millennia requested $70 million, which was needed to finance the project.
“What happens next? Well, I think that’s largely on them,” Perrey told WREG.
“We’re out this moment.”
When asked about the new development, Millennia Vice President Angelica Sinito said: “We have received a notification from THDA. We are reassessing our plan internally and working on it.”
The operators of Serenity Towers have already been fined $6,000 and charged a daily fee of $50 for each unit that does not have working air conditioning.
Lawyers for the building say the equipment is over 55 years old and requires significant funding to repair, but Judge Patrick Dandridge said he wants solutions, not excuses.
“This is the first time I’ve heard of a glitch in the system. “It doesn’t matter at all whether there is a storm or not,” Dandridge said this week.
“This is a completely new game.
“If you don’t have adequate resources to protect the tenants there, HUD may have to investigate whether or not this needs to be closed.”
The US Sun has reached out to Millennia for comment.