Meal checks for Bankhead Towers residents bounced; HUD attacked former management

Former residents of Birmingham’s historic Bankhead Towers building say their $50-a-day meal checks have dropped since they were forced to evacuate and live elsewhere, mostly in area hotels.

“I was issued two fake checks,” said Sarah Inman, a former disabled AT&T Mobility employee who lived in Bankhead Towers from 2013 until residents were forced to leave the city of Birmingham condemned the building on September 26 AND forced evacuation on October 10 for security reasons.

“Then they wrote four more checks, but they were for the same account,” Inman said. “My bank refuses to withdraw cash.”

After the evacuation, Inman was transported to a hotel in Fultondale for temporary housing. She said her housing voucher expires on November 6.

“We were supposed to get food stamps,” Inman said. – I didn’t get any of it.

Anthony Glover, who stayed at Bankhead Towers for two years and is currently staying at a hotel in Fultondale, said he did not receive any checks or debit cards for meals.

Bankhead Towers, located at 2300 Fifth Ave. North, was built in 1923 and can accommodate up to 251 residents. The residents were elderly and disabled people who qualified for federally subsidized housing in a private building.

“I’ve been here three weeks and I’ve only received one debit card,” said Marilyn Thomas, who has lived in Bankhead for more than five years and is currently staying at a hotel in Homewood. “I’m worried about what will happen before the end of this week.”

Birmingham officials say the building is owned by Nuveen, a real estate investment corporation. It is currently managed by Paths Management LLC.

“Paths Management is actively working with our bank to address an erroneous fraud alert that is preventing Bankhead residents from processing their meal checks,” a statement from Paths Management said. “Paths provided residents with pre-loaded payment cards to cover meal expenses. If any of the residents need help, they can ask the building authorities for help. We are very sorry for the inconvenience and are working to resolve the issue.”

Path management took over the previous managementThe Millennia Companies, whose CEO was attacked on October 23 in Cleveland by federal agents, according to local press reports.

Agents with the U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture raided the Cleveland home of Frank Sinito, CEO and founder of The Millennia Companies.

Millennia Companies owns hundreds of buildings and apartment complexes in several states, including Key Center in downtown Cleveland, and is headquartered in Key Tower, the tallest skyscraper in Ohio.

In a HUD warning letter dated December 14, 2023, the agency accused Sinito of mismanaging tenant deposits and taxpayer funds for housing assistance, as well as improperly maintaining properties. HUD reported that nearly $4.9 million was missing or improperly collected from 19 properties insured or subsidized by HUD.

According to HUD documents, Sinito owns or manages more than 200 multifamily properties across the country that must comply with HUD regulations.

“Your misconduct affects the integrity of HUD’s multifamily programs by jeopardizing the financial viability of the projects,” HUD’s Departmental Enforcement Center wrote to Sinito. “Improper property management threatens the stability and quality of housing for tenants’ families. For these reasons, you are not currently responsible for entering into public agreements or transactions and are subject to disqualification.”

Some former Bankhead residents say they have received money, but not as much as they were promised.

Sherry Davis said she took the checks to her bank, which agreed to pay her $650, but later found the checks bounced and her bank account is now over $1,000 overdrawn.

“I’m disgusted,” said Davis, who lived in Bankhead Towers for three years and is now staying at a hotel in Fultondale. “We lived in such conditions: bedbugs, cockroaches, dirty carpet. I haven’t used the sink in two years. It’s taped. They didn’t have anyone to come in and do it.

Paths stated that it distributes payment cards and all payment cards should function normally. Paths said that due to the surge in account activity, the bank was automatically marking checks and stopping payments. Paths says it is working with its bank to ensure all checks are processed. Paths says that while per diems have been impacted, temporary accommodation has not been affected. Paths urged former Bankhead residents to contact the building’s management if they have any problems.

Former residents say it’s difficult.

“They stuck me here,” said Thomas, who was staying at a hotel in Homewood. “They don’t inform you about anything. You call, you can’t reach anyone. Nobody answers the phone. You’re just here and wondering.

Paths sent a statement saying it had 60 days to substantially complete repairs at Bankhead Towers. This includes the installation of a new fire alarm system, new fire doors, upgraded fire protection systems, a new roof, a pest control device for the building, and crews moving through the apartments to make repairs and renovate all vacant apartments for re-occupancy.

“Significant upgrade work is ongoing at Bankhead Towers and there is a tight repair schedule over the coming weeks,” Paths said in a statement. “Since we took over management of the building, everyone has been engaged and we look forward to the day we can welcome residents home.”

Bankhead Towers is a 15-story former hotel where famous baseball player Reggie Jackson once lived as a minor league player and where coach Bear Bryant’s legendary Crimson Tide football team stayed on weekends when the team played games at Legion Field.