Georgia Section 8 complexes sue national property manager

At the Highlands Atlanta in DeKalb County, for instance, several unhoused people were living in abandoned units, the March 27 lawsuit states, leading to an alleged $75,000 in damages.

Among other allegations, the filings say RPM neglected to collect rent from tenants and failed to communicate with HUD contract administrators assigned to the properties, putting the complexes at risk of losing their Section 8 subsidies.

Collectively, the lawsuits seek about $34 million in damages, with owners alleging “catastrophic” losses in rental income and other expenses. The lawsuits also claim RPM withheld funds after it terminated its contracts with the complexes in March.

According to Georgia business records, the eight limited liability companies and plaintiffs share the same business address as Atlanta investment management firm Infinity Capital Partners. The LLCs’ attorney, William Story, said the properties are part of Infinity Real Estate’s investor portfolios.

“My clients hired RPM to collect rents, process work orders, walk the property and units, recertify residents, process applications for prospective residents,” Story said in a statement. “RPM did not fulfill its contractual obligations to the detriment of the properties and the tenants who live there. These lawsuits seek to hold RPM accountable.”

RPM Living did not respond to multiple requests for comment. Based in Austin, the company has corporate offices in Phoenix and Atlanta, and regional offices in California, Nevada, Colorado, Illinois, Tennessee, South Carolina and Florida.

The National Multifamily Housing Council ranks RPM as one of the largest property managers in the nation, according to the company’s website.

HUD said it could not comment on active litigation. Story said the complexes are now under new management.

Riverbend of Milledgeville, Georgia, says it lost $700,000; Ralston Towers of Columbus, Georgia, claims losses of $2.9 million; Georgian Woods of Douglas, Georgia, $2.6 million; and Indian Oaks of Fort Valley, Georgia, $7.8 million. Shenandoah Apartments of Newnan, Georgia, alleges $300,000 in losses; Moultrie Manor of Moultrie, Georgia, $1.2 million; Oglethorpe of Atlanta, $6 million; and Highlands Atlanta, $13.5 million.

Records from the Georgia secretary of state’s website show the LLCs’ authorized agents and managers are officials of Infinity Real Estate. Neither Infinity Capital Partners nor its affiliate, Infinity Real Estate, is a party to the complaints.

Infinity Real Estate says the total capitalization of the three funds in its current portfolio is $469 million, that it owns 38 properties and has 4,887 units under management.

Its website states the funds “offer an investment opportunity for high net worth individuals, investment advisers, family offices, and institutional investors seeking predictable returns in an asset class that will have less relative risk to other multifamily or real estate asset classes.”

The lawsuits describe the complexes and their affiliates as “social impact companies that seek to preserve affordable housing while at the same time improving the lives of tenants that reside in their communities.”

According to the Columbus Ledger-Enquirer, Infinity Capital Partners revamped The Ralston Towers, a former public housing complex, and reopened it in 2023.

Infinity Capital Partner’s Chief Investment Officer Gregory Jones told the newspaper that the company had renovated the historic building because of dangerous conditions, including extreme heat, rats and roaches — transforming it into Section 8 housing for seniors and disabled residents.