FAIRHOPE, Ala. — Claims of verbal abuse and intimidation, as well as reports of physical stress are being made by residents of Meadowview Apartments on Spring Run Road in Fairhope. Ecumenical Ministries Inc. announced in December it was acquiring the 40-unit complex occupied by elderly and disabled residents in order to make life better there, as well as provide affordable housing in the community. According to some tenants, however, the transition has been less than ideal.

The residents, who asked not to be identified for fear of reprisal, say they have been verbally harassed and intimidated by onsite managers, and have suffered stress as a result. They report that at least a half-dozen residents were hospitalized because of stress, including one woman who had a stroke and a man who experienced a heart attack. No deaths were reported.

At issue is whether some residents are following the rules as written by the management company hired by EMI (Hollyhand Co. of Northport, Ala.), and the way in which property managers relate those alleged violations to the tenants.

April Grace, the second property manager to be hired by Hollyhand Co. since it began day-to-day management of the complex this spring, referred all questions to company headquarters. She declined to provide a reporter a copy of the rules to which residents must adhere.

Brian Hollyhand, management agent of Meadowview, said, “There’s going to be satisfaction problems with residents when there’s change.”

But, he denied the allegations of verbal abuse and intimidation, saying, “That’s not the way we conduct our management, and we will address their concerns in a proper manner. We enforce the rules, but we’ll work with folks. It goes to the supervisor, it goes to the manager, to monitor them. Any complaints we’ve had in the past, we’ve investigated them, and we’ve resolved them.”

Hollyhand Co. manages properties across the state, including a couple of apartment complexes in Mobile County. Not all are low-income units though, and some Meadowview residents are afraid the status quo there could be changing.

Residents who receive housing assistance from the United States Department of Agriculture Rural Development program recently received a letter dated Aug. 1 that advises them EMI is prepaying the remainder of the mortgage taken out by the original developers of Meadowview, and therefore the complex would no longer fall under the RD program.

Tenants are given the option of being placed at the top of the waiting list to move to another RD property, transferring their rental assistance to another RD property (keeping their rent payment at the same amount) or applying for vouchers that would enable them to receive 12 monthly subsidy payments at most rental units in the U.S., including Meadowview.

The nine-page packet, filled with complicated federal instructions, confounded several residents, including some who have difficulty reading.

“We’ve tried to answer questions about Rural Development the best we can. The (U.S. Housing and Urban Development) subsidy is going to remain as it is,” Hollyhand said. “Rural Development also gave those options. They’re going to be getting some clarification. We’re working on that. It’s going to remain available and affordable for folks 55 and older. We’re excited to be there and will address those concerns.”

Hollyhand said doing otherwise is not possible. He pointed out, “Being awarded the additional funding to do the rehab, they do have to maintain it for affordable housing.”

Gateway Co. is in the process of completely renovating Meadowview, including new steel entry doors, new carpet, impact resistant patio doors, new bathroom fixtures, new kitchen cabinets, insulated storm windows and exterior enhancements.

To make way for renovations, each tenant must vacate temporarily and move to another apartment as each four-unit building receives a makeover. Although well-intentioned, the process seems to be adding to their frustration.

“The (construction) situation is controlled chaos,” said Dr. Gene Brabston, chairman of EMI’s newly established Meadowview oversight board. He acknowledged the renovation is disconcerting to residents, but asked them to take it in stride.

Brabston said, “We have encouraged everybody to be patient. The next six months will be controlled chaos. Please endure this because in 2009, you’ll have a new home.”

Asked about other concerns voiced by residents, Brabston said, “I have gotten some of those complaints. The management of lower income and elderly housing is very different.” He said Meadowview residents should always be treated with courtesy, and added he forwards all complaints to Hollyhand.

A federally required tenant/management meeting is tentatively set for Aug. 22 at Meadowview, and Brabston said he hopes it will resolve many of the issues of concern to residents.

Meadowview residents say they don’t fault EMI or its executive director, Jennifer Crawford, for the current situation. They said they believe Crawford and the United Way social service agency have their best interests at heart.

Crawford said because the main EMI board separated Meadowview from other agency functions, she could not comment on issues related to its operation.

Hollyhand said, “We’re working with residents to have a great community there to live in.”