Criticism
American Campus Communities' operation has seen criticism from tenants. In recent years, a series of incidents and complaints have emerged concerning American Campus Communities properties in the U-District. Tenants reported instances of unauthorized entries into their units, breaching rental laws, and disputed rules, such as pet bans and relocation notices. While American Campus Communities denied intentional demographic changes, tenants expressed concerns over the company's management practices, leading to the formation of a tenant association and intervention by the University of Washington. Despite efforts to address grievances and amend lease provisions, ongoing tensions persist between residents and ACC, underscoring challenges in maintaining a living environment.[27]
In December 2014, an incident occurred when University of Missouri student Jack Lipp fell from a balcony during a party due to a defective railing, resulting in his death. The property, owned by Ginger C, LLC, was slated for demolition by American Campus Communities to make room for a student housing complex. Subsequently, John and Stephanie Lipp, Jack's parents, filed a wrongful death lawsuit against multiple entities. After reaching a settlement, the Lipps secured a $5 million settlement with American Campus Communities, Ginger C, and Roland Management, approved by Judge Nanette K. Laughrey in April 2017.[28][29]
In a settlement reached in 2018, U.S. District Judge John Ross resolved a federal class action lawsuit alleging deceptive marketing practices from American Campus Communities. Filed by Brian Fellows and other students, the suit alleged that ACC falsely advertised monthly lease rates based on 12 full months while signing 11-and-a-half-month leases. The company agreed to pay $444,775, with $275,000 allocated to a class benefit fund, providing approximately $322.77 to each of the 852 claimants. American Campus Communities changed its advertising practices following the lawsuit's filing, substituting "monthly" with "installment" payments. Eligible tenants who signed leases between November 1, 2012, and November 15, 2016, were invited to participate in the class action suit.[30][31][32]
In February 2022, a civil lawsuit was filed against the West Virginia University Board of Governors and American Campus Communities, alleging negligence and wrongful death following the murder of student Eric J. Smith in February 2020. Smith was shot by two non-resident intruders, Terrell Linear and Shaundarius T. Reeder, who had gained unauthorized access to the building.[33]
In early 2023, the University Area Commission in Columbus, Ohio, rejected a proposed 8-story student apartment complex on Lane Avenue and High Street, following public opposition. The project, pitched by American Campus Communities, aimed to construct an 88-foot building with 560 beds. Commissioners expressed concerns about the proposed building's height and its impact on the neighborhood's historical two-story storefronts, leading to a vote of 11-4 against the project. American Campus Communities indicated intentions to revise the proposal based on the feedback received.[34]
Additionally, several of these properties have been reported to suffer from mechanical defects and poor construction quality. For instance, residents of 2nd Avenue Centre have reported issues such as malfunctioning elevators, inadequate heating and cooling systems, and subpar maintenance responses.[35][36] Additionally, tenants at the site claimed that ACC exaggerated the existence of some amenities, such as sauna and a broken rooftop hot tub. These problems contribute to a negative living experience, further exacerbating the financial burden on students who often pay premium prices for what they expect to be high-quality accommodations.[37]