MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS, TENNESSEE
Wednesday, April 29, 2026
The regular meeting of The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee (the “Board”) was held pursuant to public notice published in The Daily News on Wednesday, April 22, 2026, simultaneous posting to the Daily Memphian website at: www.dailymemphian.com, and the public notice was continuously published on the Board’s website at: www.memphishehf.com. The published meeting time was 12:00 Noon. The meeting was held in the conference room in the Board offices, located at 65 Union Avenue, Suite 1120, Memphis, TN 38103.
The following Directors were present:
Daniel T. Reid, Chairman Monice Hagler
Buckner Wellford Cliff Henderson
Howard Eddings, Jr. Vincent Sawyer (Zoom)
Courtnee Melton-Fant (Zoom)
Staff and others attending: Trey McKnight, Stephanie Bryant, JP Townsend, and Nikki Abraham; Charles E. Carpenter and Corbin I. Carpenter, General Counsel; Katrina Shephard (Zoom) and Sariah Bell (Zoom), legal assistants to General Counsel; Cheryl Hearn, Deputy City Attorney; and Mike Humes, consultant to the HEHFB Strategic Planning Committee.
Also participating in person and/or via remote Zoom virtual platform were Mark Jobe of Glankler Brown Law Firm, Eitan Levy and Adam Goodstein (Zoom) of Seastone Capital, and Mark Adams (Zoom), Joseph Oppenheim (Zoom) and Shana Szachtel (Zoom) of Precision Management Company representing Lakes at Ridgeway and Stonegate Apartments; Bill Ganus of November 6 Investments and Jarad Bingham representing Hub North, LP; Bill Ganus of November 6 Investments representing 300 Court GP LLC; Frank Stockdale Carney of Evans Petree Law Firm and Mendel Fischer, Shrage Marasow (Zoom), and Neil Knopf representing Coronado Manor and Bridgeport Manor; Alex Shores of Multi-South Management Company and David Blatt representing Sterling Townhomes; Isaac Perlmutter of Aurox Equities, David Shemano, and David Upton representing Abington Apartments, Country View Apartments, Jamesbridge Apartments, and Lakes at Epping Way; Mary Linda Cuddy (Zoom) and Jan Kidder (Zoom) of Memphis Interfaith Coalition for Action & Hope (MICAH); Simeon Ike (Zoom) of Greater Memphis Housing Justice Project; and several members of the public were also present.
With a quorum present, the regular meeting of the Board was called to order at 12:00 Noon by Daniel T. Reid, Chairman.
Chairman Reid stated that in compliance with the Open Meetings Law codified in Section 8-44-101 to 8-44-108, inclusive of the Tennessee Code Annotated, as amended, The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee is holding its regular meeting on Wednesday, April 29, 2026 @ Noon as an open public meeting in its conference room located at 65 Union Avenue, Suite 1120, Memphis, Tennessee 38103.
Chairman Reid stated supplemental Board meeting materials could be accessed on the Board’s website: www.memphishehf.com and reminded all attendees participating via remote access to enter their name and affiliated entities into the Zoom platform for record keeping purposes.
Public Comment
Chairman Daniel Reid opened the floor for public comment and advised that all comments should be limited to two (2) minutes per speaker.
There was no public comment.
Approval of Minutes
Cliff Henderson moved for approval of the Minutes of the April 1, 2026 Regular Meeting, seconded by Buckner Wellford and the motion passed unanimously after proper roll call vote of the Board members.
Cliff Henderson moved for approval of the Minutes of the April 13, 2026 Strategic Planning Board Special Meeting, seconded by Monice Hagler and the motion passed unanimously after proper roll call vote of the Board members.
Attorney’s Report
Charles Carpenter presented the legal report, as follows:
1. Carpenter reported no new claims, lawsuits, or materialmen’s’ claims for the month of April 2026.
2. Carpenter reported no Bond activities for the month of April 2026.
3. Carpenter reported that his Firm continues to monitor Tennessee Housing Development Agency (THDA) Round One applications and there have been no requests for supplemental information from the Issuer standpoint. Carpenter stated that THDA Round One awardees are anticipated to be announced during May 2026.
4. Carpenter reported that the Tennessee General Assembly has adjourned for this session and there were two PILOT bills that were passed that will become effective July 1, 2026. Carpenter stated that his Firm is reviewing those bills and will provide a summary to the Board at its June 3, 2026 Board meeting.
Buckner Wellford asked fundamentally if there is anything particularly significant about the legislation. Carpenter stated that his Firm is still evaluating the legislation right now and that the legislation was just passed during the last days of the session and he would be able to provide a full report at the June 3, 2026 Board meeting.
5. Finally, Carpenter reported that his Firm has been monitoring the Shelby County PILOT Ad Hoc Committee, and due to the last session occurring during an election cycle, there was not a quorum at that meeting. Carpenter reported that the Shelby County PILOT Ad Hoc Committee has taken no definitive action, and typically the state legislation, if it addresses the same subject areas, will be superior to what would be done at the county level. Carpenter stated that his Firm would have a full report at the June 3, 2026 Board meeting.
There being no further questions or comments, the Legal Report was concluded.
Action Items-
1. 1st PILOT Refinancing Closing Extension for Capstone Ridgeway, LLC (d/b/a Lakes at Ridgeway)
Charles Carpenter introduced this agenda item, stating that the agenda items 1 and 2 are both PILOT Refinancing Closing Extensions with the same developer and may be discussed together, but voted on separately. Carpenter turned the meeting over to representatives in attendance for comments. Mark Jobe, legal counsel to the developer, stated that the team had hoped to get these transactions closed prior to today’s meeting, but due to underwriting delays and change in management that was previously reported to Board staff, the closings were unable to occur. Jobe stated that the applicant’s current intent is to close both transactions within the next thirty (30) days but does understand that this request would allow an additional 6-month period to close both transactions if approved by the Board. Jobe stated that this closing extension, if approved, would allow the developer to move forward with the refinancing, as the existing financing is maturing, and will allow the project to go forward and complete the rehabilitation.
Stephanie Bryant stated that for Lakes at Ridgeway, there is still a Q4 2026 Quarterly Occupancy Report that has not been submitted, with Q1 2026 Occupancy Reports being due no later than April 30, 2026, also has not been submitted. Bryant asked JP Townsend to provide comments on his observations of the property. Townsend stated that there are significant repairs that are needed for the exterior and interior units. Townsend noted work that has been completed on the property, stating that his main concern is there were a couple of water leaks that were on the property with one leak noted being repaired during his last inspection. Bryant stated that this project is still in the construction phase with an occupancy rate of 57%. Bryant reminded the Board that the minimum occupancy rate of 75% is required after the property has completed the construction phase as submitted in the PILOT application for each project. Cliff Henderson asked if the decline in occupancy rate from quarter 2 to quarter 3 of 2025 due to the construction, to which Bryant stated that is what was indicated by the PILOT Lessee.
Carpenter stated generally that it is difficult for the Board to have full information when quarterly reports are not timely submitted. Carpenter stated that going forward, the Board will not look favorably upon PILOT Lessees that come before the Board that do not have the required reporting up to date or PILOT payments up to date, and this will be a material factor moving forward for all PILOT Lessees.
Thereupon, Bryant moved the discussion to Stonegate Apartments, stating that the PILOT Refinancing that was approved by the Board at its November 5, 2025 Board Meeting and the refinancing loan involves both Lakes at Ridgeway and Stonegate Apartments. Bryant stated that Stonegate Apartments is also missing the Q4 2025 Quarterly Occupancy Report. Bryant stated that the importance and purpose of the quarterly occupancy reports is to be used for PILOT Lease File Audits to ensure that the information provided on quarterly occupancy reports is true and accurate when compared to on-site or electronic lease files. Bryant stated that Stonegate Apartments also has an outstanding 2024 PILOT payment due to the City of Memphis Treasurer in the amount of $29,864.57. Bryant reported that the 2025 PILOT payment has been paid in full, and staff believes this is an oversight, and the PILOT Refinancing closing will assist the PILOT Lessee in bringing this PILOT payment up to date. Bryant stated that Lakes at Ridgeway is in compliance with all PILOT payments, according to each taxing authority at this time.
Townsend stated that Stonegate is also in the construction period, and there are exterior conditions that need repair. Townsend noted work is being performed on the interior of the units, but there are still many repairs needed to the exterior including the drives and exterior of buildings.
Bryant stated that staff recommends approval of both PILOT Refinancing Closing Extension requests. Bryant stated that the PILOT Lessee has been advised that if the closing does not take place within thirty (30) days of Board approval, if approved, there will be a Closing Extension Fee assessed and due at that time. Bryant stated that staff recommends approval for the rehabilitation of these two projects to be completed and put into full service. Chairman Reid asked representatives if they were aware of the outstanding 2024 PILOT payments due to the City of Memphis Treasurer. Jobe stated he is surprised by this information but will review his records and get this item addressed promptly. Jobe stated that the Board can be assured that if this is an outstanding item, it is a title requirement for closing the refinancing loan and issuing title insurance, so the Board can be assured it will be resolved. Carpenter stated that the quarterly occupancy reports should also be submitted immediately to which Jobe stated he understood those had been sent on April 28, 2026. Bryant stated that reports were not received and requested they be resubmitted, to which Jobe agreed.
There being no further questions or comments,
Cliff Henderson made a motion to approve the 1st PILOT Refinancing Closing Extension for Capstone Ridgeway, LLC (d/b/a Lakes at Ridgeway. Monice Hagler seconded, and the motion passed unanimously after proper roll call vote of the Board members.
2. 1st PILOT Refinancing Closing Extension for Capstone Stonegate, LLC (d/b/a Stonegate Apartments)
There being no further questions or comments,
Cliff Henderson made a motion to approve the 1st PILOT Refinancing Closing Extension for Capstone Stonegate, LLC (d/b/a Stonegate Apartments). Howard Eddings, Jr. seconded, and the motion passed unanimously after proper roll call vote of the Board members.
3. 1st MHA PILOT Closing Extension for Hub North, LP
Carpenter stated that this is an MHA PILOT Closing Extension for Hub North, which has also been approved for a bond induced by this Board. Carpenter stated that the project has submitted its application to THDA for Round One tax credits and volume ap allocation. Carpenter stated this is not unusual to see a 1st PILOT Closing Extension request for a tax credit property because of the parallel track at THDA. Carpenter turned the meeting over to representatives in attendance for further comment.
Jarad Bingham with Hospitality Hub stated that his team is excited about this Hospitality Hub-Hub North project campus for families in North Memphis and appreciates the Board’s support. Bingham stated that the team is waiting on THDA announcements for Round One to align the calendar with this project. Bill Ganus with November 6 Investments, introduced himself, stating that his group is the lead developer on this project. Carpenter stated that his Firm recommends the Board look favorably upon this closing extension, which will allow the normal financing process to move forward, and it is anticipated that the bond financing and PILOT transaction would be closed together. Carpenter reminded the Board that this closing extension will be for a 6-month period.
Howard Eddings, Jr. asked about the development cost per unit, noted at $365,992.45. Ganus stated that this cost includes an amortization of the adjacent site work, landscaping, and surroundings. Ganus stated that it has been important to the development team during this design process to make sure that this is a flagship location where, as folks are exiting traumatic experiences, they feel like they are being welcomed back int society. To achieve that, Ganus stated that the development group has contacted EDG, a world-class landscape architect, to come in. Ganus stated that this group did crystal bridges in Bentonville to create a native, perennial, pollinator-based landscaping. Ganus stated that these surrounding costs are also included in the hard cost per unit. Ganus stated that because this is a tax credit process, the development team is making every commercially reasonable effort to be able to out THDA allowable expenses into those hard costs to be able to capture the tax credits associated with those. There being no further questions or comments,
Buckner Wellford made a motion to approve the 1st MHA PILOT Closing Extension for Hub North, LP. Cliff Henderson seconded, and the motion passed unanimously after proper roll call vote of the Board members.
4. Affordable Multifamily MHA PILOT Application for 300 Court GP LLC
Carpenter introduced this agenda item as a new MHA PILOT Application for 300 Court and turned the meeting over to representatives for comments. Bill Ganus of November 6 Investments introduced himself as the representative for the developer. Ganus stated that the project is located at the corner of Danny Thomas and Court Avenue and will be an adaptive reuse of the former First National Bank Operations Center, in addition to new construction with the intended demographic being janitorial staff, teachers, and police officers to be able to live close to the territories that they serve. Ganus stated that the low basis in the building means that an office to residential conversion is financially feasible in ways that it is not always feasible at other buildings that might like to do the same thing, which has made the development team eager to move forward with this project. Ganus stated that this development is in partnership with Memphis Housing Authority (MHA), and the team is appreciative for that support. Ganus stated that approval of this PILOT application will allow the development team to move forward with the financial model that makes sense for this building and the location.
Ganus stated that if a developer is going to build downtown, doing it well make sense and his team wants to be able to recruit people downtown and be able to give residents an opportunity to live in a space where they feel like they are really being treated like the citizens that are respected. Ganus stated that there is a lage lot that was previously an office building with over 400 parking spaces, and this development plan is to build 255 residential units, and there is space to expand and create tenant benefits. Ganus stated that because the building was originally set up with infrastructure to function as a single-source tenant, it makes sense for the development team to take advantage of that. Ganus stated that the building has a lot of CAT6 cabling throughout and common utility ducts that run through a central elevator shaft, so it does not have to be parceled out the way it may otherwise be required if a developer were to do a new build to maximize the revenue per unit. Ganus stated that tenant benefits will include things like utilities, high-speed internet, and green space outside with a playground. Ganus stated that there will be a fair number of 2-bedroom units intended for small families, which will bring light and vibrancy to the community downtown, and the development team wants to leverage the infrastructure for the tenant’s benefit.
Carpenter reminded the Board that this project has also been induced for 4% low-income housing tax credits and has submitted application to THDA for Round One consideration. Carpenter stated that the bond financing and PILOT transaction would be closed together, and his Firm recommends the Board look favorably upon this application. There being no further questions or comments,
Buckner Wellford made a motion to approve the Affordable Multifamily MHA PILOT Application for 300 Court GP LLC. Cliff Henderson seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Let the record reflect that Monice Hagler was recused from the deliberation and vote.
5. Status Update for Coronado Manor
Carpenter introduced this agenda item, stating that this is one of two updates the Board will be receiving from this developer today and turned the meeting over to representatives for comments. Frank Carney, legal counsel to the PILOT Lessee, introduced himself, Mendel Fischer, developer, and Neil Knopf, manager of the projects, in attendance today to provide a status update for Coronado Manor and Bridgeport Manor. Carney stated that a report was filed with Board staff on what is being done at both Coronado Manor and Bridgeport Manor.
Neil Knopf stated that the update for Coronado Manor is generally the same as it has been. Knopf stated that the laundry facility is still waiting on the remaining appliances, which are being installed today. Knopf stated that there has been some movement unit-wise and the construction is complete, absent a few units that have some work to do which is planned to be done in-house as they continue to come online.
Mendel Fischer stated that with what has been completed, he believes that he is here today to address moving Coronado Manor down another level in the compliance step process. Carney stated that one of the tenant benefits originally committed to was the automatic gate that the Board had noted was not in place, and that it became not feasible for a lot of different reasons, so other tenant benefits have been increased on the project, such as entering into partnerships with social services. Carney stated that the developer is also initiating a parking decal program with a towing service to ensure more security to the project.
JP Townsend reported that the occupied areas of the property continue to be maintained, but there are still unoccupied buildings that need soffit and fascia work and repairs. Townsend observed that there is still work that needs to be completed internally, with one unit noted to have water damage internally. Townsend stated that there are stairwells that need to be cleaned, but he was unable to enter the laundry facility to confirm if it was functional, as it was locked and secured. Townsend asked for clarification as to whether the laundry facility is currently functional or whether management is waiting for all equipment to be installed. Knopf stated that the laundry facility is functional at this point, and the door has a combination lock on it so that tenants can access it, as it is not free access. Knopf stated that management plans to add an open resident area between the mail room and laundry room.
Stephanie Bryant stated that a rent roll was provided on April 22, 2026, and showed an increase in occupancy from 77.8% to 79% occupancy rate. Bryant stated that the biggest administrative concern is the outstanding PILOT payments due to the Shelby County Trustee in the amount of $24,158.85 and the City of Memphis Treasurer in the amount of $25,203.48. Bryant advised the Board that the PILOT Lessee has been provided notice of these outstanding balances, and all other PILOT payments for this developer’s PILOT portfolio have been paid, except for these two outstanding balances for Coronado Manor. Due to these outstanding PILOT Payments, Bryant stated that staff recommend that the property be moved to Legal Default status. Fischer asked if Bryant had received any confirmation that this had been taken care of. Bryant reiterated that all other PILOT payments for this developer’s PILOT portfolio have been paid, except for these two outstanding balances for Coronado Manor. Carpenter stated the proof of payment is the Lessee’s responsibility, and when the Board looks at the public record, and the public record shows it is unpaid and does not have a paid receipt, such deficiency will automatically trigger a Legal Default. Carpenter stated that some elected officials at the state, county, and city levels have used this deficiency to express that the PILOT program is not working and the developer is getting the benefit of the payment in lieu of taxes, but the payment in lieu is not been made, or not made timely, and the public is not receiving the benefit of its bargain. Carpenter stated that his Firm concurs with Board staff’s recommendations and recommends that no action be taken by the Board until there is proof that these payments have been made and this matter be reset for the Board’s June 3, 2026 Board meeting, and any further movement in the compliance step program be reserved until that time.
Buckner Wellford asked if the $2,000 PILOT Compliance Deficiency Fee was assessed and paid. Bryant confirmed that the fee was assessed, and payment was made on April 28, 2026 by the PILOT Lessee. Wellford asked if a resident at Coronado Manor can do their laundry right now at the facility. Knopf stated that yesterday, yes, tomorrow, yes, but today, no, and that there was partial equipment delivered, and the remaining equipment is being delivered and installed today. Carpenter stated that this is a reminder to all PILOT Lessees, but it applies to this case as well, that the Board is considering new policies that and when a PILOT Lessee reports or makes payments the day before a Board meeting or the day of the Board meeting, that information is not going to be considered going forward, subject to the approval of the Board, because it does not give a true picture of what the exact circumstances are at each property at the time the Board is considering action. Fischer stated that the laundry room has been operational for over a month, but at the time he was pushing the vendor to provide a certain type of machine, and the vendor provided five sets out of ten sets ordered, so it is operational and he pushed the vendor to deliver the rest so he could report to the Board that the laundry room is now fully operational, and the installation of the remaining equipment just happened to be today. Wellford stated that the Board has been discussing this issue for months, and while it seems like a little thing, it is not, and he is uncomfortable with the last-minute scrambling as well. There being no further questions or comments,
Buckner Wellford made a motion to place Coronado Manor in Legal Default for non-payment of the 2025 City and County payments in lieu of taxes. All remaining matters being reserved until the next regular meeting of the Board. Cliff Henderson seconded, and the motion passed unanimously after proper roll call vote of the Board members.
6. Status Updates for PILOTs in Legal Default:
a. Bridgeport Manor
Carpenter introduced this agenda item, stating that the Board is very familiar with this property due to a long refinancing approval process, and after several attempts, the transaction was able to be closed, as reported at the Board’s April 1, 2026 Board meeting. Carpenter reminded the Board that the refinancing was going to allow additional funds to come in to complete the rehabilitation of the project. Carpenter turned the meeting over to representatives for an update.
Fischer stated that the refinancing is successfully done, and he does not know why the property is on today’s agenda. Carpenter explained that the property is on the agenda for a status update of carrying forward the renovation plans that Fischer and his team had committed to the Board to come into compliance with the Board’s PILOT policies and procedures. Fischer stated that the refinancing transaction is closed, and he has the construction schedule that was submitted to the Board, and his team is running on time.
JP Townsend reported that the occupied areas of the property continue to be maintained, but the unoccupied areas of the property are still in need of renovations, including soffit, fascia, and internal renovation of units. Stephanie Bryant reported that occupancy has increased from 60.3% from the January 27, 2026 Rent Roll to 64.4% from the April 22, 2026 Rent Roll. Bryant stated that staff’s recommendation is that the property remains in legal default status until construction begins to see a good faith effort in construction beginning and getting well underway.
Fischer stated that one of the conditions of the refinancing closing and providing the construction timetable was that the project would be taken out of legal default. Carpenter stated that assessment is correct based on good faith efforts of maintaining the timetable. Carpenter stated that the project is approximately three-four (3-4) weeks into that timetable and recommended representatives outline what has taken place in the past weeks since the close of the refinancing. Fischer stated that the construction crew is putting together everything that they need, and permits are starting to be pulled according to the phases of construction provided to the Board. Fischer stated he anticipated construction to begin the second week of May 2026 and materials have been ordered and his team is looking at this as a successful journey and to get this done faster than anticipated. Fischer stated that the team has momentum and people are happy. Fischer stated that when Townsend stated that the property is maintained that this means the grass is cut throughout the property, not just the occupied areas, and cosmetically, there is not that much difference between the occupied and unoccupied buildings and the differences are not things that are noticeable.
Buckner Wellford asked Fischer what he means when he says that there is a condition associated with the refinancing that pertains to whether the property remains in legal default. Fischer stated that the property was in legal default because of the occupancy rate and the need to complete the renovation. Fischer stated that one of the things that he accomplished is obtaining the financing and extending the time to not be in legal default. Fischer stated that the property would only go back into legal default if he did not go through the timeline that was submitted to the Board. Wellford asked if the refinancing was subject to being pulled out of legal default? Fischer stated yes, and it was done, and was part of the paperwork. Wellford asked if Fischer is stating that he is unable to start construction unless the project is pulled out of legal default. Fischer stated that the property was not removed from legal default that the loans could not have closed. Wellford stated he does not understand how that condition could ever be a closing condition when it is a Board’s decision whether to pull a project out of legal default and asked for an explanation.
Carpenter stated that according to bank regulations, the two lenders for the property are prohibited from financing a property that is in legal default as it triggers a lot of red flags for underwriting. Carpenter stated that what was approved, which his Firm understood was approved by this Board, was that in order to allow the property to have the funds to bring it out of legal default, his Firm agreed that as long as the construction plan and the timetable was accepted by the Board, and there was a good faith effort on behalf of the developer to timely move forward with that, that the property would not be determined in legal default for the purposes of allowing the refinancing to go forward. Carpenter stated that is where things are now allowing the refinancing transaction to be closed approximately one month ago, and confirming the steps that were taken in good faith to execute the plan that was approved by the Board. Carpenter stated that this question becomes significant because there appears to be no meeting of the minds, as in the developer’s mind, he now has the financing and told the Board he is moving forward, but the urgency and timeliness of that the actions is in question. Carpenter stated that as for the property being in legal default status, nothing has changed and the forbearance was that the Board was not going to terminate the PILOT during the refinancing process, which is what the banks wanted to know, as it impacts the underwriting process, whether there is a PILOT or no PILOT impacts the taxes and other ratios. Carpenter stated his Firm communicated that the Board was going to forbear from terminating the PILOT so long as the developer keeps his word, and the developer has to evidence to the Board that he is keeping his word and moving forward with the stated timetable of committing the improvements that have been agreed on. Wellford asked if the developer has received the funding while the property has remained in legal default status. Carpenter confirmed that the funding has been received based on that forbearance agreement. Wellford stated that his only concern was to be caught in a situation where the developer could not engage in a good faith effort. Carpenter confirmed that is not the case, and the developer has received the refinancing proceeds to begin the work.
Carney stated that he wants to make sure the Board understands that the developer still has to draw money from the refinancing proceeds to rehabilitate the property, and as he was not involved in the formal process of the refinancing transaction, so he does not know if the developer will be able to draw the funds while in legal default. Fischer stated that the forbearance agreement is that the property is not in legal default while going through this process through the submission of the construction plan. Wellford stated that he is trying to figure out if the Board defers action on this until the next Board meeting, is the developer going to be able to come in at that time and say he was unable to begin renovations of those units because the lender would not release any draws as the property remains in legal default, because then the Board will be right back in this same situation and he wants to understand what the Board’s options are. Wellford stating he is not advocating to pull the property out of legal default but also wants to understand the reality if there is actually some kind of legal condition upon their being able to draw the funds necessary for the rehabilitation.
Carpenter stated that his Firm has not been informed that there is any impediment to the PILOT Lessee accessing the loan, which is closed. Carpenter stated that the property’s status has not changed and what the Board is trying to understand now is what the developer is doing to execute the plan in good faith, and it seems the representatives were unprepared to talk about that today. Carpenter stated that the recommendation is to defer action until the Board’s June 3, 2026 Board meeting to allow the developer to come back and give evidence of what is being done, that it is on track with the construction timeline, and then the Board can move forward. Wellford asked if it would be fair, if at the Board's June 3, 2026 Board meeting, the Board hears that the developer is unable to achieve the level of rehabilitation that is expected because the developer was unable to draw on the refinancing funds, that this would not be a sufficient explanation. Carpenter confirmed that is correct. Carpenter stated that if the developer comes in and the Board determined that the developer is not making a god faith effort, then his Firm’s guidance would be to let the lenders know that based on the lack of good faith effort, the property is subject to termination of the PILOT.
Cliff Henderson asked if there are any issues if the property remains in legal default, can the developer draw the funds. Fischer stated that according to the loan documents, the property is not in legal default while doing the construction for the next nine months, and that is how the loan was commenced and was able to close and able to draw the money. Fischer stated that the short clear answer is that the property is not in legal default. Henderson asked if it is possible for the Board to move the project down to Notice of Non-Compliance status, continue to monitor this, and escalate up to legal default if the Board is not pleased with the progress, but agreeing with Wellford, he does not want to hear at the Board’s June 3, 2026 Board meeting that as a result of being in legal default, the developer was unable to draw funds. Chairman Reid stated that a forbearance agreement steps in front of the transaction and says that the Board is not going to take any action until the developer does not follow the construction timeline as agreed upon. Carpenter confirmed Reid’s comments, stating that at that point, his Firm would notify the lender, but at this time, there is nothing to keep the developer from accessing the refinancing proceeds. Henderson asked if the lender is viewing this the same way. Canrey stated that he was not part of this transaction, so he does not have an answer, but it is a logical question that when discussing this issue with a lender, the logical question will be what the status of the property is. Carpenter asked Fischer if he had made any draws on the loan since it closed. Fischer stated he has not and his first draw is scheduled for the month of May 2026 because the loan was closed before Passover, and he does a long vacation for two weeks, and the first draw will be scheduled for the month of May 2026. Carpenter stated that he does not think that the Board has a problem.
Wellford stated that he is not prepared to vote for anything that is to the effect of downgrading the status of this property because of loan document conditions. Wellford asked if a motion is necessary to defer action to the Board’s June 3, 2026 Board meeting. Chairman Reid stated there is no motion necessary and that the property will remain as it has, in legal default status with the forbearance agreement in place. Carpenter stated that the PILOT Lessee would report to the Board at its June 3, 2026 Board meeting, and the Board could consider action at that time. There being no further questions or concerns, there was consensus that action is deferred, the property is to remain in Legal Default status, and the PILOT Lessee is to appear before the Board at its June 3, 2026 Board meeting to provide a status update.
b. Sterling Townhomes
Carpenter introduced this agenda item, reminding the Board that this property recently entered into the Board’s PILOT program in May 2025, and was promptly subjected to a fire under the suspicion of arson, and subsequently sustained a second fire that was also suspected as arson. Carpenter reminded the Board that this property was placed into legal default following receipt of a Notice of Condemnation, as this was a matter of first impression. Carpenter stated that the developer has reported to the Board the actions that have been taken through the Environmental Court and other administrative orders that have been filed. Carpenter reminded the Board that it was also made aware of litigation filed against the fire and casualty insurance company, and the case is pending in the state of California. Carpenter further advised that the insurance company had filed a motion to transfer the case to Tennessee under the conflict of law provisions, and that brings the circumstances to today for representatives to provide an update and Carpenter turned the meeting over to representatives.
Alex Shores of Multi-South Management Services introduced himself, and David Blatt, as PILOT Lessee. Shores stated that since the Board’s last meeting, they have provided the required written updates to Board staff, and all PILOT payments have been made and receipts sent to Board staff as well. Shores stated that the Health Department fees have been paid and the team is now able to move forward with the permitting process for demolition on the last building(s). Shores stated that the permitting process began the week of April 20, 2026 with Memphis Light, Gas, and Water (MLGW), which requires approval for utility cutoff prior to pulling the demolition permit and he expects that approval in the coming week, which will keep things on track for early May 2026 to begin that work. Shores stated it will take approximately one week to get the last building demolished and debris hauled off, and then the rebuild of the outside of the two buildings that are still standing following the second fire.
Stephanie Bryant stated that Board staff did receive the written reports as requested in a timely manner, and the outstanding City of Memphis Treasurer PILOT payment was paid and a receipt provided. Bryant stated that the PILOT Lessee has requested no action be taken by the Board until the end of June to allow the team time to work through some of the litigation matters and achieve progress with the demolition and subsequently planned construction. Bryant stated that staff’s recommendation is for this property to remain in legal default status, but due to the good faith effort shown by the PILOT Lessee, she would recommend the Board allow the additional time requested, and the PILOT Lessee would appear before the Board at the July 8, 2026 Board meeting. Wellford stated that he assumes there is no update on litigation matters and it may be helpful that the property remain in legal default from the standpoint of accelerating the necessity to get a decision on that issue. Carpenter stated that the option of voluntary termination has also been mentioned to the PILOT Lessee. Carpenter stated that it has been stated that the insurance proceeds would be necessary to fully fund the original scope of the proejct, so when the PILOT Lessee appears before the Board at the July 8, 2026 Board meeting, depending on the status of the lawsuit, the Lessee would make that determination at that time to voluntarily terminate with the option to reapply at a later date or seek a modification to reduce the scope of the project, which would require Board approval. Bryant asked that in the interim, monthly updates continue to be provided, as well as an update following any court proceedings. Shores and Blatt confirmed. There being no further questions or comments, there was consensus that action is deferred, the property is to remain in Legal Default status, and the PILOT Lessee is to appear before the Board at its July 8, 2026 Board meeting to provide a status update.
c. Abington Apartments
Carpenter introduced this agenda item stating that items c, d, e, and f are all owned and operated by the same developer and team. Carpenter reminded the Board that these four (4) properties were due to appear before the Board at the April 1, 2026 Board meeting, but due to observance of religious holidays, the Board deferred appearance until today’s meeting and turned the meeting over to representatives for updates. David Upton introduced himself as consultant to the owner, David Shemano, PILOT Lessee, and Isaac Perlmutter, investor. Upton stated that the development team had sent a PowerPoint presentation to Board staff today just prior to the Board meeting but it was advised that the presentation would not be allowed to be used as it was not submitted according to Board guidelines. Bryant confirmed and stated that these representatives were made aware at their last appearance before the Board at its March 4, 2026 Board meeting that all submissions to be considered by the Board must be submitted less than 10 days prior to the Board meeting, so this information has not been shared or provided to the Board, as it was received today, the day of the Board meeting. Upton stated he understood and apologized for the late submission, stating that Perlmutter would provide a verbal report, and substantial progress has been made. Upton stated that there are some legal issues involving Jamesbridge Apartments, but those are close to being resolved, and the Board will see movement forward in a similar fashion to the other properties.
Perlmutter also apologized for the late submission, stating that there were many things that got finished in the last few days, but he will provide timely updates prior to the next Board meeting. Perlmutter began with Abington Apartments, stating the following:
· The pool has been fixed and is clear and will be open for the season with a full-time pool monitor as committed to as part of the tenant benefits.
· The playground is being fixed now.
· At the next Board meeting, there will be three or four amenities that are planned for the tenants over the next three months to further improve the tenant’s experience.
· All roofs requiring replacement have been completed, which Perlmutter believes included 22 roofs on the property fully replaced.
· all gutters have been repaired or replaced,
· all fascia has been repaired or replaced.
· some areas that remain the only need painted
· 12 breezeways have been completed through replacement of rotten wood, repairing cement; repairs have now reached the 8th building.
· All balconies are being replaced building by building with fresh wood and original beams.
· Work is in progress on tree overgrowth and will be completed by the June 3, 2026 Board meeting; broken trees will be removed.
· Sprinkler systems on three parts of the property are being repaired, and landscaping will be planted in those three areas by the June 3, 2026 Board meeting.
· The clubhouse that is currently being used as the office for management will be reopened to tenants strictly as a clubhouse; management offices will be moved to another location.
· Work is beginning in May 2026 to replace 10-15 HVAC systems each month as part of the tenant benefit commitments; systems are already on the property to be installed.
· The electronic gate is working, and perimeter fencing is currently being repaired.
· Landscaping will take place over the next week.
· There is a brook that gathers debris and trash that runs through the property in the front that is going to be cleaned up.
· By July 31, 2026, occupancy will be in compliance; 35 move-ins in April, with 50% of move-ins being recommended by existing tenants.
· There is a 10-year plan to replace pavement at the site.
· Site has active security on property every evening through 3 a.m.
David Upton commented that while there have been 35 move-ins, there were some evictions, so some of those new move-ins are replacing tenants. Upton stated that this team understands that submissions ten days prior to the Board meeting allow staff to confirm reporting and they are willing to provide information, including contracts, signed contracts, payments, ledgers, etc. for verification. Perlmutter stated that his plan is effective August 1, 2026 to begin renovations of the interior of the buildings, building by building, with full renovations to the units, except for windows.
JP Townsend stated that as an overall portfolio note, Abington Apartments is the property where the majority of the work has begun, and a large portion has been completed. Townsend stated that at the start of these renovations, Board staff was provided with a list of outstanding construction items that included some hard dates but requested a revised construction timeline be provided with stated completion dates and more detail for better oversight. Townsend stated that during his last inspection, he did observe some roofs that still show signs of age. Perlmutter stated that every roof at Abington was evaluated and identified roofs that had no useful life left, but there are a couple of roofs that are in good condition and still have some useful life, but they have old shingles in comparison to the new shingles on the replaced roofs, and the variation can be observed. Perlmutter stated that all roofs have been addressed, there are no remaining roof issues at this time, and roof work is complete. Townsend stated that his reports include observations of the external observable conditions, and if he sees a roof that looks like it has old shingles, he is going to report that the roof shows signs of age, but will not mention damage, unless it is observed. Townsend reported that the majority of the siding has been replaced, there are still a few areas of gutter repairs needed, and fascia and soffit have been replaced but still need painting, as stated by Perlmutter. Townsend reported several windows toward the playground area that were boarded up during his last inspection and striping of the drives has been completed and potholes filled, but there are still some areas of surface damage and uneven areas. Townsend restated his request for timelines with completion dates for each item remaining. Townsend stated that he has observed the entry gate closed and secure, but during his last inspection, the gate was open. Perlmutter stated the gate was open because someone hit the gate, and that has been repaired, and cameras are being installed so that management can go back and identify the person if this happens again. Townsend confirmed he also observed that most of the balconies were in the process of being restored. Perlmutter stated that the construction crew is working to restore 8 sets of balconies per week, and they are moving quickly.
Stephanie Bryant stated that staff have observed substantial progress; occupancy rate remains at 54%, but staff anticipate this rate to increase due to the completion of many of these construction items. Howard Eddings asked why there was a decline in occupancy from 86% for Q1 2025 to now 54%. Perlmutter stated that he cannot speak about occupancy rates before his group became involved, but the information provided by his team is real. Perlmutter stated there are 35 move-ins scheduled for April, with some move outs and 6-7 evictions still outstanding, but in general, if a tenant does not pay rent, they must be evicted. Bryant stated that staff’s recommendation is that the property remain in legal default and appear before the Board at the June 3, 2026 Board meeting to a status update on the remaining construction.
Bryant reminded representatives that a written update must be provided 10 days prior to the June 3, 2026 Board meeting. Eddings asked what the current rent is at Abington, to which Perlmutter stated the rent is $835 for a 2-bedroom, 1-bathroom unit. Perlmutter stated that when his group does things, they try to do them right. Eddings asked if each unit includes a washer and dryer. Perlmutter stated that the tenant pays a rental fee for the washer and dryer. There being no further questions or comments, there was consensus that action is deferred, the property is to remain in Legal Default status, and the PILOT Lessee is to appear before the Board at its June 3, 2026 Board meeting to provide a status update.
d. Country View Apartments
Perlmutter thanked Carpenter for a recent call he participated in with a lender because the lender was not providing access to funding due to the legal default status, but that has now been resolved with the lender and he is able to access the funding that is in escrow that he should have had access to and thanked Carpenter again for his assistance in getting that resolved.
Perlmutter reported for Country View the following:
· The entry gate was hit a couple of days ago and is in the process of being repaired.
· There are two sinkholes, one located across the street from the property that is being repaired today, with the remaining repairs to be completed by the end of the week; the second sinkhole required an engineer's report due to a retaining wall collapse, which has now been rebuilt, and the sinkhole repair timeline is approximately two weeks.
· Roofs are in the process of repair.
· Landscaping is in process.
· Siding repairs are in process.
· Exterior lighting is also being installed on all buildings front and back for added security.
· An amenities package is in the works.
· Repairs to Stairways is planned.
Perlmutter stated that all repairs should be complete or almost complete by the June 3, 2026 Board meeting, and he will provide a written update and construction timeline with that information prior to that meeting. Perlmutter stated that unit turns began last week and he expects 30 unit turns by the end of next week, May 8, 2026. Perlmutter reported that the outstanding PILOT payment has been paid. Wellford asked when this PILOT was originally granted, to which Bryant responded July 2018.
Townsend stated that this property requires the least amount of work to come into compliance with the properties included in this developer’s portfolio. Townsend stated that there are still a couple of buildings that roofs show signs of age, areas of siding that needs repair, gutters that need repair, and sinkholes that still need repair. Townsend stated that he cannot confirm if the entry gate is operations at this time. Townsend stated that he has not seen any exterior work begin on this property and requested a construction timeline for this project as well that includes construction start dates and construction completion dates for each item for better oversight.
Perlmutter stated that when he came into the Memphis market, he began gathering vendors and contractors for the work and committed that the work would be done right and done according to the plan. Perlmutter stated that Abington Apartments needed the most work at the onset, except for Lakes at Epping Way, but he is now on his fourth contractor, and some initial work had to be redone. Perlmutter stated that he has the lead maintenance on Abington and the contractor recently expressed his pride in working with Perlmutter, and Perlmutter stated that the work would be done, but it is impossible without the right leads, which he believes they have found. Perlmutter stated he hired an engineering firm for the sinkholes at Country View, and it would have been easy to cover it up and make it look good, but he wants it done right, so the engineering report was $10,500, and the work will take four weeks. Perlmutter stated that by the Board’s June 3, 2026 Board meeting, the Board will be able to see that the work is on the timeline.
Wellford asked if this property could come into compliance; the PILOT Term expires in 2028 and asked if Perlmutter intends to apply for a PILOT Term Extension, to which Perlmutter responded yes. Wellford stated that the PILOT Lessee is very incentivized to get this property into shape. Bryant stated that Q4 2025 Occupancy Report still has not been submitted for this property. Bryant stated that rent rolls have been provided, but the quarterly occupancy report has not been submitted and reminded the representatives that Q1 2026 is due tomorrow, April 30, 2026. Bryant stated that quarterly report submissions are imperative because Board staff cannot properly perform PILOT Lease File Audits without up-to-date reports. If reports are not submitted, Bryant stated that the property would fail to Annual PILOT Lease File Audit automatically, as the files cannot be reviewed and compared properly. Perlmutter stated that the issue is that there are 94 tenants at Country View that he does not have proof of income for and these tenants have been living there for a while and his management team simply does not have the proof of income. Perlmutter stated that he has personnel going and knocking on doors and asking for proof of income, but unfortunately it creates a problem because that information was never transferred, and he does not have the original leases. Perlmutter stated that he does not want to provide false information, but he has personnel going and knocking door-to-door to make sure he is getting proof of income. Perlmutter stated that the question becomes how you ask a tenant that has lived there for years for proof of income because the tenant wants to know why that is required and it is hard to explain, it is a pile of work, but it is a legitimate problem and people do not want to answer the phone or the door.
Bryant stated that an issue Board staff has seen in lease files that were just recently submitted for auditing do not include current leases. Bryant stated that out of over 75 files submitted, approximately five files include a current lease, and this is a concern from an auditing standpoint. Perlmutter stated that he would reach out to Bryant following today’s meeting to set up a meeting with him and his team to review these issues so that everyone is on the same page. Bryant agreed and stated that this is very important for the compliance of these properties. Perlmutter stated that he does not have enough time to deal with all of these issues, but he will make sure this meeting is set up so that everyone is on the same page. Perlmutter stated that all tenants that live in Country View have renewed leases, except for approximately five tenants that are going through the eviction process. Bryant stated that staff’s recommendation is for country View to remain in legal default status and appear before the Board at the June 3, 2026 Board meeting to allow time to go through these issues. There being no further questions or comments, there was consensus that action is deferred, the property is to remain in Legal Default status, and the PILOT Lessee is to appear before the Board at its June 3, 2026 Board meeting to provide a status update.
e. Jamesbridge Apartments
Carpenter stated that this property was previously reported to be in the process of a receivership, and his Firm would recommend deferring discussion until the June 3, 2026 Board meeting to provide additional time to gather all the current facts. Perlmutter comments that his group is in active negotiations, and the receivership was moved from the state level to the federal level. Carpenter stated his Firm would like to confirm this information and again recommended deferring any additional discussion on this agenda item. There being no further questions or comments, there was consensus that action is deferred, the property is to remain in Legal Default status, and the PILOT Lessee is to appear before the Board at its June 3, 2026 Board meeting to provide a status update.
f. Lakes at Epping Way
Perlmutter stated that a PILOT Term Extension Application for Lakes at Epping Way was filed today. Perlmutter reported for Lakes at Epping Way the following:
· The pool has been repaired and will be open for the season.
· Electronic entry gate has been repaired and is operational.
· Landscaping cleanup is in progress.
· The fire-damaged building onsite is awaiting insurance resolution, which is anticipated to be resolved in the next 2-3 weeks.
· Plan to replace all siding on property.
· Breezeways renovations will begin the week of May 4, 2026
· Plan to complete renovations of all staircases.
Townsend stated that he has not observed any major exterior work onsite, but there is a significant number of exterior conditions that need to be repaired. Townsend stated all siding needs to be replaced, and breezeways renovated, as Perlmutter indicated, and the fire damaged building onsite needs to be addressed but has been roped off. Perlmutter stated that his team went through and tried to fix the siding and other things but concluded that it was a waste of time and needs to be completely replaced.
Bryant stated this property has also not submitted a Q4 2025 Occupancy report, and a March 5, 2026 rent roll reflects an occupancy rate of 40.1%. Bryant stated that according to the Board’s PILOT policies and procedures, a PILOT Lessee cannot file a PILOT Term Extension Application unless the property is in compliance with the current PILOT policies and procedures, including occupancy rates, for the original term of the PILOT. Bryant stated that this PILOT’s current term expired on March 31, 2026, and the property needs a lot of work, and the property would benefit far more from a new PILOT term, so staff’s recommendation is that the Board should allow the PILOT to terminate by virtue of the terms of the original PILOT, and allow the Lessee to apply for a new PILOT with a construction schedule for renovations. Perlmutter stated that the property has a current loan, and if that is the approach, then the property will be in default of the current loan, and if the PILOT is ended, the property is in default of the loan and a totally new issue is going to start and create major problems for everyone. Perlmutter asked if the Board would delay the termination so that he could have a conversation about how this can be fixed. David Upton asked what the occupancy rate needs to be. Bryant stated that the PILOT policies and procedures state that in order to be eligible for a PILOT Term Extension, the occupancy rate must be a minimum of 75% for the current term of the PILOT, which is the first ten (10) years, and this project has not been in compliance for many months now. Bryant stated that the Board is in a difficult position because this project does not qualify to apply for a PILOT Term Extension, and the PILOT, by virtue of its current terms, is expired. The Board is not taking action to terminate it; it has expired based on the PILOT agreement and PILOT Lease agreement. Perlmutter requested that the Board take no action today so that he can have a conversation between now and the next Board meeting, and he will continue to report, and this will give him time to work toward the best approach. Carpenter stated that under these circumstances, his Firm would recommend to defer this matter to the June 3, 2026 Board meeting and give his Firm an opportunity to review the matter and make a presentation to the Board on what his Firm feels the options are and this can be reviewed and determined at that time in its totality. Carpenter stated that he has not seen what has been submitted, and for the Board to discuss it now would not be advised. There being no further questions or comments, there was consensus that action is deferred, the property is to remain in Legal Default status, and the PILOT Lessee is to appear before the Board at its June 3, 2026 Board meeting to provide a status update.
Wellford asked for confirmation that if a developer has an expired PILOT, then the developer could apply for a new 20-year term, whereas extending retroactively a PILOT term will only be for an additional 10 years, to which Carpenter confirmed that is correct, so long as the original PILOT was for a 10-year term because the authority the Board has to grant a PILOT is for an aggregate 20-year term.
7. New Board Policy Proposal
Stephanie Bryant reminded the Board that this is a new PILOT policy proposal involving a policy revision of the PILOT Compliance Deficiency Fee policy. Bryant stated that this revision was discussed at the Board’s April 1, 2026 Board meeting and she took a lot of feedback from that meeting, as well as the Strategic Planning special meeting on April 13, 2026, and is included in what is being recommended today as a revised policy. Bryant stated that the original intent was to request Board action today, but following her review and feedback, she does not believe seeking action today would be prudent at this time, due to the major changes being recommended. That being said, Bryant stated that she would like to review the proposal today, welcome comments and feedback between now and the Board’s June 3, 2026 board meeting, consolidate that information and put it together in a final proposal for action to be requested at the June 3, 2026 Board meeting.
Bryant stated that the current policy stated that the PILOT Compliance Deficiency Fee does not go into place until after the PILOT has been in legal default status for a 3-month period, and the Board must affirmatively vote for that fee to be assessed. Bryant stated that the policy revision would take an earlier, more proactive approach and create a graduating ladder of compliance deficiency fees, including a $500 fee at entering the Compliance Concerns level, a $5,000 fee at entering the Notice of Non-Compliance level, and a $5,000 fee at entering the Legal Default level. Bryant stated that these fees would be non-refundable and would survive cure, unless waived by the Board. Bryant stated that this policy at every level will allow the Board its discretion to waive any fee at any level, upon majority vote of the Board at a regular Board meeting. Bryant explained this is a change from fees being initiated following placement into legal default and requiring Board vote to be assessed, to fees initiated earlier in the process and automatic flat fees being charged upon entering the levels of the Board’s compliance step system. Bryant stated that the current policy is inconsistent in billing such fees, whereas the proposed policy would streamline billing and fees assessed at different levels. Bryant stated that this policy will also include formal notice to the PILOT Lessee upon entering the compliance step process at the Under Observation stage, so that the PILOT Lessee is aware prior to any additional escalation that would incur fees. Bryant stated that the proposed policy would also include a request to go into effect 30 days following the adoption of the policy to allow all PILOT Lessees to be property noticed on the policy revision. Bryant invited the Board to review the information provided on this policy revision proposal in today’s Board meeting materials over the next few weeks and reach out with any comments or feedback, and she anticipated a final proposal to the Board at its June 3, 2026 Board meeting. There were no further questions or comments.
8. Action on Strategic Planning Items:
Cliff Henderson stated that coming out of the Strategic Planning Board special meeting on April 13, 2026, the Board was presented with approximately 3 hours of content, no decisions were made during that meeting, but there were four areas around safety, compliance and data infrastructure, digital equity, and community-type programs that were part of that presentation. Henderson provided a handout to Board and staff to walk through proposed motions and discussion today. Henderson reviewed proposal components as follows:
Proposal A- Minimum Developer Security Standards: Establish and adopt minimum security standards applicable to PILOT properties, including camera coverage requirements and enforceable lease/agreement language.
Proposal B-Formal MPD Partnership: Authorize staff to negotiate and execute a formal data-sharing and partnership agreement with the Memphis Police Department, including parameters for Real Time Crime Center integration and Sky Cop-linked properties
Proposal C-AI Camera Proof of Concept: Authorize a pilot program deploying AI-enabled cameras at 3-5 PILOT properties, limited to entrance and exit points. Pending Board approval, staff will engage Deputy Chief Brown to clarify LPR vs. Full AI capability parameters, privacy and facial recognition governance, per-property cost structure (~$3,000/year per camera), and data ownership frameworks.
Conditions and Considerations:
· Facial recognition governance must be established before any camera deployment- not treated as a default inclusion.
· Data ownership questions (raised by Board Member Courtnee Melton-Fant) regarding camera feeds, MPD crime data, and compliance platform data must be resolved with clear governance frameworks prior to deployment.
· Cost burden implications for 100% affordable housing operators-and whether camera mandates may cause offsetting reeducations in maintenance and services-must be evaluated before standards are mandated.
Carpenter first asked if a budget or cost associated with this would need to be part of any motion made to accept the report, and secondly, asked who would carry out the implementation steps; for example, would it remain with the Strategic Planning Committee or be part of full Board oversight. Henderson stated that from the budget perspective, a subscription to one AI-enabled camera is an estimated $3,000 a year, and that subscription is ongoing recurring cost a year per camera. Henderson stated that if the proposal targets 3-5 PILOT properties with a few cameras at each site, he would propose a $100,000 budget for the proof of concept. As for execution, Henderson stated that for Proposal A, he would look to Board staff as they are close to the tenant benefits and input with applicants to come back with that proposal. Henderson stated that as for Proposal B and C with the AI camera proof of concept, he would propose that the Strategic Planning Committee carry that forward, given the communications that the committee has had with Deputy Chief Brown and Chief Davis during the due diligence process, and this would be a continuation of those discussions.
Courntee Melton-Fant asked if all proposals must be voted on as a bundle. Henderson stated that the intent was to vote on them as a bundle, but he welcomes any questions or comments. Melton-Fant stated that she would prefer voting on each proposal separately as they are very different, versus voting on them as a bundle. Henderson stated he is comfortable with that recommendation and he proceeded with motions as follows:
a. Advance Safety Efforts
Cliff Henderson made a motion to authorize staff to develop minimum security standards for PILOT Applicants for Board review, per Proposal A. Buckner Wellford seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Cliff Henderson made a motion to establish a formal partnership with Memphis Police Department (MPD), so authorizing the Strategic Planning Committee to negotiate and execute a formal data sharing plan with MPD, including parameters around the Real Time Crime Zone, per Proposal B, with the addition that Board legal counsel is to review any contract the entity shall enter into prior to execution of the contract. Buckner Wellford seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Cliff Henderson made a motion to authorize the Strategic Planning Committee to approach MPD for a pilot program deploying AI-enabled cameras at 3-5 PILOT properties recommended by the Strategic Planning Committee but voted on by the Board in ninety (90) days, limited to entrance and exit points of the property, include concerns of facial recognition and data governance concerns, and bring findings back to the Board for consideration as proof of concept before moving forward to further the partnership with MPD and present studies linked back to the PILOT properties in the portfolio, with a timeline of one (1) year for the proof of concept and authorize the working group a $100,000 budget to execute the AI-enabled camera pilot program proof of concept. Buckner Wellford seconded, and the motion passed by majority after proper roll call vote of the Board members.
Let the record reflect that Courtnee Melton-Fant voted no.
Mike Humes stated that it would be helpful to meet with Deputy Chief Brown regarding the 3-5 PILOT property recommendations based on where cameras are currently.
b. Invest in Compliance & Data Infrastructure
Henderson stated that per Board discussion, this item would include an investment into data and analytics, mainly through Microsoft Power BI, to suppoert staff for the oversight, authorize staff to define dashboard requirements, which will coincide with the new website that is being developed, and this is also intended to advance the compliance mechanism and scoring. Henderson noted feedback included potential of scoring not being right, and the Board will need to be careful as it approaches this, and that would be worked on with staff and be developed, evaluated, and studied over time, but this will be an investment in data and analytics to help staff provide additional insights and information to the Board. Henderson stated this will allow the Board to shift from a reactive approach given the different things the Board has seen and how quickly a property can turn. Henderson stated that there will be a need to have someone develop Power BI dashboards, and would ask the Board to consider a budget up to $50,000 over the next twelve (12) months, as it will coincide with the new website, and integration that would be needed in working with potential partners like MLGW, MPD, and Code Enforcement for full information.
Cliff Henderson made a motion to invest in compliance and data infrastructure through development of a Microsoft Power BI dashboard, including potential integration from MLGW, MPD, and City of Memphis Code Enforcement, to advance compliance scoring mechanisms, with a budget of $50,000 over the next twelve (12) months, with this motion to be carried out by the Strategic Planning Committee and Board staff. Buckner Wellford seconded, and the motion passed unanimously after proper roll call vote of the Board members.
c. Support Digital Equity
Cliff Henderson made a motion to authorize the Strategic Planning Committee with the mandate to develop further recommendations on broadband standards, the affordability structures, digital literacy support, and developer/resident communication strategy across the PILOT portfolio and bring a refined proposal before the Board in ninety (90) days. Buckner Wellford seconded, and the motion passed unanimously after proper roll call vote of the Board members.
d. Elevate Residents via Community Programs
Henderson stated that the request here will be similar to the last motion in that the request will be to authorize the Strategic Planning Committee to continue to work to on a refined proposal to being back to the Board for consideration, but while considering key concerns expressed around equitable access and how the Committee is looking at different community partners and nonprofit partners, how things will be communicated and managed, while also getting into discussions about support. Henderson anticipates the refined proposal to be a 4-5 step plan for the Board to determine how far it would like to go, and could include things such as the Board including a catalog of potential partners willing to work with the Board and tenants on the Board’s website for residents to be able to see, and could expand to the Board sponsoring some programs that might be specific for PILOT property residents.
Cliff Henderson made a motion to authorize the Strategic Planning Committee to perform additional research of Community Programs while considering feedback expressed at the April 13, 2026 Strategic Planning Board special meeting, develop a refined plan, and present that to the Board for its consideration, with the addition that Board legal counsel shall review the refined plan prior to presentation to the Board for consideration of liability risk. Buckner Wellford seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Thereupon, Chairman Daniel T. Reid left the meeting and Vice Chairman Cliff Henderson chaired the remainder of this meeting.
Executive Director Report
a. McKnight reported that the website is moving forward, and the working group has seen an iteration. He has accepted feedback and turned it into the site developer for a second iteration within the next couple of weeks. McKnight stated that the new website is very robust, much different than what the Board has now, and will encompass everything that the Board is hoping to do. McKnight stated that this is an arduous task, but he is up to it, and it is going well. McKnight stated that the website planned to go live on July 1, 2026. Cliff Henderson stated that July 1, 2026, is best case scenario, to which McKnight agreed.
b. McKnight reported that the Pershing Park ribbon cutting went well, stating that Pershing Park has 160 units for 100% low-income residents, and the ribbon cutting had more than 200 attendees. McKnight stated that he was given the opportunity to speak, and attendees included CEOs, elected officials, and other partners, and the event went very well. McKnight stated that he will continue to share the information with the Board, so Board Members can see the impact their votes have on the community.
c. McKnight reported that the Memphis City Council, as reported on local news stations and by Daily Memphian, went on a tour of several projects including Liberty Park, Raleigh Springs Center, Beale Street, FedEx Forum, Southwest Twin, Elvis Presley Corridor, and Tillman Cove Apartments. McKnight stated that he was onsite at Tillman Cove Apartments, a participant in the Board’s PILOT program, along with Dexter Washington of MHA and Ashely Cash of City of Memphis Housing and Community Development to greet Memphis City Council members. McKnight stated he was able to answer questions; Memphis City Council members toured the facility, and it was a raving success, and he has started receiving calls on his cell phone from Memphis City Council members.
d. McKnight reported that he has met with Martavius Jones, the newest member of the Shelby County Commissioner’s PILOT Ad Hoc Committee and discussed the Board’s PILOT program and the impact on the community. McKnight stated that Jones is a supporter of the Board with respect to the PILOT Ad Hoc Committee, and Jones has stated he will be involved and supportive with respect to the Board’s PILOT program and making no change to this Board’s particular PILOT program.
e. McKnight reported that the 2026 Annual NALHFA Conference will be held May 4-6, 2026, and he will be in attendance, along with other members of the Board and staff.
f. McKnight reported that he continues to attend Mayor Young’s bi-weekly meetings, and Mayor Young continues to push for 10,000 housing units in the core of the City. McKnight stated that he will continue to supply whatever information Mayor Young wants with respect to approved PILOTs that count toward his 10,000-unit goal.
g. McKnight reported that he continues to move forward with a Memphis City Council tour of the Board’s PILOT portfolio and is working with Brooke Hyman, who does all the scheduling for Memphis City Council, and as soon as he gets between 4-5 dates, he will make sure the Board is well aware well in advance so that anyone that would like to attend can do so. McKnight stated that this will be a good opportunity to piggyback on what he started at Tillman Cove, and he will obviously include Tillman Cove in this tour again, and he believes he can show the impact of the Board to Memphis City Council.
There were no questions or comments.
Operations Report
Stephanie Bryant presented the Operations Report as follows:
a. Annual HEHFB Audit
Bryant reported to the Board that the annual HEHFB Audit has begun. Bryant advised that Banks, Finley, White and Company perform the annual audit, and Board staff is working diligently to provide all requested documents. Trey McKnight interrupted to add that he has completed a CPA form with respect to audit information and has turned that into the auditors. Bryant continued, stating that all Board members will begin receiving communications from auditors regarding a fraud questionnaire and to be on the lookout for that.
b. Review of Compliance Oversight for April 2026
Bryant began by reminding the Board of the four (4) levels of additional compliance oversight that were put into place by staff in 2024 and this report will review movement of certain properties within these four (4) levels: (i) Under Observation, (ii) Compliance Concerns, (iii) Non-Compliance, (iv) Legal Default. Bryant reported as follows:
Bryant stated that Board staff will begin implementing additional actions under each step [indicated by plus signs above] to take a more proactive approach to compliance oversight of PILOT properties that enter the compliance step process.
April 2026 Compliance Review for April 29, 2026 Board Meeting
1. Under Observation:
a. One property was moved DOWN from Compliance Concerns to Under Observation status:
1. Luxe at Raleigh: PROGRESS-92% Occupancy Rate; Property has submitted a timeline for remedies and staff continues to review and observe conditions monthly; Some power washing of roofs has been completed; Walkthrough to be scheduled during May 2026
b. The following PILOT properties remain in Under Observation status:
2. Greenbriar Apartments: 96% occupancy rate; overall declining property conditions including leaks observed during two consecutive site inspections, excess trash, and general decline in external observable conditions of the property; Walkthrough scheduled for May 1, 2026
3. Grainge Hill: PROGRESS- 93% Occupancy Rate; Some minor exterior soffit repairs have been made and are awaiting paint, and supplies observed on site to address erosion issues at drainage ditch; Construction has begun on building that sustained damage from car collision, wall has been repaired and window framing is in progress
4. Emberly Apartments (formerly New Horizon): PROGESS- Property is under construction; 64.3% Occupancy Rate; Property is Under Observation as a condition of the PILOT approval in April 2025; Property will remain Under Observation until construction is complete; exterior construction of buildings appears complete, and construction has moved to interiors.
5. University Place II & III: STATUS QUO- University Place II-75% Occupancy Rate, University Place III-76% Occupancy Rate (decline from 84% (II) and 85% (III); New PILOT application approved at the February 4, 2026 Board meeting, which will include recapitalization and renovation of the project. Awaiting THDA Bond Announcement for Round 1
2. Compliance Concerns:
a. One property was moved DOWN from Notice of Non-Compliance to Compliance Concerns status:
1. Residences at Lakeview: PROGESS- 72% Occupancy Rate (increase from 70%); Staff issued a Notice of Non-Compliance on January 29, 2026; Lessee is on schedule with timeline/cure plan submission. Work continues and good faith effort has been observed; occupancy continues to steadily increase.
b. The following PILOT properties remain in Compliance Concerns status:
2. Timber Pines: STATUS QUO-78.9% Occupancy Rate; Some minor exterior items remain outstanding; all unit interior construction is still not completed; STOP WORK Order has been removed from Laundry Room equipment has been installed, but laundry room remains non- functional; drive remains under repair and has been under repair for several months, including large hole at the back of the property; area next to laundry room has not been resurfaced; fencing near laundry room at drainage ditch is still in progress; playground and one picnic table have been destroyed and removed (tenant benefit)
3. Notice of Non-Compliance:
a. One property was moved DOWN from Notice of Non-Compliance to Compliance Concerns status:
1. Coronado Manor: STATUS QUO-77.8% Occupancy Rate ; Property is due to appear at the April 29, 2026 Board meeting and has been assessed a $2,000 PILOT Compliance Deficiency Fee, which has not been paid as of 04.23.2026;Property construction remains incomplete; Property moved down by vote of the Board at the March 4, 2026 Board Meeting.
b. The following PILOT properties remain in Non-Compliance status:
2. Mill Creek: SLOW PROGRESS- 66.5% Occupancy Rate (decline from 69%); Very slow progress continues with siding repairs. Due to slow repairs and declining occupancy rates, staff have issued a Notice of Non-Compliance on March 25, 2026. Formal response is due April 24, 2026; recent inspections observations included numerous open windows, window units/fans installed (Staff has contacted Code Enforcement for update); no construction crews observed during last inspection.
3. Villages at Harrisson Creek: STATUS QUO- 75% Occupancy Rate; No real progress has been made to the completion of this property; staff has issued a Notice of Non-Compliance on March 25, 2026. Work has been observed, but the playground has been removed (tenant benefit). Staff will continue to monitor.
4. Legal Default:
a. The following PILOT properties remain in Legal Default status:
1. Cedar Run: STATUS QUO-80% Occupancy Rate; consistent progress has been observed; Staff had planned to step down to regular monitoring in February 2026, but property went through a foreclosure on March 10, 2026, which resulted in Legal Default status; property remains until lender provides direction.
2. Four (4) PILOT properties portfolio:
A. Abington Apartments: PROGRESS-54% Occupancy Rate; Roofing replacement still in progress
B. Country View Apartments: DECLINE-54.8% Occupancy Rate (decline from 69%); no Q4 2025 Occupancy Report submission
C. Jamesbridge Apartments: DECLINE- 42.3% Occupancy Rate (decline from 52%); no Q4 2025 Occupancy Report submission
D. Lakes at Epping Way: DECLINE-40.1% Occupancy Rate (decline from 55%); no Q4 2025 Occupancy Report submission; No PILOT Term Extension Application submission; PILOT has now expired effective 03.31.2026.
3. Bridgeport Manor: STATUS QUO-64.4% Occupancy Rate (increase from 60%); Notice of Legal Default issued 04.17.2025; Property has closed the PILOT Refinancing in March 2026 and is due to appear at the April 29, 2026 Board meeting; No change observed to external observable conditions of property.
4. Sterling Townhomes: STATUS QUO- 0% occupancy; Property sustained two (2) fires in May 2025 and June 2025, causing substantial damage to the property, Insurance claim has been denied, and ownership is working on an E&O claim, but there is no resolution up to this point. Written update provided April 20, 2026; requesting additional time to work through insurance claim and property demolition.
There were no further questions or comments.
Finance Committee Report
Cliff Henderson presented the financial results for the month ending March 31, 2026. After discussion,
Howard Eddings, Jr. moved for acceptance of the Finance Committee Report for the month ended March 31, 2026, properly seconded by Monice Hagler, and the motion passed unanimously after a proper roll call vote of the Board members.
Strategic Planning Committee Update
Mike Humes stated that the Strategic Planning Committee will get to work on the actions taken by the Board at today’s meeting. There were no further questions or comments.
New Business
There was no new business.
Vice Chairman Henderson stated that the next regular meeting of the Board is scheduled for Wednesday, June 3, 2026 @ Noon. There being no further business, the meeting was adjourned by the Vice Chairman at 2:24 p.m.