MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS, TENNESSEE
Wednesday, August 5, 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, July 29, 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 (Zoom)
Buckner Wellford (Zoom) Cliff Henderson (Zoom)
Howard Eddings, Jr. Vincent Sawyer
Courtnee Melton-Fant
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), legal assistant to General Counsel; Cheryl Hearn, Deputy City Attorney; Alivia Blissett, intern to Deputy City Attorney’s office; and Mike Humes, consultant to the HEHFB Strategic Planning Committee.
Also participating in person and/or via remote Zoom virtual platform were John Hatcher and Deshawn Kuykendall of Banks, Finley, White and Company, CPAs; Dexter Washington of Memphis Housing Authority (MHA), Bill Ganus of November 6 Investments and Jarad Bingham of Hospitality Hub representing Hospitality Hub-Hub North, LP; Dexter Washington of Memphis Housing Authority (MHA) and Bill Ganus of November 6 Investments representing 300 Court Multifamily Housing; Thomas Robinson of Alco Management, Inc. representing Saints Court Apartments; Jevon Allen (Zoom) and Clifford Causey of Christian Church Homes representing Covenant Gardens Senior; Archie Willis and Alex Boddie of ComCap and Tekeshia Agnew and Kelly Dervarics (Zoom) of McCormack Baron representing University Place Family and University Place Senior; Isaac Perlmutter of Aurox Equities, David Shemano, and David Upton representing Jamesbridge Apartments and Country View Apartments; Jan Kidder (Zoom) and Mary Linda Cuddy (Zoom) of Memphis Interfaith Coalition for Action & Hope (MICAH); Memphis Tenant Union (Zoom); and several members of the public were also present.
Cheryl Hearn stated that the City of Memphis is currently hosting the Legal Pathways to Law School summer program, which consists of approximately fifty (50) students in high school, college, and a few law school students and asked the individual in attendance to introduce herself. Alivia Blissett introduced herself, stating she is a rising Junior at the University of Memphis majoring in Political Science and minoring in International and Global Studies. She was welcomed by Chairman Reid and the Board.
Chairman Reid informed the Board that legal counsel to the Board, Charles Carpenter, has been selected as a University of Memphis Cecil C. Humphreys School of Law 2026 Pillars of Excellence Honoree. The Board congratulated Carpenter on this prestigious accomplishment.
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, August 5, 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
Courtnee Melton-Fant moved for approval of the Minutes of the July 8, 2026 Regular Meeting, seconded by Vincent Sawyer. and the motion passed unanimously after proper roll call vote of the Board members.
Review of Audit for FYE December 31, 2024
John Hatcher of Banks, Finley, White & Co., CPAs, independent auditors for the corporation was introduced, and advised that he will be available to answer any questions from the Board concerning the Audit. Thereupon, Vice-Chairman Henderson reported that the Audit for FYE December 31, 2025, was presented to the Finance Committee members and was approved. Vice-Chairman Henderson discussed a summary of the audit and the management report with the Board and confirmed that the auditing firm had issued a clean opinion with no findings, being the highest assurance that could be granted by the auditors. There being no other questions or comments,
Cliff Henderson moved to approve acceptance of the INDEPENDENT FINANCIAL AUDIT OF THE BOARD FOR PERIOD ENDING DECEMBER 31, 2025. Courtnee Meloton-Fant seconded, and the motion passed unanimously after proper roll call vote of the Board members.
John Hatcher and Deshawn Kuykendall left the meeting.
Attorney’s Report
Charles Carpenter presented the legal report, as follows:
1. Charles Carpenter reported:
a. One (1) new claim for the month of July 2026:
i. The Boulevard Apartments: Notice of Personal Injury Claim filed by Judy Beard.
b. Notice of four (4) materialmen’s claims for the month of July 2026 in connection with the following PILOT properties alleging non-payment:
i. Abington Apartments filed by Rushing Plumbing.
ii. Country View Apartments filed by Rushing Plumbing.
iii. Country View Apartments filed by Sherwin Williams.
iv. Jamesbridge Apartments filed by Rushing Plumbing.
Carpenter reminded the Board that under State Law, while the Board is serving its public purpose pursuant to the PILOT program, the Board has statutory immunity and has no legal or financial liability in any of the above matters. Carpenter reported that his Firm has provided notice of statutory immunity to the claimant's legal counsel, as well as information regarding the real parties in interest, which are the PILOT Lessees, and the respective management companies so that those claims are able to move forward on their merits. Further, Carpenter reported that for materialmen’s claims, his Firm does facilitate getting notice to the proper parties so that claims can move forward in an efficient manner.
2. Carpenter reported Bond and PILOT activities for the month of July 2026:
a. Bond Activities:
i. There are no closings during the period, but there is substantial work in progress as his Firm works together with Tennessee Housing Development Agency (THDA), and other members for affordable housing projects in various stages of development. Carpenter reminded the Board that the THDA controls all the low-income housing tax credits (LIHTCs) statewide, and the Board has induced a number of projects that have been approved for Round One, and all projects are anticipated to close by September 23, 2026. Carpenter stated that his Firm is involved in various working group calls for each of the projects which are moving forward efficiently.
b. PILOT Activities:
i. There are no closings during the period, but there is substantial work in progress in conjunction with projects that were induced for bonds by the Board, and it is anticipated that the approved bond and PILOT applications will close at or about the same time.
3. Finally, Carpenter stated that his Firm has noted a disturbing trend, and although it has not impacted the Board’s PILOT program yet, he anticipates effects may be seen in the coming months regarding loss of jobs in the community. Carpenter stated that based on reports through Memphis Business Journal and other sources, there are more layoffs and job losses in Memphis for the first half of 2026 than the total number of layoffs and job losses for the entire year of 2025. Additionally, Carpenter stated his surprise that the layoffs are coming from well-established corporations, and although when a person is laid off, they receive benefits for a period, however, if the individual is unable to become re-employed promptly, that is going to have a marked impact on income replacement and restricting the ability to pay monthly obligations, including rent. Carpenter stated that other areas of Tennessee like Nashville are also encountering an affordability problem, but their affordability is caused by tremendous growth and market increases, causing families to be priced out of the market and having to find areas of the city that they can afford the cost of living. In Memphis, however, Carpenter stated that the affordability issue is becoming more acute because residents do not have employment which poses a very different dynamic that the Board will need to monitor and consider, along with the PILOT Lessees what options may be available to mitigate this growing issue.
There being no questions or comments, Chairman Reid proceeded with Action Items.
Action Items-
1. 2nd Bond Inducement Resolution Closing Extension for Hospitality Hub-Hub North, LP
Charles Carpenter introduced this agenda item, stating that this is a new construction project that was previously induced by the Board and has been awarded 4% LIHTCs through THDA. Carpenter stated that the working group has been meeting regularly and plans are moving forward to have the transaction closed prior to September 23, 2026. Carpenter further stated that the City Administration is supportive of this project and his Firm is in full support of this closing extension and would recommend approval.
Jarad Bingham of Hospitality Hub introduced himself as one of the founders or the organization and stated that as of the evening of August 4, 2026, The Hospitality Hub has 104 people living indoors and three dogs, and this Hub North campus will extend that capacity by an additional 300 persons and thanked the Board for its support. Carpenter stated that this closing extension is active for a 6-month period and is accompanied by a PILOT application for this project that has also been approved at a prior Board meeting. Carpenter advised that the Bond and PILOT transactions are anticipated to close contemporaneously.
There being no further questions or comments,
Cliff Henderson made a motion to approve the 2nd Bond Inducement Resolution Closing Extension for Hospitality Hub-Hub North, LP for a 6-month period. Howard Eddings, Jr. seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Jarad Bingham left the meeting.
2. 1st Bond Inducement Resolution Closing Extension for 300 Group GP LLC (d/b/a 300 Court Multifamily Housing)
Vincent Sawyer entered the meeting.
Buckner Wellford entered the meeting.
Carpenter introduced this agenda item, stating that this is another Bond that was induced by the Board, it is an acquisition-rehab of the former First Tennessee Bank Operations Center on Court Avenue, and has also received 4% LIHTCs through THDA and is moving forward. Carpenter reminded the Board that this project has also been approved for a PILOT at a prior Board, and both transactions are anticipated to close contemporaneously. Carpenter advised that it is part of the ordinary course for these types of projects to come before the Board for a closing extension because the applicant must file early with THDA and THDA has a separate application process. Carpenter stated that his Firm is supportive of this project and recommends approval by the Board. There being no further questions or comments,
Howard Eddings, Jr. made a motion to approve the 1st Bond Inducement Resolution Closing Extension for 300 Group GP LLC (d/b/a 300 Court Multifamily Housing) for a 6-month period. Monice Hagler seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Bill Ganus left the meeting.
3. Final Bond Resolution for APP Saints Court, L.L.L.P. (d/b/a Saints Court Apartments)
Carpenter introduced this agenda item, stating that Action items 3 and 4 are with the same developer and may be discussed together but voted on separately. Carpenter stated that the Board is familiar with this project, as it is currently in the Board’s PILOT program, and the applicant, Alco Management, Inc. will complete a substantial rehabilitation of this property, which will be a tremendous benefit for the tenants and the City of Memphis and stated that his Firm recommends approval of this agenda item. Carpenter stated that Alco Management, Inc. has done a tremendous job in the community with the acquisition and rehabilitation of various properties which are all doing well in the Board’s Bond and PILOT programs.
Thomas Robinson stated that Alco Management, Inc. appreciates its continued work with the Board through its Bond and PILOT programs; everything is moving forward for this project, and he appreciates the Board’s support. There being no further questions or comments,
Vincent Sawyer made a motion to approve the Final Bond Resolution for APP Saints Court, L.L.L.P. (d/b/a Saints Court Apartments). Courtnee Melton-Fant seconded, and the motion passed unanimously after proper roll call vote of the Board members.
4. 1st PILOT Closing Extension for APP Saints Court, L.L.L.P. (d/b/a Saints Court Apartments)
Carpenter advised the Board that the Bond and PILOT closings are anticipated to be moved to early October 2026. There being no further questions or comments,
Vincent Sawyer made a motion to approve the 1st PILOT Closing Extension for APP Saints Court, L.L.L.P. (d/b/a Saints Court Apartments) for a 6-month period. Howard Eddings, Jr. seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Thomas Robinson left the meeting.
5. 1st MHA PILOT Closing Extension for Covenant Gardens Senior Apartments, LP
Carpenter introduced this agenda item, stating that this is a new construction project that was approved and scheduled to close in 2025, but due to the federal government shutdown, THDA allowed a carry forward of its allocation of 4% LIHTC for this project, which was also approved by the Board. Carpenter reminded the Board that it has approved the bonds and a Final Bond Resolution for this project at prior Board meetings, and this consideration is just a matter of coordinating the final steps with the Housing and Urban Development (HUD) to close the bonds and the PILOT (which is an MHA PILOT that is administered by this Board), and those transactions will close contemporaneously. Carpenter stated this closing extension will be effective for a 6-month period, and his Firm is supportive of this closing extension and recommended approval. Carpenter advised that currently these transactions are anticipated to close in August 2026. There being no further questions or comments,
Courtnee Melton-Fant made a motion to approve the 1st MHA PILOT Closing Extension for Covenant Gardens Senior Apartments, LP for a 6-month period. Buckner Wellford seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Clifford Causey left the meeting.
6. 1st Bond Inducement Resolution Closing Extension for University Place Preservation, LP (d/b/a University Place Family; f/k/a University Place II & III)
Carpenter introduced this agenda item, stating that the next four agenda items are with the same developer, McCormack Baron and ComCap, and are currently part of the Board’s Bond and PILOT programs. Carpenter stated that under the Internal Revenue Code, there is a 15-year tax compliance period, and these properties are not only eligible, but in need a substantial rehabilitation to add to the quality of life for the tenants and families that live there. Carpenter stated that Action Items 6 and 7 deal with the same project, University Place Family, and may be discussed together but voted on separately.
Carpenter stated that the Board will first discuss a Bond closing extension for University Place Family, which is accompanied by a closing extension for the MHA PILOT Application for this same project. Carpenter advised that the project has been approved by THDA for 4% LIHTCs and is moving forward and stated that his Firm is supportive of these applications.
Archie Willis of ComCap, a local developer of Memphis and of these projects, thanked the Board for its support through this journey and stated that the projects are on track to close the transactions this year. There being no further questions or comments,
Howard Eddings, Jr. made a motion to approve the 1st Bond Inducement Resolution Closing Extension for University Place Preservation, LP (d/b/a University Place Family; f/k/a University Place II & III) for a 6-month period. Courtnee Melton-Fant 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.
7. 1st MHA PILOT Closing Extension for University Place Preservation, LP (d/b/a University Place Family; f/k/a University Place II & III)
There being no further questions or comments,
Cliff Henderson made a motion to approve the 1st MHA PILOT Closing Extension for University Place Preservation, LP (d/b/a University Place Family; f/k/a University Place II & III) for a 6-month period. Courtnee Melton-Fant 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.
8. 1st Bond Inducement Resolution Closing Extension for University Place Senior Preservation, LP (d/b/a University Place Senior)
Carpenter introduced this agenda item, stating that Action Items 8 and 9 deal with the same project, University Place Senior, and may be discussed together but voted on separately. Carpenter stated that these transactions for University Place Senior are on the same schedule as the University Place Family. Carpenter stated that the development team has done a good job with both projects. Carpenter stated that because these projects are currently in the Board’s PILOT program, there will be some discussion with the Shelby County Assessor's Office on valuation and related matters, and his Firm is working through those matters now with the PILOT Lessee and the Shelby County Assessor's Office. There being no further questions or comments,
Howard Eddings, Jr. made a motion to approve the 1st Bond Inducement Resolution Closing Extension for University Place Senior Preservation, LP (d/b/a University Place Senior) for a 6-month period. Courtnee Melton-Fant 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.
9. 1st MHA PILOT Closing Extension for University Place Senior Preservation, LP (d/b/a University Place Senior)
There being no further questions or comments,
Howard Eddings, Jr. made a motion to approve the 1st MHA PILOT Closing Extension for University Place Senior Preservation, LP (d/b/a University Place Senior) for a 6-month period. Courtnee Melton-Fant 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.
10. Status Updates for PILOTs in Legal Default:
a. Jamesbridge Apartments
Carpenter began by stating that there has been much discussion in the Board’s July 8, 2026 Board meeting concerning Jamesbridge Apartments, and stated that this property is in unacceptable condition and has been for an extended period of time. Carpenter reminded the Board that Jamesbridge is currently in Environmental Court as well as facing Code Enforcement issues and continues to remain in unacceptable condition. Carpenter stated that at the July 8, 2026 Board meeting, Isaac Perlmutter has requested that the Board defer action, following a Board staff recommendation to terminate the PILOT, to allow additional time to finalize a forbearance agreement with the primary lender on the property and to show other evidence of what steps he could take to bring the property into compliance and the timeframe associated with that effort. Carpenter stated that at the July 8, 2026 Board meeting, there was also a presentation and a timeframe set forth with certain work that could be done, and the Board voted to impose a PILOT Compliance Deficiency Fee of $5,000, but withheld implementation of that fee until today’s meeting so that the Board could receive an update from the developer of what steps have been taken and what actions have been taken with the property.
Buckner Wellford stated that there was a lot of discussion in the Meeting Minutes from July 8, 2026 to a dispute with the bank and letters traded between lawyers and asked who the lender is and asked for confirmation as to whether Baker Donelson is involved in this dispute. Perlmutter stated that the lender is 3650 Capital (the “Bank”) based in Florida, and Baker Donelson is not involved. Carpenter agreed that Baker Donelson is not involved with this project.
Perlmutter stated that as he shared with the Board at the July 8, 2026 Board meeting, he is very close to finalizing a loan modification with the Bank and had shared a non-binding memo agreement. Perlmutter stated that there is no binding agreement confirmed yet, but he recently met with the Bank on the property, and he has a call today with them at 3:00 pm to finalize the business terms so the lawyers can put the binding agreement into effect. Perlmutter stated that one of the biggest issues was a previous fire at one building on the premises that needs to be demolished; and the developer has shown evidence to Carpenter and Board staff that he had paid a deposit to a local vendor for the demolition. Perlmutter stated that demolition requires utility approval and City approval, but that is all happening, and a wire of $58,000 was made to the vendor for the demolition.
Further, Perlmutter stated that he is meeting with a vendor today to turn 60 units in the next four weeks so leasing can start at the property. Perlmutter stated he is in touch with HUD to dedicate part of the property because it is currently 33% occupied, and it is a very large property, and he is looking to offer HUD an incentive so that he can get a lot of people in at the property at one time. Perlmutter stated that Aurox Equities is positioned to start full work on the schedule that was previously presented, and it was indicated at that time that the schedule was subject to Bank approval. Perlmutter stated that he believes that now with preliminary approval of the Bank, who is holding approximately $4 million in reserves, with a commitment from Aurox Equities of an additional $4 million, he believes that work at Jamesbridge is going to move very, very quickly.
Perlmutter stated that the demolition when started will include the demolition of 16 units. Perlmutter stated insurance proceeds from the fire damage total $1.8 million, and he would like to request that the Board allow him to eliminate those 16 units from the property’s total number of units and replace the units with tenant amenities such as a pool, playgrounds, or basketball courts, as the cost to rebuild them with be paid in part with the insurance proceeds.
Carpenter stated that Perlmutter and his team became involved with this portfolio earlier this year and shown interest and has made some progress by using the strategy of establishing one property as a proof of concept to test vendors and processes and planned to move the concept over to the remaining properties in the portfolio. Abington Apartments was the property that was used as the proof of concept. Carpenter stated that unfortunately, Jamesbridge and other portfolio properties have not yet been added into that process as far as having any active work done. Carpenter confirmed Perlmuttter’s comments that he did provide evidence that Aurox Equities has entered into a contract for demolition of the fire-damaged building, which has just been in the recent week, as well as some evidence of another contract regarding repairs to the gate, including evidence that deposits had been paid.
JP Townsend stated that the exterior conditions of the property are the same as they have been, and there are multiple buildings in need of rehabilitation, including missing siding. Townsend stated that he has also observed an active water leak that has been present for over a month. Perlmutter stated that the water leak had been repaired, and he had to wait three days for City Officials to come out and shut the water off so that the repair could be made. Townsend stated that there are still major gutter repairs that are required, and occupancy continues to decline at this property. Townsend stated that there are areas of the drive where it appears that a sewer leak was repaired, but the area still requires additional repairs to the drive. Townsend asked Perlmutter when the water leak was repaired. Perlmutter stated that it was either Friday or Monday (July 31, 2026, or August 3, 2026), he is unsure of the exact date, but stated that on Tuesday, August 4, 2026, he met with his maintenance team over the phone and was told it had been repaired. Townsend stated that he inspected the property on July 20, 2026, and again on August 4, 2026, and the water leak was still present.
Perlmutter stated that at the Board’s July 8, 2026 Board meeting, he asked for another month and acknowledged that no work had been done to the property at that time, and the question was is he willing to invest in a property or a building that is under the control of the Bank with no agreement from the Bank. Perlmutter stated that he recently met with representatives of the Bank at the property and was promised a clear commitment from the Bank. Perlmutter stated that this is a commercial mortgage-backed security (CMBS) loan, which has a lot of rules and everything that is involved takes longer. Perlmutter argued that for Aurox Equities to wire money and spend money on the property means he is comfortable to spend money based on the handshake agreement he has with the Bank. Pelrmutter stated that Jamesbridge has a lot of work that needs to be done and he does not dispute that, and the money is available notwithstanding what Aurox Equities is bringing to the table, once Aurox gains access to the reserve funds held by the Bank. Perlmutter offered for Carpenter to join the call with the Bank today at 3:00 pm to confirm that the Bank is fully engaged and ready to move. Perlmutter stated that removing the PILOT will put him in a very bad position, and he understands the property would remain in default and it will take a long time to perform the work, but the City of Memphis is short 30,000 affordable units and this is an opportunity to fill a lot of units very quickly because Aurox Equities has the know-how and the ability to get the job done and the money is there to get it done and requested that the Board defer action another month. Perlmutter stated that if the Board wants to punish him with a $5,000 fee, that is fine, but if the Board defers action for another month, there will be reports of significant work that has happened.
Stephanie Bryant stated that Board staff requested a current rent roll on July 30, 2026, and received that, as well as August 4, 2026, rent roll and occupancy continues to decline. Bryant reported that the July 1, 2026, rent roll showed an occupancy of 34%, July 31, 2026, rent roll showed an occupancy of 33.57%, and the August 4, 2026, rent roll showed an occupancy of 32.6%. Bryant stated that there are 135 occupied units out of 414 total units for the project. Bryant stated that the City does need affordable housing, but Board staff cannot in good conscience continue down this same path with this same PILOT term. Bryant stated that Board staff’s recommendation is again to terminate the PILOT, but she would like to follow that recommendation with stating to the Board that while termination sounds final, but in this situation, there is no policy that stated that the ownership cannot come back and apply for a new PILOT once these business issues have been resolved and to terminate would relieve the PILOT Lessee of being up against a timeline while continuing in Legal Default status and ongoing reporting to the Board in 30-day increments, which is where we are at this point. Bryant reiterated that the recommendation is for termination of the PILOT, but that does not mean that this must be the end of this project. Bryant stated that Perlmutter has already mentioned the $4 million in reserves, to be accompanied by an additional $4 million investment from Aurox Equities, which would be expected to quality the project for a new PILOT and would allow a more reasonable timeline under a new PILOT term with a fresh start.
Perlmutter stated that this is a CMBS Loan and the bond issue has very unique laws and rules and even the Bank, as originator of the loan, owns 15%, but the Bank cannot do anything without going through bond lawyers, so once the property is in default, everything will stop automatically and will take 6-8 months just to redo this and modify the financing, and while he may have the best intention, this process is strictly guided by rules. Perlmutter stated that using the example of Abington, he has been working with the bank and paying out millions of dollars and the Bank should be obligated to funding draws, but because it is a CMBS loan, management must be approved, and these things take 60 days and create a lot of obstacles. Perlmutter stated that in this case, there are 135 people that live on the property that will be negatively affected. Perlmutter stated that the difference in the occupancy rate based on the rent rolls from July 31, 2026, to August 3, 2026, is because there was a leak in one building, so management moved people to Country View Apartments, so it was like an internal transfer. Perlmutter stated that as soon as the Bank agrees, he and his team will move at lightning speed; the money is there and available, and things can really move very quickly. Perlmutter also stated that the original quote for demolition of the fire damaged building was $260,000, and he was able to get it done for less, so it takes time to go through contractors, and he has spent the money. Perlmutter asked that the Board give him another month, and he believes that the Board’s inspectors would be able to report observing movement.
Vincent Sawyer asked for a short synopsis of the timeline that was provided, including getting approvals from the Bank. Perlmutter stated that he has preliminary approval from the Bank because he shook hands with the president and vice president of the Bank, and Perlmutter has started work based on the Bank’s word and verbal commitment. Perlmutter stated that he also has text messages from the Bank, and he feels totally secure. Sawyer asked for the timeline to get the property into compliance. Perlmutter stated the timeline is a year and a half to get the property into compliance, which includes occupancy. Perlmutter stated that the plan is to demolish the fire damaged building, then start work with three buildings that are in the worst condition as there are a lot of sheets of siding missing. Perlmutter stated that he plans to replace all siding, not perform repairs to it, and he wants to make it pleasant and comfortable for the tenants to live in. Perlmutter stated he intends to replace all flooring with plank flooring and from the timeline, it will take a year and a half from start to finish for the whole project. Sawyer asked when the work would start. Perlmutter stated that work will begin in less than 30 days. Perlmutter stated that the demolition of the fire damaged building is starting now and his team is working to secure the permits from the city to demolish the fire damaged building and working with the utility company to make sure everything is shut off.
Perlmutter stated he plans to turn 60 units in four weeks, stating that the demand is there and people want to live there. Perlmutter stated that there are a lot of plumbing issues at the property, but his team continues to maintain the property, which has cost him $100,000 in the last month just to maintain the operations, keep staff, perform maintenance and basic repairs. Perlmutter stated that he could not invest big money before, as he stated at the Board’s July 8, 2026 Board meeting, because he does not own the property and the Bank was not with him, but now the Bank is with him, and he is ready to go.
Sawyer asked Perlmutter why a new PILOT would be harmful to this project. Perlmutter stated that the PILOT is part of the loan agreement; the loan amount is subject to the net operating income (NOI), and the PILOT agreement affects the NOI of the current loan. Perlmutter stated that he had committed to the Bank to keep the current loan, bring the loan current, and that is what he is doing now, but as soon as the current loan goes into default, in addition to the legal default of the PILOT, CMBS is going to seize everything and start over and it would be like a new loan, the full amount is going to become current, and there is no way out of this and it would take 6-8 months to resolve. Sawyer asked if the effect would be that there would no longer be $4 million available. Perlmutter stated that the money would no longer be available and the loan would start over, meaning it would be like a new loan, and he would have to go after a new loan. Sawyer stated a new loan would pencil out differently without the PILOT in place, to which Perlmutter confirmed and stated that from his perspective, it would be like going out to buy a new building in Memphis, which will be priced differently.
Bryant advised the Board that there are seven years remaining on the current PILOT term for Jamesbridge. David Shemano stated to the Board that he has been a property owner in Memphis for over ten years, with properties in the PILOT program, and the Board did not experience any compliance issues with his properties until recently because some mistakes were made with management. Shemano stated that it would be hard to start over because the property is basically condemned, and he stated he is begging the Board to give him more time, based on his prior good standing with the Board under its PILOT program. Shemano stated that if the Board does not give him and his team more time, there will be no more Jamesbridge Apartments, and asked the Board for more time for him to prove himself. Perlmutter stated that this is a beautiful property and he has a plan for the lake on property where tenants will be able to go fishing and it is going to be a beautiful property.
Carpenter stated that he appreciates the representatives’ perspective, but there are other perspectives the Board must consider, including the perspective of the Environmental Court, elected officials, the real estate conditions, etc. Carpenter stated that the Board and Board staff have worked cooperatively with the PILOT Lessee for well over a year and the property is basically in the same situation, and conditions have continued to decline. Carpenter stated that Perlmutter reported earlier in the meeting that bank representatives performed a site visit to this property and Carpenter stated that any lender that has seen this property would be deeply concerned about the conditions, and if Perlmutter is coming to the table with the funding and expertise to turn the property around, that would help the lender. Carpenter stated he cannot grasp why the lender would be hesitant at all. Carpenter also stated that there are seven years of the current PILOT term remaining, and the Board has a 20-year term that is awarded to a new PILOT and based on the amount of work that needs to be done at this property, a 20-year PILOT is going to pencil out much better than a 7-year remaining term. Additionally, Carpenter stated that the assessed value of the property is going to be lower now and provide a better benefit for a PILOT than to perform the necessary renovations that would create a higher assessed value, reducing the benefit of a PILOT.
Carpenter recommended that the Board accept Board staff’s recommendation to terminate the PILOT, while also considering taking an exception from the Board’s PILOT policies and procedures that requires a 60-day due diligence period for the application submission and allow a prompt consideration of a new PILOT so that the lender would understand that the PILOT will not terminate, but will start over. Carpenter stated that this would be an exceptional variance from the PILOT policies and procedures to allow things to stay in place while the paperwork is done and give the PILOT Lessee a new term. Carpenter stated that this is an option to move things forward, as things are not going anywhere right now. Carpenter stated that with other pressures, this is being looked at from the developer's standpoint, but there are a lot of other considerations that must be taken into account. Buckner Wellford asked what the timeframe is to reapply following termination of a PILOT if the Board determines not to grant a variance. Carpenter responded that the due diligence period is the application submission must be received 60 days prior to the Board meeting at the application would be considered by the Board. Wellford stated that after hearing Carpenter and Bryant’s recommendations and considering the remaining seven years of the current PILOT Term, he appreciated the recommendations, apart from creating a variance. Wellford stated that there is enough incentive for an application to be filed within the Board’s ordinary timeframe according to the PILOT policies and procedures. Sawyer asked Cheryl Hearn if the City Administration has an opinion on the matter, to which Hearn stated no.
Howard Eddings, Jr. asked what the cost and impact is to all parties involved for the Board to defer action for another 30 days. Sawyer stated he agrees with Eddings in asking the same question, but he also does not know what the Board intends to find out in 30 days, as the rehabilitation of the project has already been stated that the timeline is one and a half years. Eddings stated that he would suspect that the developer can move faster if they do not have to reapply, and from a concern for affordable housing, how can the Board get the over 300 units online faster, considering deferring action for 30 days versus the PILOT Lessee reapplying in approximately 60 days for a new PILOT. Eddings asked what the effects are for deferring action, other than that the PILOT Lessee has not complied. Perlmutter stated that in 30 days, there will be 60 units turned, the fire damaged building will be demolished, the gate and fence will be repaired, and significant work completed in three buildings. Eddings stated that this is the same conversation the Board has at its July 8, 026 Board meeting. Perlmutter stated that he said at the Board’s July 8, 2026 Board meeting that all these items were subject to the Bank and that he had to have a deal with the Bank; now he has a deal and is spending money.
Sawyer stated that he takes Mayor Young’s initiative for 10,000 new affordable housing units seriously, but the question is, what price is the Board willing to pay to do its part in making those numbers possible, and that is what is trying to balance regarding what will be the cost, and the cost seems minimal to defer action. Sawyer stated that he does not like the 1.5 years of rehabilitation that starts to not make sense to hold onto the remaining 7 years of a current PILOT term. Perlmutter stated that the 1.5 years is not what the Board will have to wait for and the plan is to complete a building at a time and occupy each building as it is completed and there is a lot of money that is going to be put into each building and the 1.5 years is from beginning to end. Perlmutter stated that getting the supplies will take time, and referenced a recent discussion with the roofing contractor, who advised Perlmutter that the roofing team is ready to begin work, but materials will take 2-3 weeks to be available. Perlmutter stated that he will have three buildings fully turned and looking totally different within the next month. Shemano stated that Perlmutter has spent a significant amount of money recently and has sent proof of wires to contractors, and no one spends that kind of money without intention.
Perlmutter asked that Carpenter Law participate on the call with the Bank at 3:00 pm today, and Perlmutter will let the Bank know that the Board is leaning toward terminating the current PILOT term because it has been out of compliance for so long, and if it is agreeable to the Bank, Perlmutter will plan to submit a new PILOT application, whether that timeframe is 30 or 60 days. Perlmutter stated that this is not about the money; he just wants to ensure that the Bank does not have to go through a 6–8-month process of figuring out what is going to happen, which is Perlmutter’s only concern about a new PILOT. Perlmutter stated he is not conerned because he is going to do the work, he just wants to be sure that the Bank can act and move forward with a new PILOT. Sawyer stated that he goes back to the question of what the cost is if the PILOT is not terminated and asked if the Board would then be perpetuating blight at that point. Chariman Reid stated that is the concern. Bryant stated that if the Board considers where the project will be at the end of the current 7-year term if this rehabilitation is completed, of which the property desperately needs, the work would be done just to remain in the program for 7 years and the property would not qualify for a new PILOT at the end of the 7-year term. Bryant stated that if the PILOT term were to start anew, the rehabilitation would qualify them for a new 20-year term, which is better for the city in the longer term, than only qualifying to participate in the program for the remaining 7 years left on the current term.
Trey McKnight stated that when discussing the downside of deferring action, the downside is the current conditions that the residents are living in at the property. Eddings stated that residents that are there will be living there for the next 30 days anyway unless thye can find somewhere else to go, which based on the available data, there are not many places available for them to go. Eddings stated that he is not necessarily advocating for buying more time or giving more time for the sake of the development as much as he is for the value of the property being available for 416 families, even over the next 1.5 years or even 7 years. Eddings stated that if the Board does not defer action, every unit runs the risk of going to waste and becoming a bigger blight issue, and no one is going to be performing work at the property based on what he is hearing. Eddings stated that if the Board votes to terminate, he is hearing that the deal with the Bank is over. Sawyer stated that he believes that it is defensible and if the Board is trying to make this work and the representatives have a deal that is about to close. Sawyer stated that he does not think tenant relocation is a good thing. Eddings stated that he understands the Board’s responsibility to hold the PILOT Lessee accountable but is there a different way to hold them accountable by setting goals to be attained in the process over the next 30 days. Eddings stated that 30 days are going to pass, and if the PILOT is terminated, what is going to happen in the next 30 days?
Chairman Reid stated that as a banker, it makes more sense to see this as a 20-year PILOT, and he believes the bank would understand. Chairman Reid suggested that the Board could assess a $5,000 PILOT Compliance Deficiency Fee, defer additional action to allow conversations with the bank with Carpenter Law and himself engaged in those conversations, and report to the Board at the September 9, 2026 Board meeting where the Board could consider voting on a new PILOT term. Chairman Reid stated that if those discussions are not successful, he would recommend that the PILOT be terminated at that time. Perlmutter stated that he does not have a concern with the Bank and he is not against the process, but he would like to leave things open to be able to approach the Bank with the option of a new PILOT term and advising that the process could take 30-60 days and confirm that the Bank agrees with that approach. Perlmutter stated that he does not want to be in a situation where the Bank comes back to Perlmutter and says that the Bank is legally obligated to put the loan into default, a letter is sent to all parties stating that the full loan is due, and everything falls apart and that is the only thing he would like to confirm. David Upton stated that Chairman Reid has offered something that may work where the Chairman and legal counsel would engage with Perlmutter and the Bank, and it would be evident quickly if the lenders are going to be agreeable to the propsect of a new PILOT term. Chairman Reid stated that it has been reported that the bank is a 15% investor in the project, so they have skin in the game.
Wellford asked if he heard correctly that there is a non-binding commitment with the Bank and asked Carpenter how binding the Bank's commitment is presently. Carpenter stated that the agreement that was shared is labeled as a Non-Binding Forbearance Agreement and was not a term sheet or a new loan and stated he has seen nothing in writing that commits the Bank to do anything. Carpenter stated that Perlmutter has reported based on the site visit and his direct discussions with the president of the Bank that there is a verbal agreement. Carpenter stated that from a legal standpoint, his Firm has seen nothing that binds that Bank to do anything. Wellford stated that the Board has been discussing amending some of its rules, including digital equity, and the Board may consider those amendments in the coming months, which would affect any new PILOT application and that new PILOT would be held to some standards that current PILOT Lessees are not, and that is another mayoral initiative, digital equity. Wellford stated that if there was an application for a new PILOT in the ordinary course, if it is evaluated, the Board could impose some conditions that would benefit tenants in the long term better than they are being benefited from now.
Perlmutter stated that there is no commitment with the Bank in writing, but the verbal commitment is big enough that he is willing to risk $86,000 in cash on a building to be demolished without a written commitment from the Bank. Perlmutter stated that if action is deferred for 30 days, he is convinced that there will be an amended loan in place, and all agreements will be signed, sealed, and delivered, but he is spending money now, believing that he has a deal with the Bank. Perlmutter stated that the fire damaged building has been sitting in its damaged condition for so long, over one year, and it is going to be demolished now. Upton stated to Perlmutter that Chairman Reid laid out a possible path forward and asked if Perlmutter can live with that and stated that Perlmutter would be happy to have that engagement. Perlmutter stated that he is not against that new PILOT term; he does not know the rules, but he has no objection to Carpenter joining the call with the Bank at 3:00 pm today, as he has no secrets and is not doing anything nefarious. Upton stated that Chairman Reid suggested to engage with the Bank to help communicate why a new PILOT term would be better and to help resolve that with the Bank, and if it does not, representatives would appear before the Board in 30 days. After additional discussion amongst the representatives, Chairman Reid stated that the matter needs to be brought back to the Board deliberation. There being no further questions,
Courtnee Melton-Fant made a motion to terminate the Jamesbridge PILOT from the HEHF Board’s PILOT program. Buckner Wellford seconded, and the motion passed by majority after proper roll call vote of the Board members.
Let the record reflect that Monice Hagler, Howard Eddings, and Vincent Sawyer voted no.
b. Country View Apartments
Carpenter stated that Country View Apartments deals with the same developer and parties as Jamesbridge Apartments and is in a similar situation, although Country View Apartments is not in as bad physical condition as Jamesbridge Apartments. Carpenter stated that action was deferred from the Board’s July 8, 2026 Board meeting for the PILOT Lessee to provide a status update today.
JP Townsend stated that he has not witnessed any major repairs on property, and there are still repairs necessary, including repairs needed to areas of siding, brick, and roofs still show signs of age. Townsend stated that during his last inspection, the back of the property has a lot of overgrown landscaping, grass had been mowed, but the property needs a lot of work. Bryant stated the occupancy has improved slightly at Country View Apartments and referenced a July 30, 2026, rent roll reporting a 47.6% occupancy rate and an August 4, 2026, rent roll reporting a 49.5% occupancy rate. Bryant stated that the property has 159 occupied units and 162 vacant units at this time. Bryant reminded the Board that during the July 8, 2026 Board meeting, the Board assessed a $5,000 PILOT Compliance Deficiency Fee with the determination whether to impose that fee to be made today. Bryant stated that Board staff’s recommendation is that the Board impose the $5,000 PILOT Compliance and have the PILOT Lessee appear before the Board at the September 9, 2026 Board meeting to provide a status update to allow the PILOT Lessee to achieve additional progress. There being no further questions,
Howard Eddings, Jr. made a motion to assess a $5,000 PILOT Compliance Deficiency Fee, due and payable as of the Board's August 5, 2026 Board meeting and the PILOT Lessee is to appear before the Board for a status update at the September 9, 2026 Board meeting. Vincent seconded, and the motion passed by majority after proper roll call vote of the Board members.
Let the record reflect that Monice Hagler voted no.
David Upton asked if the offer still stood for Carpenter and Chairman Reid to participate in the call with the bank at 3:00 pm today regarding Jamesbridge Apartments was still in place. Carpenter advised that as the Board has voted to terminate the PILOT for Jamesbridge Apartments today, there is no basis to join calls as there is not anything of record to support such activity. Carpenter stated that what is left to do is for the developer to move forward with application for a new PILOT. Perlmutter stated he intends to file an application for a new PILOT.
Isaac Perlmutter, David Shemano, and David Upton left the meeting.
Executive Director’s Report
a. Trey McKnight stated that he sent the Board an email on August 4, 2026 noting that the Board’s new website design is now complete and the website developer is now moving to the migration phase. McKnight stated that he hopes Board members had an opportunity to review the links, stating that most of the information is placeholder information, but that is how the website will actually look, and it is very nice. McKnight stated that beginning the week of August 10, 2026 Board staff will have training on the website with respect to how to implement and add new things, such as public hearings and things of that nature.
Chairman Reid stated that the word ”financing” is all over the website rendering that McKnight shared and asked if that was going to be included in the final product. McKnight stated that “financing” will not be on the new website. Chariman Reid stated that he wondered about that during his review because the word “financing” sends the wrong message, a message that the Board has tried to thwart with some of the people that have appeared before the Board, as the Board does not provide financing. McKnight stated that this will not be anywhere on the final version and that those things are there as a placeholder only. McKnight stated that the Board’s name will also be displayed correctly. McKnight stated that the migration has begun and that all of the information from the Board’s current website is moving to the new website, and asked Board members to review what was sent out, as he is very proud of what has been done and it looks really good and will be a shining star for this organization. McKnight thanked the working group members, stating that each has been instrumental in the process. McKnight stated that this has been a yeoman's task to get this project across the finish line, and although the project was due to be live by July 1, 2026, it will be live within the next two weeks. McKnight stated that the project is behind schedule, but things happened and encouraged Board members to review the email that was sent with links to review the current iteration.
b. McKnight reported that the BlueCross BlueShield event went very well and was pretty well attended, although not as well attended as he thought it would be. McKnight stated that he spoke about affordable housing and there were a lot of questions. McKnight thanked Nikki Abraham for attending the event, stating he appreciated her support, and stated that Abraham was able to engage in dialogue with attendees and thanked her for being well informed and knowing what she was talking about. McKnight reminded the Board that he was invited by BlueCross BlueShield to speak at this event, and he will continue to engage in all these types of events and try to get as much good information out there as possible.
c. McKnight reported that the 2026 NALHFA Fall Educational Summitt will take place on September 14-16, 2026 in Washington, D.C. McKnight advised the Board that he intends to arrive in Washington, D.C. on September 13, 2026 and went through his flight details. McKnight stated that he is looking forward to this conference, stating this will be the first time he has attended this event. McKnight encouraged Board members to attend and again reviewed his flight information and details. McKnight advised all who would like to attend contact Stephanie Bryant to be registered for the conference.
d. McKnight stated that he, Bryant, and Cliff Henderson were able to meet with Code Enforcement Staff to discuss how to get information about the Board’s PILOT portfolio properties. McKnight stated that the Board’s relationship with Code Enforcement was highlighted during a recent Memphis City Council meeting and was brought forth in a positive light. McKnight reported that Code Enforcement subscribes to a website called Building Blocks, and McKnight is working with Director Neil to get the Board access and login information for the site. McKnight stated that the City Administration is already paying for this service, and the website provides information about everything for each PILOT property, such as crime statistics, and this is a way to hopefully have great hands around the Board’s PILOT portfolio.
There were no questions or comments.
Operations Report
Stephanie Bryant presented the Operations Report as follows:
a. Review of Compliance Oversight for July 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:
July 2026 Compliance Review for August 5, 2026 Board Meeting
1.Under Observation:
a. One property was moved DOWN from Under Observation status to regular monitoring:
1. Luxe at Raleigh: PROGRESS-95% Occupancy Rate (Increase from 92%); Walkthrough performed May 27, 2026; Repairs finalized.
b. One property moved Down from Compliance Concerns status to Under Observation status:
1. Timber Pines: PROGRESS-84% Occupancy Rate; area next to laundry room has not been resurfaced; fencing near laundry room at drainage ditch is being finalized; grass needs to be mowed, but property has shown improvement and Board staff will continue to monitor.
c. The following PILOT properties remain in Under Observation status:
1. Emberly Apartments (formerly New Horizon): PROGESS- Property is under construction; 64% Occupancy Rate; Property is Under Observation as a condition of the PILOT approval in April 2025; Property will remain Under Observation until construction is completed; exterior construction of buildings appears complete, and construction has moved to interiors and is on track.
2. Residences at Lakeview: PROGESS- 72% Occupancy Rate (increase from 70%); Work has begun to decline, and occupancy has hit a plateau; Board staff is coordinating a virtual meeting with ownership and management during August 2026 to discuss the status of the property and an action plan to get the property back on track.
3. University Place II & III: STATUS QUO- University Place II-75% Occupancy Rate, University Place III-76% Occupancy Rate. Awarded allocation through THDA Bond Announcement for Round 1; awaiting closing and commencement of construction associated with new PILOT implementation upon closing.
2.Compliance Concerns:
a. One property moved Down from Notice of Non-Compliance status to Compliance Concerns status:
1. Coronado Manor: STATUS QUO-78.7% Occupancy Rate; Property construction remains incomplete; No change to external observable conditions. Mold issues have been observed in some unoccupied units. Property was moved down to Compliance Concerns at July 8, 2026 Board meeting. PILOT Lessee has provided a written construction schedule and now stated construction completion will be achieved in February 2027. PILOT Lessee is to sign a written agreement, as described in July 8, 2026 Board meeting minutes, and provide monthly updates to Board staff.
3.Notice of Non-Compliance:
a. One property was moved DOWN from Legal Default to Notice of Non-Compliance:
1. Bridgeport Manor: STATUS QUO-64.3% Occupancy Rate; Property closed PILOT Refinancing in March 2026. No change observed to external observable conditions of property. Property was moved down to Notice of Non-Compliance via Board vote at July 8, 2026 Board meeting. PILOT Lessee has submitted a written construction schedule and now stated that construction completion will be achieved in May 2027. PILOT Lessee is to sign a written agreement, as described in July 8, 2026 Board meeting minutes, and provide monthly updates to Board staff.
b. The following PILOT properties remain in Non-Compliance status:
2. Mill Creek: STATUS QUO- 66.5% Occupancy Rate (decline from 69%); 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; no Q1 2026 Occupancy Report submission; HEHF Board staff conducted a walkthrough of the property on July 28, 2026 and has requested a construction timeline and action plan, all bids, contracts, and permits to be submitted no later than August 10, 2026.
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 playground has been removed (tenant benefit), and unoccupied units show signs of mold. no Q1 2026 Occupancy Report submission; HEHF Board staff has a walkthrough of the property scheduled for Thursday, July 30, 2026.
4.Legal Default:
a. The following PILOT properties remain in Legal Default status:
1. Cedar Run: STATUS QUO-80% Occupancy Rate; property went through a foreclosure on March 10, 2026, which resulted in Legal Default status; property remains until lender provides direction. HEHF Board staff has requested assistance from Board legal counsel on contacts for the PILOT project, but have not received updated contacts as of this report.
2. Four (4) PILOT properties portfolio:
A. Abington Apartments: PROGRESS-59% Occupancy Rate (Increase from 55%); Capex plan has been submitted and reflects majority of work to be completed by September 2026 with plumbing and mechanical work completion extending to August 2027; 30-day check-in with HEHF Board staff in August; To appear before the Board at September Board meeting
B. Country View Apartments: DECLINE-46% Occupancy Rate (decline from 54.8%); no Q4 2025 or Q1 2026 Occupancy Report submissions; %); Capex plan has been submitted and reflects majority of work to be completed by January 2027 with exteriors and balcony work completion extending to December 2027; To appear before the Board at August 5,2026 Board meeting.
C. Jamesbridge Apartments: DECLINE- 34% Occupancy Rate (decline from 36%); no Q4 2025 Occupancy Report submission; Capex plan has been submitted and reflects majority of work to be completed by July 2027 with mechanical work completion extending to December 2027; To appear before the Board at August 5,2026 Board meeting.
3. Sterling Townhomes: PROGRESS- 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. Fire-damaged buildings have been demolished, and debris has been cleared. PILOT Lessee to appear at October 7, 2026 Board meeting.
*SINCE THE APRIL 1, 2026 BOARD MEETING, THE HEHFB STAFF HAS BEEN ABLE TO MOVE FOUR PROPERTIES OUT OF THE COMPLINACE STEP PROCESS AND INTO REGULAR MONITORING. (River City Townhomes, Grainge Hill, Greenbriar Apartments, and Luxe at Raleigh)
There were no further questions or comments.
Finance Committee Report
Cliff Henderson presented the financial results for the month ending June 30, 2026. After discussion,
Howard Eddings, Jr. moved for acceptance of the Finance Committee Report for the month ended June 30, 2026, properly seconded by Vincent Sawyer, and the motion passed unanimously after a proper roll call vote of the Board members.
Strategic Planning Committee Update
Cliff Henderson began by stating he will have a motion for the Board to consider at the end of this update but would like to provide the update first. Henderson reminded the Board of the April 29, 2026 Board meeting that followed the April 13, 2026 Strategic Planning Meeting, and stated that during the April 29, 2026 Board meeting, there were several buckets of activities that the Board approved to go forward. Henderson stated the first bucket included three items around Memphis Police Department (MPD) including AI-enabled cameras, sharing data, and creating a more formal partnership. Hendreson stated that it also included security standards that the Board may consider implementing in the future as new PILOTs are brought into the Board’s PILOT portfolio. Henderson stated that the second bucket was centered around compliance and data infrastructure, where the Board discussed business intelligence, specifically Power BI, to aid staff and the Board itself. Henderson stated that two additional components were also discussed, including digital equity and the smart fiber rollout and what the Board can do to engage tenant benefits from that perspective, and finally community elevation programs. Henderson stated that the Board has several options for how deep it wants to get involved.
As it has been approximately 90 days since those decisions, Henderson stated that the Strategic Planning committee owes the Board an update around the AI-enabled camera site recommendations, digital equity, and community elevation. Henderson stated that he wants the Board to know that these deadlines are taken seriously, but there have been some challenges. Henderson stated that the Strategic Planning Committee has met with MPD several times and there are some Memorandums of Understanding (MOUs) that are forthcoming, and the Committee will be reaching out to Cheryl Hearn and the city Administration in connection with those MOUs. Henderson stated that once the Committee gets through the MOUs, they can begin deeper discussions with MPD on how the Board looks at cameras, requirements around data and security, and the formal partnership.
Henderson stated that on the compliance perspective and data infrastructure, the Committee went into that with one plan around Power BI but came across some new capabilities with a contractor in Memphis that blows away the original plan. Henderson stated that he owes some detail back to the Committee that rationalizes what that would mean and has discussion with the Committee. Henderson stated to the Board that there are some really exciting things that have blown his mind he believes the Board will appreciate, but he would like to go through the process with the Committee and make sure that there is alignment with the Committee before presenting anything to the full Board. Henderson stated he would turn the meeting over to Mike Humes for an update on the digital equity and community elevation components, but stated that the Committee does have a draft framework to refine what was discussed in the April 29, 2026 Board meeting and will be ready to present that following this next month of working through those discussions and bringing back something tangible to put in from of the Board to determine a path forward. Henderson stated he anticipates a presentation at the September 9, 2026 Board meeting, but the Committee will present when it deems it is appropriate.
Mike Humes stated that he continues to monitor mStreet and what their market looks like. Humes reported that mStreet has a new CEO nationally after recently making a change to their local CEO, and mStreet is now in the market to hire a president and general manager and moving towards an open market internet Service provider (ISP) model from a single model. Humes stated that the Post Road Foundation is coming back into the fold on digital equity and the person running digital equity locally has also changed, and these are good changes. Humes reported that Jason Mulligan continues to consult with the City Administration and works with Mayor Young on this project to make sure it is accelerated. Humes reviewed recent changes to the City Administration, stating that Chris Winton has recently been assigned the new COO to be the lead project person for the City of Memphis, along with Jason Mulligan, to oversee the mStreet relationship. Humes stated there has been a lot of change, primarily to personnel, but the project is still moving forward, with likely a new ISP model as it continues to move forward.
Humes stated that the meetings with MPD include two channels, one with Deputy Chief Brown on the Real Time Crime Center and data and pushing data into the Power BI dashboard to be analyzed. The second channel is the Deputy Chief McNeil, who is over community policing, precincts, and the Neighborhood Watch programs. Humes stated that Deputy Chief McNeil is helping develop a playbook and get all the PILOT property owners and managers to the table. Humes stated that the data shows that out of the current PILOT portfolio of over 125 properties, only two managers attend the precinct led multifamily monthly housing meetings, so the goal is to get the information out to ownership and management. Humes stated that there is a platform and a playbook already in place through MPD and community policing, and this will also help the Board with crime prevention through environmental design (CPTED) and MPD will help the Board implement some ideas and thoughts around CPTED, as well as make recommendations of which properties need what asset improved, fixed, or replaced.
Humes stated that he and Henderson also met with Mairi Albertson, Mayor Young’s Chief of Staff. Humes reminded the Board that Albertson was able to attend the Board’s April 13, 2026 Strategic Planning Meeting, and Humes and Henderson met with her to provide an update on what has happened since that time, and that information will be taken back to Mayor Young for him to be briefed, but she was very satisfied with the developments in April and what has happened since that time. Humes stated that Albertson is also connecting the Committee with the blight team and others on a number of initiatives with Memphis Light Gas and Water (MLGW) on energy consumption data and how the Committee can plug that information into the Power BI dashboard as well.
Carpenter asked for clarification on the changes in CEOs for mStreet. Humes stated that there was a national CEO change because there was a board member filling that role, and there has since been a full-time national CEO put in, and then there was a change in local market leadership about ten days ago. Chairman Reid asked Humes of his opinion of these changes, to which Humes stated he views these changes as positive. Humes stated that a job description for the president and general manager of the marketplace positions was released on Friday, July 31, 2026, and he has read through those, and each description calls out what is needed in the leader that comes in to take this job. Humes stated that he is very confident with Chris Winton and Jason Mulligan and all the other partners at the table, that this will continue to move forward and move forward rapidly.
Henderson stated that at the February 4, 2026 Board meeting, the Board voted to extend Humes’ services for 6 months, and that 6-month period has now been concluded. Henderson stated that he is requesting that the Board approve a 1-month extension of those services for the Strategic Planning Committee to continue to work with Humes over the next few weeks leading up to the September 9, 2026 Board meeting to present a tangible plan to the Board. Henderson stated that he feels that the Strategic Planning Committee has a lot of good things in play, with many of those coming close to a landing, and he is proud of the capabilities that he believes the Board will have that will help drive decisions and make a difference. There being no further questions or comments,
Cliff Henderson moved for consultant services of Mike Humes to extend for one (1) month until the Strategic Planning Committee presents additional information at the Board’s September 9, 2026 Board meeting. Buckner Wellford seconded and the motion passed unanimously after a proper roll call vote of the Board members.
New Business
There was no new business.
Chairman Reid stated that the next regular meeting of the Board is scheduled for Wednesday, September 9, 2026 @ Noon. There being no further business, the meeting was adjourned by the Chairman at 1:42 p.m.