MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS, TENNESSEE

Wednesday, February 7, 2018

The regular meeting of The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee was held pursuant to public notice on Wednesday, February 7, 2018.  The published meeting time was 12:00 Noon.  The meeting was held at the Board office, located at 65 Union Avenue, Suite 1120, Memphis, TN  38103.

    The following Directors were present:
                        
        Daniel T. Reid, Chairman                James Jalenak
        Monice Hagler                                     
        Nancy Willis
        Buckner Wellford     

    The following Directors were absent:
        
        Ashley Davis          Dr. Manoj Jain                               
                                        
    Also present were:

Staff members Martin Edwards, Jr. and Lauren Magallanes were in attendance. Charles E. Carpenter, General Counsel, Corbin I. Carpenter and Cheryl Hearn, Assistant City Attorney, were also in attendance. 

With a quorum present, the regular meeting of the Board was called to order at 12:00 Noon by Chairman, Daniel T. Reid. 

Approval of Minutes
Nancy Willis moved for approval of the Minutes for December 6, 2017.  Monice Hagler seconded and the motion passed unanimously. 


Finance Committee Report 
Daniel T. Reid presented the financial results for the month ended November 30, 2017. After a complete discussion of the financials and the disbursement of City of Memphis administrative funds, it was concluded that Charles Carpenter would draft a letter to the City of Memphis detailing the contact with Memphis Housing Authority Director Marcia Lewis and the existing contract which gives direction to HEHF disbursement of administrative funds to the City of Memphis. 

Monice Hagler moved for acceptance of the Finance Committee Report for November 30, 2017, and properly seconded by Buckner Wellford, the motion passed unanimously. 

Daniel T. Reid presented the financial results for the month ended December 31, 2017.

Buckner Wellford moved for acceptance of the Finance Committee Report for December 31, 2017, and properly seconded by James Jalenak, the motion passed unanimously.

Attorney’s Report

Charles Carpenter presented the legal report, as follows:

1.    For the Board’s information, Carpenter reported one new lawsuit involving Millcreek Apartments and advised the related legal counsel of the Board’s indemnification under State law and fully expects the Board’s involvement to be dismissed. 

2.    Carpenter reported three (3) completed TEFRA hearings held for Millennia Housing; although the hearings were for three separate properties, the owners intend to have one financing. Additionally, Carpenter is assisting the Keystone and Pendleton applicants as they move forward with the Tennessee Housing Development Agency (THDA). Carpenter expects final bond financing consideration later this quarter for all mentioned applicants. 

3.    Carpenter reported Bond and PILOT closings took place for Forum Flats Apartments. Carpenter added Sunrise Terrace PILOT also closed. 

4.    Carpenter informed the Board of a PILOT amendment requested for Thompson Court Apartments, due to unforeseen rehabilitation of approximately three buildings. Carpenter reserved further comment for the Executive Director report. 

The above concluded the legal report and there being no further concerns or questions, the legal report was completed. 


PILOT Report

Buckner Wellford asked for an update on Bent Tree Apartments, to which Martin Edwards responded there have been multiple meetings and site visits to document progress. Charles Carpenter added the developer has been issued a deadline for compliance and will be handled formally at the scheduled March meeting. 

Martin Edwards reminded the Board of the requested Thompson Court PILOT Amendment aforementioned in the Attorney Report. Buckner Wellford asked if the street closures have been approved, to which Edwards responded they are moving forward but have not yet attained full approval from City Council. 

Monice Hagler moved for the approval of PILOT AMENDMENT FOR THOMPSON COURT APARTMENTS. James Jalenak seconded and the motion passed unanimously.

Action Items:

CONSIDERATION OF AFFORDABLE MULTIFAMILY PILOT APPLICATION FOR COUNTRY VIEW APARTMENTS

Martin Edwards, Jr. outlined the project summary and planned rehabilitation, including tenant benefits. Edwards added substantial funds are being spent towards revitalization compared to calculated tax savings. Edwards stated his support for the approval.

Nancy Willis moved for the approval of AFFORDABLE MULTIFAMILY PILOT APPLICATION FOR COUNTRY VIEW APARTMENTS. James Jalenak seconded and the motion passed unanimously.

CONSIDERATION OF PILOT TRANSFER APPLICATION FOR MILLCREEK APARTMENTS

Martin Edwards, Jr. outlined the Whitehaven located property and offered current pictures for the Board’s review. Edwards stated the excellent condition of the property and strong financial background of the new owner. Monice Hagler asked to the occupancy of the property, to which Edwards responded it is 90%+ occupied. 

James Jalenak moved for the approval of PILOT TRANSFER APPLICATION FOR MILLCREEK APARTMENTS. Monice Hagler seconded and the motion passed unanimously.

CONSIDERATION OF AFFORDABLE MULTIFAMILY PILOT CALENDAR 2018 ROUND I

Martin Edwards, Jr. referenced the PILOT Calendar key dates in the Board packet. Monice Hagler recommended moving the April 4 scheduled meeting date to the second week, as the Martin Luther King, Jr. anniversary celebrations and events will be ongoing. The Board agreed and the April meeting date change to April 11 was noted. 

Buckner Wellford moved for the approval of AFFORDABLE MULTIFAMILY PILOT CALENDAR 2018 ROUND I. Nancy Willis seconded and the motion passed unanimously.

Executive Director Report

1.    Martin Edwards, Jr. stated that consideration of the PILOT Refinancing for Oakshire Apartments had been removed from the agenda due to their request to voluntarily terminate the PILOT. Edwards added background to various conversations with the owner and reported the refinancing request was discovered to be a sale of the property. Edwards added work at the property has appeared to have stopped and occupancy is low. Charles Carpenter stated staff will administratively move forward with terminating the PILOT. 

2.    Monice Hagler asked to the status of Highland Creek Apartments, to which Edwards responded the property owner has obtained THDA 9% tax credit transfer approval for the 2018 year and should move forward with renovations. Charles Carpenter added that the current owner has been advised to examine the possibility of terminating the PILOT and re-apply, as he would qualify under the application guidelines. 


New Business

Lauren Magallanes announced registration is now open for the 2018 National Association of Local Housing Finance Agencies (NALHFA) conference to be held May 9-12 and encouraged Board members to look at their calendars for availability. 

There being no public comment, it was announced that the next scheduled meeting of the Board will be held on Wednesday, March 7, 2018 @ Noon. There being no further business, the meeting was adjourned by the Chair at 12:48 p.m.