MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS, TENNESSEE
Wednesday, September 9, 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, September 2, 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
Cliff Henderson Howard Eddings, Jr.
Vincent Sawyer Courtnee Melton-Fant
The following Director was absent:
Buckner Wellford
Staff and others attending: Trey McKnight, Stephanie Bryant, JP Townsend, and Nikki Abraham; Charles E. Carpenter and Corbin I. Carpenter (Zoom), General Counsel; Katrina Shephard (Zoom), legal assistant 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 Katharine Degolian and Andrea Blumencweig of Elmington Capital Group representing Chelsea Place; Taylor King of Guardsman Capital and Erica Nobbe of PMR Companies representing Cedarwood Apartments and Sunridge Apartments; Isaac Perlmutter of Aurox Equities and David Upton representing Abington Apartments and Country View Apartments; Jan Kidder (Zoom) of Memphis Interfaith Coalition for Action & Hope (MICAH); Adrienne Aviles (Zoom); Adam Nelson (Zoom); 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, September 9, 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 must be made in-person and 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 August 5, 2026 Regular Meeting, seconded by Vincent Sawyer, 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. Charles Carpenter reported:
a. Notice of two (2) materialmen’s claims for the month of August 2026 in connection with the following PILOT properties alleging non-payment:
i. Abington Apartments filed by SPC Roofers in the amount of $615,795 plus fees and costs.
ii. Lamar Crossing Apartments filed by Sherwin Williams in the amount of $13,241.
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 August 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, and for the remaining months of this calendar year. 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.
ii. Jamesbridge Apartments PILOT was terminated, and that process has been completed in connection with the public record, the Shelby County Assessor’s Office, the Shelby County Trustee’s Office, and the City Treasurer’s Office.
3. Carpenter reported that the Hub North, LP Bond and PILOT applications have been withdrawn by the applicant. Carpenter stated that the applicant had gone through the approval process with THDA, as well as this Board, but has decided at their Board level that a different funding path and operational model will be pursued. The applicant believed that ongoing compliance with the Internal Revenue Code and other regulatory requirements based on its operational model was inconsistent, and therefore, the applicant has voluntarily withdrawn the Bond and PILOT applications with this Board, as well as it has withdrawn its approved volume cap allocation at the THDA level.
4. Carpenter stated that THDA has just announced that there will be a Round Three of LIHTC this Fall because there is approximately $280 million volume cap still available. Carpenter explained that this is very unusual because typically that volume cap is oversubscribed. Carpenter stated that it is hard to say what changed, but this development is something that has to be analyzed going forward because the statewide need is great, and the volume cap is based on a year-by-year allocation and if the allocation is not used this year, it will not carry over. Carpenter stated that his Firm is sharing this information with developers, including Memphis Housing Authority (MHA) and the City Administration, as applications are only being accepted through September 24, 2026.
Trey McKnight asked if this is a situation of if the allocation is not used, does the state lose it and shrink the pool or does the allocation come back. Carpenter stated that it is a complex question because THDA brings in all volume cap for single-family and multifamily. Carpenter stated that typically single-family has been the focus, but because of the interest rate environment and other economic factors, THDA has shifted more allocation from single-family to multifamily, but multifamily has been affected with similar issues. Carpenter stated that 2027 will depend on the market conditions and the preferences made by THDA as to the amount of multifamily allocation will be available.
Carpenter stated that another concerning issue is that THDA had so much emphasis statewide that changed the methodology from three grant divisions (East Tennessee, Middle Tennessee, and West Tennessee) to a new methodology this year with more emphasis on rural areas and it is unclear what will happen with that structure moving forward.
Howard Eddings, Jr. entered the meeting.
5. Finally, Carpenter stated that his Firm has been coordinating with the City of Memphis, which hosted an anti-blight seminar over the past two weeks that his Firm attended to stay aware of what the administration is focusing on locally. In listening to public reports and working with Code Enforcement, there is a lot more blight going on now in our community. Carpenter stated that if tenants have issues with their dwelling or their neighborhoods, they can contact Code Enforcement and Code Enforcement will open a file and go to investigate the issues. Carpenter stated that Code Enforcement was a large part of the anti-blight seminar presentation, and the City Administration is going to be more aggressive in dealing with blight and seeking to eliminate blight, with homeowners, in single-family and multifamily settings. Carpenter stated that his Firm has been working closely with Code Enforcement, Environmental Court, and the City of Memphis Prosecutor’s Office and will continue to monitor and be an active part of the resolve to make ensure that the citizens living in affordable housing throughout the community have the best possible environment for their families to reside as we move forward.
There being no questions or comments, Chairman Reid proceeded with Action Items.
Action Items-
1. 1st Bond Inducement Resolution Closing Extension for ECG Chelsea, LP (d/b/a Chelsea Place)
Charles Carpenter introduced this agenda item, stating that this is a project that had been approved by the Board in March 2026, Elmington Capital is the developer, and this project has received THDA approval. Carpenter stated that this project is before the Board today because the initial approval has run its course, and the project requires a 6-month closing extension to move the project forward to closing, and his Firm recommends approval. Andrea Blumencweig introduced herself, stating that Chelsea Place is a new construction 158-unit affordable housing development in North Memphis. Blumencweig stated that all units will serve households earning no more than 60% of the area median income (AMI), and the project will include a mix of two, three, and four-bedroom units. Blumencweig stated that the project has already received THDA tax exempt bonds and 4% low-income housing tax credits (LIHTCs), but the project needs this closing extension to finalize the project’s permanent debt structure and evaluate the best execution and structure for the project’s long-term financial feasibility. There being no further questions or comments,
Cliff Henderson made a motion to approve the 1st Bond Inducement Resolution Closing Extension for ECG Chelsea, LP (d/b/a Chelsea Place). Monice Hagler seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Katharine Degolian and Andrea Blumencweig left the meeting.
2. PILOT Refinancing Application for MEM3 Cedarwood, LLC (d/b/a Cedarwood Apartments)
Carpenter introduced this agenda item, stating that Action items 2 and 3 are with the same developer regarding consolidated financing and may be discussed together but voted on separately. Carpenter stated that this refinancing will allow a restructuring of the financing for each of these projects, as well as a repayment to the developers for funding that has been expended earlier for debt service reduction. Carpenter directed the Board to its Board packet materials, which include Sources and Uses charts for each project for the Board’s review, which display sources and uses by property, as well as combined sources and uses for the total new refinancing loan across both properties.
Taylor King of Guardsman Capital stated that the initial loan for these properties was with Key Bank, and that loan is now matured, and this refinancing request is a refinancing of the Key Bank loan. King stated that as part of the refinancing, over the past nine months, the partners have advanced money to the properties to pay down the current loan to extend the loan term to get through this refinancing request. King stated that if the Board approves this request, this refinancing will move the process forward to close the new loan by the end of September 2026 and will be for both Cedarwood Apartments and Sunridge Apartments. Carpenter asked if the refinancing of these two properties will have any material adverse impact on the ongoing operations of the properties. King stated no, and further stated that the refinancing of these two properties will help with operations and give partners more bandwidth if there are any hiccups or cash flow issues in the future, of which there have been in the past, and partners have stepped up and come out-of-pocket personally for those issues, so these refinancings will allow more room to do that in the future ad improve the properties. King stated that approximately a year and a half ago, the properties switched management companies and ownership is very happy with the new management company.
Stephanie Bryant stated that occupancy for both properties has been stable, stating that Cedarwood Apartments submitted an August 18, 2026 rent roll that shows 91% occupancy rate. Bryant stated that as King mentioned, both properties experienced some compliance issues about a year and a half ago, but through the change in management and attention of ownership, those issues were resolved and Board staff is very pleased with the progress observed at both properties. There being no further questions or comments,
Monice Hagler made a motion to approve the PILOT Refinancing Application for MEM3 Cedarwood, LLC (d/b/a Cedarwood Apartments). Vincent Sawyer seconded, and the motion passed unanimously after proper roll call vote of the Board members.
3. PILOT Refinancing Application for MEM2 Sunridge, LLC (d/b/a Sunridge Apartments)
Bryant noted that occupancy for Sunridge Apartments according to an August 18, 2026 rent roll shows a 98% occupancy rate, and Board staff is proud of the progress shown at this property. There being no further questions or comments,
Cliff Henderson made a motion to approve the PILOT Refinancing Application for MEM2 Sunridge, LLC (d/b/a Sunridge Apartments). Howard Eddings, Jr. seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Taylor King and Erica Nobble left the meeting.
4. Status Updates for PILOTs in Legal Default:
a. Abington Apartments
Carpenter began by stating that the Legal Report started with his reporting of a materialman’s lawsuit that had been filed against Abington Apartments. Carpenter stated that the Board is aware that Isaac Perlmutter has become the key representative for the developer, David Shemano, and has been brought into this portfolio of properties. Carpenter stated that the developer and representatives have explained to the Board that Abington would be the model, and from there, representatives would move forward with the same set of assembled construction vendors used at Abington. Based on the above and the representations made to the Board the selected materials and contractors have been paid, so his Firm was surprised to receive a lawsuit indicating over $600,000 was owed for the roofs for Abington Apartments, because the roof replacement and repair was one of the major problems throughout the portfolio. Carpenter stated that immediately following receipt of this lawsuit, notice of receipt was sent to the developer and representatives, and earlier today, Carpenter received an e-mail communication from Perlmutter indicating that an agreement had been made on this particular litigation claim.
Isaac Perlmutter stated that the representation is real, the money spent is real, the vendor was paid a big portion, and the lender was supposed to pay the remaining portion. Perlmutter stated that this is not a blame game, but because the PILOT has been in legal default since January, it has created an impossible situation with the lender. Perlmutter stated that the mortgage is current and was paid on time, and everything has been done on this property at this point. Deposits are going to be given, and actual bills will be paid. Perlmutter stated that this mortgage is secured by two (2) properties, one is St. Louis and one in Memphis, and the issues with this lawsuit have been resolved and the Board will have a signed agreement showing it is resolved. Perlmutter stated he still works with this roofing vendor, and the vendor just had to protect himself, which is the reason for the lawsuit, Perlmutter stated he was aware that the vendor was filing the lien, but it has been resolved. Perlmutter stated that this is not a conversation for this forum, but there is a lot going on behind the table that is hard to share and is beyond his control. Perlmutter stated he cannot fix the relationship damage that has been caused, but he has spent over $1 million in the last month of cash on this portfolio and has spent $750,000 in the month of September alone. Perlmutter stated that he can show that this money is going out and he is doing all of this with his hard-earned cash that is being invested because he believes in the projects. Perlmutter stated that this particular lawsuit is connected to a law firm that is working for the lender and it is a total mess, but it is resolved and he has a signed agreement between the vendor and himself, of which he will provide to the Board this afternoon.
Perlmutter stated that as for occupancy, he has filed 63 evictions in the month of August and has not been able to collect more than 65% of rents at Abington Apartments since his company began in January 2026 and it is sad. Perlmutter stated that he has lost approximately 23 tenants from these evictions, but his team continues to do the work at the buildings, but the work cannot be seen from a walk-through or drive-through inspection of the property. Perlmutter stated he heard someone was going to perform a bus tour of the properties, and he has offered to pay for it, but he is making progress and is convinced he will get there, although it may take a bit longer than he originally intended.
Perlmutter stated that at the Board’s August Board meeting, Carpenter reported several other liens, and all those liens have been paid, and he will have one of his team members send proof of payment for all liens that are now paid, and work continues.
David Upton entered the meeting.
Perlmutter began speaking on other properties, stating that Lakes at Epping Way has achieved 76% occupancy and Jamesbridge, which now requires a loan modification, will have an agreement signed with the bank by the end of September 2026. Perlmutter stated that Jamesbridge will require $4.5 million in cash to bring it into compliance.
Carpenter asked Perlmutter to focus on Abington Apartments at this time. Carpenter stated that one of the things that Perlmutter mentioned is that this PILOT has been in legal default since January 2026, and we are now in September 2026, Aurox Equities has been involved since January 2026, and as with the bank having its own regulations, this Board has to enforce its policies and procedures too, so things are in a dilemma. Carpenter stated that when the Board meets and Perlmutter shares information, it is always stated to be imminent that things have been worked out and things will be completed within the next week, and it does not happen. Carpenter stated that communication with Board staff has also become more difficult as far as Perlmutter’s team supplying information on occupancy levels and other information to that extent, so that is what the Board is going to focus on now.
Stephanie Bryant stated that a rent roll was requested on August 31, 2026 to be submitted and no submission has been made, no written update has been provided in preparation for this Board meeting, and the last known occupancy rate is from an August 4, 2026 rent roll, which reflects a 60% occupancy rate. Given Perlmutter’s report of 63 evictions, Bryant stated that the 60% occupancy rate from August would likely be much lower at this point. Bryant reported that Board staff were advised by Code Enforcement of approximately ten (10) outstanding Code Enforcement violations with two (2) cases in the Environmental Court involving mold and structural issues. Bryant stated that Code Enforcement has advised that one Environmental Court case has been dismissed due to the unit now being vacant, not due to coming into compliance. Because the unit is now vacant, Code Enforcement is unable to verify compliance or not. Bryant stated that the lack of communication when emails are sent to the PILOT Lessee and all representatives, Board staff is not receiving little to no communication until, many times, the day of the Board meeting.
Perlmutter stated that he is not going to say his team is perfect, and what his team has discovered in the past 6-7 months has been much beyond what was expected. Perlmutter stated his team has replaced 150 A/C units, at an average cost of $4,500-$5,000 per unit, which comes in at approximately $600,000, and that is not something he typically expects. Perlmutter stated that his team did a run-through of each unit to make sure units are working, so he is not saying he has not encountered issues, but he is saying that he would not be spending the amount of money that he is spending, and he has no problem proving that he is spending the money, is he did not believe that the properties will get where they need to be in a timely manner.
JP Townsend stated that he will be reporting on the external observable conditions of the property and will be referencing the construction schedule provided by Perlmutter and his team at the end of June 2026 in preparation for the July 2026 Board meeting. Townsend stated that all parking lot paving, striping, and sidewalk repairs were due to be completed by August 2026, but reported there are still areas of surface damage and potholes in need of repair. Townsend stated that HVAC unit repairs and replacements are supposed to be in progress, and he can state that he has seen HVAC crew members working on units in July. Townsend stated that plumbing repairs were to begin in July 2026 and should now be two months into repairs, but reported there is a current sewer leak on property. Townsend stated that exterior work on buildings should be in phase 3-6 and should be completed by September 2026, but reported there are still exterior issues with siding that need to be replaced and windows that are broken. Townsend stated that balcony work was supposed to be completed by September 2026 but reported that less than half of balconies have been replaced. Townsend reported that most roofs have been replaced, but several remaining roofs still need replacement or repair. Townsend reported that there is also a staircase on property that is crumbling, which is a safety concern. Townsend reported that work began on breezeways, but he has not observed workers present, nor construction crews on site during his inspections. Townsend stated that if construction crews were working on internal units and conditions, he would typically have observed vehicles but has not observed any construction vehicles on site during his recent inspections.
Perlmutter stated that he paid the deposit for the breezeways in late July 2026, work began for the first two phases, and then the vendor did not show up for three weeks, but now the vendor has been working for the past week. Perlmutter stated the reason the vendor did not show up for three weeks was because he has another job; he is a local contractor, and he is on the property now. Perlmutter stated that this delay is not from his side, and some things are beyond his control. Perlmutter went on to explain further that he paid a 50% deposit to the balcony vendor, had a contract with him and work was going well, then the balcony vendor also had his key person leave and he is scrambling. Perlmutter stated that for the windows, he paid the deposit two months ago, there is a 6-8 week waiting period for all windows, and there has been a deposit paid for each one, over 80% of the cost up front, because the vendor needs money to pay for the product. Perlmutter stated that certain things are beyond his control and short of changing vendors. Perlmutter stated his team has through about bringing in vendors that they have worked with in other states so that they know exactly what to expect, as they did in St. Louis, and the crews stay on property and work, but here in Memphis, he has local vendors and thinks his team has figured out the work. Perlmutter stated that he said originally that he did not intend to do the other roofs until later in the schedule.
JP Townsend stated that these issues have been going on for quite a while now and each Board meeting, there are new challenges, but things are happening, and Perlmutter continues to ask for more time. Townsend stated that the Board and staff understand that there are plans, and sometimes plans do not go well, but one of his biggest concerns is that Townsend sends progress report emails to the PILOT Lessee and all representatives following every property inspection to outline what was observed during the inspection, and he has received no correspondence in return. Townsend stated that all the items Perlmutter has discussed today have been in the construction plan for weeks and these things could have been simply addressed with communication, but if representatives are not communicating until the Board meeting, it does not help, and Board staff must work off what can be observed. Townsend stated that if Perlmutter is now saying there is a different plan for the roofs, that could have easily been communicated and with an updated construction plan and the timeline provided needs to be adapted. Perlmutter stated that the original timeline for the balance of the roofs was never planned for now.
Chairman Reid asked for any questions from the Board and asked Board staff and legal counsel to provide recommendations for the Board’s consideration. Stephanie Bryant stated that staff’s recommendation is to assess and impose a $5,000 PILOT Compliance Deficiency Fee today, and tthe Board may also consider requesting legal counsel to issue a Show-Cause Notice or consider termination of this PILOT due to continued noncompliance.
Carpenter stated that time is running out for this PILOT Lessee and the Board has been working cooperatively with Perlmutter, and Perlmutter understands that he and his team entered this portfolio during the final efforts to bring the properties into compliance, and the issues are now six months further into this year. Carpenter stated that Perlmutter must show the evidence of his representations, including the dollars that have been described as spent. Carpenter stated that his Firm’s recommendation is that his Firm will review the construction timeline that was submitted to the Board and hold the PILOT Lessee accountable to that. Carpenter stated that this is a last chance opportunity, and this would be a proposed compliance agreement to the construction schedule and increase in occupancy. Carpenter stated that this Board has regulators including elected officials, the Environmental Court, Code Enforcement, and the public, and the Board must be in good standing with them. Carpenter recommended that this proposed agreement be executed and the PILOT Lessee would have until the October 7, 2026 Board meeting to comply with the agreement. Carpenter stated that if the Board feels that this project has been given every consideration and is not confident that the complaince can be reached within the next 30-day period, the Board has it at its discretion to terminate the PILOT at today’s meeting.
Cliff Henderson asked if Carpenter’s proposal is that anything that has been presented to the Board by the developer to have completed will need to be done over the next 30 days. Carpenter stated that as Townsend referenced, the developer has provided the Board and staff with a construction and occupancy schedule with certain milestones, and this is a proposal to formally hold the developer accountable to that schedule. Henderson asked if all retroactive items that have not been completed would need to be completed by the October Board meeting, to which Carpenter confirmed, yes, for the scope of work pledged to be completed by that date, and would include assurances moving forward that the developer would be in a position to financially and otherwise maintain the remainder of the agreement that was submitted to the Board and staff. Henderson asked if this proposed timeframe for October was realistic. Perlmutter stated that he only has control over spending money but does not control the trades. Perlmutter stated that as an example, he can prove that deposits were paid for the continued work on the breezeways, but he cannot control when the vendor shows up to perform the work. Perlmutter stated that he could bring in his own team, which is not a local company, and the team would live at the property and get the work done, and this is not a question of money because every day of delay costs money.
Carpenter stated that Perlmutter submitted the construction and occupancy timeline to the Board, the Board did not impose it on the developer, so there must have been some level of diligence performed and communication with contractors on the part of the developer in order to have provided the schedule that was submitted. Perlmutter agreed, but stated that when the timeline was submitted, he stated that there would be deviations because he does not control certain things. Perlmutter went on to provide additional examples to the Board but admitted that communication has been his problem. Perlmutter stated that he will ensure his team is connected with Board staff and they will provide updates to Board staff on a weekly basis. Henderson asked Perlmutter specifically if he would be able to achieve the promised scope of work in the next 30-day period. Perlmutter stated that is the committed work is not completed this month, it will be completed next month, but he will make sure his team provides weekly updates to Board staff, it is not about the $5,000 fee or money, and that he is working with the banks on funding that is sitting there in escrow accounts, but he goes ahead and pays for what is needed. After further discussion, Henderson stated that his concern is that the Board will be in the same position in October, and while he understands that Perlmutter does not control the trades, he does control the plan and Perlmutter is taking responsibility for the lack of communication.
Henderson stated that with what has been described as to the construction status, he does not see that Perlmutter will be able to close the gap by the October 7, 2026 Board meeting, and he is trying to be fair and look at a contingency built into the plan that allows for the volatility with the trades and that is the element that is missing right now. Perlmutter stated that the plan was constructed this way due to the way funds are being deployed and depending on what the property can handle. Perlmutter stated that he hopes that if there is an issue beyond his control, such as rain for a 5-day period, that the Board would understand that is not of his team’s doing and allow him to move forward with construction and give leeway at that time. Henderson stated that he views Perlmutter as an experienced developer and what the Board needs is a plan to provide an optimistic timeframe but considers potential delays and provides a pessimistic alternative or contingency if delays are experienced. Henderson reiterated Carpenter’s comments regarding the Board’s accountability to other entities, elected officials, and the public, and Perlmutter must treat the Board as the entity that can take this PILOT away, which will cause additional issues for Perlmutter as a developer.
After further discussion, Howard Eddings stated that it sounds like the agreement needs to be adjusted based on the fact that unless things come through with vendors and there is a mad push that allows everything to happen in the next 4 weeks, the developer will not be able to meet the October deadline. Eddings stated that the Board needs to know, based on the plan that was presented and the work that was supposed to be done based on that plan, much of that work still needs to be done, and now Perlmutter is making representations that this work can be done in four weeks, versus the extended period of time the developer had to complete the work prior to today’s meeting, and perhaps the last Board meeting. Perlmutter stated that the plan was structured with a purpose and contracts were signed based on that, but now if the vendor is three weeks late, Perlmutter must go back to the vendor and ask what the delay was, and no one wants money sitting around and not doing anything, but he cannot give a timeline on these things. Eddings stated that Perlmutter should have anticipated the Board asking about these items not being completed. After further discussion, Perlmutter asked for an opportunity to provide a revised timeline, with the only caveat being that the vendor has hired to do the work on the balconies has disappeared, so he will have to start over on that work, but otherwise, he can get things done.
Monice Hagler stated that based on the recommendations of Board staff, legal counsel, and this discussion that has taken place, she would propose that the PILOT Lessee be required to appear before the Board at the November 4, 2026 Board meeting with evidence of work that has transpired since today’s meeting, a specific outline of what work has been completed, a construction schedule and timeline for the remaining work to be done, evidence of funding spent on the project, evidence of the financial commitment to complete the remaining work and move forward with the project, weekly updates provided by PILOT Lessee or representatives to Board staff, and to assess and impose a $5,000 PILOT Compliance Deficiency Fee due today, with a $10,000 PILOT Compliance Deficiency Fee to be assessed and imposed at the November 4, 2026 Board meeting if the PILOT Lessee is not prepared with all the aforementioned materials at the November 4, 2026 Board meeting and the Board determines to move forward with the project and not terminate the PILOT agreement. There being no further questions,
Monice Hagler made a motion that the PILOT Lessee be required to appear before the Board at the November 4, 2026 Board meeting with evidence of work that has transpired since today’s September 9, 2026 Board meeting, a specific outline of what work has been completed, a construction schedule and timeline for the remaining work to be done, evidence of funding spent on the project, evidence of the financial commitment to complete the remaining work and move forward with the project, weekly written updates provided by PILOT Lessee or representatives to Board staff including requested rent rolls, and to assess and impose a $5,000 PILOT Compliance Deficiency Fee due today, with a $10,000 PILOT Compliance Deficiency Fee to be assessed and imposed at the November 4, 2026 Board meeting if the PILOT Lessee is not prepared with all the aforementioned materials at the November 4, 2026 Board meeting and the Board determines to move forward with the project and not terminate the PILOT agreement. All evidence of work, evidence of funds, construction outlines, and requested rent rolls must be submitted to Board staff no later than October 20, 2026 in preparation for the November 4, 2026 Board meeting. Howard Eddings, Jr. seconded, and the motion passed unanimously after proper roll call vote of the Board members.
b. Country View Apartments
Bryant stated that she received a Utility Service Termination Notice that was sent out to all Country View Apartments tenants, which states that the main meter for Country View Apartments will be disconnected on September 16, 2026. Bryant stated that this notice was provided to her by an attorney representing a current tenant at Country View Apartments. Chairman Reid asked if the notice cited a reason for the disconnection, to which Bryant stated it does not, but Carpenter added that this type of disconnection is typically due to nonpayment, and this notice was provided by an attorney with Memphis Area Legal Services. Perlmutter stated that he found out about this at the same time the Board found out and stated that Country View Apartments does not pay for power because power is literally paid by the tenants and Country View Apartments does not pay for water because it is also has individual meters, with the exception of one building, there are no amenities on the property, and he is looking into this. Carpenter asked if there are any common areas on the property. Perlmutter stated that there are very little common areas and no amenities, and he has provided the notice to his attorney. Perlmutter stated that this issue stems from a particular tenant named Kent and stated that if the Board were to read the minutes from a current lawsuit with this tenant, the Board would understand where this is coming from but told the Board not to worry and that there will be no disconnect.
Bryant stated that the Board also assessed and imposed a $5,000 PILOT Compliance Deficiency Fee at its August 5, 2026 Board meeting, the fee was invoiced to the PILOT Lessee on August 7, 2026 and has not been paid. Bryant also reported that Board staff requested a rent roll on August 31, 2026 for this property and has not received a rent roll, and the last known occupancy rate for the property is from an August 4, 2026 rent roll that shows a 49.5% occupancy rate for Country View Apartments. Bryant also reported that no written update was provided by the PILOT Lessee to Board staff in preparation for today’s Board meeting. Bryant also advised the Board that the construction schedule that has been discussed during today's meeting was provided to the Board in preparation for the July 8, 2026 Board meeting.
Perlmutter stated that occupancy is at 54.8%, and he will ensure communication with Board staff and takes full responsibility, stating there is no excuse. Perlmutter went on to further explain the same challenges with vendors for this property, as well as challenges with the bank, stating that the mortgage for this property is $153,000 per month, and to make up the mortgage payments from January until today is close to $1 million, plus all other expenses including staff and unit turns.
Carpenter stated that this Board has a lot of empathy and is working with the developer to try to move these projects forward, but sharing all of the developer’s business issues has no impact or compelling sway with the Board because the Board’s matrix of how a PILOT Lessee is evaluated is completely different. Carpenter stated that Perlmutter was aware that this was an uphill battle at the onset of his involvement and at this time, the developer is at risk of having all PILOT agreements with him terminated, and compliance with the Board’s policies and procedures is the only thing that will save that from happening. Carpenter asked Perlmutter to reflect on the position that the tenants of these properties are in when they have mold, no air conditioning, and safety issues on the property, and that is who the Board’s constituents are, and they must be protected. Carpenter stated that some say the Board is not doing a good job of considering the tenants, so when they Board considers Abington as this developer’s best property, it has spent a substantial amount of time discussing the conditions there, the developer has reported over 60 evictions, this puts the PILOT property further away from compliance. Carpenter stated that in the Board’s experience, when tenants are evicted, the developer must renovate those units to put them back into the market for leasing, because they are not typically rent-ready when those tenants are evicted. Carpenter asked that Perlmutter focus on how these issues can be resolved and in what time frame because no matter how good of intentions a developer has, if the developer is not able to perform work on a timely basis, the Board must move on. Carpenter recommended that subject to the utility issue being resolved, that the Board move forward with the same conditions as were outlined for Abington Apartments, and at the Board’s November 4, 2026 Board meeting, the Board will either receive information that the property is moving in the right direction to compliance, or his Firm will recommend termination of these PILOTs from the program because the Board has the full picture and what is going on and its focus is making sure that the families that are part of the PILOT properties are treated with compliance and fairness. There being no further questions,
Monice Hagler made a motion to that the PILOT Lessee be required to appear before the Board at the November 4, 2026 Board meeting with evidence of work that has transpired since today’s September 9, 2026 Board meeting, a specific outline of what work has been completed, a construction schedule and timeline for the remaining work to be done, evidence of funding spent on the project, evidence of the financial commitment to complete the remaining work and move forward with the project, weekly written updates provided by PILOT Lessee or representatives to Board staff including requested rent rolls, and to assess and impose a second $5,000 PILOT Compliance Deficiency Fee now due. All evidence of work, evidence of funds, construction outlines, and requested rent rolls must be submitted to Board staff no later than October 20, 2026 in preparation for the November 4, 2026 Board meeting. Howard Eddings, Jr. seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Chairman Reid stated that the Board will rely heavily on Board staff’s recommendation concerning correspondance over the next 60-days.
Isaac Perlmutter and David Upton left the meeting.
Executive Director’s Report
a. Trey McKngiht thanked the Board for its support with respect to Code Enforcement, stating that the relationship is working, and Board staff is receiving updates and information like never before. McKnight stated that this relationship has cost the Board some money, but it has facilitated cultivating a relationship and receiving information that the Board has never received before, so this is a victory lap and a good thing and he is thankful for that.
b. McKnight stated that the Board’s new website is out of migration and is now coming out of the quality control phase, and staff will be training next week for the website. McKnight stated that the website is beautiful, and he will send out an update to the Board and thanked the working group for its input, stating the project is at the finish line and complete. McKnight stated that the quality control phase was set to last 2-3 weeks.
c. McKnight thanked Courtnee Melton-Fant for her recommendation for a housing summit that he participated in, including an interview. McKnight stated that this housing summit occurs every three years and Mayor Young’s office, Housing and Community Development (HCD), and Economic Development Growth Engine (EDGE) were all a part of this. McKnight stated that he did a 90-minute interview that will be published in the coming months and will send that information to the Board and staff.
d. McKnight stated that he will be attending the 2026 NALHFA Fall Educational Summit in Washington, D.C. September 15-16, 2026 and invited Board members and staff to advise Stephanie Bryant if they would like to register for this event. McKnight stated the attendees will meet with elected officials for a “Day on the Hill” and will have the opportunity to meet and greet representatives.
e. McKnight stated that he continues to meet with Mayor Young’s staff bi-weekly with respect to getting updates on what is going on in the community regarding Mayor Young’s initiative to provide 10,000 units to the community by 2030 and how he can assist with that initiative.
f. McKnight reported that he will be appearing before Memphis City Council with Director Neil of Code Enforcement to discuss the relationship that has been formulated between Code Enforcement and the Board and to discuss how the Board has assisted Code Enforcement with some properties in the Board’s PILOT program and to continue to offer any kind of assistance to Code Enforcement. McKnight again stated that this relationship with Code Enforcement is working.
There were no questions or comments.
Operations Report
Stephanie Bryant presented the Operations Report as follows:
a. Review of Compliance Oversight for August 2026
Bryant reported as follows:
August 2026 Compliance Review for September 9, 2026 Board Meeting
1. Under Observation:
a. One property was moved UP from regular monitoring to Under Observation status:
1. Creekside Meadows (f/k/a Bent Tree): 82% Occupancy Rate; virtual meeting with ownership held on August 19, 2026; Construction of fire damaged buildings has begun, multiple sewer leaks observed on property, front security gate is non-functioning, both playground areas have damaged equipment
b. The following PILOT properties remain in Under Observation status:
2. 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; renovation construction remains on track with construction plan; Bryant reported that a 09.05.2026 rent roll submission reflects an increased occupancy rate of 66%.
3. Residences at Lakeview: PROGESS- 73% Occupancy Rate (increase from 72%); Work has begun again; Board staff held a virtual meeting with ownership and management on August 10, 2026, in which ownership described the halt in construction was due to staffing issues at the property; majority of new damages is from a recent storm; Board Staff will continue to monitor progress. Bryant reported that a 09.01.2026 rent roll submission reflects an increased occupancy rate of 77%.
4. Timber Pines: PROGRESS-84% Occupancy Rate; area next to laundry room has not been resurfaced; grass needs to be mowed, and playground (tenant benefit) has been removed; Board staff will continue to monitor.
5. University Place II & III: STATUS QUO- University Place II-65% Occupancy Rate (decrease from 75%), University Place III-71% Occupancy Rate (decrease from 76%). 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. The following PILOT properties remain in Compliance Concerns status:
1. Coronado Manor: STATUS QUO-79% Occupancy Rate; Property construction remains incomplete; PILOT Lessee has provided a written construction schedule and now stated construction completion will be achieved in February 2027. PILOT Lessee has been issued a written agreement for signature from Board’s legal counsel, as described in July 8, 2026 Board meeting minutes. During last inspection, a crew was observed working on site and first two buildings described in the construction plan, and those two buildings (#2461 & #2455) appear to be externally complete, but buildings have not begun to be occupied.
3. Notice of Non-Compliance:
a. The following PILOT properties remain in Notice of Non-Compliance status:
1. Bridgeport Manor: STATUS QUO-64% Occupancy Rate; Property closed PILOT Refinancing in March 2026. PILOT Lessee has been issued a written agreement for signature from Board’s legal counsel, as described in July 8, 2026 Board meeting minutes. During last inspection, no work was observed; full internal renovations were still needed with some units down to studs; no real progress was observed.
4. Legal Default:
a. The following two (2) properties moved UP from Notice of Non-Compliance Status and were referred to Legal Default status:
1. Mill Creek: STATUS QUO- 53.8% Occupancy Rate (decline from 66.5%); recent inspections observations included numerous open windows, window units/fans installed (Staff has contacted Code Enforcement for update); HEHF Board staff conducted a walkthrough of the property on July 28, 2026 and had requested a construction timeline and action plan, all bids, contracts, and permits to be submitted no later than August 10, 2026. Submission was insufficient and a virtual meeting was held with ownership on August 19, 2026 and property was referred to legal default. During last inspection, progress has already been observed, but due to low occupancy, property has still been referred to legal default for stronger oversight until occupancy rate, and all compliance issues are resolved.
2. Villages at Harrisson Creek: STATUS QUO- 71.6% Occupancy Rate (decline from 75%); No progress has been made to the completion of this property; Board staff conducted a walkthrough of the property on July 30, 2026 and had requested a construction timeline and action plan, all bids, contracts, and permits to be submitted no later than August 15, 2026. Submission was insufficient and a virtual meeting was held with ownership on August 26, 2026 and property was referred to legal default.
b. The following PILOT properties remain in Legal Default status:
3. Cedar Run: STATUS QUO-Occupancy Rate unknown; 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.
4. Two (2) PILOT properties portfolio:
A. Abington Apartments: STATUS QUO-55% Occupancy Rate (decrease from 59%); 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; Most recent inspection, no progress has been observed, no crews were observed to be working on site; many same areas of damaged noted on prior inspections remain; renovated areas have been maintained, but no other progress observed.
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; Most recent inspection notes no change to proper since last inspection; still several areas of repairs needed; still the same broken/boarded up windows; damaged gutters and areas of siding that need to be cleaned/repaired; Some roof show signs of age and shingle deterioration; no notable change.
5. 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 the October 7, 2026 Board meeting.
There were no further questions or comments.
Finance Committee Report
Cliff Henderson presented the financial results for the month ending July 31, 2026. After discussion,
Howard Eddings, Jr. moved for acceptance of the Finance Committee Report for the month ended July 31, 2026, properly seconded by Courtnee Melton-Fant, 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 was hoping to have something more substantive to present to the Board today, but the Strategic Planning Committee has rightfully challenged some things regarding the intelligence proposal that has been previously discussed. Henderson stated that he had something in mind initially that was smaller than something the Committee has come across, which has more substance to it as far as intelligence goes. Henderson stated that there has been a proof of concept that the Committee has seen that was developed to show how things could be, Henderson presented a statement of work to the Committee and was asked to validate it relative to other municipalities that do similar type of work and was asked by the Committee to get additional validation from the City Administration. Henderson stated that this has now been done and Mike Humes led a meeting with the City Administration and was able to pull together some additional information on other municipalities across the nation to see what the cost of similar types of work has been. That information has been pulled together, and the Committee was provided that memo for review on September 8, 2026, and there is a meeting of the Committee later this week to pressure test that information. Henderson stated he hopes to present something to the Board at its October Board meeting that would be able to advance that forward, as that is the key element. Henderson stated that the capabilities are impressive and this is where everything is going to come together, including Memphis Police Department data, utility information, Code Enforcement information, etc., so this will move things forward and advance all these things.
Henderson stated he wants to ensure the Committee is comfortable with the statement of work, what the Board will be getting, and how it will be supported before it is presented for review by the full Board. Henderson stated that once these steps are accomplished, a lot of other things will flow through. Henderson stated that he is going to ask Humes to provide an update on mStreet because that is another element with smart fiber, and there have been some changes there in the last couple of months that affect how things operate in that arena. Then, Henderson stated that as the website is getting closer to being released, that is also a factor in how the Board will pull in some of these nonprofits and some other things that the Board may be able to do as things move forward. Henderson stated that things are advancing, although not as quickly as he would like the to advance at times, but they are advancing. Henderson stated that he does feel comfortable with where things are and that the Committee should be able to present something at the October Board meeting for the Board to vote on.
Humes stated that he met with Chris Winton, the new CAO with the City Administration, and he has a fiber background and has a very good hand on the mStreet project now. Humes stated that Jason Mulligan, who is the internal owner's representative for the City Administration under a separate contract, is very engaged and mStreet conversations are now advancing on all fronts. Humes stated that he also shared the Board’s Strategic Planning Committee initiatives with Winton, and he was impressed with that type of work and insight that was provided and really wants to get involved. Humes stated he left a lot of information with Winton as a follow-up. Humes stated that he also met with the Joint Office of Neighborhood Safety and Engagement, which is under both City and County mayors, and Tamika Williams, who leads that organization, has approximately 45 organizations that are focused on neighborhood safety and engagement, Humes shared the Board’s strategy with them, and all agreed it absolutely aligns with that the Board is doing. Humes stated that the organization is looking for data as to where their client base is against the Board’s portfolio of PILOT properties and provide that information to the Board so that the Board can see how the two organizations may work together. Humes stated that Agape has launched a program called Human Flourishing, with the support of the Governor, in three counties in the State of Tennessee, which includes Memphis, Nashville, and Knoxville. Humes stated that Human Flourishing focuses on Agape bringing all the resources for housing, recovery, employment, transportation, education, mental health, physical health, safety, dental, financial stability, food, childcare, and legal assistance. Humes stated that Memphis is one of the areas this program will be beta tested, and this is a good thing and is supported by the Tennessee Governor.
Humes reported that the Mid-South Development District held their housing roundtable that focused on six different goals, some of which are related to the Board’s business and some of which are related to single family and Mayor Young’s 10,000-unit goal, and all this ties together. Humes stated that he and Winton spoke about Mayor Young’s 10,000-unit goal and how the Board can be helpful. Humes stated that the goal is to reduce regulatory barriers, expand financing and funding access, increase diversified supply, expand home ownership access, strengthen developer capacity, and build the regional knowledge and advocacy base, which also fits within the strategy that the Board is implementing.
Humes stated that Chairman Reid was able to attend a ribbon cutting ceremony for Urban Roots, which is an agricultural project at Star Academy for students K-8th grade. Humes stated that Urban Roots is a nonprofit that set aside approximately 5 acres of their property and is teaching kids to grow food. Humes stated that Urban Roots wants to take that model and help the Board on PILOT properties that have sufficient acreage on properties, and they would come in and teach those owners, property managers, and tenants how to grow their own food on site. Chairman Reid stated that the operation is impressive and is made up of a dynamic group of individuals that have put that together. Humes stated that the person that leads Urban Roots is also leading the Human Flourishing initiative for West Tennessee, so it is all connected. Humes stated that there is an entity called World Relief that he is connected with, and their focus is on helping refugee community, of which there are about 100,000 in Memphis, and there is a population of about 200 that live across 33 PILOT properties, and the World Relief organization is working with those refugees to help them become legal citizens of the United States.
Humes stated that Code Crew is engaged and has a new Board Chair, of which Humes met with him as well as the Executive Director, so once the Board gets into the Power BI phase, Code Crew would like to engage with the Board on the technology side. Humes stated that he had a very good conversation around data access with Memphis Light, Gas, and Water (MLGW) representatives and bringing in the data by PILOT property that the Board can pull into the data dashboard that will tell the Board how efficient every building is on a square foot basis for water, gas, and electric. Humes stated that this data is ready to go when the Board is ready to plug into it. Chairman Reid stated that it will be interesting to see pre-PILOT and post-PILOT, if developers that come in with an action plan for energy efficiency and energy saving initiatives, this will give the Board a benchmark to see if the developer has done what they committed to do with those energy saving initiatives and commitments. Humes agreed and went into detail on specific energy saving options certain developers commit to as part of their applications. Humes stated that MLGW also has another program called Energy Doctors and MLGW will go in and help buildings with their energy efficiency programs with the support of Tennessee Valley Authority (TVA) funding.
Henderson stated that he is excited, and things like the information that Stephanie Bryant presents each Board meeting for compliance will be able to be on this platform and give the Board a holistic view of not only who is lagging, but who is performing well, and be able to see trends and shifts. Hendrson stated that he would not have believed the capabilities of the data platform being discussed has he not seen it for himself. Henderson stated the Committee plans to present more detail for the Board to take action on at the October 7, 2026 Board meeting, but stated that last month, the Board extended Mike Humes’ services for one month, and he would like to propose a motion that would extend Humes’ services for another month, and any additional extension of services will be contingent upon the Board moving forward with the intelligence piece, which will open up additional work. 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 October 7, 2026 Board meeting, and additional consultant service durations for Humes will be determined contingent upon the Strategic Planning Committee presentation to the Board at its October 7, 2026 Board meeting. Vincent Sawyer 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, October 7, 2026 @ Noon. There being no further business, the meeting was adjourned by the Chairman at 1:37 p.m. CT.