MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS, TENNESSEE
Wednesday, July 8, 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 1, 2026, simultaneous posting to the Daily Memphian website at: www.dailymemphian.com, and the public notice was continuously published on the Board’s website at: www.memphishehf.com. The published meeting time was 12:00 Noon. The meeting was held in the conference room in the Board offices, located at 65 Union Avenue, Suite 1120, Memphis, TN 38103.
The following Directors were present:
Daniel T. Reid, Chairman Monice Hagler
Buckner Wellford Cliff Henderson (Zoom)
Howard Eddings, Jr. Vincent Sawyer (Zoom)
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; Garrison Green (Zoom), Katrina Shephard (Zoom), legal assistant to General Counsel; Cheryl Hearn, Deputy City Attorney; Kaylon Lamb, Simone Thompson, and Shane Casey, interns 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 Garry Gee representing Coves at Yale; Frank Stockdale Carney, Esq., of Evans Petree Law Firm and Mendel Fischer, Shrage Marasow (Zoom), and Neil Knopf representing Coronado Manor and Bridgeport Manor; Alex Shores of Multi-South Management Services, LLC representing Sterling Townhomes; Isaac Perlmutter and Savannah Faircloth of Aurox Equities, David Shemano, and David Upton representing Abington Apartments, Country View Apartments, and Jamesbridge Apartments; Jan Kidder (Zoom) and Christine (Zoom) of Memphis Interfaith Coalition for Action & Hope (MICAH); Lawerence Crozier (Zoom) of African American Clergy; Sam (Zoom); and several members of the public were also present.
Cheryl Hearn stated that the City of Memphis has 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 those in attendance to introduce themselves. Kaylon Lamb introduced himself, stating he is a rising Senior at Germantown High School. Simone Thompson introduced herself as a rising Junior at the University of Memphis, majoring in Political Science, and Shane Casey introduced himself as a rising Junior at Xavier University in Louisiana, majoring in Political Science. All were welcomed by Chairman Reid and the Board.
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, July 8, 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
Howard Eddings, Jr. moved for approval of the Minutes of the June 3, 2026 Regular Meeting, seconded by Courtnee Melton-Fant. and the motion passed unanimously after proper roll call vote of the Board members.
Attorney’s Report
Charles Carpenter and Corbin Carpenter presented the legal report, as follows:
1. Charles Carpenter reported
a. One (1) new claim for the month of June 2026:
i. April Woods Apartments: Notice of Personal Injury Claim
b. Notice of three (3) materialmen’s claims for the month of June 2026 in connection with the following PILOT properties:
i. Boulevard Apartments
ii. Ridgecrest Apartments
iii. Abington Apartments
Carpenter reminded the Board that under State Law, while the Board is serving its public purpose for the PILOT program, the Board has statutory immunity and no legal or financial liability in any of the above matters. Carpenter reported that his Firm has provided notice and that information 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. Corbin Carpenter reported Bond and PILOT activities for the month of June 2026:
a. Bond Activities:
i. MH Strategies Family RAD I, LP – Askew/Uptown Projects: Bond Reissuance closed.
ii. MH Strategies II, LP-Borda/Venson Projects: Bond Remarketing closed.
iii. Covenant Gardens Senior Apartments Bond closing anticipated by the end of July 2026.
b. PILOT Activities:
i. Place of Promise PILOT closed.
ii. Cavelier Court PILOT Term Extension closed.
iii. Gospel Gardens PILOT Term Extension closed.
iv. Eastern Creek PILOT Term Extension closed.
3. Corbin Carpenter reported that Carpenter Law was contacted by the Memphis Bar Association and was asked to host a continuing education course on PILOTs, Bonds, and The Health, Educational and Housing Facility Board, and the Firm has agreed to do so. Corbin Carpenter stated that this event is anticipated to be held in November 2026, and preliminarily will consist of various sessions, and is expected to last approximately three (3) hours. Corbin Carpenter stated that the Board and staff will be invited and included in this event, along with invitations to developers; with more details to come.
Trey McKnight interjected and asked that Corbin Carpenter include him in this upcoming event.
4. Finally, Charles Carpenter offered thanks to this volunteer Board for the work it does, stating that the housing need is great and their work is vitally important to the community. Carpenter stated that the community is experiencing difficult times right now, and thanked Board members for their time, talent, and attention to this work.
Charles Carpenter stated that his Firm is a part of various trade associations, including housing and bond associations, which focuses on Housing and Urban Development (HUD), which is a key entity at the federal level that provides global housing information and HUD just released a recent report providing insight into affordable housing statistics, not just in Memphis, but nation-wide, evidencing how very difficult it is for families to maintain affordable housing. Carpenter stated that there is always a lag time of a couple of years in reporting, but the matrix of the Area Median Gross Income, which is important under the U.S. Tax Code, as a measuring stick for family incomes qualifying for restricted rents, the HUD report reviewed and published recent nation-wide data from 2023:
a. 15.5% of residents earn between 30%-40% of the Area Median Gross Income.
b. 13.1% of residents earn between 40%-50% of the Area Median Gross Income.
c. 8% of residents earn between 50%-60% of the Area Median Gross Income.
d. 6.2% of residents earn more than 60% of the Area Median Gross Income.
e. 48.3% of residents receive monthly rental assistance (this is the highest rate since HUD began reporting this data in 2015).
f. The national median Low-Income Housing Tax Credit (LIHTC) tenant income is $18,600 annually.
g. Nearly 20% of households had income of $10,000 or less.
Carpenter stated that this data shows how important the work of the Board is. Carpenter stated that with the inflationary factors that are being experienced and going forward, and the escalation in food, gas, and energy prices, it is very difficult for a family to maintain itself. Without the services that this Board provides, Carpenter stated that this would be a much different situation in Memphis because Memphians would not have the ability to support themselves, even though they are out working a full-time job on a daily basis.
There being no questions or comments, Chairman Reid proceeded with Action Items.
Action Items-
1. PILOT Refinancing Application for Coves Apartments Utah, LLC (d/b/a Coves at Yale)
Charles Carpenter introduced this agenda item, stating that this is an existing PILOT that has performed well under the Board’s PILOT program and that this is an application for refinancing. Carpenter reported that Board staff and his Firm have successfully completed the application submittal conference and there will be some improvements made to the property as part of the uses of the proceeds and the application complies with the Board’s PILOT policies and procedures and his Firm recommends that the Board look favorably upon this application. Carpenter asked the representative in attendance to introduce himself and provide any additional comments. Garry Gee introduced himself, stating that he is the Director of Property Asset Management, over Coves at Yale, and his company has owned the property since 2018. Gee stated that his company owns several other properties in the Memphis area; his group runs them well. Gee stated that as part of the refinancing, Coves at Yale will be getting new windows, will be overlaying a section of the parking lot that has not been overlayed in several years, and adding additional security cameras to the existing security system. Gee stated that the most exciting new tenant benefit that is being made possible through this refinancing is the addition of intrusion alarms at an affordable rate. Gee explained that the tenant can get a stop button, two to four depending on household size, and the tenant can carry that stop button with them anywhere they go in Memphis, and if they experience an emergency of any type, the tenant can press that button and they will immediately be contacted by the agency who provides the button, and they will be asked what type of assistance they need, whether its medical, police, etc. Gee stated that this will also give the tenant the ability to monitor their apartment unit remotely.
Chairman Reid asked if Gee anticipates reopening the pool at the property, to which Gee stated yes, and that management is working to get a motor on the pool pump replaced, and he has been assured that the pool will be reopen by Monday, July 13, 2026.
Stephanie Bryant stated that this property has not had an occupancy below 98% in the last 15 months, as listed in the Board meeting materials, but that occupancy has been in that realm for several years and thanked the PILOT Lessee for his dedication to this property and its tenants. There being no further questions or comments,
Monice Hagler made a motion to approve the PILOT Refinancing Application for Coves Apartments Utah, LLC (d/b/a Coves at Yale). Howard Eddings, Jr. seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Garry Gee left the meeting.
2. PILOT Status Update for Coronado Manor
Carpenter introduced this agenda item, stating that at the Board’s June 3, 2026 Board meeting the Board had voted to allow Mendel Fischer to be represented by his legal counsel today, as he had anticipated to be traveling abroad, but as he is present today, Carpenter turned the meeting over to representatives in attendance to provide an update on Coronado Manor.
Frank Carney stated that at the Board’s June 3, 2026 Board meeting, ownership had made a request to the Board for its consideration to modify the current tenant benefits with a substitution. Carney stated that all requested materials were submitted to Board staff and legal counsel in a timely manner.
Carpenter stated that when this tenant benefit modification was discussed at the Board’s June 3, 2026 Board meeting, the Board made it clear that the Tenant Benefit Certification modification must be made as part of the Board’s record, and it would be appropriate for the Board to vote on a motion allowing the amendment to the property’s Tenant Benefit commitments to substitute the Tenant Benefit of “Installation of new security gate for enhanced security” and replace with “Installation of Parking permits and lot monitoring by a towing partner”. There being no further questions or comments,
Howard Eddings, Jr. made a motion to approve the Tenant Benefit modification to remove the “Installation of new security gate for enhanced security” and replace with “Parking permits and lot monitoring by a towing partner” for Coronado Manor. Courtnee Melton-Fant seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Frank Carney stated that the Board had also requested an updated construction schedule, which was provided, and he is happy to answer any questions the Board may have. Carpenter stated that with this information that the Board has in front of them, the question becomes, even though the property complies with the minimum 75% occupancy requirement, there are other down units that the Board is concerned with having a definitive plan as to the timeframe that those units were going to be brought online. Carpenter stated that the information provided stated that the work will be self-performed by the PILOT Lessee’s internal maintenance team, and that the PILOT Lessee is committed to providing an average minimum of seven (7) units per month to active unit status.
Carpenter stated that after reviewing the information provided, he recommends two things to take place: (i) if the Board accepts a construction schedule of an average minimum of seven (7) units per month to be delivered to the active unit status, that there be a written commitment outlining that fact for internal and external compliance tracking purposes and (ii) based on the PILOT program, the Board has an obligation to notify the primary lender as to what is going on with the property that keeps the property in the Board’s compliance step process of additional oversight, so this written commitment would also be shared with the primary lender so that all information can be overseen and all parties are on the same page moving forward. Stephanie Bryant stated that this written agreement would also include the revised completion date indicated by the PILOT Lessee of February 2027. After discussion,
Monice Hagler made a motion for Carpenter Law to prepare a written agreement to be agreed to and signed by the PILOT Lessee that outlines the Board’s acceptance of a construction schedule of an average minimum of seven (7) units per month to be delivered to the active unit status, with a total unit construction completion date of February 2027, and that the written agreement be shared with the primary lender for Coronado Manor. Howard Eddings, Jr. seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Carpenter clarified that the Board would receive monthly written reports as part of this agreement. Mendel Fischer asked how this agreement will affect the property in the Board’s step program. Stephanie Bryant stated that the property is currently in Notice of Non-Compliance, and staff would agree to recommend movement down to Compliance Concerns as a good-faith effort in working with the PILOT Lessee to get this project completed, and that would be the second stage in the Board’s step program, with the lowest step being Under Observation. Carpenter stated that the property will be moved down at least one step from where it is now, and this will also be addressed in the written agreement. Carpenter stated that he does not anticipate monthly appearances before the Board during this time, but adjustments will be made as the PILOT Lessee complies with the construction plan and things move forward in accordance with the agreement. Trey McKnight stated to representatives that communication with Board staff and legal counsel will be very important. Fischer stated that he just needs to get out of default, because all the banks see is default, which creates additional issues from the lender. Chairman Reid stated that nothing would make the Board happier, and the Board is doing what is necessary to assist in getting matters in compliance and added that if progress at the property digresses in this process, the Board will not look favorably upon it.
3. Status Updates for PILOTs in Legal Default:
a. Bridgeport Manor
Carpenter stated that Bridgeport Manor is currently in Legal Default status with the same developer as Action Item #2-Coronado Manor and is here before the Board today with a status update. Frank Carney stated that like Coronado Manor, at the Board’s June 3, 2026 Board meeting, ownership had made a request to the Board for its consideration to modify the current tenant benefits with a substitution. Carney stated that all requested materials were submitted to Board staff and legal counsel in a timely manner. Carpenter stated that this information is correct and this was held over from the Board’s June 3, 2026 Board meeting. His Firm has conferred with Board staff on this issue, and asked Stephanie Bryant to add any additional comment. Bryant stated that the request is to remove the “Installation of new security gate for enhanced security” and replace with “Parking permits and lot monitoring by a towing partner” and Bryant stated that Board staff would recommend approval of the Board’s consideration of this modification. There being no further questions or comments,
Courtnee Melton-Fant made a motion to approve the Tenant Benefit modification to remove the “Installation of new security gate for enhanced security” and replace with “Parking permits and lot monitoring by a towing partner” for Bridgeport Manor. Monice Hagler seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Carney stated that the Board had also requested at the June 3, 2026 Board meeting a written construction timeline to include construction start dates and construction completion dates noted by month and year, and General Contractor contract(s), and those have been provided timely. Bryant stated that the construction timeline submission revises the construction completion date to May 2027, occupancy rate remains at 64.3% based on a June 30, 2026 Rent Roll, and Board staff would recommend a similar protocol of written agreement to be signed by the PILOT Lessee and shared with the primary lender(s). Bryant stated that Board staff would also recommend movement of this property down in the Board’s Compliance step program to Notice of Non-Compliance, out of Legal Default, as a show of good faith effort, and in return would expect the PILOT Lessee to follow through with its commitments put forth before the Board today with the revision of a May 2027 project completion date. Mendel Fischer stated that as part of the recent refinancing that Bridgeport went through and was communicated with Santander Bank.
Carpenter asked what level of activity is taking place at the property right now. Fischer stated that permits have been pulled, plumbing and electrical inspections are set for this week, and once everything is set with the inspectors, he is sure that construction will complete according to the submitted timeline, if not faster. JP Townsend stated that he did note plumbers working in the first building that is listed on the timeline, but that was the extent of the work he was able to observe, but now that he has a timeline submission, he will be able to report directly on the progress in accordance with the timeline submission. Carpenter stated that this project would follow the same suit that was discussed for Coronado Manor with the written agreement, which shall be submitted to the primary lender(s). There being no further questions,
Howard Eddings, Jr. made a motion for Carpenter Law to prepare a written agreement to be agreed to and signed by the PILOT Lessee that outlines the Board’s acceptance of a construction schedule with a total project completion date of May 2027, and that the written agreement be shared with the primary lender(s) for Bridgeport Manor. Courtnee Melton-Fant seconded, and the motion passed unanimously after proper roll call vote of the Board members.
b. Sterling Apartments
Carpenter stated that Sterling Townhomes is in a unique situation of having two (2) arson fires take place at the property during the beginning stages of construction. Due to the fires, Code Enforcement has been involved, and the insurance company and the property owner have been engaged in litigation. Carpenter stated that according to updates received from the PILOT Lessee and internal and external monitors, that the property has now been cleaned up, Code Enforcement is currently satisfied with the condition of the property, and now the PILOT Lessee must determine whether it intends to move forward with the current PILOT in place or if the PILOT Lessee desires to terminate the current PILOT and work through the insurance litigation issues to a resolution. Carpenter invited Alex Shores, representative in attendance for the project, to provide an update to the Board.
Shores stated that it is the PILOT Lessee’s desire to continue forward with the current PILOT in place that was set out originally. Shores stated that the PILOT Lessee was able to have its first hearing concerning the litigation with the insurance company, which has been filed in California. Shores stated that the insurance company had filed a motion to move the case back to Tennessee, and the California Court ruled against that motion, so the lawsuit will go forward in California, as originally planned by the PILOT Lessee. Shores stated that the PILOT Lessee is requesting more time to work through this court process, but the goal remains to deliver 112 units, just as the original PILOT commitment called for.
Stephanie Bryant confirmed that the property has been cleaned up and the PILOT Lessee has followed through with its described plan to the Board. Bryant stated the Board staff’s recommendation is to allow the PILOT Lessee ninety (90) days to work through the litigation process, provide written monthly updates to Board staff to be provided no later than the 5th of each month, beginning August 5, 2026, and appear before the Board for a status update at the October 7, 2026 Board meeting. Carpenter stated that his Firm has no objections to that recommendation. There being no further questions,
Howard Eddings, Jr. made a motion for the PILOT Lessee to provide written monthly updates to Board staff to be provided no later than the 5th of each month, beginning August 5, 2026, and appear before the Board for a status update at the October 7, 2026 Board meeting. Courtnee Melton-Fant seconded, and the motion passed unanimously after proper roll call vote of the Board members.
c. Abington Apartments
Carpenter introduced this agenda item stating that items c, d, and e, are all owned and operated by the same developer and team and introduced David Shemano, owner, Isaac Perlmutter, investor, and David Upton, consultant, in attendance representing this PILOT portfolio.
Chairman Reid asked for confirmation that Abington Apartments was included in the legal report as one of the PILOT Lessees with a materialmen’s lien that has recently been filed, to which Carpenter confirmed yes. Carpenter invited representatives to provide a status update for each property. Isaac Perlmutter introduced Savannah Faircloth as the local project manager for Aurox Equities, being the current site manager for each of these projects and invited Faircloth to provide an update. Faircloth stated that she recently joined the Aurox team just a few months ago, and her role is to gather quotes and get the vendors out to perform the work, and she has made progress with that tasks. Faircloth stated that what Aurox is trying to accomplish right now is safety, security, and the enjoyment of the property. The team has been meeting with engineers to ensure the vendors are qualified to perform the work safely. Faircloth stated that work has begun on several staircases and getting the property grounds cleaned up to ensure they are safe for the tenants. Faircloth stated that she has reviewed the construction timelines that were submitted to the Board, and the team is on track to achieve those completion dates. Right now, Faircloth stated she is pending confirmation for the vendor’s availability, and the proposals have been approved, deposits made, and are awaiting scheduling, so inspectors will begin to see more construction. Faircloth stated that her team is also working on perimeter fencing and tree removal.
Carpenter emphasized that Faircloth should report an update on each property separately for clarity. Faircloth stated that Abington tree removal is complete and she is waiting on the vendor to receive the windows for the property to begin replacement, and have been provided a tentative date of July 20, 2026 for those windows, but she is awaiting confirmation of that date. Faircloth reported that construction on decks is underway, with 24 decks complete, and construction on the remaining decks is to begin July 27, 2026. Faircloth stated that breezeway work is moving out of phase 2 and beginning in phase 3 of construction, which will be an additional four (4) buildings that will be updated and renovated. Faircloth stated that nine (9) building breezeways have been completed so far. Faircloth stated that landscaping has been cleaned up, perimeter fencing is going up today, July 8, 2026, pool furnishings are forthcoming, and all permits are up to date. Faircloth stated that the Health Department is due to approve the pool in the week of July 13, 2026, and then the pool will reopen. The playground has had a drainage system installed and painting has been updated for the children’s enjoyment, and landscaping cleanup is 45% through the cleanup process, Faircloth reported, and completion is scheduled for the end of July 2026, but no later than the first week of August 2026. Faircloth stated that management is in the process of updating and installing all new appliances, and all HVAC units have been checked, cleaned of any debris, all repairs needed have been noted, and any repairs should be completed before mid-August 2026.
David Upton stated that Aurox Equities has spent over $1.2 million, with the major expenditure being the roofing, and Abington Apartments is moving faster than the other properties in the portfolio, but in the investment agreement there is a commitment over the next 18 months to spend $3.7 million, but the goal over the next six months is $1.5 million and the investor is hitting those marks. Upton stated that occupancy will also rise over the next six months, which is obviously very important.
Stephanie Bryant reported to the Board that the construction schedule submission references a $3.768 million budget for 384 units, covering 30 buildings, with most of the work to be completed by September 2026, with some mechanical work completion extended to August 2027. Bryant stated that the current occupancy rate according to a July 1, 2026 rent roll is at 59%, an increase from the Q1 2026 Occupancy Report submission. Bryant reminded the Board that Isaac Perlmutter’s prior statements at the June 3, 2026 Board meeting indicated that the property would be at a 65% occupancy rate at this point, so while the 59% rate is not quite there, it is progress in the right direction. Bryant stated that the property will need to occupy sixty-one (61) additional units to achieve the Board’s 75% minimum occupancy requirement. Bryant reported that Board staff has seen substantial progress at this property and would recommend representatives appear before the Board at its September 2026 Board meeting, with a check-in with Board staff and legal counsel in 30 days.
Perlmutter stated that occupancy was on target to reach 65% by the end of July 2026, appliances have been ordered, and he now has 48 units that are waiting to move in, so he believes he is on target to achieve 75% occupancy. There being no further questions or comments,
Monice Hagler made a motion for the PILOT Lessee to check-in with Board Staff and legal counsel in 30 days, and appear before the Board for a status update at the September 2026 Board meeting. Howard Eddings, Jr. seconded, and the motion passed unanimously after proper roll call vote of the Board members.
d. Country View Apartments
David Upton stated that in the same mode; Country View Apartments has an 18-month commitment, based on the investor relationship of Aurox Equities with David Shemano, for just under $2.9 million with a six-month goal of cash expenditures of just under $1.3 million. Upton stated that hopefully this property will start moving as fast as Abington Apartments.
Savannah Faircloth stated that she is utilizing the same vendors that have been established with work at Abington Apartments for Country View, and she is waiting on suppliers to be able to get the access gate, but the proposal has been approved and the vendor has indicated that the lead time is 8 weeks, so that is what management is looking at as far as getting the material, and then the gate will be installed right away. Faircloth stated that management is prioritizing security and surveillance and she has a proposal for that to be completed and she anticipates installation of the surveillance system in August 2026, and management will have the ability to record at the access point who is entering the property.
Faircloth stated that tree removal is starting today, July 8, 2026, and landscaping work will be done as Abington’s was done, prioritizing HVAC unit cleanup of debris and assessing necessary repairs to keep tenants safe throughout the heat of the summer. Faircloth stated that the supplier is also waiting on windows to be delivered, and once delivered, those will be installed in conjunction with Abington window installation, and once she has an update, she will provide that information to the Board. Faircloth stated that debris removal, tree removal, and trash removal is happening at the same time and has all started. Faircloth stated that she is in the process of getting proposals for the exterior, and she anticipated receiving a proposal this upcoming week, which will provide more direction on a start date for exterior construction. Faircloth stated that there will also be updates performed to exterior lighting, and then construction on staircases will begin the week of July 13, 2026, and that work has already been approved and scheduled, and is waiting on materials that have been ordered.
JP Townsend stated that he has not observed much work beginning at Country View Apartments, and this is a property that has been in steady decline with several exterior areas that need to be addressed, including windows. Townsend stated that there has been work performed to stop the erosion issue and asked representatives for an update on that. Faircloth stated that she has met with the landscaping team and construction is going to begin on the erosion remediation as well. Faircloth stated that she has a meeting with the landscaping company owner the week of July 13, 2026 to find out when those areas of erosion will be filled in, but her biggest concern is the safety of the tenants and children on the backside of the property. Perlmutter stated that he had to get an engineer report, which has been received, and drainage lines will have to be reconstructed as a long-term solution to ensure this does not happen again, and this work is scheduled for July 2026.
Chairman Reid ask Townsend if during his inspections if the grass around the playground has been as overgrown as show in photos provided to the Board by its external compliance monitors. Townsend stated that during his last inspection, landscaping crews were onsite mowing grass on that date, but it was substantially overgrown prior to that taking place. Townsend stated that the property has been on a steady decline. There are a lot of privacy fences that need repair. Townsend reported that during his last inspection there was not as much excess trash around the property, but the property needs a lot of work. Upton asked is the construction budget submission was missing any line items that would address concerns. Townsend stated that it is not about the construction budget, but it is about seeing that the work is done. Perlmutter stated that Country View is the second property to begin major work on this schedule, and if someone were to go to the property today, they would see landscaping work and tree work being done. Perlmutter stated that all he wants is to follow the schedule and that he will honor the schedule, and he is on track to do that. Faircloth stated that the work is being prioritized. Townsend stated that Abington Apartments now has a secure perimeter, and as these properties achieve secure perimeters, he will need management to provide Board staff an access code to enter the property to perform inspections. Perlmutter explained that the security gate was functional at Country View, someone hit the gate, and it takes 8 weeks to get the materials in the repair it, but that is in process, as well as he will be adding amenities to the property, as it has no amenities, but the goal is for tenants to have a place to enjoy.
Carpenter stated that prior to Perlmutter’s involvement, the Board has already lost a lot of time, so time is of the essence, and it is not on anyone’s side, and it is not just a matter of good intentions at this point; it is urgent. Carpenter stated that every day is important and communication is important. Carpenter stated that as Perlmutter prioritizes the scopes of work, health and safety issues are key with stairwells, missing steps, erosion issues, playground areas where children would be exposed to injury, and things of that nature, must be dealt with priority. Carpenter stated that Townsend is the Board’s internal compliance inspector, but the Board also has an external third-party compliance inspector that are engineers and they are inspecting these properties as well, so if there are remaining health and safety issues from one meeting to the next, that is not going to be good.
Stephanie Bryant stated that the proposed budget for Country View apartments is $2.8 million for a 321-unit complex. Bryant stated that while the Board staff appreciates the effort in the budgeting and planning, there has been no real change observed externally at this property. Bryant reported that the construction schedule submission shows most work scheduled to be completed by January 2027, with some exterior work completion extending to April 2027 and balcony work completion extending further do December 2027. Bryant reported that the occupancy rate has also declined from 54.8% according to an April 1, 2026 rent roll, now to 46% according to a July 1, 2026 rent roll. Bryant stated that Board staff’s recommendation is that (i) the PILOT Lessee and representatives appear before the Board at the August 5, 2026 Board meeting to provide a status update and (ii) the Board consider a PILOT Compliance Deficiency Fee of $5,000.
Perlmutter stated that he has shared with Carpenter Law the contracts between Aurox Equities and David Shemano, the PILOT Lessee, and for certain properties, funding comes from Aurox Equities, and other properties, there are funding reserves with the lender. Perlmutter stated that with Country View, the funding is coming directly from Aurox Equities, and it is very difficult to invest money in a property that you do not own, and there is no legal recourse for the money that is being given. Perlmutter stated that the agreement between Aurox Equities and Shemano was signed on June 17, 2026, and he believes that when representatives come back in 30 days, there will be visible major change because he is investing and spending, and he is scheduled to have 25 move-ins during July 2026 and he is doing whatever he needs to do, and he knows that time is not only against this Board, but against him as well. Perlmutter stated that he is paying the mortgage, and the Board will see major change quickly. Perlmutter stated that the construction is structured in the way it is, building by building, is to create as little disruption to the tenants as possible. Perlmutter stated that when construction is scheduled in an organized way, it is easy to follow and be seen, and that is key and is how he is going to progress.
Perlmutter stated that if there is something within the construction schedule submission that is misaligned with the Board’s priorities to let him know and he will adjust, it is not about the money, only about the time to make sure it is done right. Upton asked if the $5,000 PILOT Compliance Deficiency Fee could be voted on and levied at the August Board meeting or today, to which Chairman Reid stated the fee would be voted on today, and he believes it merits discussion. Reid stated that if the PILOT Lessee appears before the Board at its August 5, 2026 Board meeting and there is no marked improvement, he would support charging the fee at that time. Bryant stated that the Board does have precedent where the Board can vote to impose the fee, and it would be voted on when to be assessed at a future meeting, which is an option the Board may want to consider. There being no further questions or comments,
Howard Eddings, Jr. made a motion to impose a $5,000 PILOT Compliance Deficiency Fee on Country View Apartments, and requiring the PILOT Lessee is to appear before the Board for a status update at the August 5, 2026 Board meeting, and the Board will determine when the $5,000 PILOT Compliance Deficiency Fee will be paid at the August 5, 2026 Board meeting. Monice Hagler seconded, and the motion passed unanimously after proper roll call vote of the Board members.
e. Jamesbridge Apartments
David Upton stated that Jamesbridge has a $3.5 million budget over 18 months with an estimated goal of $1.5 million to be spent over the next 6 months. Upton stated that there are some complicated factors, as there is a large escrow account that representatives are working to unlock and turned the meeting over to Isaac Perlmutter for additional comments.
Perlmutter stated that as has been previously discussed, this property has been going through the process of the lender requesting a receivership through the federal court, but that receivership petition was not successful. Perlmutter stated that he plans to share with Carpenter Law his communication with the lender, and that there was a lawyer for Shemano involved and a lawyer for Aurox Equities involved. Perlmutter stated that since Aurox Equities and Shemano are two separate entities, things are being addressed from two different angles. Perlmutter stated that his company is prepared to bring the mortgage current, start the work, and begin occupying the property and operating it the way it should be, but the construction schedule and budget submitted to Board staff is all pending bank approval, which means Aurox Equities’ entry to the property and recognition of the investment.
Perlmutter stated that he estimated that by the August 5, 2026 Board meeting, he should have a signed agreement with the bank and be in full control to be able to do what needs to be done and be on track with the construction timeline submitted, but at this point things are at a standstill. Perlmutter stated that for now, the property is being maintained, landscaping is taking place, and work orders are being addressed, but the fire-damaged building needs to be demolished, but it cannot be demolished without approval, but he is actively working to get this resolved. Perlmutter stated that he will keep the Board aware of what is going on, but he believes by the August 5, 2026 Board meeting that he will be in a position that work will have started.
Upton recommended that Perlmutter advise the Board about what has been done to secure the fire-damaged building. Perlmutter stated that it needs to be demolished. Savannah Faircloth stated that fencing has been erected around the fire-damaged building, but the vendor is waiting on additional materials. Faircloth stated she is seeking a second opinion on how to better secure the building because of safety concerns. Faircloth stated that the property is receiving landscape servicing on a weekly basis, and the grounds continue to stay clean. Faircloth stated that she has been working with the contractor that will complete the demolition, and they are ready to go, but approval is required to move forward, but it is something she is working towards within the month.
Carpenter stated that this property is probably one of the worst as far as the physical condition of it, and recently Board staff and legal counsel have expressed concerns from Code Enforcement and Aurox Equities responded to that directly with Code Enforcement. Carpenter stated that the challenge with this property is that it is not only this Board’s concerns, but also Code Enforcement, elected officials, and others that have oversight of this property, and asked representatives what they can share with the Board that would be any different with the condition 30 days from now that it is right now. Perlmutter stated that he responded to Code Enforcement, and he has been communicating with the bank and sent a letter to the bank stating that the bank is impeding the property and putting the property at risk of losing the PILOT and is causing harm to the property and to Aurox Equities’ investment and demanded a response. Perlmutter stated that the bank has been slow to respond, and he had a meeting with his lawyer yesterday, and his lawyer has served the bank with formal paperwork that states that the bank needs to negotiate with Aurox Equities or face legal action. Perlmutter stated again that he believes that by the August 5, 2026 Board meeting that the bank issue will be resolved and work will have begun on the property, but in the interest of being transparent, it is not totally up to him. Perlmutter stated that he is prepared to bring the mortgage current, which is a cost of $1 million, but he needs the bank’s cooperation to do that, but he believes it will get done by the August 5, 2026 Board meeting. Perlmutter asked the Board to allow him until the Board’s August 5, 2026 Board meeting and if the work that is projected is not done, then the Board can take whatever action it feels is right.
Carpenter directed the Board to the Board meeting materials, which include photos of Jamesbridge Apartments from the Board’s third-party compliance inspectors. JP Townsend stated that he can confirm Carpenter’s earlier comments that Jamesbridge Apartments is the worst property in the Board’s PILOT portfolio and conditions have gotten extreme at this property, occupancy continues to drop, and it is hard to report on a property that no visible exterior work has been done and all that can be observed is continued decline. Townsend stated that the only improvement he has seen is that grass has been mowed and landscaping has been cleaned up but living conditions of the people that currently live there right now are not good. Howard Eddings, Jr. asked Townsend if, when the Board’s third-party inspectors, Wilbanks, go to properties, if notice is provided to the owners or managers of the property. Townsend stated no, and that when Wilbanks or he goes to inspect a property, no notice is provided, but unlike Wilbanks, when Townsend performs an inspection, he sends a progress report email to all property contacts, including ownership and management, following every inspection to describe all external observable conditions observed during each inspection. Eddings asked if the Board were to compare Townsend’s recent report and Wilbanks recent report for this property to reports last month or last quarter, then he assumes they would be about the same with no movement at all.
Perlmutter stated that all he can say is look at what he was able to do with Abington Apartments with the bank agreements to move forward and proceed and he did not hesitate to spend the money or do whatever needed to be done, and conditions are getting better. In this situation, Perlmutter stated that he has little control over the bank, but he has put the bank on notice that Aurox Equities is going to hold the bank responsible for making Aurox lose money because now it is a potential legal liability matter and the bank should be moving much more quickly. Carpenter stated that the Board oversees a number of PILOTs and deals with a number of different lenders, and asked Perlmutter, in his view, what the obstacle is for the bank to approve Aurox Equities to move forward and bring the mortgage current because the property continues to deteriorate on everyone’s watch. Perlmutter stated that when Aurox Equities got involved with these properties, Aurox could not make full commitments before the initial first three months because Aurox needed to know exactly what it was going to take to get things done. Now, Perlmutter stated that this is how the contract was structured and that Aurox Equities would manage these properties for three months, and after three months, there would be general deals for each property and Aurox would move forward with doing what needs to be done, so he does not think they delay was from the side of the bank, but was on the side of Aurox Equities and changing lawyers in the middle of the contract. Perlmutter stated that when the bank went to court over the receivership, the bank wanted to negotiate from a position of strength, but when that was lost in court, no Aurox is in a position of strength, and these things just take time.
Perlmutter stated that with Abington, he received verbal approval from the bank on December 28, 2025, and began spending money right away, but with Jamesbridge, the loan is with CMBS, which is not the originator of the loan but a new entity, so the relationship is not there, but the money is there and ready to go, and all he needs is approval and then the Board will see a change and things will move very quickly. Perlmutter stated that there were major underground water leaks that he had to spend $20,000 of Aurox funding to fix, but Faircloth has done a tremendous amount of work on how things will look eventually, she has a plan that includes a lake where people in the neighborhood can come fishing, and there is a lot of potential that is going to be there. But before Aurox writes the check for that kind of money, they need cooperation from the bank, and he requests time to do that. Perlmutter stated that Jamesbridge is a beautiful property that is going to be really nice a good for the community.
Monice Hagler asked if all tenants that live at Jamesbridge are being serviced, meaning does everyone have air conditioning that lives on the property? Perlmutter stated that he met this morning with the managers at the property and there is one tenant whose air conditioning went out last week, and she went out herself to pick up an air conditioner and put it in the window until it gets fixed. Perlmutter stated Aurox is maintaining the property, but when the real money comes, he will have to redo the siding, and he cannot own properties that are not properly maintained because that is not how he operates, so he plans to replace all the siding. Hagler asked if there is communication with tenants and asked if the tenants know what is going on. Perlmutter stated that he shares what he can, but he does not want to share negativity, but he does share the future but does not want to be dishonest with tenants. Perlmutter stated that is Aurox is able to make a deal with the bank, then the mortgage will be maintained, because that is a lot of money each month, and if the occupancy rate is low, he will lose that money, and if that is money that never comes back, that is investment that is lost, so it is in his best interest to move this property ahead, and everything is lines up. Perlmutter stated that he will have Faircloth share all proposals and contracts with the Board staff and as soon as he receives approval from the bank, he will begin the construction process.
Stephanie Bryant stated that the occupancy rate declined from 36% to 34%, no movement has been observed, a construction schedule and budget was submitted, and most of the work is due to be completed in July 2027, with remaining mechanical work to be completed by December 2027. Bryant stated that respectfully, the property and the Board is in this same position at its June 3, 2026 Board meeting, the receivership issue has been contemplated since February 2026, and Board staff’s recommendation at the June 3, 2026 Board meeting was termination of the PILOT, but modified that recommendation to give until today’s meeting for Perlmutter to work through the receivership and bank challenges because it was described that movement was anticipated within a week’s time, but things remain in much of the same place and there remains no confirmation of movement at this time. With the facts and circumstances where they are today, Bryant stated that this is a huge challenge, and it is absolutely heart-wrenching to see this property in this condition, and Board staff's recommendation is termination of the PILOT. Chairman Reid asked if any fine has been levied, as was just done with Country View Apartments. Bryant stated that there has been no fine levied at this time. Chairman Reid advised the Board that it does have that same option available to it to impose a $5,000 PILOT Compliance Deficiency Fee today, and if there is no movement by the Board’s August 5, 2026 Board meeting, then the Board would be well within its rights to assess the fine at that time and take any other additional steps it deems appropriate. After further discussion,
Howard Eddings, Jr. made a motion to impose a $5,000 PILOT Compliance Deficiency Fee on Jamesbridge Apartments, and requiring the PILOT Lessee is to appear before the Board for a status update at the August 5, 2026 Board meeting, and the Board will determine if the $5,000 PILOT Compliance Deficiency Fee will be paid at the August 5, 2026 Board meeting. Monice Hagler seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Isaac Perlmutter, Savannah Faircloth, David Shemano, and David Upton left the meeting.
Cheryl Hearn, Kaylon Lamb, Simone Thompson, and Shane Casey left the meeting.
Howard Eddings, Jr. left the meeting.
Executive Director’s Report
a. Trey McKnight reported that on a quarterly basis, he intends to charter a bus to take Board members around the City of Memphis to observe lower performing properties in the Board’s PILOT portfolio for the Board to observe what citizens are living in and dealing with on an everyday basis. McKnight stated that the conditions of some of these lower performing properties are unfortunately deplorable. McKnight stated that he intends to begin the next quarter and will have a bus tour available for all who would like to attend to provide a different perspective of what Board staff is looking at and what conditions people are living in.
b. McKnight reported that he will be attending the 2026 National Association of Local Housing Finance Agencies (NALHFA) Fall Educational Summit in Washington, D.C on September 15-16, 2026 and invited Board members and staff to attend.
c. McKnight reported that the website is still moving forward, and he is looking at an August 1, 2026 launch. McKnight stated that the process is going well, that he and Cliff Henderson have a meeting with the website developer, Revize, on July 9, 2026 to discuss the Microsoft Power BI dashboard integration. McKnight stated that progress is a little behind schedule, but that is to be expected with a website's development, but everything is moving forward. McKnight thanked the website working group for their input in helping him get things together because it has not been easy, and many know how difficult it is to get a website going forward, but it will be 100% better than the current website that is in place and he is looking forward to that.
d. McKnight stated that things are looking good and moving forward with respect to the NALHFA conference to be held in Memphis in 2029. McKnight stated that he has been working with the director of NALHFA, Mr. Payne, and stated that these locations are determined two years in advance. McKnight stated that the 2027 NALHFA conference will be in Seattle, WA, with the 2028 NALHFA Conference to be held in San Francisco, so he is looking at Memphis being the next in line for 2029 and he is really excited about it.
e. McKnight stated that the Greenbriar Ribbon Cutting event went very, very well and thanked Board staff for attending. McKnight stated that he ran late for the event and was unable to fulfill his speaking engagement for the event, as he was held up at the Memphis City Council Committee Meeting that morning for Monice Hagler and Howard Eddings, Jr.’s reappointments to the Board that same day.
f. McKnight stated that he recently did a presentation to the Memphis City Council and the Memphis City Council looks at the Board as a great organization and thinks the Board is going in a great direction.
g. McKnight stated that he was the keynote speaker at a recent Code Enforcement staff meeting that went very, very well and that the continued relationship with Code Enforcement is helpful because now the Board staff is receiving information and internal pictures when there are any open violations or anything that is going before Environmental Court. McKnight stated that the purpose of this recent meeting was for him to reiterate the importance of the relationship between the Board and Code Enforcement. McKnight stated that he and Cliff Henderson have an upcoming meeting with Code Enforcement to discuss how the Board can leverage Code Enforcement information with respect to the Board’s portfolio and get more information ahead of time. McKnight stated that meeting will take place the week of July 13, 2026, and thanked Cliff Henderson for recommending that this meeting take place. McKnight reported that moving forward, he, Henderson, and Code Enforcement will be meeting to move forward with additional information in the Board’s portfolio being shared earlier.
h. McKnight reported that Ralph Perry of Tennessee Housing Development Agency (THDA) will be in Memphis in late July and he plans to have a mixer at the Board’s office. McKnight stated that he will be speaking with Henderson about funding refreshments for that event. McKnight stated that developers will be attending, along with Ralph Perry and his staff, and the Board and Board staff will also be invited to attend. McKnight stated that a former event held in 2025, approximately 25 developers attended, and all questions were answered and he has garnered a better relationship with THDA and now has contacts to reach out to, and he hopes to continue growing that relationship with THDA. Chairman Reid asked how McKnight is getting the message out to developers. McKnight responded that he is putting together flyers and sending them out and will have Stephanie Bryant send out flyers as well. McKnight stated that he plans to send flyers to the City of Memphis Housing and Community Development personnel and Memphis Housing Authority. McKnight stated that he will work on at least a weekly basis to continue to grow that relationship with THDA as much as he possibly can. McKnight stated that the event is anticipated to take place on June 23, 2026. Vincent Sawyer stated that he appreciates the invites that are sent out via email but would respectfully request that they be accompanied by a calendar invite, as Sawyer would participate more if that was done. McKnight stated that he understood and would do that moving forward. McKnight stated that whenever he participates in any event representing the Board, he invites anybody to attend.
i. McKnight stated that John Zeneah has left the City of Memphis Administration, and with that, the bi-weekly meetings among PILOT granting organizations have ceased. McKnight stated that if those meetings are not picked back up by someone within the Administration, he plans to continue those meetings on a monthly basis with CRA, HCD, and MHA to continue to put heads together and make sure nothing falls through the cracks and if there is anything that the Board can assist or ways that each organization can assist each other. McKnight stated that out of respect for Mayor Young’s office, he will wait to see if someone is put in place to carry these meetings forward, but if not, he will take the lead on that and make sure those meetings happen.
j. McKnight stated that on July 23, 2026, he will be the keynote speaker at the West Grand Region CHOICES Advisory Board meeting with BlueCross BlueShield. McKnight stated that at this event there will be discussions on food insecurity and resources and affordable housing. McKnight stated that the event will be held at the BlueCross BlueShield Office at 240 Madison Avenue, lunch will be served, and he will send a calendar invite to everyone. McKnight again stated that he will be the keynote speaker at the event and will be discussing affordable housing.
There were no questions or comments.
Operations Report
Stephanie Bryant presented the Operations Report as follows:
a. Bryant stated that she was also able to attend the Greenbriar Ribbon Cutting Event and it was an excellent event that featured a raffle for all Greenbriar residents that were in attendance to participate in, which created an exciting opportunity for those residents and was well done by Alco Management, Inc.
b. Bryant reported that the FYE 2025 Audit has concluded and she will be scheduling a meeting with the Finance Committee and Banks, Finley, White and Company, the Board’s external auditor, to review the results of the FYE 2025 Audit. Bryant stated that she anticipates the FYE 2025 Audit to be presented at the Board’s upcoming August 5, 2026 Board meeting.
c. Review of Compliance Oversight for June 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:
June 2026 Compliance Review for July 8, 2026 Board Meeting
1. Under Observation:
a. One property was moved DOWN from Under Observation status to regular monitoring:
1. Greenbriar Apartments: 96% occupancy rate; Property has shown consistent progress
b. The following PILOT properties remain in Under Observation status:
1. Emberly Apartments (formerly New Horizon): PROGESS- Property is under construction; 64.3% Occupancy Rate; Property is Under Observation as a condition of the PILOT approval in April 2025; Property will remain Under Observation until construction is completed; exterior construction of buildings appears complete, and construction has moved to interiors and is on track.
2. Luxe at Raleigh: PROGRESS-92% Occupancy Rate; Walkthrough performed May 27, 2026: Finalizing repairs needed. Board staff will continue to monitor progress.
3. Residences at Lakeview: PROGESS- 72% Occupancy Rate (increase from 70%); Lessee is on schedule with timeline/cure plan submission. Work continues and good faith effort has been observed, and communication remains in good standing; occupancy continues to steadily increase.
4. 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. The following PILOT properties remain in Compliance Concerns status:
1. Timber Pines: STATUS QUO-84% Occupancy Rate (increase from 78.9%); area next to laundry room has not been resurfaced; fencing near laundry room at drainage ditch is still in progress; playground and one picnic table have been destroyed and removed (tenant benefit); sewage backup was observed during property inspection on 06.15.2026 and reported to PILOT Lessee in progress report; concerns with drainage after recent observations following heavy rain- will continue to monitor.
3. Notice of Non-Compliance:
a. One property was moved DOWN from Legal Default to Notice of Non-Compliance:
1. Coronado Manor: STATUS QUO-77.8% Occupancy Rate; Property construction remains incomplete; No change to external observable conditions. Mold issues have been observed in some unoccupied units. Property moved up by vote of the Board at the June 3, 2026 Board Meeting. PILOT Lessee has now stated construction completion will be achieved February 2027.
b. The following PILOT properties remain in Non-Compliance status:
1. 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; HEHFB staff will be referring the property to be placed in Legal Default. Board staff plans to meet with ownership in July 2026 prior to legal default issuance as a trial proactive step.
2. 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; HEHFB staff will be referring the property to be placed in Legal Default. Board staff plans to meet with ownership in July 2026 prior to legal default issuance as a trial proactive step.
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.
2. Four (4) PILOT properties portfolio:
A. Abington Apartments: PROGRESS-55% Occupancy Rate; Roofing replacement still in progress
B. Country View Apartments: DECLINE-54.8% Occupancy Rate (decline from 69%); no Q4 2025 or Q1 2026 Occupancy Report submission
C. Jamesbridge Apartments: DECLINE- 36% Occupancy Rate (decline from 42.3%); no Q4 2025 Occupancy Report submission
D. Lakes at Epping Way: DECLINE-40.1% Occupancy Rate (decline from 55%); no Q4 2025 or Q1 2026 Occupancy Report submission; PILOT has expired effective 03.31.2026
3. Bridgeport Manor: STATUS QUO-64.4% Occupancy Rate (increase from 60%); Notice of Legal Default issued 04.17.2025; Property has closed the PILOT Refinancing in March 2026. No change observed to external observable conditions of property. PILOT Lessee has now stated that construction completion will be achieved May 2027.
4. 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 July 8, 2026 Board meeting.
There were no further questions or comments.
Finance Committee Report
Cliff Henderson presented the financial results for the month ending May 31, 2026. After discussion,
Courtnee Melton-Fant moved for acceptance of the Finance Committee Report for the month ended May 31, 2026, properly seconded by Monice Hagler, and the motion passed unanimously after a proper roll call vote of the Board members.
Strategic Planning Committee Update
Mike Humes stated that since the Board's June 3, 2026 Board meeting, he, Chairman Reid, and Cliff Henderson were able to meet with Chief Davis and Deputy Chief Brown, who is over the Real Time Crime Center and all data and analytics for the Memphis Police Department (MPD). Humes stated that they have agreed to work with the Board, and they are checking with the City legal department on what kind of MOU there should be and will get back with the Strategic Planning Committee. Humes stated that MPD has offered a few more tools at no expense to the Board, with one called Crime Prevention Through Environmental Design (CPTED), and there is a team of people at MPD, 36 officers, that can help put into the marketplace for the Board a study of the Board’s PILOT portfolio to see which properties should have security modifications to improve crime prevention. Humes stated that he also met with Deputy Chief McNeil who is over community policing and all the Neighborhood Watch programs, and he is working to connect the Board with all the precincts and Neighborhood Watch leaders and will lead the Board through that. Humes reported that mStreet Fiber has a new CEO as of a month ago, and that CEO visited Memphis about 3 weeks ago and is due to be back in the upcoming few weeks, so mStreet is still progressing with a new leader in place. Humes reported that the Strategic Planning Committee has also had a second meeting with a potential local Microsoft Power BI vendor who is working on a lot of data sets that would be great for the Board. A sample has been turned over to the Strategic Planning Committee, and Humes stated that he anticipates a meeting in the coming week to keep that moving forward.
There were no further questions or comments.
New Business
There was no new business.
Chairman Reid stated that the next regular meeting of the Board is scheduled for Wednesday, August 5, 2026 @ Noon. There being no further business, the meeting was adjourned by the Chairman at 1:47 p.m.