MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS, TENNESSEE
Wednesday, October 1, 2025
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 24, 2025, simultaneous posting to the Daily Memphian website at: www.dailymemphian.com, and the public notice was continuously published on the Board’s website at: www.memphishehf.com. The published meeting time was 12:00 Noon. The meeting was held in the conference room in the Board offices, located at 65 Union Avenue, Suite 1120, Memphis, TN 38103.
The following Directors were present:
Daniel T. Reid, Chairman Monice Hagler (Zoom)
Buckner Wellford Cliff Henderson
Howard Eddings, Jr. Vincent Sawyer
Courtnee Melton-Fant
Staff and others attending: Trey McKnight, Stephanie Bryant, JP Townsend and Nikki Abraham; Charles E. Carpenter and Corbin I. Carpenter, General Counsel; Katrina Shephard (Zoom) and Garrison Green (Zoom), legal assistants to General Counsel; Cheryl Hearn, Deputy City Attorney; Janika White, Esq., Memphis City Council Liaison (Zoom).
Also participating in person and/or via remote Zoom virtual platform were Robert Hyde and Berkeley Burbank of Alco Management, Inc. representing Surrey Apartments; David Shores and Alex Shores of Multi-South Management Services, LLC representing Sterling Townhomes; Frank Stockdale Carney, Esq. of Evans Petree Law Firm and Shrage Marasow (Zoom) representing Bridgeport Manor; Michael Finch of MLK50; Austin (A.T.) Harrison, Christine Fox, Marilyn Brien, and Jan Kidder of Memphis Interfaith Coalition for Action & Hope (MICAH); Simeon Ike of Greater Memphis Housing Justice Project; Aerial Ozuzu of Community Foundation of Greater Memphis; Shirley Bondon of the Black Clergy Collaborative of Memphis; Mike Humes; Kate Bieri and Russel Goof of Fox 13 News; 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, October 1, 2025 @ 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.
Shirley Bondon introduced herself, stating that she is representing the Black Clergy Collaborative of Memphis and Greater Memphis Housing Justice Project. Bondon noted that the federal government shut down on the night of September 30, 2025 and because of this shut down, many benefits will be delayed. Bondon stated that HUD (Housing and Urban Development) may only continue to pay its portion of rent in the HUD-assisted housing program through the end of November, but after that date, it is unclear what will happen. Bondon stated that the organizations she is representing would like to offer tenants free legal information and wondered if there is any way the Board could connect with tenants of the subsidized properties in order to share this information. Carpenter asked Bondon to advise the Board of what information she has to share. Bondon stated that it is information about legal rights, what to expect, and these organizations she represents have an attorney on call that tenants can reach out to, and the attorney will answer questions that tenants may have.
Carpenter explained that the Board’s contact is not with tenants, and the Board’s PILOT contract is with the PILOT Lessees, and communications are typically made through the PILOT Lessee and management company of the property. Carpenter stated that this information is public information, and the Board staff would be happy to provide Bondon’s organization with PILOT Lessee and/or management company information so that contact could be made directly by the organization(s) she is representing. Carpenter stated that the Board would not have another way to assist and is not sanctioning anything like that because there is a lot of information available, some of which he will cover in his legal report during today’s meeting. Carpenter directed Bondon to reach out to Board staff to request the PILOT Lessee information, and it would be provided so that she could reach out directly through her organization(s). Bondon thanked Carpenter and the Board.
There was no other public comment.
Approval of Minutes
Vincent Sawyer moved for approval of the Minutes of the September 3, 2025 Regular Meeting, which was seconded by Cliff Henderson and the motion passed unanimously after proper roll call vote of the Board members.
Attorney’s Report
Charles Carpenter presented the legal report, as follows:
1. Carpenter reminded the Board of his previous report of one (1) new lawsuit regarding the Mason Village Apartments PILOT property filed by one of its tenants and the lawsuit is pro se, meaning the tenant filed it on her own behalf. Carpenter reported that the Board was sued in addition to the management company and the matter was set to appear before the General Sessions Court in the week of August 4, 2025. Carpenter reported that he appeared on behalf of the Board at that time, and the tenant indicated that she wanted to hire an attorney, so that matter was reset for September 23, 2025 at 10:00 am CT so that the tenant would have the opportunity to hire a lawyer. Carpenter reported that he appeared on behalf of the Board at that time, and the tenant did have an attorney appear before General Sessions Court on September 23, 2025, but the attorney stated to the court that she and the tenant had not finalized their arrangements yet, so that matter was reset for October 28, 2025 for trial. Carpenter stated that because the attorney was not officially involved with the party, the court yielded to the attorney and did not make any decision concerning the motion to dismiss the Board, even though the law is clear that the Board is granted statutory immunity pursuant to Tennessee Law based on the fact that it is serving as a public function on behalf of the City of Memphis. Carpenter stated that his Firm is required to appear before the General Sessions Court on October 28, 2025 and if the attorney has been engaged, he will enter an order of dismissal, and this matter will be completed. But as of this time, the matter is still pending, with the Board listed as a party defendant.
2. Carpenter reminded the Board of his previous report on the fire damages that occurred at Sterling Townhomes, the “NOTICE OF CONDEMNATION HEARING”, in which ownership filed an appeal, and the condemnation proceeding has been temporarily stayed pending further actions on appeal. Carpenter stated that the management company, Multi-South Management Company, LLC, is moving forward to clean the property up, which will address many of the condemnation issues. Carpenter advised that there is a meeting scheduled for Thursday, October 2, 2025 at 10:00 am CT with Shelby County Code Enforcement to do a site visit at the property to get an update, and maybe at that time, a new framework will be set so that the cleanup can be done and the matter could be handled at a normal course of business without having any condemnation proceedings.
3. Carpenter reported that as of September 30, 2025 there is a partial federal government shutdown, which does impact affordable housing because HUD is impacted by the shutdown. Carpenter stated that prior to the shutdown there had already been a significant reduction of staff at HUD beginning in January when the new administration took place, so now there are significant issues that will impact how the delivery to the affordable housing industry goes forward. Carpenter reminded the Board that there are a number of housing financings and PILOTs that are in the hopper to close before the end of 2025, and because of the HUD shutdown, there may be a material impact on substantially all of transactions, not only from the tenant standpoint, but also from a financing standpoint. Carpenter stated that as the Board has just previously heard, under this shutdown, HUD will continue to provide Section 8 rental assistance through November 2025, but after that date, it is unclear what will happen, depending on how long the shutdown lasts. We have a very precarious housing ecosystem right now. The administration has instructed federal agencies to furlough nonessential staff and consider permanent layoffs. Since January, 2025 Carpenter reported an estimated 2,300 HUD employees, or 23% of the agency's workforce, have already left. These reductions present a strain on the remaining staff performing their core functions efficiently, and now with the shutdown and the proposed permanent reduction in staff, it is unclear how this is going to work out. Carpenter stated that another significant issue is that Congress had already approved these certain funding sources, and the administration is overruling what Congress had already approved. Carpenter stated he does not know how that issue is going to be taken up, whether there's going to be a challenge in court or if it will just work itself out, but with the proposed reductions to rental housing and homelessness assistance, there are going to be real issues and the courts have already signaled support of the administration's weakening of the Fair Housing Act, which has protections for immigrants, LGBTQ individuals and other homeless funding, so it is disrupting that whole balance. Carpenter stated that from the standpoint of our low-income housing tax credit projects, HUD must approve certain aspects of the transaction because there is a housing assistance contract that is an essential part of the financing where a certain percentage of each project is reserved for low and very low-income individuals and families. Until these elements are approved through HUD, then these projects will not close until those approvals are made. Carpenter stated that HUD also manages the underwriting for Freddie Mac and Fannie Mae financing, so things are in a very delicate position right now, and the industry will just have to wait and see how that works out.
4. Carpenter stated that with the state government, Tennessee Housing Development Agency (THDA), some of the same projects are awaiting results of the Round Two volume cap and tax credit allocations. Carpenter stated that applicants have been waiting for the last two weeks, day-to-day, as to when those announcements would be made. THDA has not made any announcements yet, and Carpenter stated his Firm believes those announcements will be imminent but is unaware of what the delay is. Carpenter stated there is an oversubscription for the Round 2 allocations statewide, and the Board has at least two (2) projects in West Tennessee that the Board has induced that are being considered for Round Two allocations. Carpenter stated that if those projects do not get allocations, representatives will be able to apply again next year, 2026, as there is a new round of volume cap and tax credit allocations each year, so it would not be a loss, but a delay, and those projects would compete in Round One in 2026. Carpenter stated his Firm will keep the Board advised as this progresses.
5. Carpenter reported that his Firm has been monitoring the Shelby County PILOT Ad Hoc Committee on behalf of the Board and reported that the original authorization for the PILOT Ad Hoc Committee expired on August 31, 2025. Carpenter reported that this committee has been reauthorized, and that committee has had one (1) public engagement hearing that took place on September 20, 2025, and the Board’s Executive Director, Trey McKnight, was in attendance. Carpenter reported that there will be a second public engagement hearing that is scheduled for October 11, 2025, at a church in North Memphis, and Trey McKnight is expected to attend that meeting as well. Carpenter stated that he will let McKnight report further on these matters during the Executive Director’s Report.
6. Carpenter stated that as today October 1, 2025, under PILOT law, each PILOT Lessee Statewide must file its annual report with the Tennessee Office of the Comptroller and with the Assessor's office in each county where the property is located. Carpenter stated his Firm has previously reported this; the information is on the Board's website, and this annual requirement is included in all PILOT legal documentation so that PILOT Lessees are aware from the outset of the PILOT term. Carpenter stated that there are substantial fines involved if this annual report is not filed, but the Board and staff have done everything possible to make sure all PILOT Lessees are not only aware, but that they comply with that requirement.
7. Finally, Carpenter reported that THDA has approved the Qualified Allocation Plan (QAP) for 2026, and he would be providing additional details on that in an upcoming Board meeting. Carpenter reported that as THDA has divided the state into three grand divisions, and most of the allocation has been going to the urban jurisdictions in those communities in the three grand divisions. Now there is going to be more of an emphasis on rural communities which is going to reduce the amount of allocation that would be available for cities like Memphis, Metro Nashville, Chattanooga, Knoxville and other larger communities. Carpenter stated that conservative estimates state that within the next ten years, Memphis will need up to 30,000 new additional units, not just preservation, but additional units that would add to the affordable housing stock. Without the support through low-income housing tax credits and so forth, there will not be sufficient financing available to build those units. Carpenter stated that statistics have shown that the cost to build affordable units is just as much as the cost to build commercial market-rate units, and the development community has more potential and upside with market rate units than affordable units, so without assistance, there will likely be less interest in developers building affordable housing units.
Buckner Wellford asked what information is required to be submitted as part of the annual reports due to the Tennessee Office of the Comptroller and the Assessor's office in each county? Carpenter stated that the report consists of information about the project and is a fill-in type of reporting form. Wellford asked if it includes information that would be of interest to the Board, such as occupancy rates. Carpenter stated it does not, and that the Board receives occupancy rate information as part of the Quarterly Report submissions that all PILOT Lessees are required to submit to Board staff. Carpenter stated that from a state-wide standpoint, the Comptroller is gathering the information to know the number of PILOTs, what the cost is each year, what the project is paying in taxes each year, how many units the project has, and so forth. Wellford stated that if the PILOT Lessee is reporting some of the same information to the Comptroller that is being reported to the Board, it would be nice to have the opportunity to review that information as a form of checks and balances, but thanked Carpenter for answering his question.
There being no further questions or comments, the Legal Report was concluded.
Action Items-
1. Final Bond Resolution for APP Surrey Partners, L.L.L.P. (d/b/a Surrey Apartments)
Berkeley Burbank and Robert Hyde entered the meeting.
Charles Carpenter introduced this agenda item with representatives Berkely Burbank and Robert Hyde in attendance, stating that the Board and his Firm has worked with Alco Management, Inc. for quite some time and they have been a tremendous benefit to the affordable housing community in Memphis. Carpenter reminded the Board that this property is one of three properties that were induced by the Board earlier this year and each has been awarded THDA 4% LIHTC. Also, Carpenter noted that this property has also been approved by the Board for a PILOT. Carpenter reported his Firm has been working closely with the financing working group, which has submitted all bond documents, and his Firm has reviewed them and approved them as being in substantially final form and in compliance with the Board’s policies and procedures and would recommend approval. Carpenter invited the Alco representatives to make further comments regarding the Project. Berkeley Burbank thanked the Board for its support and stated the working group is looking to close this transaction, both bond and PILOT, prior to the December 15, 2025 deadline. Burbank stated Alco Management Inc. appreciates its continued work with the Board, and that Surrey Apartments is a 107-unit project at the top end of Raleigh Frazier, and he heard Carpenter report about the need for 30,000 new units earlier in the meeting. Burbank stated that Alco Management, Inc. performs acquisition-rehab projects, and every unit that they are able to renovate and preserve is one less new unit that is needed, so while Alco is not adding to the total count, it is certainly keeping the baseline there and is ready to close this transaction, pending receipt of firm commitment from HUD following the resolution of the current federal government shutdown. There being no further questions or comments,
Cliff Henderson made a motion to approve the Final Bond Resolution for APP Surrey Partners, L.L.L.P. (d/b/a Surrey Apartments). Vincent Sawyer seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Berkeley Burbank and Robert Hyde left the meeting.
2. Status of Sterling Townhomes Fire/Environmental Matters
David Shores and Alex Shores entered the meeting.
Carpenter introduced this agenda item, stating that he briefly spoke about it during his legal report. Carpenter introduced representatives David Shores and Alex Shores of Multi-South Management, Inc. who were in attendance for this agenda item. Carpenter stated that he has been working closely with Multi-South and they have kept his Firm up to date while working with the Memphis Code Enforcement. As previously reported, Carpenter stated that there is a site visit scheduled with Code Enforcement tomorrow, October 2, 2025. Carpenter turned the meeting over to representatives for additional comments. Alex Shores confirmed that there is a site visit scheduled for tomorrow, October 2, 2025, and he can provide an update following that. Alex Shores stated that it is Multi-South's view that the original insurance policy that was in place was written incorrectly, and the insurance company has denied the claim. Alex Shores stated that Multi-South's attorney has reached out to the insurance agent that wrote the policy to open an Errors and Omissions (E&O) case to help resolve this issue.
Carpenter asked what the status of the site is now and asked if the cleanup had been completed. Alex Shores stated that construction is underway and all buildings that suffered any fire damage have been repaired with rough-in work on approximately 19-units and another 6-units are underway. Alex Shores stated that the debris from the fire damage has not been touched because it is unclear what will take place with the claim, so Multi-South is awaiting guidance on that. Carpenter stated that E&O Claims can take time to work through all the processes and asked what the PILOT Lessee’s alternate plan is to move this forward. David Shores stated that the plan is to finish everything in the building that did not get damaged and restore the buildings that were damaged but not destroyed. David Shores stated that the Memphis Fire Department put out one set of buildings, which is believed to have included 20-units that were demolished, and that debris is still there because Multi-South is waiting on the development of the insurance claim to figure out what needs to be done with the debris. David Shores stated that they are ready to get rid of the debris but have been instructed to hold off until the insurance company has made its determinations. David Shores stated that Multi-South will begin restoration work on those fire-damaged units once work is completed on the units that have not been damaged. Carpenter asked what the occupancy rate is at the project site. Alex Shores stated the occupancy is still at 0% occupied.
Carpenter stated that, as previously reported, this is a case of first impression for this Board to have a PILOT property that has been condemned. Carpenter stated that the Board understands the extenuating circumstances, and at the same time, he does not believe there can be any indefinite extension as to the status of the PILOT. Following the Code Enforcement site visit on October 2, 2025, Carpenter stated that his Firm will need to confer with Multi-South and be updated so that can be reported to the Board to make a determination not later than the Board’s November 5, 2025 Board meeting as to how the Board will proceed with this. Carpenter asked representatives to convey this information to the PILOT Lessee, and if they would like to convene more in-depth discussions, his Firm would be available to do that.
David Shores stated that he believes this will be rebuilt for all the remaining units that have not been demolished by the Memphis Fire Department, but the complex will lose those 20-units, and that is the information he has right now. Cliff Henderson asked when the fire occurred. Alex Shores stated that the first fire happened mid-May 2025, and the second fire happened at the end of June 2025. Henderson asked if this is suspected to be arson. Alex Shores stated that Multi-South believes it was vagrants that had been previously kicked out, and they came back and set the fires. Carpenter recommended that this agenda item be reset for a status update at the Board’s November 5, 2025 Board meeting. There were no further questions or comments.
3. Status of PILOTs in Legal Default:
Frank Carney entered the meeting.
a. Bridgeport Manor
Carpenter introduced this agenda item and reminded the Board that the PILOT Lessee was excused from attending today’s meeting due to their observance of the religious holidays. Carpenter introduced Frank Carney, legal counsel to the PILOT Lessee, who is in attendance as representative for this agenda item and to provide a status update of Bridgeport Manor and turned the meeting over to Carney for the status update. Carney thanked Carpenter and the Board for their understanding of his client’s observance of the Jewish holidays and stated that they will attend the Board’s November 5, 2025 Board meeting to provide a status update on the entire portfolio. Carney stated that his status update today is regarding the PILOT Refinancing, and stated a report was submitted to Board staff in preparation for today’s meeting. Carney stated that the lender for the PILOT Refinancing that was previously approved by the Board at the June 4, 2025 Board meeting is Santander, and representatives of Santander did perform a site visit to Bridgeport Manor on September 17, 2025, and the PILOT Lessee is proceeding with that refinancing. Carney stated that the PILOT Lessee was able to get a 90-day extension on the current loan and has not moved forward with the proposed bridge financing at this time and anticipates the Santander loan to close in early November 2025. Carney stated that the PILOT Lessee did provide a report to Board staff that indicated construction would begin on four buildings now, and permits will be pulled on October 27, 2025 to begin the rehabilitation of those four buildings, which will be funded by the PILOT Lessee pending the closing of the Santander Loan. Carpenter asked for confirmation that the September 17, 2025 site visit with Santander representatives took place, to which Carney confirmed it did. Carpenter asked why there is a delay in closing the transaction until the beginning of November 2025. Carney stated that the delay is the number of Jewish holidays in October, which has caused a delay in the ability to schedule the closing. Carney stated that the Jewish holidays will end in the third week of October, then the PILOT Lessee will begin working on the PILOT Refinancing Closing with Santander. Carpenter asked for confirmation that this is more of a scheduling issue and not an issue of compliance or failure to comply with the requirements, to which Carney responded yes. Carney stated that following the site visit, Santander was happy with the requirements they had for the site and that it is proceeding without further issues on closing. Carpenter asked Carney if work is still ongoing in the interim period. Carney stated yes, and that the area manager, Neil Knopf, has reviewed Townsend’s progress reports following each site visit and working on issues that have been observed and reported in the progress reports. Carney again stated that permits are anticipated to be pulled on October 27, 2025 for four buildings and work will proceed with those prior to the PILOT Refinance closing.
Carpenter turned the meeting over to JP Townsend for a report of his observations. Townsend reminded the Board that any property that is included in the Board’ s compliance step process is inspected no less than once per month, and following every inspection, he provides a progress report email to ownership and management representatives for the PILOT property. Townsend reported that during his most recent inspection of Bridgeport Manor, there was some slight soffit damage and fascia damage to occupied buildings. Shortly after the report was sent to ownership and management, Townsend reported receiving an update from Knopf that repairs had been made to those areas. Townsend reported that during his most recent inspection of Bridgeport Manor repairs had been made to some sidewalks, but no real difference was observed to the unoccupied areas of the property. Buckner Wellford stated that the construction plan was part of his motion at the Board’s September 3, 2025 Board meeting, and although the PILOT Lessee is not moving forward with the bridge loan, there was still the condition that there would be a construction plan. Wellford stated that he has reviewed what the PILOT Lessee and their legal counsel submitted, and he does not see any dates listed on that information. Wellford stated that Carney has reported today to the Board that permits will be pulled on October 27, 2025, so he assumes that is part of the construction plan that was asked for, and he does not know why it would take from early September to October 27, 2025 to do that, but the submission is “technically” in compliance.
Carney stated that hopefully by the Board’s November 5, 2025 Board meeting, the construction will be in process. Carney also stated that in a previous Board meeting, it was discussed about some of the social services that are being offered across the portfolio, and he has an outline of that information that he would like to provide to the Board for the next Board meeting. Carney stated that the progress reports that Townsend had recently sent indicated that Eden Pointe is in compliance and wondered if the Board could consider any action on Eden Pointe today. Stephanie Bryant stated that it has already been stated on record that remainder of the properties in this portfolio will be reviewed at the Board’s November 5, 2025 Board meeting and it would not be appropriate for the Board to consider any action at this time. Carney stated he understood and looked forward to providing information on the social services offered across the portfolio so that the Board would have plenty of advanced time to discuss it. Carpenter stated that Carney and the PILOT Lessee will be appearing before the Board at the November 5, 2025 Board meeting to provide a status update on the entire portfolio, and the Board would be in a position at that time to take whatever appropriate steps that they deem necessary at that time. There were no further questions or comments.
Executive Directors Report
a. McKnight reported that he continues to work with a new development corporation in Memphis, Stella Maris Development Corporation, that owns two (2) buildings in the medical district that include approximately 500 units that ownership is looking to convert into affordable housing units.
b. McKnight reported that an out-of-town developer reached out to him this week, and the developer has a hotel in downtown Memphis that they are investigating the possibility of converting to affordable housing, which could add approximately 120 units, if determined to be feasible.
c. McKnight reported that October 9, 2025, there will be a ribbon cutting for South City VI and invited everyone to attend.
d. McKnight reported that on October 8, 2025, from 5:00 pm-6:00 pm CT, on behalf of the Board, he will be hosting a Meet and Greet event for Ralph Perry, President of THDA, in conjunction with the Tennessee Affordable Housing Coalition and the event will be hosted in the office of the Board. McKnight stated he has invited many developers to share information about THDA programs and to get answers to questions with regard to anything to do with THDA.
e. McKnight reported that he attended the Shelby County PILOT Ad Hoc Committee community meeting on September 20, 2025. McKnight stated that Austin (A.T.) Harrison of MICAH, who is in attendance at today’s Board meeting, was also at that event. McKnight stated that they gave a presentation and worked in break-out groups, and he will be attending the next community meeting, which is scheduled for October 11, 2025 and they will be giving another presentation and working with them in the break-out groups, explaining what the Board does and how it does it. McKnight stated that there is a lot of misinformation out there and he wants to inform the community and clarify as much information concerning the Board and its PILOT programs as possible.
f. McKnight reported that he and Chairman Reid attended the Economic Club Presentation, which was very well attended, with a great lunch and a great presentation. McKnight stated that he will continue to invite members of the Board to those types of events, and if anyone would like to attend with him, just let him know and he can get extra tickets. McKnight stated that he has also gotten a ticket for Howard Eddings, Jr. so that he can attend the Economic Development Growth Engine (EDGE) Awards Breakfast on October 9, 2025. McKnight advised that if any other members of the Board would like to attend, please reach out and he will get extra tickets for that event as well.
g. McKnight stated that he will be in attendance at the upcoming THDA Tennessee Housing Conference on February 23-24, 2026. McKnight stated that on February 24, 2026, there is “Day on the Hill”, and stated that Eddings, Jr. should have already received an email with regard to the information for that event, as McKnight stated that Eddings, Jr. had indicated he would like to attend that event with McKnight, as well as Vincent Sawyer. McKnight stated that if any other members of the Board are interested in attending that event, please reach out to him. This event is to work with elected officials.
Buckner Wellford stated that at the Board’s September 3, 2025 Board Meeting, McKnight had stated that Councilwoman Logan and Housing and Community Development Director Ashley Cash had reached out to set up a meeting and asked for an update on that. McKnight stated that he has sent out two emails and has not received a response and still is not aware of the purpose of the meeting request.
There were no questions or comments.
Operations Report
Stephanie Bryant presented the Operations Report as follows:
a. Review of Compliance Oversight for September 2025
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:
1. Under Observation:
a. One (1) PILOT property placed in “Under Observation” status from regular monitoring during September 2025:
i. Luxe at Raleigh- declining property conditions
2. Compliance Concerns:
a. Three (3) PILOT properties were placed in “Compliance Concerns” status from “Under Observation” status during September 2025:
i. Residences at Lakeview- declining occupancy and declining property conditions
ii. Villages at Harrison Creek- occupancy rate trends and lack of progress
iii. Feels Like Home Senior Living Residences- Lack of progress with property rebuild following December 29, 2022 fire to property; Walkthrough performed on September 17, 2025 and awaiting cure plan due by October 5, 2025
Bryant reported that the December 29, 2022 fire did result in one fatality. Bryant reported that the PILOT Lessee has fallen behind on the previously committed construction schedule by approximately one year, and staff is looking forward to a cure plan submission from the PILOT Lessee.
b. University Place- phases II & III (MHA PILOTs)- Walkthrough performed on September 18, 2025 and awaiting cure plan due by October 6, 2025
c. HEHFB Staff continue to review the below properties under “Compliance Concerns” status. All four (4) PILOT properties in Shemano’s portfolio have been placed into “Compliance Concerns” status for declining property conditions and no progress shown following ongoing progress reports of concerns shared with ownership and current management. Staff received a cure plan on August 27, 2025 and is allowing sixty (60) days for the PILOT Lessee to progress through Phase one of the cure plan and will evaluate progress at that time:
i. Abington Apartments
ii. Country View Apartments
iii. Jamesbridge Apartments
iv. Lakes at Epping Way
3. Notice of Non-Compliance: No properties were placed in “Notice of Non-Compliance” status September 2025.
4. Legal Default: No properties were referred to “Legal Default”, nor were any properties issued a “Notice of Legal Default” by the Board’s legal counsel during September 2025.
b. HEHFB Suite 1120 Preliminary Floor Plan Update
Bryant stated that she has been in communication with Henry Turley Company representatives concerning the proposed renovation to the Board’s office suite. Bryant stated that Henry Turley Company has selected A&R Construction as the contractor for the construction piece of the proposed renovation. Bryant stated she has completed her review of final furniture finish options, and she has received some preliminary cost estimates for the construction only and is awaiting furniture consideration proposals from the design team at The Crump Firm. Bryant stated that as those estimates come in, she plans to put the information together to be presented to the Finance Committee for review, followed by a presentation to the Board. Cheryl Hearn asked if a timeline has been provided. Bryant stated that she has provided a timeline to Henry Turley and The Crump Firm, and she anticipates construction will begin following the December 3, 2025 Board meeting and should be completed by the Board’s February 2026 Board meeting.
There were no other questions or comments.
Finance Committee Report
Cliff Henderson presented the financial results for the month ended August 31, 2025. After discussion,
Howard Eddings, Jr. moved for acceptance of the Finance Committee Report for the month ended August 31, 2025, properly seconded by Vincent Sawyer, and the motion passed unanimously after a proper roll call vote of the Board members.
Strategic Planning Committee Update
Cliff Henderson began, stating that the Strategic Planning Committee is comprised of himself, Buckner Wellford, Vincent Sawyer, and Chairman Reid. Henderson provided two (2) handouts for the Board’s review. The first handout, Henderson stated, begins with a quick review of the summary as a reminder of the approach. Henderson stated the second page is a four-month plan of activities as this committee goes through this discovery and diligence period. Henderson stated that the Board heard about Smart Memphis Fiber during the presentation by Doug McGowen, Staley Cates, and Jason Mulligan at the Board’s August 6, 2025 Board meeting, which prompted the start of the Board’s strategy and development foundation. Henderson stated that following the Board’s vote to empower the Strategic Planning Committee to engage a contractor for support over the next 90-120 days at the September 3, 2025 Board meeting, that has been successfully done. Henderson stated that the second page is inclusive of that being done, followed by the third page, which outlines the committee’s consultant selection of Mike Humes. Henderson stated that Humes is a Memphis resident with over 30 years of different executive-level experiences and problem-solving experience with the City of Memphis with projects over the last 10 years. Henderson stated that one of those projects includes Leftwich Tennis Center and some other big campaigns that he has helped manage from a financial and integration perspective. Henderson stated that Humes has gotten started, and the second handout of information is a summary of Humes’ activities since September 8, 2025, when he was engaged in a four-month contract for statement of work for the Board, and this outlines and follows the plan that was laid out to the Board at the September 3, 2025 Board meeting. Henderson stated that some of the work Humes has outlined touches on some of the work.
Henderson stated that in looking at the work that is being done with Memphis Light Gas and Water (MLGW), the Post Roads Foundation, and the Poplar Foundation, this work is key for the Board to ensure that digital equity program that is being looked at with mStreet relative to Smart Memphis Fiber, that the Board is staying abreast with the rest of what is going on there. Henderson stated there are upcoming meetings scheduled with Jason Mulligan and other members of the Post Roads Foundation, and from the Memphis Police Department (MPD), Henderson stated he has had contact with Darren Goods, Public Safety Advisor reporting to Mayor Young, and there are discussions of getting into the command center and engaging Deputy Chief Oakley. Henderson stated that he has pulled back on this portion for now due to the activity of federal institutions coming to Memphis. Henderson stated that some other highlights are he has connected with Charles Elliot with mStreet, and anticipates representatives to reach out to Trey McKnight. McKnight stated that Shy Maclin, a member of Elliot’s team, has reached out to him and they have set up a meeting for the week of October 13, 2025. Henderson continued, stating that Humes and he have met with Board staff to discuss the website and think about the scorecard that was reviewed at the last Board meeting.
Henderson stated that there has been a meeting set up for October 13, 2025 with John Zeanah to push forward in that regard to see what the Board can do with data. Humes has also received permission from McGowen to engage with MLGW, which may be helpful as the Board starts thinking about energy efficiency and following through on some of the tenant benefits that many of the PILOT properties claim to have implemented, which should be seen in a reduction of utility costs after implementation. Henderson stated that he has also gotten involved with Star Academy and Tennessee Governors Faith-Based and Community Initiative with Ed Stevens, and Humes has touched base with MedSouth Development District, Agape Child and Family Services, Overton Park Shell, Memphis Sports and Events Center, The Works, Inc., and Blight Zero Initiative. Henderson stated that these are all potential partners that could be enablers down the road to push and help residents of Board PILOT properties.
Henderson stated that the Board is not disbursing any money and that the Board must grant approval for any disbursements, and that no financial decisions will be made during this discovery period. Henderson stated he suspects one of the bigger matters for the Board to decide upon will be the scope of activities regarding digital inclusion with Post Roads Foundation, and he believes the timing is a few months away, likely December 2025, or February 2026, following this discovery period and a plan for the next 12-18 months of what this may look like, and then let the Board decide how it determines to move forward with a clear plan. Separately, Henderson stated with the website, data, and some other items; those are viewed as operational items that need to be done, and the committee will push forward on those. Henderson stated that at any point, any Board member can reach out with questions, but this is an overview of what has taken place, and upcoming plans as the Strategic Planning Committee gets going and figures out how to manage this going forward. Henderson stated that this last month was the easy month to get out and gauge some of this, but the next several months is really when things are going to get more traction and he will be leaning on members of the Strategic Planning Committee for input and guidance, and then come back to the Board for those major decisions.
Chairman Reid stated that there is a lot of good information included in these handouts, which were provided to the committee prior to today’s meeting. Buckner Wellford stated that as a member of the committee, this is the first time he has seen this information, and he knows that this is in the discovery phase, and he knows that a lot of time has been invested in this, and he congratulates that, and it may not be that he could attend a lot of these meetings, but particularly when there are meetings with anyone involved in public safety, he would like to know about that. Wellford stated that the committee's structure needs to be focused here, and he would like to know more as this moves forward. Henderson stated that this information was provided in this format last minute to the committee on September 30, 2025, and the committee needs to determine how it collaborates and moves forward on this. Vincent Sawyer stated that he is also impressed with the number of meetings that have taken place in the last thirty days, but he does echo Wellford’s comments and would like to know how he can further assist in getting some issues moving forward.
Courtnee Melton-Fant asked what the deliverables would be at the end of Humes’ four-month contract. Henderson stated there are two big things, one being he is hoping that there will be some type of clarity with digital inclusion with the Post Roads Foundation and mStreet. Henderson stated that it will be a big decision because people are seeking money with that, which is a big decision. Henderson stated that it also gets into how the Board would approach interacting with residents, interacting with developers, and the Board’s strategic role going forward. Henderson stated these are big decisions that would pivot the Board from the way it currently operates, and the big decision will be does that role of the Board change substantially in the future. Henderson summarized the two deliverables that will be coming up, (i) does the Board understand what is going to be with digital inclusion with Smart Memphis Fiber and how that impacts PILOT property residents, and (ii) how does the Board want to get involved going forward.
Henderson stated that he can see a version of the Board with a website that potentially has a portal for residents where the Board can post information for residents, and that is a decision the Board will have to make, if it wants to be a conduit that can be a gateway to a number of residents. Henderson stated that what he has found in his discussions up to this point is that people do not realize the number of units or the number of individuals that this Board can touch, and that will be the decision of the Board is does the Board want to get involved in that way. Wellford stated that he sees now where Henderson did share the handout information with him yesterday, but he did not see it. Henderson stated that he will do a better job of getting information shared for review earlier moving forward. Chairman Reid stated that this is a lot of information and it had to start somewhere, and Henderson has done a very good job.
Charles Carpenter stated that with the Board’s tenant benefits, and when this strategic plan was being discussed preliminarily, this would be another way to enhance tenant benefits on a uniform basis throughout all of the PILOT properties because the connectivity and access to the internet is going to be essential as we move forward with our society. Carpenter stated that being able to communicate and have access to this has a lot of benefits potentially that have not even surfaced yet, and that is why this Board is going to be so helpful in shaping how this all ends up at the end of the day.
New Business
There was no new business.
Chairman Reid stated that the next regular meeting of the Board is scheduled for Wednesday, November 5, 2025 @ Noon. There being no further business, the meeting was adjourned by the Chairman at 12:55 p.m.