MEMPHIS, Tenn. — Could the non-profit under fire for its potential misuse of federal funds in subsidized housing in Memphis be let off the hook?
The News Channel 3 Investigators are asking that very question after a court hearing Monday revealed Global Ministries Foundation stopped correcting code violations at the Warren and Tulane apartments.
Conditions were so bad at Warren and Tulane, HUD decided to pull its funding to the owner, GMF-PAC.
Yet, WREG has learned required repairs at the same two complexes have come to a screeching halt.
Environmental Court Referee John Cameron asked, “Ya’ll basically stopped working there February 9?”
LEDIC’s Betsy Waugh, along with a contractor present told Cameron workers stopped making repairs just days after HUD’s abatement.
Waugh also said Warren might eventually be demolished.
GMF and LEDIC were cited for hundreds of code violations at Warren, Tulane and Goodwill Village in 2015.
Since that time, the parties (mainly LEDIC) have been making court appearances to update the judge on progress at each complex.
At a previous hearing, inspectors confirmed at least 50% of the repairs were complete at all three complexes, and some were further along than others.
HUD abated its contract and suspended housing assistance payments to GMF-PAC in early February.
Monday’s appearance was the first since HUD pulled funding and decided to relocate residents.
Cameron alluded to the complexity of the situation, but called the ordeal a “head scratcher” and said the work still needs to be finished.
“I think we all would like to see all of these apartments renovated,” Cameron said.
Code Enforcement questioned who made the decision.
Cameron said from the bench, “Honestly, we don’t have the right person here to ask that question to, so I think somebody from Global Ministries is going to have to be here next time or we’re looking at multiple judgements.”
WREG asked Waugh,”Legally they’d still have to come into compliance?”
She stated, “That would be a question for the attorney for Global Ministries.”
GMF told WREG via email since HUD suspended rental payments that eliminated money for repairs.
A spokesperson said, “Maintenance staff, however, will still be funded at both properties to handle health and safety maintenance work until residents are relocated.”
However, Code Enforcement confirmed with the News Channel 3 Investigators the non-profit must still bring the properties into compliance.
Code said it will also be requesting a contingency plan.
Meanwhile, LEDIC reported repairs at Goodwill are 100% complete.
Cameron asked inspectors from Code to keep watching the complex over the next few months to be sure nothing changes.
He also said he wasn’t closing any of the cases yet.
GMF and LEDIC are scheduled to go back to court March 28.
Cameron said at that time, someone from Global Ministries needs to be present.
GMF is scheduled to make an appearance in front of the Shelby County Commission on Wednesday, March 2.
