Memphis, Tenn. — The Global Ministries mess prompts yet another change, and this time, it’s related to the group that helped the non-profit obtain financing.
The little known Health, Educational and Housing Facility Board has been in the spotlight recently because of GMF.
Each year, the group waives millions of tax dollars in the form of PILOTS and helps developers of low income housing get tax exempt bonds.
The process in which the HEHFB begins those relationships is now changing.
At its regularly scheduled board meeting Wednesday, members voted unanimously to change the application process for bonds and PILOTS.
Applicants with Section 8 properties will now be required to provide details about HUD (REAC) inspections.
PILOT and bond recipients will also have to update the board when there’s an inspection from any agency.
The board also came up with new requirements regarding loan refinancing on PILOT properties.
A WREG investigation revealed the quasi-government group facilitated more than $53 million in bond deals for GMF projects in Memphis over the past few years.
Housing Handouts: GMF problems shine light on bonds, tax deals, PILOTS
At the meeting, Board Attorney Charles Carpenter said the group has “limited enforcement authority,” but this step would serve to keep board members more “comprised” of what’s happening with the condition of properties.
The News Channel 3 Investigators asked the HEHFB in a series of emailed questions back in January, “Is there a vetting process for companies during the application process for tax exempt revenue bonds?”
The Board said it had a strict “no on-camera interview” policy, and later refused to answer additional questions, but referred WREG to previously provided statistics and this memorandum regarding its role and responsibilities.
The HEHBF has a non-profit status.
Board members are appointed by the Memphis mayor.
At Wednesday’s meeting, the group also said it would be providing minutes and agendas online.
It also re-visited a question about when it’s proper to go into Executive Session.
One of the board’s newest members raised questions at the May meeting about Executive Session and compliance with the Tennessee Open Meetings Act.
