MEMPHIS, Tenn. — A federal judge granted a court order this week that essentially puts a new real estate company in charge of the Warren and Tulane Apartments.
The Bank of New York Mellon, which represents bondholders, made the request in a lawsuit filed last week.
The order appoints Illinois-based Foresite Realty Management as the receiver.
According to the order, Foresite is supposed to preserve and maintain the properties.
The judge also said the properties are to be immediately listed for sale, with the goal being to obtain the highest price, regardless of whether the new buyer intends to keep the properties as Section 8 based housing.
A GMF spokesperson said, “In its ongoing desire to fully cooperate with HUD, GMF voluntarily agreed to the appointment of a receiver over the Warren and Tulane Apartments.”
HUD abated its Housing Assistance Payment contract with GMF for Warren and Tulane in February.
Residents are in the process of obtaining Section 8 vouchers and moving.
In its lawsuit on behalf of bondholders, the Bank of New York Mellon said GMF had failed to make payments since HUD pulled funding.
Meanwhile, Senator Marco Rubio leveled serious allegations against the non-profit on the Senate floor Wednesday.
He also called for a criminal investigation.
Rubio recently visited the troubled Eureka Garden Apartments in Jacksonville, FL.
Also, S&P Global Ratings lowered its ratings on 23 bonds issued on behalf of GMF.
Those included Goodwill Village, Serenity Towers and Madison Towers in Memphis.