MEMPHIS, Tenn — The U.S Department of Housing and Urban Development (HUD) is ending its contract with the Peppertree Apartments, according to the City of Memphis.
In a statement Thursday, Jan. 5, 2023, the city said HUD announced in court that it would pull funding for the apartments due to “the owner not providing decent, safe, and sanitary housing.”
The city said this means that HUD plans to start relocating residents over the next several months.
Mayor Jim Strickland said in the release, “This is great news. For over a year, we have led the effort to force Peppertree to provide a safe and habitable environment for these residents. While we understand that HUD will take the lead on relocating and communicating next steps with residents, the City of Memphis will work with them to ensure these residents have a smooth transition.”
Back in August 2022, a federal court prohibited the complex, run by Tesco Properties, from signing new leases for 120 days. That decision came due to structural damage to the property after multiple walkways collapsed and a leasing office caught fire.
In 2021, the apartments were cited by the Shelby County District Attorney General’s Office as a public nuisance due to the high crime rate. A federal injunction temporarily banned management from signing new leases or renewing old ones then, but that was lifted in February 2022.