MEMPHIS, Tenn. — The owners of Peppertree Apartments appeared in court Thursday, arguing against what city attorneys view as necessary repairs.
Residents of the complex could be moving in a matter of months, but city officials remained concerned about the safety of the building.
With residents moving out soon, Peppertree Apartments owners argued any more investments in the property were unnecessary. Currently, 30 residents have applications to move out, and 147 have received relocation vouchers.
The complex's owners will be back in court later in April.
In February, the Inspector General of the U.S. Department of Housing and Urban Development (HUD) said that she has ordered a review of why HUD ended its contract with the Peppertree Apartments, leading to the relocation of residents.
Inspector General Rae Oliver said she directed the Office of Special Inquiry to conduct a ‘preliminary review of the circumstances.’
A notification of inquiry to HUD stated, “This inquiry will include interviews, data gathering, and analysis of compliance with laws, regulations, policies, and procedures related to HUD’s oversight of Peppertree Apartments’ participation in the Project-Based Rental Assistance program. As we conduct our inquiry, we may contact individuals associated with HUD’s Office of Multifamily Housing, as well as other individuals involved in the management or oversight of Peppertree Apartments.”
“Promoting safety in HUD housing is a top priority for my office. Everyone deserves to live in a decent, safe, and sanitary home without the fear of being exposed to safety hazards that pose a potential risk to their health and well-being,” said Oliver in a news release.
Anyone with information on potential fraud, waste, abuse, misconduct, or mismanagement related to the Peppertree and HUD is asked to call the HUD OIG hotline at 1-800-347-3735 or go to https://www.hudoig.gov/hotline.
In January, citing safety and sanitary concerns, HUD ended its contract with the owner of Peppertree Apartments. Those in the process of moving out of Peppertree Apartments were updated last week about their options as they move forward in the relocation process.
Thursday, Leumas, a company helping residents with relocation, Memphis Housing Authority, and HUD met with Peppertree residents to walk them through the housing voucher process.
“With the program, they have 120 days with the housing choice voucher, and they can move anywhere in the nation,” said Kenneth Free, HUD State Field Office Director of Tennessee.
The vouchers are based on the family size and certain requirements, but housing advocates have been asking for more details.
Another challenge for Peppertree residents is finding landlords who will accept those housing vouchers. HUD has provided a list of partnering landlords. They are also paying for gas for residents to go out and look at apartments.