Federal investigation launched into HUD’s termination of Peppertree contract

MEMPHIS, Tenn. (WMC) - United States Inspector General Rae Oliver Davis says an investigation has been launched into the Housing and Urban Development terminating their contract with Peppertree Apartments.

The Office of Special Inquiry will review with “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.”

It was announced last month that HUD ended their contract with Peppertree and pulled funding to the apartments due to “the owner not providing decent, safe and sanitary housing,” according to the City of Memphis.

The apartments have long dealt with safety concerns.

The Peppertree apartment complex was deemed a public nuisance by the city and Shelby County District Attorney’s Office back in November 2021, but that was not the first time.

Following the termination of the contract, HUD is in the process of handing vouchers to residents to aid them in relocation. Many of the hundreds of residents remain without a new home, though no date has been set for when they must leave Peppertree.

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