Memphis says Historic Melrose housing is still on track — 51 affordable units now hinge on financing
Memphis TN – The Historic Melrose plan would turn the old Orange Mound school site into 51 income-restricted homes, but tax credits and financing still need to close.
Memphis officials say the Historic Melrose redevelopment is still moving forward, but the project is not ready for construction yet. The main hurdle now is financing.
The plan would reuse the old Melrose High School site at 843 Dallas Street in Orange Mound for 51 affordable homes. City materials call for 24 apartments in the historic building and 27 townhome or flat units elsewhere on the property.
The housing is aimed at households earning at or below 80% of area median income. The historic-building portion is designed for older residents, giving Memphis a senior-housing component at a landmark site that has long sat underused.
What the city has already put in place
The project is structured around a city-backed ground lease that runs for 50 years. Memphis materials also describe public support already built into the deal, which means the city is not just watching from the sidelines.
That matters for residents because the proposal is more than a private redevelopment pitch. The city is tied to the structure, and the eventual affordability level is part of that public arrangement.
What council members wanted to know
At the April 14 Memphis City Council update, the project was described as still on track. But council members also raised questions about costs, which is an important reminder that concept approval is not the same thing as a final green light.
The developer is still pursuing Tennessee housing tax credits and private financing before work can begin. Until that package comes together, there is no construction start to point to and no hard move-in date to promise.
Why the project matters
For Orange Mound, the redevelopment could turn a long-vacant landmark site into new housing without leaving the neighborhood’s history behind. For older Memphis residents, the senior-apartment piece may be the most relevant part if the financing comes through.
For the broader city, the project is another test of how Memphis uses public land, long-term leases, and tax-credit financing to create income-restricted housing. The idea is active. The money still has to line up.
That leaves the key next step clear: tax-credit approval, private financing, and final lease execution must all happen before construction can start.
