MEMPHIS, Tenn. — The company in charge at Serenity Towers will have to go back to the drawing board on upgrades to the taxpayer-funded high-rise for seniors on Highland.

A spokesperson with the Department of Housing and Urban Development says Millennia will present an “alternative renovation plan for Serenity Housing” this week.

This comes after the Tennessee Housing and Development Agency pulled its financial support for the company’s plan last week.

The state housing agency had approved $23 million in bonds for a massive renovation project at the complex, but told NewsChannel 3 it was rescinding the allocation after Millennia failed to meet certain conditions.

Millennia applied for bonds and other tax incentives to support a $95 million dollar rehabilitation project at Serenity Towers.

Residents have recently gone for weeks without working elevators, air conditioning and hot water.

HUD said late Friday, according to Millennia, two elevators were operable and the air conditioning was working.

Attorneys for Millennia were also in Environmental Court last week, where the judge assessed additional fines for code violations.

The judge also appointed a Special Master to visit the facility and turn over findings about the complex, including whether it should remain open.

Parties are scheduled to be back in court Thursday.

Meanwhile, HUD told the WREG Investigators it would review Millennia’s new renovation plan after it was presented.

A spokesperson also said “HUD is concerned with the tenants’ safety and requires Millennia to assure the units are clean, safe and sanitary. HUD performs periodic physical inspections and site visits to monitor the conditions at the property.”