Item Description:
title
Neg Assignment, Assumption and Amd 1 to Agmt A15931, approving the transfer of ownership of property to Bickham Court Limited Partnership, extend term to 12/31/80, incr NTE to $710,000; terminate Agmt A081848
end
Resolution:
body
BE IT RESOLVED, that the Executive Director be authorized to negotiate the Assignment and Assumption of Agreement A15931, and related documents, allowing transfer of ownership of 2759/2765 Louisiana Court in St. Louis Park, from Trellis Louisiana Court Acquisition LLC to Bickham Court Limited Partnership, or an affiliated entity; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the Assignment and Assumption Agreement and other related documents on behalf of the Authority; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Amendment 1 to Agreement A15931 with Bickham Court Limited Partnership, or affiliated entity, for supportive housing at 2759/2765 Louisiana Court in St. Louis Park (Resolution 12-HCHRA-00R1), to add adjacent properties including 2760, 2768, and 2753 Louisiana Court in St. Louis Park, under one consolidated agreement; extending the contract period end date from December 27, 2031 to December 31, 2080; increasing the not to exceed amount from $450,000 to $710,000 (consistent with the sum of consolidated agreements); extending, amending, and restating documents as necessary; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the amendment and related documents on behalf of the Authority; and that the controller by authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to terminate Agreement A081848 with Trellis Co., or affiliated entity, and related documents, after the properties subject to Agreement A081848 are added to Agreement A15931, as authorized above.
end
Background:
Bickham Court, formerly known as Perspectives, is a 56-unit affordable housing development located in five adjacent buildings with addresses of 2753, 2760, 2759, 2765 and 2768 Louisiana Court in St. Louis Park. The Hennepin County Housing and Redevelopment Authority (HCHRA) entered into Affordable Housing Incentive Fund (AHIF) program agreements with Perspectives, Inc. for acquisition and rehabilitation of 18 units at 2759 and 2765 Louisiana Court (Resolution 12-HCHRA-00R1, Agreement A15931, NTE $450,000, 12/27/2001-12/27/2031) and rehabilitation of 24 units at 2760 and 2768 Louisiana Court (Resolution 07-HCHRA-13, A081848, NTE $260,000, 2/27/2009 to 2/27/2039).
In 2024, Perspectives, Inc filed for Chapter 11 bankruptcy and through that process sold the properties to Trellis Louisiana Court Acquisition LLC. The HCHRA approved assignment and assumption of AHIF agreements A15931 and A081848 by Trellis Louisiana Court Acquisition LLC (Resolution 24-HCHRA-0024).
Trellis Co., a local non-profit affordable housing developer and owner and an entity related to both to Trellis Louisiana Court Acquisition LLC and Bickham Court Limited Partnership, has obtained funding from a variety of sources to undertake a renovation and recapitalization of all of the subject Louisiana Court properties, including low-income housing tax credits and a 2025 Supportive Housing Strategy award from the HCHRA.
For administrative clarity, staff recommends assignment of Agreement A15931 to the new ownership entity, Bickham Court Limited Partnership, consolidating the two existing AHIF agreements under the 2000 loan agreement, A15931, for a combined new total not to exceed amount of $710,000, and including all project properties and extending the contract end date to December 31, 2080 to match the new financing. These actions will allow the new financing to proceed to closing and will facilitate preservation of this important family supportive housing property.
Current Request: This request is for authorization to negotiate the Assignment, Assumption and Amendment 1 to Agreement A15931 with Bickham Court Limited Partnership, or affiliated entity, to ensure continued affordability of 56 affordable housing units through December 31, 2080, with a loan amount totaling $710,000.
Impact/Outcomes: Approval of this request will preserve affordability of 56 supportive housing units, 22 of which are further supported by project-based Section 8 rental assistance.
Housing Disparity Outcomes: This board action request aligns with Hennepin County disparity reduction efforts by creating affordable housing opportunities for households with lower incomes.
This request funds services that are: core services
recommendation
Recommendation from County Administrator: Recommend Approval