Item Description:
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Neg Assignment, Assumption and Amd 2 to Agmt A14354, approving transfer of ownership of property to Bickham Court Limited Partnership, ext term to 12/31/80, incr NTE to $710,000; terminate Agmts A18627 and A15921
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate the Assignment and Assumption of Agreement A14354, and related documents, allowing transfer of ownership of 2753 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 county; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Amendment 2 to Agreement A14354 with Bickham Court Limited Partnership, or affiliated entity, for supportive housing at 2753 Louisiana Court in St. Louis Park (Resolution 94-8-625), to add adjacent properties including 2759, 2760, 2765, and 2768 Louisiana Court in St. Louis Park, under one consolidated agreement, extending the contract period end date from December 31, 2027 to December 31, 2080, increasing the not to exceed amount from $275, 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 county; and that the controller by authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to terminate Agreements A18627 and A15921 with Trellis Co., or affiliated entity, and related documents, after the requirements and properties subject to Agreements A18627 and A15921 are added to Agreement A14354 as authorized above.
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Background:
Bickham Court, formerly known as Perspectives, is a 56-unit affordable housing development located in five adjacent buildings with addresses of 2753, 2759, 2760, 2765 and 2768 Louisiana Court in St. Louis Park. From 1994 to 2001, Hennepin County, on behalf of the Hennepin Housing Consortium, entered into three HOME Investment Partnerships agreements with Perspectives, Inc. for acquisition and rehabilitation of 12 units at 2753 Louisiana Court (Resolution 94-8-625, Agreement A14354, NTE $275,000, 12/5/1994 to 12/31/2027), acquisition and rehabilitation of 24 units at 2760 and 2768 Louisiana Court (Resolution 98-5-332, Agreement A18627, NTE $100,000, 10/28/1999 to 10/28/2029), and acquisition and rehabilitation of 20 units at 2759 and 2765 Louisiana Court (Resolution 00-6-381, Agreement A15921, NTE $335,000, 12/27/2001 to 12/31/2031).
The project also received financing from the county’s Community Development Block Grant (CDBG) program via the cities of St. Louis Park and Edina, and from the Hennepin County Housing and Redevelopment Authority’s Affordable Housing Incentive Fund (AHIF), in addition to other funders.
In 2024, Perspectives, Inc filed for Chapter 11 bankruptcy and through that process sold the properties to Trellis Louisiana Court Acquisition LLC. Hennepin County approved assignment and assumption of HOME agreements A14354, A18627 and A15921by Trellis Louisiana Court Acquisition LLC, and amendment of HOME agreement A14354 to extend the end date to December 31, 2027 (Resolution 24-0293).
Trellis Co., a local non-profit affordable housing developer and owner and an entity related to both 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 Hennepin County Housing and Redevelopment Authority.
For administrative clarity, staff recommends assignment of Agreement A14354 to the new ownership entity, Bickham Court Limited Partnership, consolidating the three existing HOME agreements under an amended and restated loan agreement, A14354, 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 2 to Agreement A14354 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 facilitate preservation of 56 supportive housing units, 22 of which are further supported by project-based Section 8 rental assistance.
Housing Disparity Outcomes: Households of color are disproportionately housing-cost-burdened, and experience housing instability, including homelessness, at disproportionate rates. This request preserves housing opportunities for families experiencing homelessness and for households with incomes at or below 30% and 50% of area median income.
This request funds services that are: core services
recommendation
Recommendation from County Administrator: Recommend Approval