Item Description:
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Terminate and forgive HOME Investment Partnership Agmts A14354, A18627, and A15921 with Trellis Louisiana Court Acquisition LLC
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to terminate the HOME Investment Partnership Program Agreements A14354, A18627, and A15921 with Trellis Louisiana Court Acquisition LLC for 2753, 2759, 2760, 2765, and 2768 Louisiana Court in St. Louis Park, awarded under Resolutions 94-0625, 98-0332, and 00-0381; forgive accrued interest, if any; forgive the total principal loan amount of $710,000; and negotiate documents to effectuate loan termination and release of the declarations; and that following review and approval by the County Attorney’s Office, the Chair be authorized to sign any related termination, satisfaction and forgiveness documents on behalf of the County.
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Background:
Resolutions 94-0625, 98-0332, and 00-0381 approved HOME Investment Partnerships agreements with Perspectives, Inc. for acquisition and rehabilitation of 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, totaling $710,000.
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 A15921 by Trellis Louisiana Court Acquisition LLC, and amendment of HOME Agreement A14354 to extend the end date to December 31, 2027 (Resolution 24-0293).
To address the property’s capital needs, Trellis Co., a local non-profit affordable housing developer and owner related to Trellis Louisiana Court Acquisition LLC, has obtained funding from a variety of sources to undertake a renovation and recapitalization of the Louisiana Court properties, including a 2025 Supportive Housing Strategy award from the Hennepin County Housing and Redevelopment Authority.
Trellis has requested forgiveness of the three HOME loans as part of this recapitalization. Staff have reviewed this request and, consistent with county priorities, recommend approval as the best means to allow the property’s 56 units to remain stable and affordable for low-income families. These actions will allow the new financing to proceed to closing and will facilitate preservation of this important family supportive housing property.
In 2001, the project also received financing from the county’s Community Development Block Grant (CDBG) program via the cities of St. Louis Park and Edina in the amount of $100,474. The cities are in process of authorizing the termination and forgiveness of the CDBG loan.
Current Request: This request is for authorization to terminate and forgive HOME Investment Partnership Agreements A14354, A18627, and A15921 with a total combined not to exceed amount of $710,000 and to release the related notes, mortgages and declarations therewith.
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. Affordability requirements will continue through May 6, 2080 under the Hennepin County Housing and Redevelopment Authority’s Supportive Housing Strategy loan commitment.
Housing Disparity Outcomes: This request preserves housing opportunities for families experiencing homelessness and for households with incomes at or below 30% and 50% of area median income.
recommendation
Recommendation from County Administrator: Recommend Approval