PHILADELPHIA, PA, October 2, 2017 – On August 11, global law firm Reed Smith LLP advised Project HOME, the Philadelphia-based non-profit organization whose mission is to empower individuals to break the cycle of poverty and homelessness through affordable housing, employment, healthcare, and education, on its successful bid for parcels of land at 1315 N. 8th Street in North Philadelphia, as part of a U.S. Bankruptcy Court auction. Today, Project HOME announced that it will be breaking ground on the site, in the first phase of an affordable housing development for formerly homeless individuals in December 2017.
Project HOME, a longtime pro bono client of Reed Smith, retained the firm in April 2017 following the Chapter 11 filing by the North Philadelphia Health System (NPHS). The bankruptcy filing placed in jeopardy Project Home’s ability to complete its acquisition of parcels of land it had contracted to purchase from NPHS prior to the bankruptcy filing. With the land acquisition in jeopardy, Project HOME also risked losing their initial investment of over $700,000 in costs for obtaining zoning approvals and architect’s fees, and more than $13 million in financing, which was to be used for construction of the housing project.