Bankrupt North Philadelphia Health System and Project HOME have reached an agreement that could salvage a $13 million LGBTQ-friendly affordable-housing project near Girard Medical Center.

Project HOME, a nonprofit led by Sister Mary Scullion had agreements to buy five parcels from NPHS before the bankruptcy filing on Dec. 31. The bankruptcy froze those deals. As the clock ticks, Project Home is in danger of losing $11 million in construction financing.

After a bankruptcy hearing Wednesday, Scullion said she was hopeful that Project HOME's development would still happen.

"The judge gave North Philadelphia Health System until July 7 to see what other options they have," she said. If there's no better offer by then, NPHS could move forward with the offer from Project HOME, which would still be able to meet its August deadline to complete the purchase of the properties for $1.75 million.

Scullion said Project HOME's offer is solid and has the "extra benefit of the common good for some of the most vulnerable young adults in our society."

In a letter filed in bankruptcy court Tuesday, Mayor Kenney weighed in on behalf of Project HOME, expressing his enthusiastic support for the plan to build 30 LGBTQ-friendly apartments at 1315 N. 8th St. for young adults, including those aging out of foster care.