By Cherri Gregg

PHILADELPHIA (CBS) — North Philadelphia Health System reached a bankruptcy deal that week that could nullify the sale of property for a LGBTQ youth housing project.

Project HOME Looks To Close Deal Aimed At Helping Homeless LGBTQ Youth

Project HOME had agreed to purchase a five parcels on North 8th Street for $1.75 million.

The lot would be transformed into 30 units of affordable housing for LGBTQ Youth, but on Tuesday a bankruptcy court rejected the deal.

Now Project HOME must bid on the project, at an auction next month.

“This obviously is not the outcome we had hoped for,” said Sister Mary Scullion who runs Project HOME.

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She says their budget for the project is limited and higher prices at auction could push the project back at least a year.

“Our financing depends upon a timely closing and construction start, so the pressure is definitely on us to secure this site,” she said.

Scullion says if they lose the bid, they’ll go back to square one.

She says LGBTQ youth make up 40 percent of homeless youth so this housing project is sorely needed.