City buying Community House for $5.2 million

The Birmingham City Commission on Monday, May 18, approved the formation of nonprofit foundation to take over running The Community House building now that The Community House Association has accepted an offer of $5.2 million from the city to purchase the building, and the following evening the commission formally voted to make the purchase.

The formal vote on the purchase also includes a provision instructing the city manger “to pursue and implement the necessary steps to keep the Community House operating and staffed during the ownership transition, including but not limited to ensuring the continued operation of the child care facility in the building.”

The City of Birmingham on its website announced that The Community House Association accepted the offer on Sunday, May 17. According to the city website announcement, “The foundation (The Birmingham Community House Foundation) is being created with the city as the sole member, ensuring the building will always belong to the city and its residents for the sole purpose of preserving The Community House as a community center for all residents, honoring the founders’ intent, and protecting public access to civic, social and philanthropic programming.”

The Community House Association filed for Chapter 11 bankruptcy reorganization in late March after a purchase agreement with the United Jewish Foundation of Detroit and the Jewish Federation of Detroit was terminated due to the fact that the city of Birmingham in 2025 filed suit in Oakland County Circuit Court to halt the announced sale of The Community House and refused to drop the lawsuit. The circuit court case was expected to drag on for many months beyond the proposed February closing date of the sale to the Jewish organization for what many said was an offer of $8 million, somewhat over the $7 million assessed value of the building.

Sale of The Community House was announced in early November of 2025 as officials shared plans to evolve into the Birmingham Area Community Foundation to continue with its work with other nonprofits in the general area. Funding from the sale, according to officials, would be used to clear several million dollars of debt by the end of this June and continue to pay staff, with any excess funds to be used as seed money for the proposed new foundation.

The city’s circuit court lawsuit was filed within weeks of the sale announcement and centered in part on original deed restrictions for the property at 380 Bates Street in the central part of downtown Birmingham. While the city maintained that the sale violated deed restrictions, officials with The Community House maintained that they were following the restrictions. The circuit court case has been stayed once the federal case was filed.

Financial problems were faced by The Community House for years in advance of the Covid pandemic which only increased the challenges.

On Monday, May 18, the city commission also voted to begin taking applications from those interested in serving on the board of The Birmingham Community House Foundation.

The federal judge presiding over the bankruptcy case will have to approve of the sale and, after a period allowing for due diligence, the sale is expected to close at the end of June.