City sues to stop The Community House sale

By David Hohendorf

The city of Birmingham filed suit in Oakland County Circuit Court on Tuesday, November 25, to prevent the sale of the iconic building for The Community House (TCH) at 380 Bates Street in the downtown area of the city.

Officials for The Community House Association on November 3 announced plans to evolve into the Birmingham Area Community Foundation to carry on the original mission of the community group, and the closure and sale of its building in the city effective July 1 of 2026. The new foundation would provide grants and mentoring to nonprofits within a 10-mile radius of Birmingham, along with scholarships to students.

TCH officials said the Early Childhood Center will complete its current session, which concludes in May 2026, and events scheduled now through June 30 of next year will continue.

In a prepared statement, the city said: “The property’s deed restrictions provide that it must be used exclusively as a non profit community center for the residents of Birmingham to carry on social, philanthropic, and civic activities. These restrictions were intentionally crafted to ensure that this unique community resource would never be diverted to private use, commercial development, or any purpose inconsistent with the operation of a nonprofit community center. 

“The Community House’s announced effort to sell the property to a private buyer directly violates these binding deed restrictions (as well as the 1989 Probate Court Order and 1990 Quit Claim Deed that reaffirmed those restrictions). Allowing such a sale to proceed would permanently sever the public’s rights in this historic property.”

Officials from The Community House Association have acknowledged the deed restrictions which they contend only come into play if the association is “dissolved” at any point in time but the association is not being dissolved. Instead, the association is changing its name to the Birmingham Area Community Foundation and will be continuing with the nonprofit mission as designated by the original founders of the group but only from a different location in the city. Longstanding deed restrictions provide that if the association is dissolved, then the building must be donated to some other nonprofit organization or rented to the city at a nominal rate.

The city’s position, as outlined in its statement, said “The City remains committed to protecting donor intent, safeguarding Birmingham’s charitable assets, and ensuring that this treasured property continues to serve the public, as it was designed and legally required to do.

“No monetary remedy can compensate for the permanent displacement of a historic community asset that has been held and used for charitable purposes for generations. A sale to any private buyer would permanently extinguish Birmingham’s beneficial interest in a uniquely significant community asset, deprive the public of a century-old charitable resource, and violate a binding court order. The City has therefore asked the Oakland Circuit Court to immediately halt any attempted sale and preserve the property for the community that has supported and relied on it for decades.”

The Savills real estate firm in Birmingham has been retained by TCH officials to handle sale of the building and there have been a number of tours conducted with potential buyers for the building which has been valued at $7 million and could sell for much more.

Proceeds from the sale, according to TCH officials, will be used to retire current debt of the association and provide seed money for the community foundation.

Camille Jayne, current association board chair and a past president of The Community House Association, will serve as chair for the Birmingham Area Community Foundation Board of Trustees. Alison Gaudreau, current association president, will serve as president of the foundation and she will be joined by Lindsey Eliason as vice-president for finance, a position she now fills at The Community House.