Birmingham files lawsuit to block Community House sale

By Max Bryan, mbruan@detroitnews.com

Birmingham has filed a lawsuit in Oakland Circuit Court docket to dam the sale of The Group Home after the nonprofit introduced plans to stop in-house operations in 2026.

The Group Home Affiliation introduced Nov. 3 that operations on the 1930 constructing at 380 Bates St. won’t be needed because the affiliation transitions to the Birmingham Space Group Basis, which is able to present scholarships to college students and assist to nonprofits in smaller areas. The affiliation mentioned within the announcement that the constructing’s new homeowners are “but to be decided” however that present operations would stop on July 1, 2026.

In response, town filed a lawsuit on Nov. 25 “to implement deed restrictions,” which it mentioned require the constructing to be “used solely as a group middle for using the residents.”

“(A sale) would completely deprive the residents of the Metropolis of Birmingham of a novel civic and charitable asset meant for his or her profit,” together with 33 full-time and 16 part-time staff, the ability’s youngster care program, occasion leases and packages, the lawsuit reads.

The affiliation executed a belief for the constructing and its actions in 1930. The belief prohibited a sale or switch to a personal curiosity if the affiliation dissolved, the lawsuit mentioned.

In response to a 1989 petition to modernize the belief, the state required the affiliation to maintain The Group Home in accordance with the 1930 belief. It required them to switch the land and any buildings on the property to town if The Group Home have been dissolved, the lawsuit mentioned.

The town claims in its lawsuit that The Group Home ought to be transformed right into a “Birmingham charitable, benevolent or instructional group,” chosen by nearly all the trustees, or returned to town for use as a nonprofit group middle.

Alison Gaudreau, president of The Group Home, mentioned the group that notified town was in a position to submit a bid for the constructing, however “responded by submitting a lawsuit.”

In an announcement to The Detroit Information, Gaudreau acknowledged that there are “robust feelings” about the way forward for The Group Home.

“Many assumptions are being made about what’s going to occur with the sale of the constructing,” Gaudreau mentioned in an announcement. “We agree with town that the constructing ought to be used for charitable functions and people are the one conversations we’re having with potential consumers. We solely converse to nonprofits that need to proceed to make use of this house for the good thing about the group.”

The town’s lawsuit asks the Oakland County Circuit Court docket to concern an injunction between The Group Home and its potential sale, on the grounds that it could violate deed restrictions and court docket orders.

“A non-public sale would completely finish the property’s almost 100-year position as a nonprofit public group middle and would irreversibly destroy the general public’s financial curiosity, which is hurt that can not be remedied by financial damages or subsequent litigation,” the lawsuit mentioned.

The lawsuit was filed eight days after Birmingham Mayor Clinton Baller introduced at a gathering of metropolis commissioners that the fee “will use all obtainable assets” to maintain the constructing “a group asset.” The fee was scheduled to debate town’s lawsuit behind closed doorways at its Monday assembly.

For greater than a century, The Group Home has hosted debates, served as a gathering place, and supplied packages, occasions, and partnerships with different nonprofits. a Nov. 25 lawsuit “to implement deed restrictions” that claims the constructing “shall be used solely as a group middle for using the residents.”