Affordable housing provider and developer Community Roots Housing has informed residents living in the 12 units of the Fredonia that it intends to put the 15th and Mercer three-story mixed-use building on the market. Residents right now caught in the middle of the process are hoping for more information — and more time.

The Public Development Authority tells CHS the 115-year-old mixed-use building has become too expensive to maintain.

“Selling a building is one of the hardest decisions we must make as an organization,” the developer, property management, and housing provider said in a letter sent to residents dated May 6th and provided to CHS by a resident. “You are very important to us as a resident and neighbor, so keeping you informed on the process and how you will be affected is a priority for us.”

“What exactly will happen at the point of sale is not yet known and will depend greatly on the buyer,” the message to residents reads.

Under Seattle’s Notice of Intent to Sell ordinance, notification was required by law but Community Roots Housing says it went beyond the requirements in providing the Fredonia residents the earliest possible information on the plans.

“In an effort to be transparent and give residents as much time as possible to consider their options, Community Roots notified residents of the sale before the property was listed,” a spokesperson said. “After posting resident notices the first week of May, we held a resident meeting on May 12 to outline the process, residents’ options, detail what kind of relocation assistance is available, and summarize next steps.”

“Offers from all parties are being considered,” the spokesperson added.

Updated in 2019, the Notice of Intent to Sell process is intended to give the city, the Seattle Housing Authority, and community partners notification and information “to evaluate properties and deploy a range of property preservation tools, including incentives and acquisition.” The notice can also help residents “seek tenant protections and relocation resources if necessary,” the city says. It applies only to residential rental properties with at least one unit rented at 80% of Area Median Income (AMI) or below.

Community Roots Housing has reserved seven of the Fredonia’s dozen units for households earning 50% of area median income while the rest are available as “unrestricted market-rate apartment homes.”

The organization tells CHS it has offered residents wishing to relocate “financial assistance to support that transition” and is also discussing options “including but not limited to relocation to a different affordable housing unit within the Community Roots Housing portfolio.” Residents can also choose to “remain in their units while the building transfers ownership,” the spokesperson said.

The changes will also impact a new commercial tenant in the building. CHS reported here on Meliora, a new restaurant lined up to replace The Canterbury on the street level of the Fredonia after 46 years on 15th Ave E.

The notice could also give the tenants time to mount an effort to purchase the property — or, more realistically, partner with another affordable housing provider.

“They don’t have unrealistic ideas of ‘yay, we’ll buy the building’,” a resident tells CHS.

CHS reported here on one recent Capitol Hill effort that was unsuccessful — but has, so far, ended up a positive situation for the residents of the La Quinta.

At the Fredonia, the resident who spoke with CHS said they are concerned tenants won’t have enough time or information.

“Not only did CRH fail to ‘include information prepared by the Office of Housing of funding that might be available to help tenants purchase the building’ as the law requires, it is actively attempting to relocate residents right this minute even before the sale,” the resident said about the initial letter sent in early May.

This week, the resident said a formal notice letter was posted in the building from the Seattle Office of Housing with an email address for contacting the city in the event tenants have an interest in “possibly purchasing the building.”

If no notice is received from tenants, the Office of Housing, the Seattle Housing Authority, or “a qualified non-profit housing developer” within 30 days, the owner “may then list or advertise the building for sale, offer the building for sale, or sell the building.”

The Community Roots Housing spokesperson says the organization exceeded met the ordinance’s requirement and tells CHS that bidders have time — intent to purchase letters must be received by June 24th, the organization says. CORRECTION: Community Roots told CHS it exceeded requirements for relocation financial assistance and met requirements for the intent to sell ordinance. We apologize for the error.

As for the Fredonia itself, the 1907-era structure “has significant capital needs that the building’s finances are unable to support” and CHS is told Community Roots Housing “is not selling any other properties at this time.”

“Proceeds of the Fredonia sale will be used to support the rehabilitation of other existing affordable housing stock within our portfolio, the development of new affordable housing, and operating support to strengthen the organization’s capacity to foster strong communities,” the spokesperson said.

The property has a taxable value of more than $4 million, according to King County but, as for a likely much higher asking price, CHS inquired — but Community Roots Housing says their broker isn’t quite done with the offering brochure for the building.

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