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One longstanding D.C. is filing for bankruptcy to keep the bank from taking its headquarters.
The Friendship House announced Tuesday it will file Chapter 11 to stave off foreclosure and an impending auction of its historic headquarters building on Thursday.
"We've been around for 104 years. We didn't do that by being scared and timid and not fighting in what we believe in," said Freda White, Friendship House's Dir. for Workforce Development.
The move is designed to give the charity time to pay off $1.5 million in long-term debt. Friendship House also just learned that because of a clerical error, allegedly committed by the bank, it also owes an additional $55,000 in interest payments.
"The surprise was, normally when you pay your bills, you're not foreclosed upon," said Friendship House Board president Morgan Knull.
A spokesperson for Adams Bank said it is distressed about the situation, and has long supported Friendship House. The spokesperson declined to comment on specifics of the foreclosure, citing privacy laws.
The headquarters in the 600 block of D Street SE has a long history. General George Washington once slept there.
The chairman of the charity's board said they decision will allow them to keep operating, including meeting payroll demands and paying service providers.
That's good news for the people whom the Friendship House has helped over the last century, including one woman whose money problems forced her to drop out of college.
"I feel upset because I do know a few people that did want to come into the program," Friendship House employee Chrystal Addison. "So hopefully everything will work out and we will continue to stay here."
The organization provides services to people throughout the city, with an emphasis on those living in wards 6, 7 and 8. Its programs and services include a Child Development Center for children 2 to 12 years, Family-to-Family Mentoring Program, Temporary Assistance for Needy Families, Senior Medicare Patrol, a Weatherization Project and a variety of services and programs for youth, especially for youth-at-risk.
Other services include a Clothing Bank, GED Preparation and Life Skills classes, computer software instruction and certification classes and emergency assistance.
"Friendship House is home," said White. "It's a place where you can come to get refuge, you can get rehabilitated and you can get support."
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