A boarded-up house at 1753 N.W. 56th St. that neighbors said was filled with transients and drug use was torn down June 1.

Kevin Johnston has had an office across the alley for 10 years. He said he was happy to see the building, which he described as a flop house, go.

Diana Naramore, owner of the Sip and Ship across the alley from the house, said she had reported transients living there to the police and that it was a health and safety concern for her customers.

"I think it's wonderful," said Naramor, who's business was offering $2 "Demolition Lattes." "Our customers are thrilled that it's coming down."

The Compass Center, a low-income housing provider, purchased the property from the Low Income Housing Institute in 2008.

In March, Compass Center Executive Director Rick Friedhoff said he wanted to tear the building down, though construction was not imminent, because it was a fire hazard and people were getting in and out despite it being boarded up.

Michael Hardin, an employee at the nearby FedEx Kinko's, said he heard people were moving out of the building the morning of the demolition.

Friedhoff said the city has been cooperative in helping the center with permits for demolition despite there still being financing questions and no definite construction schedule.

In March, Friedhoff told the Ballard News-Tribune that construction on a six-story low-income housing development with 60 to 75 units for single adults would likely start in fall 2010. Now, he said it could be earlier due to conditions on the available funding.

Johnston said the plan for low-income housing is a responsible and welcome change from the fancy high-rises that have taken that away.

"It's great that they are going to put in low-income housing back here," he said. It addresses a real need in the area."

Friedhoff said he is working to meet with neighbors about uses for the temporarily empty space. Grass will be planted on the property as part of the demolition, but Friedhoff said he is weary about putting in a community garden because of the uncertain construction schedule.

Neighborhood District Coordinator Rob Mattson said he encourages Ballard residents to get out and enjoy the neighborhood's newest open space. The community will keep an eye on the property to make sure it does not become an undesirable place to spend time, he said.