Long Island seniors in danger of eviction get a short extension
PORT WASHINGTON, N.Y. - Residents of a bankrupt senior community on Long Island are getting a short extension.
A judge has ordered Harborside in Port Washington back to the negotiating table to address millions owed to residents, who had been bracing for eviction by year's end. If a proposed sale goes through, many will be forced out.
The bankrupt facility had a buyer, but the New York state Department of Health rejected it, saying it "protected vulnerable residents by denying an applicant."
Residents begged Gov. Kathy Hochul to reverse the decision. That didn't happen.
Now, a new buyer, Focus Healthcare, wants to turn harborside into a rental for 151 units, but it's not yet license for assisted living, nursing and memory care. Those 60 people have to move.
"It's a human tragedy"
Bob Curtis says he'll stay, but his wife, who has dementia, will have to go.
"It's a human tragedy," he said.
A judge has refused to sign off on the sale, calling for continued negotiations to deal with the $130 million in lost entrance fees.
"We deeply empathize with the residents," Focus said, but "can't undo money lost by others that led to this bankruptcy."
Families and lawmakers are asking for an investigation into how it came to this.
"We are calling on the attorney general to open an investigation into where the millions of dollars went that we all used to buy in to have long-term health care for our parents," Beverly Kohen Fried said. Her mother is a 94-year-old resident.
"This was an investment that was supposed to be guaranteed. You cant just say, well, sorry we don't know where their money is, we are leaving, we are selling and you're not entitled to any of your life savings back," Nassau County Legislator Delia DeRiggi- Whitton said.
"We are trying to get our money back"
"When we came here, we rolled over what we got for our house to the Amsterdam," 91-year-old former resident Ellen Greene said.
Greene just moved out of the Amsterdam at Harborside, fearing it will soon shutter, but she and other fleeing residents leave behind up to $1 million each in pre-paid life care. Those entrance fees were supposed to be returned.
"We are trying to get our money back, what we invested in here," 94-year-old Arlene Kohen said. She has to move, also without her life savings.
"I was going to stay here 'til I died," she said.
"You can't forget about those people. That's my wife," Curtis said.
They also want to know why the Health Department rejected a viable offer.
"They thought they were protecting the residents. Look what happened," Alex Green said. "The worst case scenario has come to pass."
The case is back in court on Feb. 12. Until them, families are scrambling to make living arrangements, with life savings in legal limbo.
Here's the full statement from Curt Schaller, co-founder and principal of Focus Healthcare Partners:
As the potential future owners of the Harborside, we deeply empathize with the residents. It's why despite having no role in creating this financial crisis, our offer for purchase proactively lessens the burden on them by grandfathering in current residents at rates far below market, capping future increases to current residents at 5% per year, and investing $20 million in capital upgrades to the facility. We also plan to raise the Harborside's resident services to the highest level, including enhanced activities, dining, wellness, and more.
While we can build a better future at Harborside, unfortunately we can't undo money lost by others that led to this bankruptcy. As the purchasers in this bankruptcy process, we can't direct who receives the sale proceeds. That allocation is a decision for the seller, bondholders, and residents who are owed entrance fees, overseen by the court. We are hopeful that the seller, the bondholders, and the residents can reach a resolution that is satisfactory to the court. A Chapter 7 bankruptcy liquidation would be a true worst case scenario for residents.
The New York state Department of Health issued this statement:
In keeping with its regulatory responsibility, the Department of Health protected vulnerable residents by denying an applicant who was unwilling to comply with instructions on how to bring the application into compliance with State law. As regulator, we will continue working with the existing operator to ensure that the needs and concerns of residents and their families are addressed.
The State licensed Adult Care Facility and Skilled Nursing Facility portion of The Harborside are required to have State Department of Health approved closure plans. The Harborside will be required to submit a closure plan to DOH that supports resident choice and ensures minimal disruption to residents, families, and representatives throughout the process. It will be the responsibility of The Harborside, under approved closure plans, to work with residents, families and representatives to ensure residents are placed in a safe and secure facility that meets resident needs.
Regarding the residents' investments, that is under the Bankruptcy Court's purview and decision. This should be directed to The Harborside General Counsel and or the US Bankruptcy Court. It is the responsibility of The Harborside to communicate with residents on the status of their Federal Bankruptcy case.
