NYC to put $16 million from nursing home sale toward senior housing, SNF beds
Senior living on New York City's Lower East Side will receive additional funding as result of criticism over a housing deal approved by the city.
Last year, city officials lifted the deed restrictions on a healthcare facility on the Lower East Side in exchange for a payment of more than $16 million from the Allure Group, the building's owner. The restrictions designated the building be used strictly for a not-for-profit residential healthcare center. The for-profit nursing care provider, however, sold the building to a housing developer shortly after the changes were made.
The developers, who plan to turn the building into luxury housing, bought the building for $72 million. Allure purchased the property in 2015 for $28 million.
To address criticism over the deal, the mayor's office announced it will invest the $16 million from the deal in the community's senior living housing. It also said the city would explore using a portion of the money to add more beds to the facilities.
All future deed changes will need to be approved and reviewed by several members of the community, including borough presidents and community boards. Property owners also will have to report if there were discussions with potential buyers before the deed changes were made.
Controversy over the deal led to investigations by the state attorney general and the U.S. attorney's office in Manhattan. Allure agreed to cooperate with the investigations but has denied any wrongdoing.
Since selling the facility, Allure has attempted to buy two more nursing centers. The attorney general's office is working to prevent the purchases, according to the New York Times.