Homes found for seniors forced to move from The Harborside retirement community

All The Harborside residents affected by the pending closure of its nursing home, assisted living and dementia care unit have found new homes, according to an attorney for the bankrupt retirement community in Port Washington.

Rachel Nanes, speaking in federal court on Wednesday, said the 21 seniors "have moved to other facilities of their own choosing." They had faced a March 14 deadline to relocate.

In some cases, the closure of The Harborside's skilled care units led to couples having to live apart because one needed more care and the other couldn't afford to give up their independent living apartment and accompany their spouse to a new community.

The Harborside’s new owner, Focus Healthcare Partners LLC, has said it will not assume control of the property at 300 E. Overlook until the nursing home, assisted living and dementia care unit are shut down. The Chicago-based investment group plans to only offer independent living apartments on the Port Washington site. Focus has said it would apply for state licenses to reopen assisted living and dementia care there in the future. Between 60 and 70 seniors are in independent living now.

Chief Bankruptcy Judge Alan S. Trust expressed satisfaction on Wednesday that all the seniors in need of skilled care had found new homes.

"The residents needed alternative housing arrangements, and they now have that," he said. "Substantial progress has been made."

Still, the judge and others said the $86 million sale of The Harborside to Focus is imperfect because of the resident relocations and loss of much of the $130 million in entrance fee refunds owed to residents and families of deceased residents. They would receive about 25% of what is owed to them under the terms of the sale.

"This isn’t the result that anyone wanted ... but it is the best available alternative," Trust said during the 35-minute hearing.

Sale to close in May

The sale to Focus is expected to close in May, according to The Harborside lawyer.

A Focus spokesman declined to comment on the timing.

The transaction won’t be held up by the state Department of Health because its approval isn’t required if The Harborside ceases to offer skilled care, which it has, said Kathy S. Marks, the agency’s top lawyer.

Last year, a regulatory dispute with DOH scuttled the 2023 buyout of the facility by Life Care Services Communities LLC, the third-largest senior care operator in the nation.

Marks also said DOH recently received an application for approval of the sale of the Amsterdam Nursing Home on Manhattan’s Upper West Side. The Amsterdam opened The Harborside in 2010, and $36.5 million from the nursing home’s sale would go toward paying the entrance fee refunds for The Harborside.

"We will review the application as expeditiously as possible," she said.

Creditors given a choice

Lawyers for The Harborside, its bondholders, creditors and residents are preparing documents to be sent to every creditor asking them to either opt in or opt out of the sale agreement that provides for partial payment of entrance fee refunds. Those who opt out may file a lawsuit against The Harborside to regain 100% of their entrance fee refund or for other issues, said Elizabeth Aboulafia, the residents’ attorney.

"Each individual will have a choice," she said

The documents must be approved by the judge. Stan Yang, an attorney for the Department of Justice’s Office of the U.S. Trustee, said, "The language is way too broad" at this point to be accepted.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.