Seniors ask Gov. Hochul to appoint mediator to save their homes, life savings at The Harborside

Gov. Kathy Hochul would appoint a facilitator to help break the regulatory impasse that threatens to shutter The Harborside retirement community in Port Washington in less than 60 days, according to a proposal from the residents, whose average age is 90.

The facilitator would be “an independent third party with knowledge of Continuing Care Retirement Communities’ operations, ownership structures and regulatory requirements,” states the 370-word proposal, which Newsday obtained. The Harborside is one of four CCRCs on Long Island.

The residents want the facilitator “to monitor and to mediate” a resumption of talks between the state Department of Health and The Harborside’s would-be buyer, Life Care Services Communities LLC.

The latter walked away in August from a $104-million sale agreement that was approved by a federal bankruptcy judge in December 2023, saying it could wait no longer to ascertain what information was missing from three applications filed with the health department. The department then denied the applications last month, citing a “lack of required financial transparency” by Iowa-based LCS.

Under the residents’ proposal, the facilitator also would be involved in talks with other potential buyers and help to determine how much money is needed from the state to keep The Harborside open while a sale is completed.

“We crafted a two-track process to allow other bids to be considered concurrent with the revival of the LCS sale in an effort to be open to other acceptable buyers — as the governor has stated must exist — and to save precious time,” said Joyce Shapiro, chairwoman of The Harborside Residents Council, which represents 181 people.

The proposal states that potential buyers must satisfy state requirements, have the financial wherewithal to settle The Harborside’s debts and be able to turn around a facility that has filed for bankruptcy three times in the past 10 years.

Asked Sunday night when the residents would like the facilitator to be named, Shapiro said: “This must be done immediately.”

The proposal was delivered on Oct. 28 to a Hochul aide and to one of the governor’s political allies. There had been no response as of Sunday night, Shapiro said.

She and others said the residents of The Harborside, formerly called the Amsterdam at Harborside, have been discussing the appointment of a facilitator for weeks.

Gordon Tepper, Hochul’s Long Island spokesman, didn’t address the appointment of a facilitator but said the LCS applications had been “rejected” by the health department “because they failed to meet the state’s basic requirements. If LCS, or any other entity, would like to submit a new application and the required documentation, then the DOH will review it,” he said on Monday.

Last month, Hochul, responding to a Newsday question, vowed that no one would be evicted from The Harborside as long as she is governor.

LCS spokeswoman Traci McBee said on Monday that the company would not be re-engaging with the health department.

“LCS is no longer pursuing the purchase of The Harborside. We hope an alternate buyer can come together with The Harborside and the other constituents to determine a successful path forward that benefits Harborside residents, families and employees,” she said.

Erin Clary, a health department spokeswoman, said it “protected vulnerable residents by denying [LCS], who was unwilling to comply with instructions on how to bring the application in compliance with state law. As regulator, we'll continue working with the existing operator to ensure that the needs and concerns of residents and their families are addressed by the operator,” she said.

The Harborside's CEO didn’t immediately respond to a request for comment.

The facility has 329 units and offers different levels of care as residents age, from independent- and assisted-living apartments to a nursing home and dementia care.

Prospective residents often sell their homes to pay The Harborside’s entrance fee, which is determined by the size of the apartment. A portion of the entrance fee, which was between $527,250 and $2.2 million under one type of sales contract offered in 2021, is supposed to be refunded after a resident dies.

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.