Nassau County Legislature Minority Leader Delia DeRiggi-Whitton (D–Glen Cove) asking for state Attorney General Letitia James to investigate the finances of retirement community The Harborside, which has faced multiple bankruptcies and recently had their sale blocked by the state health department.
“Based upon the manner in which this operation appears to be collapsing upon itself, one must consider the alarming possibility that there is more than gross mismanagement at play here and that The Harborside may be operating as a Ponzi scheme, in which they are collecting vast sums of money from current and prospective residents while failing to provide the security or care they were promised,” DeRiggi-Whitton wrote to James.
DeRiggi-Whitton called for James to conduct a forensic audit of the community’s finances to find where residents’ fees and monthly payments go, that anyone alleged to be involved in criminal conduct be prosecuted “to the fullest extent of the law,” protect the residents’ investments and recover their share portion.
The Harborside, which provides for seniors’ varying care needs, including independent and assisted living, memory care, nursing care, hospice and rehabilitation, filed for bankruptcy in March 2023, its third time in nine years.
The sale of the financially unstable community was awarded to Life Care Services, otherwise known as LCS, in late December after the Des Moines-based company won an auction for the 329-unit development earlier in the year.
The deal was then revoked by LCS in August, according to Newsday, due to prolonged waiting for approvals by the state health department and Department of Financial Services. The Department of Health denied the application earlier this month due to a lack of information, according to Newsday.
About 180 residents reside at The Harborside, with residents at an average age of 90 years old.
Harborside residents, their family members, employees and elected officials gathered Oct. 24 to rally for the sale to be honored to protect its 181 residents from having to leave their home and community.
Harborside residents paid entrance fees ranging from $527,250 upwards to $2.2 million, and they continue to pay monthly maintenance fees.
Multiple residents said at the rally that they sold their homes in order to reside at The Harborside.
Attendees, most of which were residents, chanted “Save our home” and held up signs demanding action by the governor to help them.
Multiple residents expressed fear of potential eviction, especially couples who reside in separate facilities at the Harborside due to medical needs.
Resident Bob Curtis and his wife of 59 years Sandra Curtis moved to the Harborside three years ago when his wife began experiencing cognitive impairment. They reside in separate facilities with his wife housed in the memory unit.
He praised the services and care provided by the Harborside and its staff, including the ability to see his wife every day and the enjoyment and support the two both have there.
“I do not think I can replace what I have here,” Bob Curtis said. “I say that because I have friends with spouses in other communities, and I hear their complaints about the level of care all the time. I do not complain.”
He attributed the high level of care in Harborside’s memory unit to the years the staff has spent together and their love for their residents.
He said the risk of eviction also comes with the threat of a diminished level of care for his wife and greater costs.
A Change.org petition was started on Oct. 19 to challenge the state’s decision to block the sale, and garnered 3,245 signatures as of Thursday. It was started by Ronnie Cardno whose 87-year-old grandmother resides at the retirement home.
DeRiggi-Whitton called the issue “heart-wrenching” that puts residents at risk of losing their homes and life savings.
“Whether a byproduct of alleged criminality or mere incompetence, the crisis triggered by the management of The Harborside, who promised to care for our community’s elders for the remainder of their lives, has created tremendous doubt and worry amongst local families,” DeRiggi-Whitton wrote to James. “We cannot allow any of them to be victimized any longer.”
Gov. Kathy Hochul said at a Q&A earlier this week that she is working to ensure that the residents have housing and will not face eviction. But, she said this can not come at a compromise to illegal conduct.
“My concern is, number one: the safety and well being of the residents,” Hochul said. “They don’t deserve to be played as pawns in this negotiation, which has led us to conclude that there are safety and health considerations that cannot be overlooked. We cannot overlook state law – which says that in order for there to be a transfer there have to be certain conditions met.”
Hochul said coming to an agreement with the buyer is not a possibility as it would compromise state laws she said are in place for the safety of the residents. She said there are other “prospective partners.”
Residents criticized the governor’s comments and actions, calling her misinformed.
