Hochul reaffirms vow that residents of the bankrupt Harborside will not be made homeless

Gov. Kathy Hochul on Friday doubled down on her commitment to The Harborside’s residents, saying they would not be left homeless as the bankrupt retirement community seeks to finalize a sale.

“We’re very concerned about this,” she said, referring to the would-be buyer’s proposal to initially shut down the Port Washington facility’s assisted-living units, nursing home and dementia care unit. All that would remain are the independent-living apartments.

“We had high hopes of a new owner coming in to stabilize the situation, but I want to make sure everyone has a place to be taken care of — full stop,” Hochul said, responding to a question from Newsday. “They deserve it. We’ll keep working on it.”

She did not elaborate on the steps that could be taken to protect The Harborside residents, whose average age is 90.

Joyce Shapiro, immediate past president of The Harborside Residents Council, responded that the residents, who number about 180 people, have "lost faith in receiving any help from her and we certainly haven't received any protection" from the state Department of Health, which regulates senior care communities.

"Meanwhile, residents' health and well-being is suffering because of the DOH refusal to approve a nationally recognized viable buyer which would have avoided this situation entirely," said Shapiro, referring to Life Care Services Communities LLC, the No. 3 operator of senior care facilities in the country.  She recently had to move from The Harborside to another facility.

Hochul's comments, after a speech in Woodbury to the Long Island Association business group, come as Focus Healthcare Partners LLC examines The Harborside’s finances and operations. The Chicago-based investor has proposed an $80 million buyout.

Focus, through a spokesman, declined to comment on Friday.

The Focus bid follows the collapse of a $104 million proposal put forward by Iowa-based LCS. That deal, which would have kept open all The Harborside's care units, fell apart in October in a regulatory dispute between LCS and DOH.

Harborside residents have blamed DOH and Hochul for LCS' decision to drop its bid. 

In October, Hochul, responding to the criticism, accused LCS and The Harborside’s leaders of fearmongering.

"Stop scaring these individuals and making them feel that they’re going to be out on the streets tomorrow,” she said in response to a Newsday question in New Hyde Park. “That is not happening. I will not let that happen as the governor of the state."

Hochul also defended DOH in October, saying, "We cannot overlook state law, which says that in order for there to be a transfer [of ownership of The Harborside]...certain conditions [have to be met]. We cannot say they don't have to be met because I want to make sure that the residents are safe."

The Focus bid could be approved by a federal bankruptcy court judge in Central Islip as early as next month.

Judge Alan S. Trust told the parties last month he wants them to make some provision for the entrance-fee refunds owed to residents and the families of deceased residents. The refunds are estimated to top $100 million.

The Harborside has filed for Chapter 11 bankruptcy protection from its creditors three times in the past 10 years. It's now attempting to reorganize again, this time with a new owner.

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.