The Appellate Division in Brooklyn has removed the last obstacle to the $36-million sale of Suffolk's nursing home in Yaphank, saying its temporary order blocking a shutdown did not apply to a sale.

The four-judge panel ruled unanimously Friday in the lawsuit brought by three nursing home residents and one employee.

Plaintiffs said they won't appeal. The suit sought to keep the 264-bed John J. Foley Skilled Nursing Facility as a county-run operation, as it has been for more than a century.

The suit said County Executive Steve Levy's plan to shut the facility was illegal because lawmakers did not approve the policy before its inclusion in the 2011 budget.

The clarification was needed because the county legislature earlier this month approved the sale, contingent on an Appellate Division ruling that it did not violate the court's order.

"This is a major hurdle that has been cleared, and a contrary decision would have dealt a severe blow to the taxpayers," Levy said of the appeals court's decision.

Levy says the sale will net the county $18 million after bonds are paid off, avoid $8 million to $10 million in annual subsidies and will keep the nursing home in operation under a new owner, Kenneth Rozenberg.

After a three-year battle, lawmakers approved the sale because the county faces continuing budget shortfalls. They also won concessions from Levy, including a $2 million fund to be used for transition aid for workers and $1 million to help long-term patients remain at the facility.

"I'm not a huge fan of the sale, but we worked out a deal and did the best we could for the patients and the employees," said presiding officer William Lindsay (D-Holbrook).

Updated 46 minutes ago State of buying, selling homes on LI ... 'The Diplomat' on LI ... Get the latest news and more great videos at NewsdayTV

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