New York - NY Attorney General Blocks Nursing Home Sale To Allure Group Amid Probe
New York - The New York State Attorney General, Eric Schneiderman has waded into the controversial, potential sale of two more nursing homes to a company already caught up in one of the ongoing probes into Mayor de Blasio and his administration.
According to a report in the Wall Street Journal (http://on.wsj.com/25Il5Qt), the AG’s charities bureau has notified the Allure Group, a for-profit nursing home provider, that it will not endorse the Group’s attempt to purchase the Greater Harlem Nursing Home & Rehabilitation Center in Manhattan and the Saints Joachim and Anne Nursing and Rehabilitation Center in Brooklyn.
At issue are “grave concerns” that Allure will not continue to operate the sites as health treatment facilities as promised, similar to what occurred when Allure successfully lobbied the city to lift the deed restrictions on the Lower East Side’s Rivington House for $28 million so it could sell the property and convert it to luxury housing.
The Rivington deal is currently being investigated by the Manhattan U.S. Attorney, the City Department of Investigation, and City Comptroller Scott Stringer.
The Mayor has denied any wrongdoing or involvement in the Rivington sale, contending that Allure deceived the City about its plans for Rivington House. Allure denies this and has pledged to cooperate with the various investigations.
The AG’s office didn’t interfere with the earlier sale of Rivington House because Allure had promised in 2014 court papers that it would maintain the site as a health care center. However, once Allure broke its pledge and sold the property to a private developer for $116 million, the Attorney General’s office opened an investigation into the events preceding the sale of the property and has moved to block the sale of any future nursing home properties to the Allure Group.
A spokesman for the Attorney General alleged that Allure made “clear and repeated promises to continue the operation of two nursing homes for the benefit of a vulnerable population – promises that proved to be false.
Until we conclude our investigation, we will object to Allure buying additional nursing homes,” Matt Mittenthal said.
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