Harborside Seniors Face Uncertain Future as Bankruptcy Looms

Harborside, a retirement community in Port Washington, New York, filed for bankruptcy for the third time on Thursday, October 24th, placing more than 180 elderly residents in financial and housing uncertainty. With a rejected takeover bid from Life Care Services (LCS) due to state regulatory concerns, the community’s future remains unclear. The Department of Health cited missing documentation from LCS, and Governor Kathy Hochul expressed her priority to safeguard residents but firmly stated that any transfer must adhere to state laws.

The rejection of LCS’s bid has led to fears among residents who invested their life savings into the community, expecting stability and security in their later years. Ninety-three-year-old John Haney voiced the frustration shared by many, labeling the situation “unjust” and stressing the need for protection. Meanwhile, Fran Schmidt, another elderly resident, stated, “At this point in our lives, it’s not fair.” Residents like Bob Curtis worry about the lack of affordable alternatives if Harborside fails.

As residents rallied for state intervention, Governor Hochul reassured them that she would prevent any eviction, urging all parties to avoid instilling fear in the community. She acknowledged the long-standing issues at Harborside, noting that the facility’s history of financial instability required stringent oversight. Hochul’s office has called for alternative buyers but underscored that legal and safety requirements cannot be overlooked in any deal, stressing that the “safety and well-being of the residents” remain paramount

Hochul said, My concern is, number one, the safety and well-being of the residents. 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 can not be overlooked. We can not overlook state law, which says that in order for there to be a transfer there have to be certain conditions met. We can not say they don’t have to be met, because I want to make sure that the residents are safe.”

Financial challenges have already affected daily services at Harborside, as their food provider plans to withdraw due to a $1 million unpaid balance. Brooke Navarre, Harborside’s CEO, described the community’s financial plight as “complex,” sparking concerns about the community’s operational viability through the end of the year. As local representatives push for interim relief, residents face increasing anxiety over their investments and living arrangements.

With $130 million of residents’ savings at stake, officials like Congressman Tom Suozzi are calling for a stopgap measure. Suozzi urged the state to consider temporary funding while a long-term solution is pursued, echoing residents’ appeals to safeguard their retirement. Hochul acknowledged the gravity of their plight and affirmed that housing stability for seniors would not be compromised.