Owner of NY assisted living building misses $3.1 million payment to residents

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Prospect Park Residence (http://www.prospectparkresidence.com/)
Prospect Park Residence (http://www.prospectparkresidence.com/)

The owner of a Brooklyn, NY, assisted living building has not made the $3.1 million lump sum payment he promised residents in advance of their vacating the property by Aug. 31, according to an article in the New York Post.

As McKnight's Senior Living previously reported, Prospect Park Residence owner Haysha Deitsch in May agreed to pay five remaining residents $533,333 each and also promised to pay the estates of some former residents so that he could sell the building to investors who planned to convert the units into luxury condominiums.

Although Deitsch reportedly has made two installment payments totaling $250,000 to the residents, he was not able to make a planned $3.1 million payment because the company set to buy the building, Sugar Hill Capital Partners, has not given him any money, Deitsch's attorney said in court July 18, the Post said.

Deitsch originally had announced plans to sell the building in 2014. Two months after the announcement, residents were given 90 days to move, and some of them went to court to prevent the building's closure.

Residents accused Deitsch of refusing to turn on the air conditioning, dimming hallway lights, providing meager meal plans and keeping the facility understaffed in an attempt to get them to leave. In July 2015, a judge threw out a motion to dismiss their case. In March of this year, Deitsch sued the adult children of the remaining residents for $50 million because they would not move their parents.

An attorney filed a $5 million lien on the property in June in relation to wrongful death lawsuits from families of former residents.

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