The Real Deal New York

VillageCare eyes lifting facility’s nonprofit status ahead of sale

Undoing 1993 deed would enable for-profit health provider to purchase and operate building
September 12, 2014 02:35PM

The nonprofit organization that runs an East Village nursing home for AIDS patients could face an uphill battle in its effort to sell its building, largely due to the terms of a deed granted two decades ago.

Last month, VillageCare announced it would close its 206-bed facility at 45 Rivington Street between Forsyth and Eldridge streets, saying its services were no longer needed since fewer New Yorkers die from AIDS these days. However, the 1993 deed on the property requires that it be operated in perpetuity as a not-for-profit residential health care facility, the Lo-Down reported.

Now, the organization is asking New York state to change the terms of its deed — a move that would allow a for-profit health provider to purchase the building and operate it, Matthew Lesieur, VillageCare’s director of public policy, told Manhattan Community Board 3 at a recent meeting, according to the blog. A sale would also help the organization pay off the mortgage on the building and tackle pension obligations, said Lesieur.

Removing the nonprofit designation has proved controversial, as some community members fear the Romanesque building near Sara D. Roosevelt Park will be sold and converted to luxury residences, the Lo-Down reported. [Lo-Down]Tom DiChristopher