The Real Deal New York

$16M profit made from lifting deed restriction at Rivington House will go to senior housing: de Blasio

Mayor announces changes to its flawed review process
July 08, 2016 02:51PM

(inset: Mayor Bill de Blaisio)

The Rivington House at 45 Rivington Street on the Lower East Side (inset: Mayor Bill de Blasio)

The city is making amends for lifting a deed restriction on a Lower East Side health care facility by dedicating $16 million made from the deal to senior housing.

Mayor Bill de Blasio announced on Friday that funds received from the deed change at the Rivington House will be dedicated to housing for elderly residents in the neighborhood. He also laid out policy changes related to how the city will lift deed restrictions in the future, the Wall Street Journal reported. The city will now only alter such restrictions in “very rare circumstances” and will require landlords to disclose whether or not they are in talks to sell the property before agreeing to changing a deed.

The previous owners of the Rivington House, the Allure Group, paid the city $16 million to lift limitations that only allowed the property to function as a not-for-profit residential health care center. In February, Allure sold the property for $116 million to a group of developers — China Vanke Co., Slate Property Group and Adam America Real Estate — who plan to convert the building into a luxury condominium.

The sale has drawn the ire of some New Yorkers and the attention of state, federal and city officials. The city comptroller, the state attorney general and the U.S. Attorney General in Manhattan all launched investigations into the deal. Officials have not yet released details on these probes. [WSJ] — Kathryn Brenzel