State Sen. Daniel Squadron released a letter (see the PDF here) to letter to Attorney General Eric Schneiderman and Corporation Counsel Zachary Carter urging an investigation into the Rivington House deed restriction removal and purchase by the Allure Group under the State and City’s False Claims Acts.
At the City and State level, the False Claims Act provides authority to take civil action against those that defraud the government. The City has indicated it was misled by the Allure Group during the deed restriction removal and sale of the Lower East Side nursing home.
“The closure of Rivington House stunned the community and highlighted major flaws in the process that governs deed restrictions,” he wrote. “The role of government is to protect the public interest and to be transparent; but that role is undermined if government is misled, as may have been the case at Rivington House. But, it is also vital that we hold those who violate the public trust accountable.”
The Daily News has more on Squadron's press conference from yesterday here.
In February 2015, the Allure Group paid $28 million for the property, promising that 45 Rivington — the former Rivington Center for Nursing & Rehabilitation — would remain a health facility. In November 2015, a city agency lifted the the deed in exchange for the Allure Group's $16 million payment to the city. Earlier this year, Allure then reportedly sold the property for $116 million to the the Slate Property Group, a condo developer who plans to create 100 luxury residences in the building that overlooks Sara S. Roosevelt Park.
Last summer, the Department of Investigation released the results of an inquiry, which didn't reveal any corruption, but rather inattention and incompetence by the de Blasio administration.