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Mayor Bill de Blasio announced plans to build an affordable housing and healthcare facility to replace what the Rivington House provided on the Lower East Side.
Located on a Department of Environmental Protection-owned site less than a mile away from the Rivington House, the new facility could house more than 100 seniors.
The city plans to invest $16M and issue a RFP next year, and has announced reforms to the deed modification process that will require the city to consider a project’s public value before making any land-use restrictions modifications.
“Rivington House’s conversion to luxury housing never should have happened,” de Blasio said in a release. “This community was the victim of a broken process, city error and unscrupulous developers looking to make a buck. Our reforms will prevent that from ever happening again.”
When for-profit nursing home operator Allure tried to sell the property to Slate Property Group for $116M, the Department of Citywide Administrative Services lifted the deed restriction on the property in exchange for a $16M fee from Allure.
The mayor said he didn’t learn of the sale until March 2016. But a report released by the Department of Investigation revealed city officials knew about the deal and did nothing to stop it. It also found the Law Department was attempting to hinder the investigation by denying information, despite the DoI having unfettered access to documents and computers.
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