ZQA – HONORABLE INTENTIONS GONE AWRY, ENABLING PREDATORY BUILDING FLIPS
A Letter to LM May 9, 2016
The purported implementation of Senior Housing…Assisted Living Facilities…Independent Residences as a benefit from the Zoning for Quality and Affordability proposal is disingenuous.
Take the example of the March 2014 Prospect Park Residence in Park Slope from which 123 elders who had been promised to be able to “age in place” were evicted with 90 days notice. What needs to be understood is that this owner, Haysha Deitsch, a real estate developer-who masqueraded as a senior residence operator, applied for certification to the New York State agency-the Dept of Health for Licensure. He did so in order to skirt New York City tenancy protections for the residents. He, under the imprimatur of the State, was able dispose of all his “tenants” en masse claiming “business reversals”.
In reality, he bought the building for $40,000,000 and sold it for $76,500,000, all blessed by the DOH permitted it. It took 90 days to allow predatory real estate greed to churn the property and the City of New York could do nothing. The State allowed it. Basically the strategy of: Buy/develop a building, advertise it as senior housing, get a DOH license as an Assisted Living Facility; sell it; and dump the frightened residents is a scheme that has been ubiquitous.
There is presently a Bill: A06390/S02472 which is in limbo in Albany to require a minimum one year notification for closure. Until or if that is ratified, the template for bait and switch is baked into the enabling of developers. The complicity by New York City agencies to encourage amoral business ethics at the expense of the vulnerable requires a serious review and certainly more comprehensive investigation of the fallout.
The ZQA may have honorable intentions but while it attempts to fix the shortage of senior dwellings, it will do more harm than good.
Haysha Deutsch –
The Real Deal, February 17, 2016
Developer Haysha Deitsch, best known for his many attempts to evict disabled senior citizens, is moving forward with plans for an 11-story, 16-unit luxury residential building in Park Slope, filing demolition permits this week.
If approved, two auto body repair shops at 243 and 245 Fourth Avenue will be torn down and replaced with a 118-foot condominium building near President Street and will feature a pet spa, private roof deck and a children’s playroom. Karl Fischer, the architect behind Naftali Group’s luxury rental building at 267 Sixth Street, will design the building.
The high-end building will join the residential and retail boom along Fourth Avenue — dubbed the “Canyon of Mediocrity” — in Park Slope.
Deitsch is still mired in litigation over 1 Prospect Park West, a 130-room senior assisted living facility that he bought for $40 million in 2006, and has been trying to sell for $76.5 million since last year, DNAinfo reported. The seven tenants that remain at the facility took Deitsch to court. Last summer a Brooklyn judge ruled the landlord couldn’t evict them amid the court battle.
The delayed shutdown of the facility stalled the deal between Deitsch and Sugar Hill Capital Partners. The real estate investment firm also sued Deitsch over the property.
The Brooklyn news/Park Slope March 15, 2016
The real Deal, March 14, 2016
Developer Haysha Deitsch is employing another tactic to finally evict the remaining elderly tenants from his Park Slope property: suing their children for $50 million.
In 2006, Deitsch bought the 130-room senior assisted living facility at 1 Prospect Park West for $40 million. He then made the controversial move to evict around 100 seniors. The remaining tenants took Dietsch to court.
Now, the Brooklyn landlord is claiming those tenants’ children are blocking his plans to evict their parents and ultimately sell the property, the New York Post reported.
“It’s just absurd. I really do feel harassed, and I think that’s the purpose of this,” defendant Joyce Singer, whose 91-year-old mother has lived there since 2010, told the Post. “This is just totally crazy. The only thing we care about is the well-being of our parents.”
Last summer, a Brooklyn judge ruled Deitsch could not evict the remaining tenantsamid ongoing litigation. Deitsch has been trying to sell the property for $76.5 million since last year and the delayed shutdown stalled a deal with Sugar Hill Capital Partners. Sugar Hill, a real estate investment firm, also sued Deitsch over the property.
The facility, called Prospect Park Residence, was hit with a class action lawsuit in 2012 alleging it was operating as an unlicensed assisted living facility, according to reports.
It is currently in the hands of a temporary receiver after Deitsch did not comply with court orders to provide hot water and heat, the Post reported. [NYP] — Dusica Sue Malesevic