Time is Ticking for the Allure Group to Create LES Health Care Facility as Part of Rivington House Settlement

The legal fallout from the Rivington House scandal continues, as the Allure Group literally pays for its nefarious roles in the cancelation of the deed restriction that ultimately led to the $116 million sale of the former nursing home.

Under the terms of the settlement with the New York Attorney General last year, Allure is on the hook for $750,000 in penalties and costs to the State, plus an additional $1.25 million to a half-dozen Lower East Side healthcare non-profits.

Also part of the stinging settlement deal is a commitment, within five years, to invest about $5 million to construct another Lower East Side health care facility to “fill healthcare gaps caused by the closure of Rivington House.” And to that end, we’re told that Community Board 3 is reportedly in the process of contacting the Attorney General’s office on the status of this
requirement.

As previously reported, the recipient organizations to the $1.25 million portion of the settlement include Chinese-American Planning Council (currently co-developing a thirty-story tower atop the ruined Beth Hamedrash Hagadol), Grand Street Settlement, Henry Street Settlement, Alliance for Positive Health, Community Health Network, and University Settlement.

Meanwhile, it’s worth reiterating that co-owner Slate Property Group signed Letter of Intent with Mount Sinai for a 30-year lease at 45 Rivington Street. The hospital behemoth is planning to move its behavioral health services from the Bernstein Pavilion to Rivington House.

Article updated to correct Community Board 3 role in contacting AG, per comment from District Manager Susan Stetzer.