L
ife Care Services Communities (LCS) has terminated its $104 million sale agreement for the Harborside retirement complex in Port Washington, Long Island. The Iowa-based company won an auction over a higher bidder nine months ago, but was unable to complete the deal due to regulatory issues. LCS claims it waited nine months for necessary approvals from New York state regulators, which were ultimately denied by the Department of Health.

    The agency reportedly rejected the sale because LCS failed to provide sufficient information about its plans as a for-profit operator in the state. As part of the agreement, LCS had promised to keep all employees, pay off investor-held bonds, and refund families of deceased residents. However, with the deal falling through, Harborside's 181 residents are facing an uncertain future.

    Finances at Harborside are already strained, having filed for Chapter 11 bankruptcy protection three times in the last decade. An attorney for the facility described its financial situation as "limited liquidity runway." LCS is now accusing the Department of Health of failing to support the community's residents, who had been counting on the sale to secure their future. A spokesperson for Governor Kathy Hochul has pledged to work with families to ensure they have a home and proper care.