Embattled Landlord Haysha Deitsch has defaulted on millions of dollars worth of settlements to ousted residents of his Prospect Park West nursing home, and now a lawyer has filed a motion with a judge to order a lien against two other Park Slope properties owned by Deitsch until the landlord can pay up, NYDN reports.
The properties on Fourth Avenue between Carroll and President streets were acquired by Deitsch for just shy of $10 million. Deitsch filed plans with the Department of Buildings seeking to erect an 11-story apartment building at the site in September. Under the lien, Deitsch would not be in control of the Fourth Avenue properties until he delivered the $3.35 million in settlement he agreed to pay out to the five holdout residents of Prospect Park Residence nursing home.
In 2014, Deitsch announced that the nursing home was "no longer viable" and that the elderly and infirm residents of the 130-bed facility would have 90 days to relocate. The announcement prompted a drawn-out, and ongoing legal battle that brought to light that Deitsch had already sold the building at the primo address of 1 Prospect Park West to Sugar Hill Partners for $76.5 million.
When Deitsch and Sugar Hill inked the deal, Deitsch promised he would deliver the building empty. That proved easier said than done. When the legal battle around the site began to unfold, Sugar Hill in turn sued Deitsch for not evicting the seniors fast enough. While Deitsch received a $7.65 million deposit on the sale, Sugar Hill has withheld the remainder of the agreed-upon sum. Now Deitsch has claimed that he’s unable to pay the buyouts to the remaining tenants—five women all upwards of 90—because Sugar Hill is witholding their payment, The Real Deal says.
Meanwhile, because Deitsch can’t pony up, the women find themselves in danger of losing their non-refundable down payments on their future living arrangements.
In the wake of this debacle, Deitsch is the subject of seven wrongful death claims with $10 million in liens. A third $5 million lien is pending approval.