Retirement Community Bankruptcy Upends Seniors — Hundreds Of Thousands In Entrance Fees Lost

Ten years ago, Barbara Cooper’s parents moved into the Harborside Retirement Community in Port Washington, New York, expecting it to be their final home. They paid a $946,000 entrance fee for access to independent living, assisted living, nursing and memory care on a single campus — a model known as a continuing care retirement community (CCRC).

Bankruptcy and Immediate Consequences

Harborside declared bankruptcy in 2023. The collapse left vulnerable residents scrambling to find new care and put previously promised refunds of entrance fees at risk. Harborside was one of at least 15 CCRCs to file for bankruptcy in the last six years, highlighting growing financial stress in this senior-care model.

"We were supposed to get 80% back. That's not happening anymore," Barbara Cooper told CBS News.

Many families say the entrance fees they paid — intended to guarantee lifetime care and partial reimbursement to heirs — have largely vanished. Beverly Kohen says her family’s $710,000 fee disappeared when Harborside closed, and that relocating her 94-year-old mother cost an additional $10,000 per month. Beverly and other heirs have hired legal counsel and hope to recover roughly 30% of the lost fee.

Human Cost

Joyce and Norman Cooper, who paid $946,000 for the promise of lifelong care together, lost their entrance fee and were forced to move into separate facilities because their medical needs diverged. After more than 70 years of marriage, the couple was separated; Joyce died soon after the move and Norman three weeks later.

Representatives for Harborside did not respond to requests for comment.

What This Means For Prospective Residents

The Harborside case underscores the financial risks built into some CCRC contracts. While many CCRCs offer peace of mind through large entrance fees and smaller monthly payments, those fees may not be fully protected if the community becomes insolvent. Prospective residents and their families should:

• Ask whether entrance fees are held in escrow or invested and what legal protections exist;
• Request audited financial statements and check the community’s bond or debt levels;
• Consult an elder-law attorney to review contracts and refund guarantees;
• Consider alternatives (rental models, long-term care insurance, or smaller-fee communities) if protections seem weak.

Bottom line: The Harborside bankruptcy is a cautionary tale about the potential fragility of CCRC finances and the real human cost when a retirement community fails.