South Dennis nursing home sold for $4.3M, will house family shelter program.

SOUTH DENNIS − A 128-bed nursing home was recently sold to a housing advocacy organization, which plans to use the property to house a family shelter program.

One Love Lane South Dennis LLC sold the site known as South Dennis Healthcare at 1 Love Lane to Housing Assistance Corporation for $4.3 million, according to a deed recorded with the Barnstable County Registry of Deeds on Sept. 28. South Dennis Healthcare is operated by Woburn-based Next Step Healthcare.

In a statement sent to the Times and other entities, Housing Assistance Corporation CEO Alisa Magnotta said the owner approached the organization to buy the property in January, citing difficulty maintaining staff because of the housing crisis. Details were finalized over the past few months on the purchase and sale.

'Fulfill our well-established mission'

"Our agency’s focus is to address housing insecurity for residents in our region through a multitude of educational programs and housing projects," said Magnotta. "Any property we acquire is intended to be utilized long-term to fulfill our well-established mission."

The current nursing home operator will continue to lease, allowing time to work with state health officials to relocate residents and wind down the business in accordance with established state regulatory requirements, according to Magnotta's statement.

Next Step did not respond to a request for comment. A message left at South Dennis Healthcare was not immediately returned.

In coming months, Housing Assistance, which has offices in Hyannis and Orleans, will continue to assess the building and formalize a concept plan, said Magnotta.

More on South Dennis Healthcare's owner and operator

According to Next Step's website, the company currently operates 18 skilled nursing facilities in Massachusetts, including in Plymouth, Fall River and Worcester. Next Step has closed several facilities in recent years, including one in Wareham in 2021 and one in Dedham last year.

The office of the U.S. Attorney for the District of Massachusetts announced in September 2022 that the office and Next Step had reached an agreement to resolve allegations that the company had violated the Americans with Disabilities Act by turning away patients who indicated they were prescribed medications for opioid use disorder.

South Dennis Healthcare — previously known as Eagle Pond Rehabilitation and Living Center — has two "state-of-the-art rehabilitation rooms," tracheostomy care, and nutrition services, according to Next Step's website. The facility also offers hospice and respite care. As of Sept. 13, 92 out of 128 beds were occupied, up from about 60 a few months ago.

According to the Secretary of State's website, the building's owner, One Love Lane South Dennis, was registered on Aug. 25, 2017 as a foreign limited liability company, which is a company formed under the laws of any state other than Massachusetts or under the laws of any foreign country.

As of Monday, South Dennis Healthcare is not listed on the Massachusetts Department of Public Health website's list of pending voluntary nursing home closures in the state. In order to close a nursing home, the department is required to hold a public hearing on the proposed closure at least 60 days before the suggested closing date.

Dover Amendment considerations

During a Sept. 18 Planning Board meeting, Town Planner Paul Foley said the Building Department had received a request from Housing Assistance Corporation for confirmation that their proposal to create a family shelter program at the site "is exempt from zoning under the Dover Amendment."

Under that provision, Massachusetts state law exempts agricultural, religious and educational uses from certain zoning restrictions by limiting what zoning requirements apply to religious and educational uses. To decide whether a proposed use falls under the scope of the amendment, a two-part test is employed to figure out if the proposed use is primarily educational.

After consulting with the town's legal counsel, Foley said it was "confirmed that the proposed use is likely an exempt educational use protected by the Dover Amendment." Housing Assistance has been referred to the Planning Board for special review.

In a statement to the Select Board read by Chairman Chris Lambton on Sept. 12, Housing Assistance said the facility would not be used for migrant housing, but rather to address the housing crisis faced by Cape Cod residents.

"The influx of immigrants that is impacting our region is beyond the scope of our mission and our acquisition of any property is only ever motivated by meeting the housing needs of Cape Codders," reported the statement.

"My concern is what's going on there now. We have a nursing home that, as far as I'm concerned, I see we're going to need more nursing homes in the future. The Baby Boomers are just getting to that point," said Foley on Sept. 18.

Zane Razzaq writes about housing and real estate. Reach her at zrazzaq@capecodonline.com. Follow her on Twitter @zanerazz.

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This article originally appeared on Cape Cod Times: South Dennis nursing home sold. Here's what we know about its future.