New York Attorney General withholds $19 million from religious order

New York Attorney General Letitia James is withholding approximately $19 million in sale proceeds from the Sisters of the Congregation of Divine Providence. The funds originated from the 2024 sale of the Jeanne d’Arc Residence in Manhattan, a property the Kentucky-based religious order operated for 123 years to provide affordable housing for young women.

The residence was sold for $22.5 million to the Red Apple Group, led by John Catsimatidis, for redevelopment into apartments. While the Attorney General approved the sale and released funds to cover carrying costs, taxes, and broker fees, the bulk of the proceeds remains frozen.

The Attorney General’s office stated that the religious order has not provided “a breakdown of what they plan to do with the funds.” Conversely, the sisters’ legal counsel indicated that the funds are intended to continue the order’s charitable activities, including supporting aging members at their retirement home in Kentucky.