New York’s attorney general approved a $22.5 million sale by a Catholic order, then locked down about $19.3 million of the proceeds in escrow, blocking the sisters from using it to care for their aging members and continue their ministry.
Story Highlights
- The attorney general approved the sale and limited reimbursements, but withheld the remaining $19.3 million pending further approval.
- The funds sit in escrow with a private law firm, not with the sisters, restricting urgent care for elderly members.
- State guidance allows officials to condition religious property sales, but prolonged delays raise fairness concerns.
- The dispute shows how New York’s rules can override a charity’s plans for its own mission and people.
What the Attorney General Approved—and What She Withheld
New York Attorney General Letitia James approved the congregation’s sale of the Jeanne d’Arc residence in Manhattan for $22.5 million. Her written approval allowed the order to be repaid $2,737,459.88 for carrying costs and expenses. It also noted other closing items like taxes and broker fees. But the approval denied any other use or distribution of proceeds. It stated the remaining net proceeds—about $19,316,727—must stay in escrow until the attorney general or a court approves a plan for their use.
The approval document also flagged state concerns with the sisters’ proposed plan for the money. It cited “quasi cy pres” issues, which deal with keeping funds aligned with a charity’s mission, and “related party” questions. These are technical points in charities law. Still, they have real impact. They are the reasons the attorney general’s office is holding the money and not releasing it to the congregation for care of aging members and support of ministries right now.
Why New York Can Condition Charity Sales
New York law gives the attorney general broad oversight of major sales by charities and religious corporations. The rules require approval by the attorney general or a court for deals that involve all or most of a nonprofit’s assets. Guidance says that even when the asset is not most of the charity’s total value, if a sale affects the mission, court review may be needed. For religious property, the state can require escrow of proceeds as a condition of approval.
These rules are meant to protect donors, missions, and the public trust. But they also concentrate power in the state. In practice, this can freeze money for long periods. Here, the attorney general approved the sale and limited reimbursements, but conditioned the major proceeds on future approval. That has left millions sitting idle while the sisters face rising costs for elder care and ministry in a high-cost city.
The Stakes for the Sisters and for Donors’ Intent
The sisters sold the building to cut heavy costs and keep serving people. The buyer was a well-known New York business leader. The plan, as reported, included caring for elderly members at Holy Family Home and supporting other works. The state objected to those proposed uses and held the funds in escrow with a private law firm, pending a new plan or court sign-off. Two years on, the core funds remain locked away from the order’s daily needs.
Donors and taxpayers expect common sense. When a charity sells property tied to its work, using the proceeds to care for the people who carried out that work sounds aligned with mission. The state’s guidance defends guardrails, but it does not explain long delays. Without timely, clear resolution, oversight looks less like protection and more like control. That gap erodes trust and hurts the very people the charity is trying to help.
What Would Resolve the Standoff
A practical fix is straightforward. The attorney general can approve a plan that documents how care for aging members and support of ministries fit the order’s mission. If “related party” questions exist, they can be addressed with arm’s-length contracts, independent reviews, and clear documentation. If the attorney general will not sign off, the congregation can seek court approval. The state’s own rules recognize judicial review as an alternative path.
A few years ago, Letitia James aimed her peculiar interests in private property at Donald Trump. Now James refuses to release the proceeds of a Manhattan property sale to aging nuns who can no longer support the ministry they ran in New York City for more than a century.
— Dr. Michael Bunch (@dr21549) September 18, 2026
New Yorkers are weary of heavy-handed rules that punish faith groups and families while rewarding politics. This case is a test. The sisters followed the process, sold at market price, and accepted escrow conditions. Now the state should act quickly and release funds for mission-aligned care. Delay here does not defend the public. It hurts real people who gave their lives to serve others. Oversight should guide charity work, not strangle it.
Sources:
thegatewaypundit.com, thefp.com, static1.squarespace.com, cdn.ymaws.com, ag.ny.gov
