The Archdiocese of New York is using its Manhattan property to file for a $100 million loan to cover the costs due to sexual abuse survivors.
The Roman Catholic archdiocese announced it would mortgage the land under the Lotte Palace Hotel and the Villard Mansion, near the landmark St. Patrick’s Cathedral, according to a spokesman.
The $100 million, short-term loan will go toward the Independent Reconciliation and Compensation Program, which was set up by Cardinal Timothy Dolan in October. The program aims to provide closure and compensation to survivors of sexual abuse by clergy members, if they agree to waive their right to legal action.
“This loan will enable the archdiocese to pay the compensation awards while the program is still in effect,” said archdiocese spokesman Joseph Zwilling. “Once the IRCP has concluded its work, and we know the final tally, the archdiocese will take a long-term loan to cover the total cost, to be paid back over a number of years.”
Compensation for abuse survivors who participate in the program will be decided by mediators Kenneth Feinberg and Camille Biros.
In announcing the program, Dolan pledged the money used to compensate abuse survivors would be separate from money going to parishes, schools or charitable works.