Most Seniors Who Lost Their Homes Are Placed

Most of the 153 seniors who lost their housing Friday when a chain of residential care homes in Orange and Riverside counties abruptly shut down have found replacement housing, a state social services official said Sunday.

Robert Gomez, a state community care licensing division manager, said only 22 seniors remain in homes owned by Newport Beach-based Managed Assisted Care Services Inc., which ran out of cash Friday and collapsed. The company, which had been one the county’s largest providers of assisted-living housing for the elderly, operated its facilities under the name Autumn Rose.

“Most of the clients have been placed,” said Gomez, whose staff spent the weekend inspecting Autumn Rose homes to ensure that remaining clients were being fed, bathed and provided medication.

“We still haven’t heard back from about three to four facilities that may accept the remaining 22 clients,” Gomez said. “[But] there is no firm deadline here. [Autumn Rose] staff members at the homes have told us they will continue to operate until the last client is placed.”

Autumn Rose workers spent the weekend contacting families and relatives of clients and notifying them of the closures. Those workers also assisted in finding new homes for the remaining clients, Gomez said.

“We’ve been assured that things are going smoothly,” Gomez said. “We don’t make placements; that’s been the responsibility of the [Autumn Rose] facilities.”

Gomez said 28 elder care facilities in Orange County and another six in Riverside County were affected by Autumn Rose’s insolvency. The Orange County facilities housed 125 people and the Riverside homes, 28.

Autumn Rose officials said the company’s financial meltdown occurred after it lost the expected backing of a major investor.

The 2-year-old company had expanded rapidly and recently bought seven residential care homes in Costa Mesa. But Friday, company officials unexpectedly announced the closures, saying they could no longer meet their payroll.

As a result, the families of Autumn Rose residents had only a few days to find housing.

Gomez said most of the placements were handled by Autumn Rose home managers and care givers, many of whom now are out of jobs.

“The direct care people have been outstanding, and they have not walked off their jobs,” Gomez said. “For many of these people, they may or may not get a paycheck for their efforts.”

Residential care facility owners are required to give 30-day notice of their intention to cease operations. Those who fail to comply can have their licenses revoked. Gomez declined to speculate on what, if any, enforcement action Autumn Rose would face.

“This coming week we will analyze what has occurred,” he said.