About Us

Services

Long Term Care
> Facilities
> Services
> Complaints

GETTING REFUNDS AND DEPOSITS
FROM ADULT FOSTER CARE HOMES

When adult foster care residents move out from licensed adult foster care homes in Michigan, state law requires homes to return certain monies to those residents that were previously paid by them or their designated representative to the home.

In the state licensing rules for adult foster care homes, for instance, the burden for deciding what will be refunded, and when, is placed primarily on the home and its prospective residents for admission. These licensing rules call for a Resident Care Agreement to be executed by the home and each resident (or their designated representative), using forms which must be previously approved by the state agency which licenses adult foster care, the Michigan Department of Consumer & Industry Services (MDCIS).

Resident Care Agreements are required to contain what is called a Written Refund Agreement. It is here that the specifics of refunds and returns of deposits are worked out. Little is provided for on what is allowed or prohibited in Written Refund Agreements in the state licensing rules.

Let the buyer beware! Homes could require applicants for admission to agree to terms on refunds or deposits which totally favor the home, which could include refunding little or no funds at all. Applicants for admission who refuse to agree to such terms could then be denied admission to that home. But that might be in the consumer’s best interests anyway. Consumers seeking adult foster care ought to shop elsewhere and work with homes which will negotiate Refund Agreements with fairness and in good faith.

What the state licensing rules do require in Written Refund Agreements is that refunds be made if an emergency discharge from the home occurs and/or if the Michigan Department of Consumer & Industry Services (MDCIS) moves to suspend or revoke the home’s license. In these circumstances, while maintaining the dominance of the Written Refund Agreement, the rules call for refunds of unused portions of monthly charges, prorated based on the number of days the resident lived in the home during the month of the discharge.

The state licensing rules also provide for the return of belongings and valuables to the resident or their designated representative if the resident was not able to take the property with them when they left the home. The home must send by registered mail an inventory of the resident’s property to those parties, requesting disposition of it. The home is allowed to dispose of the property after 30 days of sending the inventory notice if there is no response.

Other Applicable State Laws and Resources

Michigan’s Security Deposit Law (Public Act 348 of 1972), a consumer protection law, in landlord-tenant cases, may be applicable to adult foster care homes, even unlicensed facilities. Invoking this law requires careful record keeping by the resident or the resident’s representative, including copies of all agreements, canceled checks or check copies and all correspondences with the adult foster care owner or manager, and especially, copies of prompt written responses to same from tenants. To pursue a return of security deposits, start with informal efforts such as calling the owner or AFC manager, with a request for a refund. Some communities have mediation or conflict resolution centers which may help on a less formal basis. You may find them in the yellow pages or by contacting the local Bar Association. If these efforts fail, small claims court in your local district court is a next step in which you can file a claim and get a hearing before a judge. Securing an attorney to pursue a case in small claims court is not necessary, but might be advisable if your case is complex, or you face strong opposition. With detailed documentation of a claim the court may order refunds up to twice the amount of the original deposit.

Other state or federal laws could conceivably support a claim of refund or return of deposits. A knowledgeable attorney or local housing information resource centers, if available in your area, may provide counsel .

What if you have already signed a contract and/or agreement which puts you under unfavorable refund conditions?

You may be bound by its terms. You may want to consult with a knowledgeable attorney to determine this with greater certainty. Your local Long Term Care Ombudsman office can assist in providing you with referrals to legal resources if you need help.

What can you do if an adult foster care home licensed in Michigan refuses to refund what you are rightfully owed?

You can file a formal complaint against the home with MDCIS. [Ask for the Fact Sheet, entitled, Adult Foster Care Complaints: A Consumer’s Guide, from your local Long Term Care Ombudsman office.] Also, as stated previously, a potential could exist that you would be in line to collect money in addition to the amount of the original deposit. Seek legal advisement or contact your local Long Term Care Ombudsman.

Rev: 98,99, 10/00