“As previously reported, Places closed its four Residential Care Facilities in September, as it is unable to financially support the program. The organization continues to operate other services, but is actively working with community partners on a possible transition to other service providers,” said Laura Ferrell, CEO of Places Inc.
More information on PLACES and its services will be available in the near future, Ferrell said.
“Everybody, I think, has heard at some point, Places is actually shutting down (and) ceasing operations in just a couple of weeks,” said Helen Jones-Kelley, executive director of Montgomery County ADAMHS, during a recent board meeting.
Places’ housing, supportive services
In addition to the 36 beds in its now closed groups, Places Inc. provides additional services through its supportive living program and other behavioral health programs.
The needs vary, but Places Inc. provides case management and life skills training for adults diagnosed with mental health disorders who are living in houses or apartments or who have been homeless, according to its 2021-2022 annual report, the most recent report available. They served 191 people in that program in 2021, according to the report, which also said the program typically averages about 200 people per year.
Places Inc. also has four facilities part of its Housing First program. Established in 2004, Places Inc. provides housing and services to 41 formerly homeless adults throughout Montgomery County, its annual report says. Grants from the U.S. Department of Housing and Urban Development (HUD) provide supportive services for homeless adults disabled by mental illness, substance use or both.
Disagreements over funding
All of these changes are occurring after the long-time CEO of Places Inc., Roy Craig, retired from the company, as well as after the nonprofit received reduced funding from Montgomery County ADAMHS. Craig was not able to be reached for comment. Ferrell, the current CEO, took over the position earlier this summer.
Places Inc.’s 2024 funding from ADAMHS was $703,013, compared to its 2023 funding of $1,266,512 from ADAMHS.
Multiple factors contributed to the reduction in funds, as well as why it took extra time for agencies to find out their full contract amounts for 2024. The Dayton Daily News previously reported on how ADAMHS has been reducing its spending by 38% and changing some of its funding cycles.
Montgomery County ADAMHS staff said they had not expected Places Inc. to close its group homes, providing a fact sheet to trustees of financial suggestions they had made to Places Inc., which they believed would keep the group homes open.
The financial suggestions included an extra per diem amount of $46 per day for residents under the state’s Residential State Supplement (RSS) program, which is an optional program that provides financial assistance to adults with disabilities who wish to live in the community.
The per diem funding combined with the RSS funding those residents received through the state would result in revenue of $2,980 per the eligible residents, according to the fact sheet from Montgomery County ADAMHS.
The Dayton Daily News obtained emails between Montgomery County ADAMHS staff, Craig, and Ferrell, when she took over, through a recent public records, which show disagreements about whether the approved funding would be enough.
Not all of the residents were eligible for the per diem amount since some residents did not receive RSS funding. In one email, Craig said the services Places Inc. provides are more than those reimbursed by RSS. ADAMHS, in its fact sheet, said the funding and solutions it proposed should have been enough for the four group homes for the last six months of the year.
“At any rate, closing four facilities is not justified based on the amount of funding ADAMHS has given Places,” ADAMHS’ fact sheet says. It goes on to say there was a “lack of transparency” in how Places Inc. has represented the issues to various local officials and family members.
Places financial losses
Places Inc. was experiencing financial struggles prior to this year.
“(Places Inc.) has faced substantial financial losses over the past few years,” Craig said in a letter to Jones-Kelley, dated Jan. 11, 2024.
In the letter, Craig goes on to say Places Inc. used up its 2023 funding allocation from ADAMHS by October 2023, so Places Inc. used reserves and a line of credit to pay for expenses during that time. ADAMHS also provided a budget amendment for Places Inc. to help with the shortfall, Craig’s letter says.
In previous years, expenses exceeded Places Inc.’s revenue, according to IRS 990 tax forms. In 2021, its expenses exceeded its revenue by $117,158. In 2022, that loss was $466,998. Its expenses in 2022 were more than $4.1 million, while its revenue was reported as just under $3.7 million.
The largest expenses for Places Inc. was salaries, according to the tax forms. Craig was the only employee to receive more than $100,000. His base salary in 2022 was $129,299, according to the tax forms.
Places Inc. spent approximately $2,107,266 on salaries and wages for 2022. Its annual report says the organization had more than 60 employees in 2022, including both full- and part-time employees.
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