complaint·October 16, 2025

promised by the licensee. Per interviews with the staff, initially they were paid on time and later around April and May, staff were not getting paid. The facility owed back pay to the staff and employee checks bounced. At one point, staff had a hard time purchasing groceries for the facility due to insufficient funds for the card used to purchase groceries. LPA also received information that the previous administrator for the facility quit due to non-payment of salary. One resident interviewed admitted there was a lack of staffing during a brief period, staff would quit and leave because they did not get paid. LPA received court documents regarding a stipulated judgement and settlement agreement between the Plaintiff being the property owner and the Defendant, the Licensee, The Hills of Santa Teresa, asserting breach of contract due to unpaid rent, late fees and legal expenses related to the property. The judgement and settlement were in favor of the plaintiff, the property owner, in which the back pay amount of total fees was due along with the ongoing monthly rent. Per interview with one of the licensees of The Hills of Santa Teresa, Maricel Nepomuceno, she admitted the company was going through financial hardship and trying to maintain operations. She admitted that they had hit a wall with legal troubles and were trying to seek other investors. Their business decisions had created a financial snowball effect in which the property owners of their facilities received the brunt end. During a meeting at the Regional Office on May 22, 2025 , Licensee Allen Medina admitted to financial struggles as a result of legal fees and loans and the rent and bills begin backing up. Therefore, based on LPA Tea's observations, review of records and interviews conducted, the allegation that facility is in financial distress has been determined to be SUBSTANTIATED, meaning the complaint allegation is valid and that a violation has occurred. The following deficiency is being cited per California Code of Regulations Title 22 Division 6 Chapter 8. An exit interview was conducted with Administrator Carla Miranda and Director of Operations Joanna Gomez and a copy of this report and appeal rights were provided to the facility.