What Happens If a Board and Care Home Closes or Is Sold?

Most board and care homes in San Diego are small businesses, often run by one owner or one family. That is part of their charm, and part of their risk. Owners retire, get sick, sell the house or decide to stop operating. If your parent’s board and care home is closing or being sold, it can feel like the ground has shifted under your family.

The good news is that California has specific rules to protect residents when a board and care is closing or changing hands. This guide explains what happens in a board and care closing or sale, what notice and help your parent is entitled to, how refunds work, and what steps to take right away.

What Happens During a Board and Care Closing?

When a board and care home closes, California requires the licensee to give each resident written notice at least 60 days before the move, prepare a relocation evaluation for each resident, help them transfer safely and refund certain prepaid fees (Health and Safety Code section 1569.682). The home must also stop admitting new residents.

The core protections in a board and care closing:

• 60 days’ written notice to each resident, stating the reason, with a copy of the service plan and relocation information.
• A relocation evaluation for each resident, recommending the type of facility that fits their needs and listing facilities within 60 miles.
• A meeting within 30 days of the notice to discuss the relocation evaluation with the resident and their representative.
• Ombudsman and referral information included in the notice.
• No new admissions once notice has been given.
• Refunds of prepaid monthly fees on a daily basis, and partial refunds of large preadmission fees depending on when they were paid.
• Reporting to the state. The licensee must report the evictions to CDSS and, after residents leave, send the state and local ombudsman a list of where each resident went.

Why Do Board and Care Homes Close?

Board and care homes close for many reasons, most of them ordinary. An owner retires, the house is sold, rising costs make the home unprofitable, a key caregiver leaves, or the owner’s family needs change. Less often, a home closes because the state revokes its license after serious violations.

Common reasons, roughly from most to least common:

• Retirement or health of the owner. Many small homes depend on one person.
• Sale of the property. The house is worth more sold than operated, or a landlord sells.
• Financial strain. Staffing costs, insurance and vacancies add up for a 6-bed home.
• Change of use. The owner converts the home to another use.
• License action. CDSS may revoke a license or seek a temporary suspension after serious problems.

Watching for early signs, like the owner talking about retirement, a “for sale” listing, or lots of empty beds that are not being filled, can give you more time to plan.

How Much Notice Must a Board and Care Give Before Closing?

California generally requires at least 60 days’ written notice to each resident when a licensee evicts residents because the home is closing or changing its use. The home must also notify the city or county, including any plan to sell, no later than 180 days before closing or as soon as practicable. Larger homes transferring 7 or more residents need a state-approved closure plan.

Notice details worth knowing:

• Residents: 60 days’ written notice, with the reason and relocation information.
• The state: the licensee must report each eviction to CDSS within 5 days.
• Local government: notice to the city or county of the planned closure and any sale, no later than 180 days before closing or as soon as practicable.
• Closure plan: required for facilities transferring 7 or more residents. Most 6-bed board and care homes fall below this threshold.

The 60-day closure notice is different from the 30-day eviction notice that applies when a home asks one resident to leave for other reasons. Our guide to board and care eviction rules in California explains the 30-day rules.

What If a Board and Care Home Closes Suddenly?

If a home shuts down without proper notice, or the owner abandons it, the state can step in. CDSS can work with local agencies to relocate residents, can seek court orders and penalties, and in serious cases the state can appoint a temporary manager. A licensee who abandons residents in danger can lose the right to hold a license again.

What to do if a closure happens fast:

• Call CDSS Community Care Licensing. Report the situation to the regional office that oversees San Diego County.
• Call the long-term care ombudsman. San Diego County’s ombudsman program advocates for residents of licensed care homes.
• Collect your parent’s records. Medications, medication records, the care plan, physician’s report and personal belongings.
• Arrange a safe short-term option. A respite bed in another home can buy time. See respite care in San Diego board and care homes.
• Get help finding the next home. A local placement advisor can often find an opening within days.

What Happens When a Board and Care Home Is Sold?

In California, a board and care license cannot be sold with the house. When a licensee sells or transfers the facility, the old license is forfeited by law (Health and Safety Code section 1569.19), and the new owner must obtain its own license before operating. If the transition is handled well, residents may be able to stay.

What a sale typically looks like for residents:

• New operator, same house. If the buyer plans to keep running a board and care, they apply for their own RCFE license, and residents may continue living there under the new owner.
• New admission agreement. Expect to sign a new agreement with the new licensee. Read it carefully, especially rates and notice terms.
• Possible changes. New owners may change caregivers, menus, routines and rates.
• Possible closure. If the buyer wants the house for another purpose, the seller must follow the closure and relocation rules before residents leave.

Questions to ask when a board and care home is being sold:

• Who is the buyer, and do they plan to keep operating as a care home?
• Has the buyer applied for a license, and what is the expected timeline?
• Will current caregivers stay?
• Will rates change, and when?
• If residents must leave, when will written notice be given?

How Refunds Work in a Board and Care Closing

When a home evicts residents because it is closing, it must refund prepaid monthly fees on a per-day basis for days your parent will not be there. If your parent paid a large preadmission fee (over $500), California requires a partial refund based on how recently it was paid, ranging from 100% to nothing.

The preadmission fee refund schedule under Health and Safety Code section 1569.682:

• Paid within 6 months before the notice: 100% refund.
• Paid more than 6 and up to 12 months before: 75%.
• Paid more than 12 and up to 18 months before: 50%.
• Paid more than 18 and less than 25 months before: 25%.
• Paid 25 months or more before: no refund required.

The preadmission fee refund is due within 15 days of the eviction notice, and residents can choose a credit toward monthly fees instead. Keep copies of every payment, invoice and your admission agreement.

Your Parent’s Rights During a Closure or Sale

Your parent keeps every California resident right through a closure or sale: dignity, privacy, adequate care, visitors, and protection from improper eviction. Residents can sue to enforce the closure rules, and the licensee must reimburse the state for relocation costs if it fails to follow them.

Rights that matter most during a transition:

• Care continues. The home must keep providing adequate staffing and care until your parent leaves.
• Medications and records. Your parent’s medications, belongings and records go with them.
• Help with the move. The home must take reasonable steps to transfer residents safely and minimize transfer trauma.
• Freedom to choose. Your parent is not required to move to whatever home the old owner suggests.
• Ombudsman support. The long-term care ombudsman can advocate if things go wrong.

Our guide to resident rights in California board and care homes covers every right in more detail.

Steps to Take During a Board and Care Closing

Start your search the day you receive notice. Sixty days sounds like plenty, but the best board and care homes in San Diego often have only one or two openings at a time. Gather records, update your parent’s physician’s report and TB screening, and tour replacement homes early.

A practical plan:

• Week 1: Read the notice carefully. Request the relocation evaluation, care plan and medication records. Call a placement advisor.
• Weeks 2 to 3: Tour 2 to 4 homes that fit your parent’s needs and budget. Read their inspection reports. See our guide to comparing two board and care homes.
• Weeks 3 to 5: Choose a home. Schedule the doctor’s visit for the LIC 602A physician’s report and TB screening.
• Weeks 5 to 8: Move, ideally keeping familiar furniture and routines. Confirm the refund in writing.

For a parent with dementia, moves are hardest. Keep the same bedding, photos and daily routines, and try to move in the morning. Our guide to the first 30 days in a board and care home helps with the adjustment.

How to Reduce the Risk Before You Choose a Home

You cannot eliminate the risk of a closure, but you can lower it. Before move-in, ask how long the owner has operated, whether they own the property, who runs the home in their absence, and whether they have a succession plan. Check the licensing history for signs of trouble.

Questions to ask on any tour:

• How long have you owned and operated this home?
• Do you own the house or lease it?
• Do you plan to keep operating for the next several years?
• If you retire or sell, what is your plan for residents?
• Do you operate other homes where residents could transfer?

Our guide to owner-operated vs. multi-home board and care operators explains how ownership affects stability.

Helping a Parent With Dementia Through a Board and Care Closing

A board and care closing is hardest on residents with dementia, who may not understand why they are moving and may react to the change with fear, confusion or anger. Keep explanations short and reassuring, move familiar belongings first, and choose a new home with experienced dementia caregivers and a similar routine.

Ways to ease the transition:

• Keep the message simple. “This house is closing, and we found you a nice new room” is often enough. Repeat it calmly as needed.
• Recreate the room. Set up the same bed, quilt, photos and chair in the same arrangement before your parent arrives.
• Share what works. Give the new home a one-page summary of routines, favorite foods, calming strategies and triggers. Ask the old caregivers to add their tips.
• Time it well. Mornings are usually better than evenings, when sundowning is more likely.
• Plan extra visits. Frequent short visits in the first two weeks help, but follow the new home’s advice if visits are unsettling.
• Watch health closely. Moves can trigger falls, poor appetite, dehydration and infections. Ask the new home to watch for these closely.

Small dementia board and care homes in San Diego usually cost about $6,000 to $9,500 per month in 2026. Our guide to memory care homes vs. memory care communities can help you pick the right next setting.

How Elder Answers Helps

When a board and care is closing, time matters. Elder Answers knows which board and care homes in San Diego have openings now and which fit your parent’s care needs and budget. Our advisors personally visit the homes we recommend and can help you tour quickly. When the need is urgent, moves can often happen within a few days.

Our senior care placement help is free because homes pay us after move-in, and our fee does not change your rate. Contact Elder Answers as soon as you receive a closure notice.

Frequently Asked Questions About a Board and Care Closing or Sale

How much notice must a California board and care give before closing?

Generally at least 60 days’ written notice to each resident when residents must move because the home is closing or changing its use (Health and Safety Code section 1569.682). The notice must include the reason, relocation information and ombudsman contact details.

Does the board and care have to help my parent find a new home?

Yes. The licensee must prepare a relocation evaluation for each resident recommending the right type of care and listing facilities within 60 miles, discuss it with the resident and family, and take reasonable steps to transfer residents safely.

Can a board and care home be sold with residents in it?

Yes, but the license does not transfer. The old license is forfeited when the facility is sold, and the buyer must obtain its own license. If the buyer keeps operating, residents may be able to stay under a new admission agreement.

Will we get money back if the home closes?

Prepaid monthly fees must be refunded on a per-day basis. Large preadmission fees over $500 are refunded on a sliding scale, from 100% if paid within 6 months of the notice to nothing if paid 25 or more months before.

Who do I call if a board and care closes without notice?

Call CDSS Community Care Licensing and the San Diego County long-term care ombudsman. Both can intervene. Then focus on getting your parent’s medications, records and belongings and arranging a safe place to stay.

Can the new owner raise the rate after a sale?

A new licensee will usually have you sign a new admission agreement, which may include a different rate. California law requires advance written notice of rate increases. Read the new agreement carefully before signing.

Does a closure notice count as an eviction?

Yes. Under California law, residents displaced by a closure or change of use are evicted, and the home must follow the special 60-day closure rules rather than the usual 30-day eviction process.

How quickly can my parent move to a new board and care?

With a placement advisor, families often find and tour suitable homes within days. The new home will need a current physician’s report, TB screening and medication list, so schedule a doctor’s visit early.