ALW guide
Running out of money in assisted living: Medi-Cal, the ALW and your rights
What a California assisted-living home can and cannot do when the money runs out, the notice rules, and how to get Medi-Cal and the ALW in place first.
A home cannot put a resident out without written notice, and for unpaid fees the notice is 30 days. California gives families ways to stay: apply for Medi-Cal before the money runs out, ask the home whether it takes the Assisted Living Waiver (ALW), and get a Care Coordination Agency's waitlist request in early. Here is the order to do things in, and the rules the home has to follow.
Important: This page is general information, not legal advice. The eviction rules below are quoted from the state regulation; a resident facing a notice should also call the Long-Term Care Ombudsman, whose help is confidential.
What to do, in order, before the money runs out
Six months out. Count the months of private pay left. Apply for Medi-Cal now: the county has 45 days to decide, or 90 when the decision depends on a disability determination, and the waiver cannot start without it. Ask the home, in writing, whether it takes the Assisted Living Waiver; the answer decides the next step. How a senior gets full-scope Medi-Cal before the ALW.
Three months out. Choose a Care Coordination Agency and have it send the waitlist request to the state; the date the request reaches DHCS sets the person's order within their priority group. If the home does not take the waiver, start looking at homes that do, in the county where the person wants to live. Homes on the state's ALW list.
At zero. Tell the home in writing what has changed and what you have applied for, keep paying what you can, and call the Long-Term Care Ombudsman before any notice arrives.
Can an assisted-living home evict you for running out of money?
Yes, but only with notice, and the notice has rules. Under California's regulation for Residential Care Facilities for the Elderly, section 87224 of Title 22:
- The home may evict on 30 days' written notice for the grounds the regulation lists; the first is nonpayment of the rate for basic services within ten days of the day it was due.
- A 3-day notice is allowed only with the licensing agency's prior written approval, for good cause, which the regulation defines as behavior that threatens the health or safety of the resident or others. Running out of money is not good cause for a 3-day notice.
- A home that changes its use must give at least 60 days' notice.
- The notice must state the reasons with specific facts, the effective date, resources for finding other housing and care, and the resident's right to complain to Community Care Licensing and the Long-Term Care Ombudsman, with their contact details. A copy goes to the resident's responsible person.
- On a resident's request, the Department investigates the reasons given. The home must send a written report of every eviction to the licensing agency within five days.
A resident who gets a notice can file a complaint with Community Care Licensing and call the Ombudsman the same day. Resident rights and grievances.
Medi-Cal first
In 2026 the Aged, Blind and Disabled program, one Medi-Cal group with no monthly share of cost, lists income up to $1,836 a month for one person ($2,490 for two) from April 1, 2026, and countable assets up to $130,000 for one person through June 30, 2027; the county decides. Apply at BenefitsCal.com, at the county social services office, by phone or by mail. The figures, what counts as an asset and the 2027 change are on income and asset limits.
If the home takes the ALW
Then the person may be able to stay where they are. Four things have to be true: the person meets the six ALW requirements, the state releases an opening to them, the home takes the ALW, and it can meet the person's needs. Under the waiver the resident pays the home from income: $706.07 room and board plus up to $738.00 care and supervision in 2026, $1,444.07 in all, and keeps at least $182.00 a month; Medi-Cal pays the home for care. Already in assisted living and paying privately explains each step, including the waitlist.
If it does not
A move to a participating home is the usual answer: the state lists hundreds in the fifteen ALW counties, and the directory shows every one with its licence status. Homes on the state's ALW list. The other answer is home with In-Home Supportive Services, if someone can be there. how IHSS and the waiver compare. Paying privately for a home first does not reserve a waiver opening. Private pay and the waiver.
Who to call
- Long-Term Care Ombudsman, for any resident of a licensed home: CRISISline 1-800-231-4024, 24 hours a day.
- Community Care Licensing (CDSS), to file a complaint about a home: (844) 538-8766, letusno@dss.ca.gov.
- Beta's ALW team, to ask about the waiver: (747) 293-5777.
Questions people ask
Can assisted living kick you out if you run out of money?
Not without notice. For nonpayment the home must give 30 days' written notice that states the facts and your rights, and it must report the eviction to the licensing agency. A 3-day notice needs the licensing agency's prior approval and is for safety reasons, not money.
What happens to seniors who can't afford assisted living?
In California the usual routes are Medi-Cal and, in fifteen counties, the Assisted Living Waiver, which pays a participating home for care while the resident pays room and board from income; a nursing facility under Medi-Cal; or home with In-Home Supportive Services. Which one applies depends on the person's care needs, county and Medi-Cal.
Does Medi-Cal pay for assisted living once I spend down?
Only through the Assisted Living Waiver, only in a participating home, and only after an opening is released from the waitlist. Medi-Cal on its own does not pay for assisted living. Start the Medi-Cal application and the waitlist request before the money runs out.
How much notice does the home have to give?
30 days in writing for nonpayment and the other listed grounds; 3 days only with the licensing agency's prior written approval for a health or safety threat; 60 days for a change of use. The notice must say why, with specific facts, and tell you how to complain.
If the person has, or may qualify for, Medi-Cal, the fit check shows whether the waiver is worth starting now.
About this informationReviewed October 20, 2026. Program details may change. View official sources and page limitations.
Written by Beta's ALW team and reviewed by Sergio B., Program Coordinator, against the official sources this page lists; facts checked through October 20, 2026. Where this page and an official source differ, the source controls.
This page gives general California ALW information. DHCS decides eligibility after the nurse assessment and releases openings. Each home decides its own admissions. Nothing here is an eligibility decision or a promise of enrollment, and it does not guarantee a place in a home. You may choose any Care Coordination Agency listed by DHCS and any participating home.
Something out of date? Tell Beta's ALW team.