The Family Service of Rochester was supposed to help support older, disabled Americans — then it lost $650,755 and forced folks to move out. But someone followed the money

Behind on rent

Family Service’s latest IRS 990 tax filing paints a troubling financial picture. The organization ended its 2024 fiscal year $650,755 in the red, News10NBC reports, raising serious questions about whether residents’ benefits were properly handled. The program was also $400,000 behind on rent payments.

News10NBC says it reached out to the CEO listed on Family Service’s 990 form, Neil Cavalieri, along with the entire board of directors, and all declined to comment.

Earlier in the week, days after the program’s closure, News 8 WROC reported it received a statement from Family Service: “The programs are being closed to ensure the continued health and safety of the resident participants. Residents in the programs are receiving assistance from both the Department of Health and Family Service in finding appropriate/safe alternative housing and health services.”

If federal funds were misused, oversight of any investigation would likely fall to the U.S. Attorney’s Office, per News10NBC. The broadcaster says it contacted the U.S. Attorney for the Western District of New York but did not immediately receive a response.

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How to plan for the unexpected

Sudden shifts in things like housing and care services can leave many vulnerable folks scrambling. Families are often left with tough financial and personal decisions including:

• Hiring private caregivers: Without affordable community-based services, families may have to turn to private in-home care, which can eat through savings quickly.
• Working adults cutting hours: Adult children may need to leave the workforce or reduce working hours to become caregivers for their aging relatives, resulting in lost wages and stalled retirement contributions.
• Tapping into retirement savings: Those in a fixed income may find themselves withdrawing from 401(k)s or IRAs prematurely, increasing the risk of outliving their savings.
• Rising household debt: To cover these costs, some households may be taking on credit card debt, personal loans or second mortgages, putting their long-term financial stability at risk.

Despite these challenges, there are strategies older Americans and their families can consider:

• Medicaid and public aid: Some may qualify for Medicaid long-term care coverage or other government-funded programs. Check eligibility and get guidance on these programs.
• Community-based services: Nonprofits and local agencies might offer subsidized services such as meals, transportation and part-time caregiver relief.
• Long-term financial planning: Work with financial advisors who specialize in senior care and benefits, like the VA’s Aid & Attendance program.