Community Options, Inc.: Ownership, Violations, and Lawsuits

Michael Hill and the team at Michael Hill Trial Law investigate abuse, neglect, and wrongful-death cases involving group homes and intermediate care facilities (ICF/IIDs), and we represent families nationwide. The firm focuses on neglect and abuse in group homes, ICF/IIDs, nursing homes, and assisted living facilities. Community Options, Inc. is a Princeton, New Jersey-based nonprofit that operates group homes and supported-living programs for people with intellectual and developmental disabilities. State audits describe it as managing more than 700 group homes nationally across about a dozen states, with a large presence in New Jersey and New York.

If someone you love was injured or died in a group home or ICF operated by Community Options, Inc. or one of its brands, you may have legal options, and time limits can be short. Case reviews are free and confidential. Start your case or call (800) 659-2712.

Last reviewed: November 12, 2026. Ownership and financial figures are drawn from public filings, state and federal records, and news reporting; regulatory and lawsuit items are from government records and court filings, each cited at the end of this page. Lawsuits and criminal charges are allegations unless a court has ruled; state findings may be appealed.

Group Home & ICF/IID Case Types We Handle

The injuries and neglect we investigate in group homes and intermediate care facilities.

Wrongful DeathPhysical & Sexual AssaultUnderstaffingChokingMedication ErrorsFalls & FracturesBedsores & Pressure InjuriesWandering & ElopementDehydrationMalnutritionBowel Obstruction & Fecal ImpactionInfections & SepsisGroup Homes & ICF/IID

What Group Homes and ICF/IIDs Are — and Why Harm Happens

A group home is a residential setting where a small number of people with intellectual or developmental disabilities (I/DD) live together with staff support. An intermediate care facility for individuals with intellectual disabilities (ICF/IID) is a federally certified, Medicaid-funded facility that must meet federal standards for active treatment, health care, and client protections. Many residents cannot fully protect themselves or reliably report what happens to them, which is exactly why staffing, supervision, and training decide whether people are safe.

The injuries that recur in these settings are rarely mysterious. They include falls and fractures; bedsores and pressure injuries; choking on the wrong diet texture; dehydration, malnutrition, and bowel obstruction and fecal impaction; medication errors; wandering and elopement; physical or sexual assault by staff or other residents; and, in the worst cases, wrongful death. The common thread is understaffing — a home that accepts residents it is not staffed or trained to care for makes the harm foreseeable.

Who Owns Community Options, Inc.?

Community Options, Inc. is a nonprofit organization founded in 1989 and headquartered in Princeton, New Jersey. It has no private-equity owner. Related nonprofit entities hold property (Community Options Properties, Inc.) and conduct fundraising (Community Options Foundation). Its FY2025 Form 990 (year ended June 2025) reports revenue of about $392.9 million and net income of about $16.9 million, with program-service revenue making up roughly 95% of revenue.

Executive compensation has drawn scrutiny. Public filings and New Jersey reporting show total compensation for its longtime CEO rising sharply, to about $2.37 million in 2023 and roughly $2.56 million in the FY2025 filing, which New Jersey Advance Media described as the highest among the New Jersey group-home CEOs it reviewed.

Revenue, Public Funding, and Finances

Community Options reported revenue of about $392.9 million for the fiscal year ended June 2025, up from about $333.9 million the prior year, with net income of about $16.9 million and net assets of about $80.5 million. A New Jersey State Comptroller review found the organization received roughly $78 million in New Jersey Medicaid funding in 2024 for 426 New Jersey residents.

Community Options, Inc. Brand Names and the Entity on the License

The name on a state license, inspection report, or court filing is often a subsidiary or brand. Families searching state records should look for these names:

Where Community Options, Inc. Operates

Community Options operates in roughly 12 states, including Arizona, Iowa, Maryland, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, South Carolina, Tennessee, Texas, and Utah. New Jersey is a core market; the state's FY2026 provider report card lists about 142 Community Options, Inc. homes plus 11 Community Options Enterprises homes.

Community Options, Inc. Lawsuits, Government Findings, and Regulatory Record

In New Jersey's FY2026 licensed-provider report card, Community Options, Inc. and Community Options Enterprises were both rated three stars on all measures, including health and safety compliance and freedom from serious abuse, neglect, or exploitation allegations. Findings by state agencies and lawsuit allegations may be contested or appealed.

This is not a complete litigation history, and the existence of a lawsuit or complaint is not proof of wrongdoing. A settlement is not an admission of liability. Findings by state agencies may be appealed.

Notable matters

• 2025 — Settled (civil False Claims Act): United States & New York ex rel. SCOIF LLC v. Community Options, Inc. & Community Options New York, Inc. (S.D.N.Y. No. 20-cv-4684). On March 26, 2025, Community Options, Inc. and Community Options New York, Inc. agreed to pay more than $5.0 million (about $2.8 million to New York's Medicaid program) to resolve federal and New York False Claims Act allegations that they billed Medicaid for day-habilitation services in Manhattan, Brooklyn, and Queens that were not provided or documented as required, and failed to return identified overpayments. The New York Attorney General stated a senior employee instructed a subordinate to create and back-date missing service notes. Community Options also entered a 5-year Corporate Integrity Agreement with HHS-OIG, effective March 25, 2025. The settlement resolves allegations without a determination of liability. Amount: $5,016,626. Source
• 2026 — State audit finding: New Jersey Office of the State Comptroller closing report (Parsippany group home). A February 25, 2026 New Jersey State Comptroller limited-scope audit of a Parsippany group home found no material deficiencies requiring corrective action, but reported that the home retained a large share of Medicaid funds for administration and surplus. The Comptroller's report was titled to note that Community Options retained about 40% of Medicaid funds for administrative costs, which it said exceeded a benchmark from a 2014 rate study (a benchmark, not a regulation). Source
• 2025 — Allegations (outcomes not confirmed): New Jersey wrongful-death lawsuits (reported by NorthJersey.com). NorthJersey.com's May 2025 'Hidden at Home' investigation reported that five wrongful-death lawsuits had been filed against Community Options' New Jersey homes among about 40 against New Jersey group-home operators statewide. The reporting states New Jersey regulators substantiated neglect in two 2022 resident deaths (one involving a choking incident and delayed emergency response, one involving delayed 911 calls). The lawsuit allegations are not findings of fact and their outcomes could not be confirmed. Residents are described by age and role rather than named. Source
• 2021 — State audit finding: Texas HHS OIG audit of Community Options' HCS waiver program. An August 26, 2021 Texas HHS Office of Inspector General audit of Community Options' Home and Community-based Services waiver program (56 homes, 194 Medicaid beneficiaries) found the provider 'inconsistently complied' with HHSC health and safety requirements. Source

Complaint and Harm Types in the Community Options, Inc. Record

Across the public records reviewed, these are the kinds of harm that recur — the same kinds our firm investigates in group homes and ICF/IIDs. If your loved one experienced any of these, it may support a claim:

Who May Be Legally Responsible

Because Community Options, Inc. operates through separate state entities and brands — and because the parent company, the licensed operator, the employer of the staff, and in some cases the property owner may be different companies — a lawsuit may need to name more than one defendant. Names that have appeared in records involving these homes include:

• Community Options, Inc.
• Community Options New York, Inc.
• Community Options Enterprises
• Community Options Properties, Inc.

What to Do If You Suspect Neglect or Abuse in a Group Home or ICF

• Get medical care. Call 911 or go to the hospital for any serious injury, sudden decline, or unexplained bruising, fracture, or weight loss.
• Report it. Notify the home’s administrator in writing, the state or county developmental disabilities agency that receives incident reports, adult protective services, and law enforcement for any suspected crime.
• Find the licensed entity. Ask for the license or check your state’s provider lookup; the company on the license is often a state subsidiary or brand name rather than the parent company.
• Document everything. Take photos, write down dates, times, and names, and save texts and emails.
• Request records. Ask for incident reports, the individual service or program plan, medication administration records, and staffing schedules. Guardians and authorized representatives usually have access rights.
• Be careful with statements and documents. Do not give recorded statements to insurers or sign releases or arbitration agreements before talking to a lawyer. Deadlines can be short.

Frequently Asked Questions About Community Options, Inc.

Who owns Community Options, Inc.?

Community Options is a nonprofit (501(c)(3)) founded in 1989 and based in Princeton, New Jersey. It has no private-equity owner. Related nonprofit entities hold its real estate and run its foundation.

How big is Community Options and where does it operate?

State audits describe Community Options as managing more than 700 group homes nationally, across about 12 states including New Jersey, New York, Pennsylvania, Texas, and New Mexico. New Jersey is a core market, with roughly 150 licensed homes.

Has Community Options faced lawsuits or government findings?

Yes. In March 2025, Community Options and its New York affiliate paid more than $5.0 million to settle federal and New York False Claims Act allegations about billing for undelivered day-habilitation services, and entered a 5-year Corporate Integrity Agreement. New Jersey reporting has identified several wrongful-death lawsuits against its homes, and state agencies have issued audit findings; lawsuit allegations are not findings of fact.

Did Community Options settle a Medicaid fraud case?

Yes. On March 26, 2025 it agreed to pay more than $5.0 million, including about $2.8 million to New York's Medicaid program, to resolve allegations that it billed for day-habilitation services that were not provided or documented and did not return identified overpayments. The settlement resolved the allegations without a determination of liability and included a Corporate Integrity Agreement.

Can I sue a group home or ICF operator for neglect or abuse?

Generally, families may bring civil claims against a group home or ICF operator when neglect or abuse causes injury or death, and the parent company and the licensed entity may both be proper defendants. Deadlines, damage rules, and required pre-suit steps vary by state, and arbitration clauses and Medicaid liens can matter. A lawyer licensed in your state can explain your options. Michael Hill Trial Law offers free, confidential case reviews for families nationwide.

Who is legally responsible when someone is harmed in a group home?

Often more than one company. These operators frequently run each home through a separate local entity that holds the license, while the building may be owned by another company and staff employed by a third; for-profit owners and investors can sit above all of them. The right defendants depend on who held the license, who employed the staff, who managed care, and who owned the property at the time of the harm.

What if we signed an arbitration agreement?

Courts do not always enforce these arbitration clauses. Whether one applies depends on who signed it, the authority that person had, and the state's law. Keep a copy of everything you signed and have a lawyer review it before assuming you cannot bring a claim.

How do I check a group home or ICF's inspection and complaint record?

Group homes are licensed and inspected mainly by state developmental-disabilities and health agencies; ICF/IIDs are also certified and inspected under federal CMS rules. Use the state agency's provider lookup for the state where the home is located, and ask the agency for inspection reports and substantiated complaints.

About Michael Hill Trial Law

Michael Hill Trial Law represents families in group home, ICF/IID, nursing home, and assisted living abuse and neglect cases. The firm’s main office is in Cleveland, Ohio; it practices across the country, its attorneys are licensed in numerous states, and it works with affiliate firms throughout the United States. The firm has recovered hundreds of millions of dollars for clients, including a $26 million jury verdict for wrongful death, the highest nursing home verdict in Ohio history. Prior results do not guarantee a similar outcome. Learn more about group home and ICF/IID neglect cases, wrongful death, and physical and sexual assault, or meet our team.

Sources

Information on this page comes from government records, court filings, regulatory reports, company statements, and news reports, linked below. Lawsuits and criminal charges are allegations unless a court has ruled. Findings by state agencies may be subject to appeal.

1. N.Y. Attorney General – $5 million recovery from Community Options (2025)
2. U.S. Attorney, S.D.N.Y. – $5 million False Claims Act settlement
3. N.Y. AG Community Options settlement agreement (PDF)
4. HHS-OIG Corporate Integrity Agreement – Community Options
5. N.J. Office of the State Comptroller closing report (Feb. 25, 2026)
6. N.J. DHS Licensed Provider Report Card (FY2026)
7. ProPublica Nonprofit Explorer – Community Options, Inc. Form 990
8. NorthJersey.com – 'Hidden at Home' investigation (May 3, 2025)
9. Texas HHS OIG audit of Community Options HCS program (2021)

This page provides general information about a company that operates group homes and intermediate care facilities. It is not legal advice and does not mean that any particular home or employee did anything wrong. Attorney advertising. Prior results do not guarantee a similar outcome. Last reviewed November 12, 2026.