Residents sue nursing home over fees that drain their income

Jack McMaster has 10 grandchildren. He wants to buy them gifts. But over the past three years, his disposable income has shrunk to a tiny amount, usually just $100 a month.

“When holidays come, birthdays, I can’t afford to buy anything,” he said. “I can’t tell you the last time I could afford a new shirt or pants.”

Since he moved into Prospect House, an assisted living facility in Revere, he has been charged “additional fees” in addition to his rent, leaving him with very little money for all other expenses. He’s not the only one.

McMaster and several other low-income Prospect House residents joined a class-action lawsuit recently filed in U.S. District Court in Massachusetts, alleging that the fees charged to them violated state and federal housing laws. They want answers.

“There are so many people out there who have no idea what they’re paying for,” McMaster said.

Sean Ahern, senior attorney at Legal Services of Greater Boston, which is filing the lawsuit, says it’s unclear what fees have yet to be paid from individual sources.

“This appears to be an arbitrary, unfair and misleading fee,” Ahern said. “The fees are very, very oppressive in terms of their impact on residents and their ability to navigate day-to-day life.”

Prospect House is managed by HallKeen Management, Inc., based in Norwood. Because it is part of the Low Income Housing Tax Credit program, many of its apartments have rent caps, which some residents pay for through Social Security. Additional fees consume almost all of the residents’ remaining income.

McMaster and other residents participate in the Program for Integrated Care for the Elderly (PACE) through MassHealth and Medicare, which provides low-income seniors with supports so they can live in the community. The PACE program pays Prospect House for services such as food, clothing, bathing and cleaning.

The lawsuit alleges that because of Prospect House’s participation in these federal and state programs, the fees constitute a violation.

“They can’t charge any mandatory fees in addition to the maximum rent,” Ahern said. “So the question becomes: What is the surcharge and what does it do?”

Ahern notes that fees vary from person to person and are not based on more or less services. Individuals’ fees change from year to year as their federal benefits are adjusted—and no matter how much they change, each resident ends up with just $100 out of their pocket each month.

According to the lawsuit, the company does not charge the fee at its other locations, which they say means the fee is unfairly applied to people with disabilities.

McMaster is 76 years old. He lost his right leg due to vascular disease after moving to Prospect House and uses a wheelchair. He says he is happy with the support he receives at the facility. The staff helps him get out of bed in the morning, as well as take out the trash and take his medications. He does his own housework, does his laundry, showers and dresses himself.

But McMaster says the limited money in residents’ pockets is taking a toll.

“There is one gentleman who cannot afford razor blades or shaving cream. So I invite him here and cut his beard,” McMaster said.

In response to questions from GBH News, HallKeen officials defended their care for low-income residents. They said that the fee was “for additional services.”

“We firmly believe that our policies comply with all applicable laws as well as assisted living industry standards,” HallKeen said in a statement. “Since these issues were raised earlier this year, we have been working proactively and in good faith with Prospect House residents, as well as the Commonwealth Executive Office for Older People and the Executive Office for Housing and Communities, and are making changes to our tenancy conditions. agreements and other internal protocols to further clarify our policies.”

The inability to pay these additional fees resulted in some residents either leaving the facility or facing eviction. The eviction case against McMaster was dismissed in February of this year.

Ahern says the fees are an example of how the industry is taking advantage of a population that is sometimes scared or unable to speak out.

“This is because the people living there are seen as vulnerable and unable to fight taxes,” he said.