State Agency Opens Investigation Into Redding-Funded No Boundaries Housing Program

8.21.23 9 am update: In response to our ongoing requests for information, DHCS informed Shasta Scout that this investigation has been closed after an investigation that did not substantiate licensable services provided in an unlicensed setting. We have requested the full investigation report and will provide more information to the public once we have it.

No Boundaries has significantly expanded the number of beds it provides since first contracting with the City of Redding to provide 50 transitional and emergency housing beds in a local hotel last year. In May 2023 the City updated that contract with No Boundaries for the fifth time, bringing the total the City has agreed to invest in housing through the program to just under $1.3 million over the last year.

That funding could become problematic now that California’s Department of Health Care Services (DHCS) has confirmed for Shasta Scout last week that the state agency has opened an investigation into No Boundaries based on concerns that the organization may be inappropriately operating an unlicensed facility.

The licensure is required to ensure client safety while in the programs, due to the significant medical risks that can accompany the treatment and detoxification process. 

Anthony Cava, a spokesperson for DHCS, said he could not say when the investigation would be complete or reveal any further details about it, per agency policy, other than to say that an investigation by DHCS involves a site visit to the facility to look for evidence of whether the organization is running the types of programming that require licensure. 

If such evidence is found, Cava said, the organization will be given a notification of a date to terminate services. If they continue operating past that date they will be fined civil penalties of $2,000/day.

The City of Redding has used several pots of state funds to pay for the No Boundaries program. It’s not yet clear what direct consequences the City could face from the State, if any, if the DHCS investigation leads to the program’s closure.

No Boundaries director Christine Cage told Shasta Scout last week that her organization does not require licensure through DHCS because it is “not a detox facility” and “does not provide any treatment or medical,” instead referring all clients to “strategic partners” for treatment to “ensure the best care possible.”

“We provide transitional housing,” Cage continued in her email to Scout, “We are simply a starting point for individuals to get off the streets and have stability and basic needs being met.” 

Her most recent comment is significantly different from what Cage told a room full of city leaders during a November reception for the No Boundaries program, held in collaboration with the City.

“Ninety percent of the people who come to us are dirty,” Cage said during that event. “We know this,” she continued “and we don’t care. Once we get you sober we require steady clean urine samples.”

Those statements were made months ago but according to the No Boundaries website, the organization appears to still provide the kinds of treatment services that require DHCS licensure.

“Our organization is a comprehensive service provider,” reads the wording on the nonprofit’s website. “We offer a range of rehabilitation programs . . . [including addiction] and mental health treatment.”

Over recent months city staff including City Manager Barry Tippin, Assistant City Manager Steve Bade, and Community Development Manager Nicole Smith have often declined to respond directly to Scout’s questions about the city-funded housing program referring questions about policies, state regulations, and licensure back to No Boundaries instead.

Smith responded to requests for comment last week by writing: “If you feel No Boundaries is doing something that is against regulations, contact them directly to discuss, it could be that there is just a misunderstanding.”

After being pressed further last week about the city’s responsibility to ensure compliance with state licensing and other requirements in city-funded programs, Smith did eventually agree, saying that the No Boundaries program had been “recently monitored and based on that monitoring no problems were uncovered.”

If you have a correction to this story you can submit it here. Have information to share? Email us: editor@shastascout.org