How Does Adult Foster Care Work in Michigan?
Short answer: Adult foster care in Michigan works like this. An adult who needs supervision or personal care moves into a licensed home. The home and the resident (or their representative) agree in writing on the care and the cost. The home then provides room, board and daily help. The state, through LARA, licenses and inspects the home.
The process in five steps
- Find licensed homes that serve the right population (seniors, developmental disabilities, mental illness and so on).
- Visit and check each home’s license and inspection reports on LARA’s public search.
- The home completes a written assessment of the person’s needs to confirm it can meet them.
- Sign a resident care agreement that spells out services, the monthly rate and house rules.
- Move in. The home follows the plan and updates it as needs change.
Who runs it, and who oversees it
Each home is run by a licensee, a person or a company. In a Family Home (up to 6 residents) the licensee lives in the house. Larger group homes (up to 12, or 13 to 20) use staff on shifts.
Oversight comes from the Michigan Department of Licensing and Regulatory Affairs (LARA), through its Bureau of Community and Health Systems. LARA licenses the home, inspects it, and investigates complaints. MDHHS (the Department of Health and Human Services) is involved on the payment side: it sets SSI-related rates and runs programs like adult protective services. It doesn’t license AFC homes.
Moving in: the paperwork that matters
Assessment plan. Before admission, the home documents what the person needs help with: mobility, medications, personal care, behavior, diet. It’s how the home decides whether it can actually meet those needs.
Resident care agreement. This is the contract. It lists the services, the monthly charge, what’s extra, and the house rules. Read it closely and ask questions before signing.
Health information. Homes need current health information from a doctor, plus a list of medications and any special instructions.
Daily life in an AFC home
Most homes run on a steady routine: meals at set times, medication passes, help with personal care, and time for work, day programs, appointments or activities. Residents have their own or shared bedrooms and use the common areas like any household. Caregivers keep records of medications and any incidents.
Resident rights
Michigan AFC residents have written rights, including dignity and privacy, managing their own money unless they’ve chosen otherwise, communicating freely, and making complaints without retaliation. Homes have to explain these rights at admission.
How it’s paid for
Common payment sources are SSI at the state-set rate ($1,151.50 a month in 2026 for personal care, including the resident’s $44 personal allowance), private pay, and Community Mental Health contracts for people with developmental disabilities or mental illness. Medicare doesn’t cover room and board in AFC homes.
From experience
Rates in our home followed residents’ incomes more than the market. When Social Security had a cost-of-living increase, we’d adjust the rate to match, but never past what the resident could actually afford. Families should ask how and when a home raises its rates before they sign.
Harold Morgan ran a licensed adult foster care home in Michigan for more than 20 years.
Free: the Michigan AFC Licensing Checklist
Every step, form and inspection item for opening a licensed AFC home in Michigan, on two printable pages.
Frequently asked questions
Can a resident leave an AFC home whenever they want?
Residents are adults with rights. The resident care agreement covers notice periods for moving out and the reasons a home can discharge someone.
What happens if a resident’s needs increase?
The home updates the assessment. If the home can no longer safely meet those needs, for example if the person now needs continuous nursing care, it has to work with the family on a move to a more suitable setting.
Who do I call with a concern about a home?
Start with the licensee. If it isn’t resolved, you can file a complaint with LARA’s AFC complaint line at 866-856-0126.
This article is general information, not legal or financial advice. Rules, rates and forms change. Confirm current requirements with LARA’s Bureau of Community and Health Systems (AFC licensing: 1-866-685-0006) or MDHHS before you rely on them.
