State regulators are trying to shut down a network of addiction recovery housing in Scioto County, alleging its parent company is skirting state oversight by failing to register its properties.
The Ohio Department of Behavioral Health sued Step Wellness and its owner, Cindy Mild, in Scioto County Common Pleas Court last week. The state wants Judge Howard Harcha to block the company from operating until it finishes the accreditation process, which involves filling out forms that provide information about its operations, among other steps.
“If a recovery housing residence is accredited, the residence and its operator are held to high quality standards regarding things like safety and cleanliness,” reads an Oct. 27 legal filing from Attorney General Dave Yost’s office, which represents the state. “These things may seem minor to some, but they can be monumental for a vulnerable population such as the population that lives in recovery housing.”
Portsmouth, which anchors Scioto County, was a central location for the opioid epidemic that began in the 2000s. That’s why recovery homes like Step Wellness, which offer a type of transitional housing for people receiving addiction treatment, are proliferating in the area – often without what local officials describe as adequate regulation. Signal Ohio previously has reported on local officials’ struggles to offer oversight of the facilities in an article that featured Step Wellness.
In a statement provided for this article, Step Wellness owner Cindy Mild said a lack of communication led to the issues underlying the lawsuit.
“We’re addressing the matter responsibly through the proper legal channels,” Mild said. “A lot of what’s been said comes down to miscommunication and misunderstanding. My goal isn’t to fight, but to clarify, cooperate, and resolve things so we can stay focused on helping people who depend on us.”
A court hearing is scheduled for Nov. 14. The state is seeking what’s called a preliminary injunction, which would shut down Step Wellness’ 10 recovery housing buildings while the case is open.
Through a spokesperson, the Ohio Department of Behavioral Health, also known as the Department of Mental Health and Addiction Services, declined to comment for this story, citing the pending litigation.
How the case began
The lawsuit says the state launched an investigation into Step Wellness in May in response to a complaint from a resident.
Signal Ohio previously has reported on that complaint, in which the resident said the Step Wellness home where they were staying lacked smoke alarms and fire extinguishers and was “very dirty” and had cockroaches inside, among other allegations. Residents filed two more complaints the following month, public records show. A local state lawmaker said a subsequent visit from regulators to other Step Wellness homes found homes that were overcrowded and unsanitary, containing dog feces and mice infestations.
The new lawsuit from the state makes no reference to the conditions in Step Wellness’ homes though. It only describes what state officials said was Mild’s failure to seek or obtain state accreditation, which all recovery homes must obtain through a new law that took effect in January.
In court filings, state officials said that after they received the first complaint in May, they traveled to Portsmouth, where they spoke with Mild. She told state officials she planned to go through the process of registering the properties. This included attending a training session in June with an industry group that oversees the recovery home accreditation process on behalf of the state. But state officials said Mild has taken no additional action since she attended that meeting. As of late September, Mild had only done so for three of 10 properties, while other elements of her application were incomplete, according to a court filing from the state.
“If Ms. Mild continues to operate recovery housing residences in Portsmouth without approved accreditation, it poses a significant risk of harm to the residents of her recovery housing,” the filing reads.
Recovery housing provides a sober living environment and transitional support for people recovering from addiction. They often are converted single-family homes, and can be affiliated with a provider of addiction treatment services. Portsmouth officials say some providers have cut corners and provided unsafe living conditions as a way to increase their profits.
The number of recovery homes has exploded in Scioto County in recent years, prompting complaints from residents and overwhelming local officials’ ability to regulate them.
County property records show how quickly Step Wellness’ parent company, AYG Properties, has expanded in the past few years. The company has spent more than $1 million since September 2023 buying dozens of properties in Scioto County. Mild told officials that beyond the 10 properties the company currently operates as housing, Step Wellness has plans to open more facilities in the future.
In her statement to Signal, Mild contested the accuracy of the outlet’s previous reporting, without offering specifics. She said her “goal has always been to help others find their potential and their strength.”
“Even if that brings some criticism, I can live with that, because the mission matters,” Mild said.
Mild also said she respects the role that county and state officials play in holding providers accountable.
“I also believe some actions were based on incomplete information, and I welcome the opportunity to work together more closely. My goal is the same as theirs — ensuring safe, effective, and ethical care for every client,” Mild said.
Scioto County officials praise action – and push for more local oversight
In interviews, local elected officials said they are happy the state intervened. In August, Scioto County Prosecutor Shane Tieman took what he viewed as an early enforcement measure by suing Step Wellness over thousands in unpaid property taxes. The company settled the case by paying in full. Mild referred to the matter as an “administrative matter” that she has resolved internally.
Tieman said he now plans to step back and let the state handle the situation.
But state law needs to be changed so local prosecutors have greater ability to police recovery home providers, he said.
He said local officials might be able to act more quickly, since they’re closer to the problem.
“The last thing I want is people in recovery housing to be there for a long period of time, feeling like they’re not going to be successful in their recovery because of the environment they’re in,” said Tieman, a Republican.
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State Rep. Justin Pizzulli had similar thoughts. The Portsmouth Republican has introduced a bill that would increase state regulations of recovery homes, including giving greater oversight ability to local officials, that’s still pending in the Statehouse. The bill has received criticism from industry groups and advocates who say it would hamper the state’s already inadequate addiction treatment support system.
Pizzulli said it is a “major problem” that the state action came months after residents first filed a complaint. He said the delay shows how the state’s current regulations aren’t protecting recovery home residents.
“I appreciate it. But these are literally people in the house still there … begging please ‘Can you get us help? Can you get us out of there,” Pizzulli said.