Montgomery County authorities have shut down approximately 10 unlicensed assisted living facilities over the past year, District Attorney Mike Holley said, as a third home linked to a Spring man already facing charges adds to a growing pattern of enforcement targeting unsafe operations housing vulnerable seniors.
Jeffrey Canales, 36, was arrested on two Class A misdemeanor counts after the Montgomery County Fire Marshal's Office found two unlicensed care homes operating side by side in the 200 block of Spring Pines Drive on July 25, as we reported earlier. Court records now reveal a third facility on Oakhurst Drive that Canales had previously operated, bringing the total number of homes connected to him to three.
Investigators found multiple bedridden residents at the Spring Pines Drive homes who could not care for themselves. Caregivers bathed them, changed their adult briefs, fed them and administered medications around the clock. Neither home had a fire sprinkler system, a fire alarm or a fire extinguisher, according to KPRC 2.
According to the arrest warrant affidavit, Canales told investigators he operated both Spring Pines homes and employed caregivers providing 24-hour care. He acknowledged knowing the county's permitting requirements and said he had previously obtained proper permits for his Oakhurst Drive facility but chose not to seek permits for the two newer locations.
The Fire Marshal's Office had already investigated Canales in January 2026 for the Oakhurst Drive home and issued an order requiring him to correct safety violations, obtain a state license and relocate all residents within five business days. He did not comply.
One resident who had previously lived at the Oakhurst Drive home told investigators Canales had taken all the money from her money market account, leaving her with $442. She also said he withdrew money from her checking account without permission, according to court records.
A $3,000-a-month gap
The crackdown extends well beyond Canales. Holley said the cost of licensed care is what drives families toward unlicensed operators.
"It's cost. Plain and simple. It is expensive to take care of people 24 hours a day and a lot of people can't afford that," Holley told ABC13.
Licensed assisted living facilities in the area charge nearly $5,000 a month. Unlicensed operators have charged as little as $2,000, a difference of roughly $3,000 per resident per month. Retired teacher Paul Bennett told ABC13 on July 28 that after his sister suffered a massive stroke in 2024, licensed facilities quoted him $5,000 a month. He placed her in an unlicensed Panorama Village home run by Jennifer Yvonne Rios for about $2,000.
Rios, 60, was charged in July with operating an unlicensed facility that lacked fire sprinklers and a fire alarm. Adult Protective Services relocated all of her residents.
Hidden in plain sight
Holley said these operations are hard to detect because operators deliberately stay out of sight. Someone can rent an Airbnb, find a handful of residents, collect their Social Security checks and try to remain under the radar, he said.
The Fire Marshal's Office said in a media release that unsafe and often abusive unlicensed care homes are hidden in plain sight, noting that some operate out of ordinary rental homes in residential neighborhoods, housing as many as 10 residents in converted lofts, garages and bedrooms.
The MCFMO built the Canales case in partnership with the DA's office and Texas Health and Human Services. Canales was booked on a $2,000 bond. No next court date has been announced.
Families can verify whether a care home is licensed through the Texas Health and Human Services provider search tool. Anyone with concerns about an unlicensed facility can contact the Montgomery County Fire Marshal's Office.
