California’s Adult Residential Facilities (ARFs) and Residential Care Facilities for the Elderly (RCFEs), also known as board and care or assisted living facilities, are state-licensed residential facilities available for people who need ongoing, non-medical care and supervision due to age, disability, or mental health status. These facilities, which serve people with varying levels of income and financial resources, provide housing, meals, and 24-hour non-medical personal care. This report describes California’s ARFs and RCFEs and outlines their current sustainability challenges. The report then presents potential solutions California is implementing to increase funding for these facilities. The report concludes with a discussion of the choices that will be available to stakeholders in California over the next year