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How do you keep a SEVERELY schizophrenic person (and worse) who is on state assistance in government provided housing -- CONTINUING to be in that situation? I.E. What should you never do so that the state cannot place the SEVERELY mentally ill person on a family? I.E., the state needs to place this person in a mental hospital. They may actually be a danger. They also have more than one personality (a rarity) an elderly person who is on SSI who has been psychotic for many many years, even mentally ill in their teen years. Note: They are on assitance, are well provided for by the assistance in an apartment, have food, housing, necessities... They are simply SEVERELY mentally ill and a potential DANGER.

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You detail everything you know and send it to the State Dept of Mental Health. Be sure it is factual with dates, events and witnesses. Then you step back and let the government housing people do their job. No doubt the aides will report any bizarre events. Stay away.
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Some questions to ask yourself:

1. Why would the State want to place this person in your home? Is there any way you can address this possibly underlying issue?

2. Has the person ever lived with you before, what were the problems, and have you documented them?

3. Do you have any legal responsibility for this person?

4. Do you have police reports from previous incidents with this person?

If no. 4 is positive, there's a possibility you could get a PPO against the person. That would create a legal barrier to placement by the State, unless the State acts to override an injunction issued by a county level court.

5. Do you anticipate that the person may request to be placed with you? If so, what would be the basis, and is there any legal justification for that request?
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Well, never take the person into your home. Keeping them out is far easier than having them removed.

And say "no" each time you are asked, directed, or persuaded to take responsibility. Just keep saying No.

What makes you worry that "the state" will try to involve you? Are you next of kin? Do you have any contractual relationship, such as POA or Medical Proxy?
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