80 people will be out of work and 40 will have to find another home and it's all happening in Laurel County, where the new foundations assisted living facility is losing its state funding because of alleged resident abuse.

Robert Wages is mentally handicapped and used to be homeless, but a found a home with a family through new foundations.

But he's had to leave that family since an investigation started into the agency.

“It makes me depressed. I've been sick and it hurts all the individuals having to leave,” Wagers said.

March 9th, officials with the state cabinet for health and family services are pulling new foundation's medicaid funding because they say there's reliable information the agency is physically abusing residents.

State officials also accuse Executive Director Tammy Woody of shredding incident reports and say there are reports of drug use.

Woody says she goes beyond state requirements and drug tests workers.

Arlene Cox says new foundations has helped move her son into positive direction, “I'm afraid it's going to hurt him by the shutdown of this.”