Residents concerned as Diamond Terrace plans to cut meals and services
CLAYTON, CA (Feb. 26, 2025) — Diamond Terrace, the independent living facility that has served the town’s senior community since 2001, announced last week that it will discontinue all amenities – including meals, shuttle services and apartment cleaning – effective April 30.
The decision marks a significant shift in the facility’s operations, sparking concerns among residents.
The Michaels Organization has owned and managed Diamond Terrace for the past 15 years. According to regional vice president Mary Keshishyan, the facility thrived for years, even maintaining stable occupancy levels through the height of the COVID-19 pandemic. However, times have been challenging since then.
“The three years after COVID led us here today,” Keshishyan explained in an interview with the Pioneer. “There has been a continuous decline in residents using services on-site. Vacancy rates have been dismal, running between 25% and 30% every year since the pandemic.”
Efforts to increase participation in the available services proved unsuccessful. “Last year, we bought a beautiful new bus – but no one is using it,” she added.
Loss of social connections
With these amenities gone, residents will no longer be required to pay for services they do not use. The facility’s monthly rates have always been divided into two parts: rent and services. The cost of services has ranged from $1,400 to $1,700 per unit per month, while rent for a studio apartment starts at $1,314.
Going forward, residents can redirect funds previously spent on services toward their personal needs.
However, meals have long served as a key social opportunity for some residents. Clayton resident Stephanie Cademartori voiced her worries on social media: “This is terrible. Meals are also a way residents socialize and connect with friends. I can’t imagine the stress the current residents are feeling.”
Lisa Valory, whose father resides at Diamond Terrace, was deeply concerned about the change. “My father has dementia and really depends on the meals,” she told the Pioneer in a phone call. Valory immediately began searching for a new facility for him.
A third-party contractor has always provided meals at Diamond Terrace, rather than through an in-house kitchen. With the discontinuation of meal services, residents will need to rely more on their units’ limited kitchens, which include a microwave and small cooktop but no oven.
Dining room still a gathering place
Despite these changes, Diamond Terrace is encouraging residents to continue using communal spaces.
“They can still gather in the dining room for events, and we invite community members to use the conference and meeting rooms,” Keshishyan said.
The facility has long hosted local organizations such as the Garden Club and the Clayton Business & Community Association (CBCA).
In place of traditional amenities, management plans to hire a social services coordinator who will act as an activities director and provide assistance with Medicare and other support programs.
“With the coordinator, we can continue to have a higher level of oversight for households,” Keshishyan noted.
Adding to residents’ angst amid these changes, they recently learned that their executive director died Jan. 30 after a brief illness, deepening the uncertainty and sadness felt within the community.
No more tax breaks
When Diamond Terrace opened, it qualified for certain state and city tax concessions. These have since expired, and the facility no longer receives any favorable tax treatment, according to Keshisyan.
As for rental rates, she anticipates a 5% to 8% increase when the county releases Consumer Price Index (CPI) figures this spring. Despite economic challenges, she emphasized that affordability remains a priority.
“Because it’s designated as affordable housing, we will be able to keep 45% to 50% of our units at lower rental rates.” However, she acknowledged that the recession and changing demographics have impacted the number of prospective residents who qualify for housing.
Amidst the concerns, Keshishyan reassured residents and the broader community that the Michaels Organization remains dedicated to Diamond Terrace’s mission.
“I can’t stress this enough – a Diamond Terrace has deep roots in the local community, as does Michaels Management,” she said. “Sometimes change is hard, but I want everyone to know that these recent changes were made with a holistic approach in mind and, more importantly, in the best interest of our community members.”
While the upcoming transition presents challenges, management hopes that the new plan will allow Diamond Terrace to remain a vital part of Clayton’s senior living landscape for years to come.