- Patients at Twin Rails Sober Living in Covington will have to vacate after the organization failed to get proper licensing.
- Inspections identified multiple structural and compliance problems with the organization’s buildings.
- The organization has 30 days from April 15 to secure both state and local licenses or cease operations altogether.
About 40 patients living at facilities run by Covington’s Twin Rails Sober Living will have to vacate after the organization failed to comply with both state and local licensing regulations, according to court records.
Twin Rails is an organization that provides live-in services for patients with substance use disorders.
Certification inspectors working with the state visited Twin Rails’ facilities last summer and identified multiple “deficiencies” with the facilities. They also identified several other legal requirements the organization failed to meet, only some of which the organization managed to remedy, according to court documents. Failing to remedy these problems prevented the organization from getting required certifications to operate both in Kentucky and the city.
“Twin Rails is actively taking appropriate steps to address applicable local licensing requirements,” wrote Twin Rails Executive Director Jay Millard in a statement provided to LINK nky. “These matters are administrative in nature and do not reflect the quality or integrity of the treatment services provided. We recognize that these developments are difficult for our employees, clients and the broader community.”
The organization had 21 licensed substance abuse counselors and peer support specialist positions in addition to the 40 patients receiving housing, according to Millard’s statement. Staff members at the organization declined to comment when contacted.
“Supporting our team and prioritizing continuity of care for those we serve remain central focuses during this time,” Millard said.
The city has also offered help to patients looking for a new place to get treatment; residents formerly living at Twin Rails can contact Covington’s Neighborhood Services Department at (859)292-2323 to get help.
The Kenton County Circuit Court, at the behest of the City of Covington, issued two injunctions this week, one of which allows city officials to begin the process of relocating patients, effective Wednesday, April 15. Another injunction granted the organization 30 days (from April 15) to comply with licensing requirements, but the issuing of the first means the patients have to go.
Specifically, the injunction grants the city and its agents leave “to enter (Twin Rails’) properties at reasonable times and in a reasonable manner, for the limited purposes of distributing informational materials to residents; communicating with residents regarding lawful alternative recovery housing; and facilitating voluntary relocation.”
“This action reflects the City’s responsibility to uphold the law while also prioritizing the health, safety and well-being of residents,” Walt Mace, the city’s assistant director of Neighborhood Services, said in a written statement. “We remain committed to working with properly certified and licensed providers to ensure individuals in recovery have access to safe, compliant housing options.”

The Jay and Marsha Millard Foundation launched Twin Rails in 2017 and later invested about $650,000 into a three-story facility on Madison Avenue in 2019. The Millards run a financial services firm out of Dayton called Millard Advisors. Jay Millard serves as both the firm’s principal and as Twin Rails’ executive director.
The organization operates the Madison building and other facilities on Scott Street, Altamont Road and Martin Street, according to court documents. The organization is currently tied up in multiple cases both with the state and the city over issues about compliance that arose following a site inspection by the Executive Director of the Kentucky Alliance for Recovery Residences, or KYARR, Dane Preiston. KYARR is a nonprofit certifying organization that works with the Kentucky Cabinet of Health and Family Services to ensure substance-abuse treatment providers operate within established regulations.

Preiston visited Twin Rails’ buildings in mid July last year and identified several “deficiencies,” including an inadequate number of smoke detectors, a lack of separation between clinical and residential parts of the Madison Avenue building, an inadequate number of bathrooms and improper furnishings, among other problems. The property on Madison Avenue would require “significant structural renovations,” in order to be compliant, according to KYARR’s initial assessment.
Other identified issues included exposed wires at one of the houses, mold and fly infestations at another and a lack of proper signage informing residents of relevant laws, patient rights and fire escape plans. Preiston informed the city, which later did its own inspections of the buildings on Scott Street and Madison Avenue (Twin Rails only sought certification for those two properties). Numerous court motions and inspections occurred over the subsequent months.
KYARR denied Twin Rails’ certification requests for the Scott Street and Madison Avenue properties in November. Twin Rails then appealed to the Cabinet for Health and Family Services. The cabinet denied the appeal for the Scott Street property, and Twin Rails withdrew its certification request for the Madison Avenue house in January, according to documentation from the cabinet.
The city sued Twin Rails and its landlord, Lillian Ventures, in February to temporarily halt the organization’s operations. Three days later on Feb. 20, the organization applied for a city recovery residence license for the Scott Street property. Finally, on March 12, a roughly two-hour evidentiary hearing took place in Kenton County Circuit Court.
Judge Kathy Lape granted the city’s motion to halt operations at the Madison and Scott properties on March 16. The city requested a motion to enforce the injunction on Wednesday, the same day Twin Rails motioned for a time extension. The court granted both, which means the city has certain powers to begin moving patients, but Twin Rails has thirty days from Wednesday to comply with local and state licensing requirements or stop operating altogether.
“As this process continues, Twin Rails remains open to a resolution that would allow it to achieve compliance and continue operations,” Millard said.

