In the early 2000s, Washington State began consolidating cottages at its Residential Habilitation Centers as part of a broader shift toward community integration. This movement was influenced by the 1999 U.S. Supreme Court decision in Olmstead v. L.C., which required states to provide services in the most integrated setting appropriate. As resident populations declined and more people transitioned into community-based supports, Washington funded expanded community residential options in its 2001–03 state budget while planning for institutional downsizing.

Cottage closures occurred across several facilities between 2001 and 2003, with additional consolidation planned in subsequent years. The discussions at the time reflected deep policy debates. Advocates for community integration emphasized individual choice and the right to live in community settings, while some family members and labor representatives raised concerns about the impact of closures on residents. These decisions marked an important period of transition in Washington’s long-term care system, reflecting ongoing efforts to balance community living, quality of care, and fiscal responsibility.