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APS can have your parents removed from your home, yes.
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Hold on.

It says on your profile that you are caring for your grandmother.

Are you also caring for your parents? Or are they just living in the house?

I'm not clear what the situation is, please could you say more about what's happening?

But in principle, yes: if they have assessed that an adult is at risk for some reason, Adult Protective Services will suggest solutions. If their advice is not followed and nothing changes, they will then make demands. And if their instructions are still not followed, they have substantial legal powers to enforce them.
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Please provide more info. What is the situation? Why are they suggesting removal? How did they get involved? Certainly adult services can suggest your parents not stay with you. Obviously they see a situation that is not healthy for you or your parents. Please tell us more.
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If adult protective services feels that their investigations hows that you are unable to adequately or safely give the needed care to an elder, yes, they can suggest that they cannot stay with you anymore. In fact they can pursue through social services a court intervention for guardianship if they feel that a senior is endangered. Can you give us more details about what is happening here?
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