North Carolina’s state health agency is moving ahead with the first step of a multiyear plan to help move potentially thousands of mentally ill residents from adult care homes to affordable housing and less restrictive living conditions.

The state Department of Health and Human Services publicized Thursday the action plan, which responds to allegations made a year ago by the U.S. Department of Justice that the state was failing to comply with the Americans with Disabilities Act. The government threatened to sue unless improvements were made. ...

The DOJ investigation followed a July 2010 complaint by an advocacy group that found hundreds of adult care homes statewide had improper conditions and lacked trained staff, creating a dangerous environment. ...