The Illinois Department of Public Health cited Camelot Terrace in Streator for the presence of moisture and mildew in the facility's C Wing on Jan. 14.

As of Jan. 28, owner Michael Lerner of GEM Healthcare in Chicago disputes the findings and said remedies have been taken to fix the situation.

The same day, the health department said there is an ongoing investigation of the facilities and would not comment further until the investigation is complete.

Camelot Terrace is a skilled nursing and rehabilitation center with a capacity of about 100 residents.

According to the IDPH deficiency document obtained by The Times, the state says "the facility must provide a safe, functional, sanitary and comfortable environment for residents, staff and the public."

The document further states this requirement was not met: "Based on observation, interview and record review, the facility failed to maintain one of three residential wings (C wing) in a structural condition free of moisture and mildew. This failure has the potential to affect residents who live on that wing or who attend facility activities held on that wing."

The document indicates "a notice from the city of Streator Fire Chief (Tom Risley) dated Jan. 14, 2010, sent to the facility's owner states that the city received a complaint regarding roof leakage and water damage at the facility. The notice indicates (the fire chief) performed an inspection at the facility on Dec. 29, 2010, and found the building was in violation related to the roof and interior surface sections of the city code. The notice indicates that the violations are of a serious nature, and that 'signs of rust and water damage' are present on light fixtures and electrical switches on the northeast wing of the building."

Several employees reported to the IDPH a "mold/mildew" smell near the nurse's desk, which is near the entrance to C wing.

One inspection by the state on Jan. 12 indicated "black mildew was present on the wall in the space approximately six inches high between the suspended ceiling tiles and the bottom of the concrete ceiling near the video camera located just inside the fire doors for C wing. An area of sagging, darkly-stained ceiling, approximately 2 1/2 feet square, was present in the assisted feeding area near the wall adjacent to the C wing common area."

Another inspection by the state on Jan. 14 indicated "black mildew was present under the layers of peeling paint at the top right side of the door jamb of the activity office, where water was dripping down at the time. Black mildew was present on the inside of the drywall up approximately two feet from the floor, visible in an approximate 16-inch wide area where ... had removed a section of wet drywall in room C12 alongside the entry door to the right."

Lerner disputes the IDPH's finding of mildew.

"It was accumulated dust," Lerner told The Times. "We cleaned it up and are back in business. We replaced ceiling tiles."

He said roof repairs were delayed because of freezing temperatures, but the repairs are now done. The problem is over, he said.

Previous to Lerner stating the problem was fixed, he indicated precautions were taken to remove residents from the area.

"We have sectioned off an area that's not being used. We don't want residents in danger," he said.

Crystal Lopez has been a certified nursing assistant at the nursing home for 13 years and believes the environment is causing a health hazard to residents and staff members.

"People have been having rashes, headaches, itchy and watery eyes, asthma and difficulty breathing," Lopez told The Times, adding these symptoms seem to have increased in the last couple weeks, but no one has been taken to a hospital.

According to Melaney Arnold, IDPHcommunications manager, the department is continuing to monitor the situation. Arnold said Camelot Terrace is required to submit to the state a plan of correction for the Jan. 14 citation. She added, however, the current investigation continues and could impact the Jan. 14 findings, which could impact the plan of correction.

If the owners fail to submit the plan of correction, an enforcement cycle would take effect where they could continue to be cited.

"It could lead to termination of Medicare/Medicaid benefits or the revocation of their license, in a worst-case scenario," Arnold said. "Typically they would be accruing fines (as a penalty)."

The U.S. Department of Labor handles complaints filed through the Occupational Safety and Health Administration.

"We have not received any formal complaints for Camelot Terrace, but have opened an investigation," said Brad Mitchell, Department of Labor spokesman, adding the investigation involves concerns over "safety and health conditions."