Katelynne Nelson, 31, was later arrested for a felony drug charge and child abuse.
Authorities found a camouflage backpack in the basement that had syringes, alcohol swabs, and two bags of methamphetamine, according to court documents.
"Hindsight I'm like, 'God why didn't I question more?'" Sherry MacWilliam said. "When I told her that's where we were going to be she said, 'oh, that's great, we love her!'" "When you talked to her you believed what she was telling you".
As 11 News previously reported, Faith drew the attention of both police and Colorado Department of Human Services after multiple complaints emerged that her facility Play Mountain Place on 838 Willamette Ave. was housing more children than permitted.
At first, officers didn't find any children at the facility, police said. That's when officers tried talking with the facility's owner at her home, which is on the same property.
Police discovered the toddlers and two adults in a basement behind the fake wall in November while conducting a welfare check of the children at Play Mountain Place in Colorado Springs, according to The Gazette.
During the search, Officer Jordan Parker bumped into a wall and felt it move, KRDO reported. The wall moved when the officer made contact with it and saw "two parallel scrape marks on the wooden floor" that led away from the wall. "[He] pulled the false wall to the right and found a stairwell leading to a finished basement area".
Documents said an officer observed that numerous children had wet or dirty diapers, were sweaty and were "very thirsty".
Three day care workers were arrested for "misdemeanor child abuse relating to neglect", police said, but detectives canceled the charges "pending further investigation". Faith was not arrested at the time, police said, "as detectives pursue appropriate charges".
Officers heard children's music coming from the basement and asked Faith how to get to the basement, which court documents reveals she told them the home did not have a basement.
Some material in this story appeared in an earlier article by the author.