A halfway house, often known as sober living homes, are considered transitional facilities. They are places that some people go to after being in recovery from drugs or alcohol. Some halfway homes open their doors to people after leaving prison or homeless situations. 

They are used to help people learn new skills and to learn how-to live-in society again after treatment or prison settings. They act as a bridge between the treatment setting and independent living. Residents receive peer support and positive reinforcement as they enter back into the real world.

Those who want to know how to open a halfway house or sober living home will have several expenses to consider before they jump in. Some costs they will incur include:

Finding a location and purchasing the property: 

Many lawmaking agencies require property ownership before they sanction a halfway house, especially in a residential neighborhood. You will need to pay for a home inspection to make sure the property is in good condition.

Renovations to the property:

Unless the property was previously operated as a halfway house, you will have to modify the residence to comply with local zoning laws that have limits on the number of people that can live there.

File articles of incorporation:

If you plan to make your house a non-profit, you will need to apply and files articles of incorporation. There will be costs associated with these filings; they differ based on the location.

Licensing and permits:

You will probably need to apply for specific licenses and permits before opening. There are costs associated with these and will vary depending on the type of home you operate. Make sure you know what is allowed in your jurisdiction. In many areas, only churches and community service organizations may open a halfway home.

Hire a Lawyer:

Before opening a halfway home, seek the advice of a qualified lawyer to walk you through the steps and help you through the red tape. Legal fees vary from region to region.

Buy special insurance:

You will need to purchase insurance that covers the home, its contents, and special liability insurance to protect your assets. A regular homeowner’s policy will not be adequate for a halfway home so there will be additional insurance costs to consider.

Get the proper certifications:

The Department of Mental Health and Addiction Services (DMHAS) certifies that recovery houses may receive some funding. In order to get that funding, you must comply with their regulations including zoning and safety requirements. Their standard includes approval of the building structure and the stipulation that residents are involved in a substance abuse program.

Hire professional staff:

It is critical that before residents arrive the home is staffed by professionals that will abide by the operational manual at all times. Background checks on all employees and staff are done to make sure they are qualified to work with residents.

Get accounting procedures in place:

Hiring a good accountant is important. If the home is subsidized by municipal or criminal justice agencies, you will have a contract that states payment amounts and dates. In order to receive grants and private donations, you must keep accurate records. An accountant can take over this arduous task.

Keep in mind that operating a halfway house as a non-profit requires that the owners or board of directors receive no profits, as they must be reinvested into the property or through programming that benefits residents.

How Can I Help Fund My Halfway House?

There are many different opportunities to help fund a halfway house. The most popular are community home improvement program (CHIP) Loans and a variety of different grand programs.

CHIP Loans:

A CHIP loan is a low-interest mortgage loan that allows low- to mid-income homewares to improve or repair the residence. The interest rates are among the most competitive of all mortgage loans. Also, some of the traditional fees associated with other mortgage programs do not apply to CHIP loans.


There are many different types of grants that can help fund a halfway house:

Substance Abuse and Mental Health Services Administration (SAMHSA) offers funding through three channels. To be eligible, you must register your business with the Data Universal Numbering System, System for Award Management, eRA Commons, and Grants.gov.
o The Center for Substance Abuse Prevention
o The Center for Substance Abuse Treatment
o Centre for Mental Health Services
o Community Services Block Grant
The Community Services Block Grant is administered by the Office of Community Services, which a division of the Administration for Children and Families that funds agencies that help reduce poverty including housing assistance and substance abuse services.
United Way Community Impact Grants are available in many areas. They are awarded yearly for those that show they are meeting a pressing human need.

Get Help Starting Your Halfway House Today:

Starting a halfway home can be an extremely rewarding experience as you see people changing their lives. It can be an expensive decision, so you need to do your due diligence and take the proper steps by getting the professional help you need and staying within the parameters outlined in your local state and community guidelines.

If you are considering opening up a halfway or sober living home, let Keith Humes show you the way. His website will show you how to make up to $30,000 annually by opening up a halfway home. He has expert knowledge of the industry and will help you avoid costly mistakes. He even has an eBook online to help walk you through the process.

If you want to make money while helping those in need, you may be the perfect person to open a halfway house.