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How Do Halfway Houses Get Paid?

How Do Halfway Houses Get Paid?

Many of those who run halfway houses have been in one themselves and have found themselves wondering how they can give back to the community. A halfway house doesn't have to be purely altruistic, however. There are many funding options, which make it possible for those who want to run halfway houses to make it their full-time job. The two most popular methods of receiving funding as an owner are through federal grants and tenant rent.

Federal Grants

Those who want to start one can apply for federal grants. Applying for federal grants is often a lengthy, complex process, but there are professional grant writers whose job it is to acquire grants on behalf of a business. Each federal grant program will have its own requirements, and be open to different organizations. As an example, there may be federal grants for halfway houses in rural locations or even federal grants for halfway houses in a specific community. Because of the breadth of these grants, finding and acquiring grants can also be a full-time job. In addition to federal grants, there can also be state and community grants.

Grants are particularly useful because they don't need to be repaid. Rather, the organization simply procures that grant for a specific amount of time. Often, the organization may be able to reapply and re-acquire the grant the following year, which means they can make their income static. Other times, organizations may need to be continually looking for grants for funding. Either way, the organization will acquire grant money to continue operating the facility.

Rent from Tenants

In addition to grants, many halfway houses do charge rent to their tenants. The amount of rent often differs based on area, the services provided, and the tenants themselves; for instance, some may operate on a sliding scale, so tenants who aren't making money may be seen free, while tenants who make quite a lot of money may be expected to pay more. As an owner, it would be up to you to calculate how much you need to charge tenants to keep the facility open and profitable, along with the grants that you've procured.

Halfway houses do provide services to tenants, but they are also housing; most tenants would be paying for housing otherwise, and consequently do have a budget available for that. Regardless, most facilities are also cheaper or more affordable than traditional rent venues because they are partly subsidized through government grants, and because many tenants will not be able to pay full rent. There can be houses as low as $400 a month and halfway houses as high as $10,000 a month, dependent on the area and the amenities that are provided. And because of that, you do have some control over the type of sober living facility that you run.

Get Help Starting Your Halfway House Today

Are you interested in opening up a halfway house? Not only is that a great way to give back to a community, but it can also be an excellent financial and business decision. Opening one means that you're able to help others, while also making sure that your organization has the profit to continue to grow, thrive, and touch the lives of others. If you want to learn more about the benefits of opening up a halfway house, how much you can expect to make, and what the next steps are now, we can help. Contact us at Open Up a Halfway House to learn more about how you can help today.

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