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How to Get a Government Grant for a Halfway House

How to Get a Government Grant

If you are interested in starting a halfway house, you must first register as a 501. A 501 status says you are a nonprofit community-based organization or a nonprofit faith-based organization. It is best if you connect with an organized faith community. Your company would be in the same zip code as the people you serve in the designated district.





Running a not-for-profit halfway house means that your board of directors and you pocket no money from the halfway house income. Any profits made in this nonprofit home must be cycled back into the home.


The Internal Revenue Service must recognize you as a 501 status. To be recognized as such an organization you must take the following steps.

  • Download the 501 application from the IRS website.


  • Decide if your company is a nonprofit or profit company.


  • You must check with your state's eligibility requirements for a contract to run a halfway house.


  • Realize that government grants are not available for startup companies to pay off existing debt or cover operational expenses.


  • When applying for a government grant, you must target a specific industry, populace, and program.


  • Grants may be available if you state an innovative reentry program for ex-offenders, recovery programs for drug and alcohol abuse, or transitional housing for abused women.


  • It must be an ongoing agency and not a startup.


Refer to Grants.gov and the Catalog of Domestic Federal Assistance for a list of all grant opportunities. These resources give you the specific steps you need to take to secure a possible grant for your halfway house.


The Types of Government Funding for Halfway Houses are homeless veterans, abused women, recovering drug addicts, ex-offenders, and recovering alcoholics. The two types of grants available are formula grants and discretionary grants for three primary federal agencies funding grants.



Federal Grant Funding Agencies

  • SAMSHA (Substance Abuse and Mental Health Services Administration)


  • Community Services Block Grant through the Office of Community Services for reducing poverty by providing housing assistance, services to eliminate poverty, substance abuse services


  • Family Violence Prevention and Services Funding helps to fund programs focusing on victims of domestic violence and their children. Grants are available for homes providing a safe place for children, youth, and abused parents, youth exposed to domestic violence, technical assistance.


  • United Way Community Impact Grants are available for one year and, in some cases, two years. You must show you have a focus on improving the lives through lasting changes in the individual.


Grant Types

  • Contract for Services


  • Government-guaranteed Loan


  • Government Grants


Learning to write a grant application is complex and can be complicated, presenting many hoops to jump through when applying for a grant. You need to,


  • Research on how to write a successful grant application.


  • Research your local statistics within your targeted community.


  • If your application is for serving the homeless, you need to highlight the number of homeless in your zip code area in your application and cover letter. You must specify in your application how your halfway house plans to meet the needs of the homeless.


  • Call a skilled consultant who can help you through the rugged path to obtaining a possible government grant.


  • Opening a halfway house means you do not need a license, a permit, or other documentation to open this home. Never allow anyone to tell you differently, and if they do, it is wrong. Residents generally live in any halfway house for twelve months or longer. Individuals realize a successful transition in different time frames. However, the estimated time is about twelve months.

Agencies to Apply to for Federal Grants

  • SAMHSA employees peer reviewers to evaluate grant applications. SAMHSA reviews some grant programs.


  • Division of Grant Review screens out applications not meeting administrative requirements of Funding Opportunity Announcement. Ensure there is no conflict of interest, maintain confidentiality. DGR chooses peer reviewers strictly related to skills, expertise, and knowledge and evaluates and scores each application. Each application is reviewed for criteria and merit. This does not use the applicant's personal experience such as present or past employment, other relationship to the applicant, such as a student, instructor, or friend. Peer reviewers score applications from 0-100. Funding Opportunity Announcement applications must meet FOA requirements; if not, the applications cannot proceed forward.


  • Department of Grants


  • National Advisory Council reviews programs to make sure grants do not exceed $150,000. Will agree or not with the peer review results.


  • Each application follows set rules and regulations. Applicants must design within the application process a proposed budget, making all expenditures justified.




Get Help Starting Your Halfway House Today in This Call to Action

Halfway houses provide a second chance for a better life for many troubled individuals. Halfway homes give the individual a chance to start over in their life. Owning and operating one is a rewarding and sometimes challenging endeavor and more halfway homes are in constant demand and fill up quickly.


Our company can help you get started in your efforts to create a quality-run halfway house. We help you with all of your state's rules and regulations, loans, and grants to offer a new beginning for many people who deserve a second chance in life. Access our website for more in-depth information. We are anxious to work with you and hear your plans to open a much-needed halfway house in your community.


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