🏑 Recovery Home Model

Explore an overview of the VSL model for recovery homes (also called sober living homes), including background, purpose, physical layout, guest profile, the economics of operating a home, and NARR-affiliate certification.


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πŸ’‘ Background on Recovery Homes


What is a recovery home?

Sober living is a model of supervised residential housing that provides a supportive environment for individuals in recovery from drug or alcohol addiction. These homes are designed to help guests maintain their sobriety and transition into independent living.

Sober living homes provide a structured environment that supports the recovery process. Guests are required to follow house rules, attend meetings, participate in therapy sessions, and engage in group activities. The structured environment helps guests establish healthy habits and routines that support their recovery.

Sober living homes emphasize peer support and accountability. Guests are encouraged to support each other in their recovery journey and hold each other accountable for their actions. This sense of community can provide encouragement, understanding, and motivation during the recovery process.

Overall, sober living provides a safe and supportive living environment for individuals in recovery. By offering a structured living environment and peer support, sober living homes can help guests maintain their sobriety and build a foundation for a successful, sober life outside of the residence.


What are recovery homes called?

The name for this particular housing model varies across the United States and may also vary depending on who you're talking to. What we do is also known by several terms, including:

  1. Recovery home or residence: this is the terminology we typically use and the terminology used by NARR, the National Alliance of Recovery Residences
  2. Sober house or sober living: the most common terms in New England and many other areas, and can be used interchangeably with recovery home
  3. Oxford house: an Oxford House is a specific type of sober living home--separate from what we do, but similar in terms of the population served
  4. Halfway house: this term is typically used to describe a treatment environment, and not sober living--however, many people use this term incorrectly to describe sober living
  5. Transitional or group housing: these are less precise terms that would describe a recovery home, but could include many other models which aren't recovery-focused

How does sober living compare to treatment programs?

Sober living and residential addiction treatment programs have several similarities, such as offering a structured environment and support for individuals in recovery from addiction. However, there are also significant differences between the two:

  1. Level of care: Residential addiction treatment programs provide a higher level of care than sober living homes. These programs offer intensive medical and therapeutic interventions, including detoxification, medication management, and individual and group therapy. Sober living homes, on the other hand, typically do not offer any clinical services and are instead focused on providing a safe and supportive living environment for individuals in recovery.

  2. Duration of stay: Residential addiction treatment programs typically have a set length of stay, often ranging from 30 to 90 days. Sober living homes, on the other hand, do not have a set length of stay and are designed to support individuals in recovery for as long as they need.

  3. Cost: Residential addiction treatment programs are often covered by health insurance or government funding; private-pay facilities can be expensive, often costing tens of thousands of dollars for a 30-day stay. Sober living homes are private pay are typically far less expensive, with monthly rent and fees that are more affordable, ranging from $150 per week and up.

  4. Focus on independence: Sober living homes are designed to help individuals transition back into independent living and maintain their sobriety in the long term. Residential addiction treatment programs are focused on intensive medical and therapeutic interventions to help individuals achieve sobriety in the short term.

In summary, while both sober living and residential addiction treatment programs offer support for individuals in recovery from addiction, they differ in the level of care, duration of stay, cost, and focus on independence.


How are recovery residences structured and led?

NARR Levels: Overview

The National Association of Recovery Residences (NARR) establishes standards and levels for recovery residences. These levels help to categorize the types and intensities of support offered by different recovery residences.

 

NARR Levels Graphic

 NARR Levels: Explained

  1. Level 1: Peer-Run
    • Residences are democratically run by peers.
    • Emphasis on peer support and self-governance.
    • Least structured level with minimal requirements.
  2. Level 2: Monitored
    • Residences have a house manager or senior resident overseeing operations.
    • Peer support remains central, with more structure than Level 1.
    • Residents may have curfews and house rules to follow.
  3. Level 3: Supervised
    • Residences include administrative oversight by paid staff.
    • Provide structured support and services.
    • Emphasize life skills development and recovery planning.
  4. Level 4: Service Provider
    • Residences offer professional clinical services on-site.
    • Highest level of structure and support.
    • Staff includes licensed professionals providing comprehensive recovery services.

Learn More: The National Alliance for Recovery Residences

 


πŸ’™ The Purpose of Recovery Homes


πŸ‘€ Recovery homes serve guests

  1. Structure: House rules, meetings, and a peer-led recovery support structure help guests develop healthy habits and maintain a sense of discipline.
  2. Peer support: Guests are typically at various stages of recovery, offering an opportunity for peer support and shared experiences, and providing encouragement, understanding, and motivation to peers.
  3. Safe environment: Sober living homes provide a substance-free environment, allowing guests to focus on recovery without the pressures of previous living situations.
  4. Access to resources: Resources like job assistance, educational support, and connections to community-based recovery programs help residents build a foundation for a successful sober life.
  5. Gradual transition: Transitional living situations ease residents back into independent living, allowing guests to build coping skills, resilience, and a support network before fully reintegrating into society.
  6. Reduced relapse rates: Research has shown that individuals who participate in sober living programs often have lower rates of relapse and higher rates of long-term sobriety.

πŸ‘¨β€πŸ‘¦β€πŸ‘¦ Recovery homes empower House Mentors

  1. Personal growth: House Mentors can develop valuable skills such as leadership, conflict resolution, and effective communication.
  2. Strengthening recovery: Being a house manager in a sober house often requires the individual to be in recovery themselves reinforcing your commitment to sobriety, accountability, and focus.
  3. Sense of purpose: Helping others in their recovery journey can provide a sense of purpose and fulfillment, as you will play a crucial role in their sobriety journey.
  4. Support network: Working in a sober house allows you to be surrounded by a community of individuals who are also dedicated to sobriety and recovery.
  5. Opportunities for professional development: Being a house manager can open doors to further opportunities within the addiction recovery field, such as counseling, case management, or program administration.
  6. Financial benefits: Depending on the sober house's structure and policies, house managers may receive compensation in the form reduced or free rent.

Learn more: πŸ‘¨β€πŸ‘¦β€πŸ‘¦ House Mentorship


🀝 Recovery homes strengthen communities

  1. Promoting public health and safety: By helping residents maintain their sobriety, sober living homes can indirectly contribute to improved public health and safety, with lower relapse rates and substance-related incidents.
  2. Encouraging responsible citizenship:The house rules, chores, and community-based recovery programs at sober living homes promote positive citizenship and community engagement, and ease reintegration into society.
  3. Supporting local resources and services: Residents of sober living homes often utilize local healthcare providers, recovery meetings, and employment services, economically benefitting the community.
  4. Reducing the burden on social services: Sober living homes can help alleviate the demand on social services, such as emergency shelters or public assistance programs.
  5. Raising awareness and reducing stigma: Sober living homes can serve as examples of successful recovery and help raise awareness about addiction within the community, in turn reducing the stigma associated with it.

πŸ‘¨β€πŸ’Ό Recovery homes sustain their operators

  1. Making a difference: Sober house operators can make a positive impact on the lives of individuals recovering from addiction, and see their own investments pay out through helping people in real time.
  2. Community involvement: Sober house operators play a crucial role in addressing addiction issues within their community, and will often be the first to interact with neighbors and local services.
  3. Financial opportunities: Operating a sober house can be a viable business opportunity with the potential for generating income through rent collection and other offered services, incentivizing well-managed homes.
  4. Entrepreneurship:Sober house operators have the chance to develop their entrepreneurial skills by managing a business, navigating local regulations, and addressing the challenges associated with operating a sober house.
  5. Skills development: Operating a sober house requires a diverse set of skills, including management, leadership, problem-solving, and communication.
  6. Building a legacy: Sober house operators can create a lasting impact on their community by establishing a reputable and successful recovery home, which can serve as a model for other operators, raising the standard of care for those in recovery.

 


🏑 The Physical Space

All VSL Chartered Homes must adhere to our Facility Standards


Sample Floor Plan

This section displays a sample floor plan for a typical sober living home (though there really is no "typical" sober living home--all are unique). This is a floor plan of the first home we opened in Worcester, MA.

An overview of the sample floor plan, below:

  • 24 total beds, of which there are 23 shared and 1 private bedroom
  • Five full bathrooms (four traditional full bathrooms, one half-bathroom, and one shower room on the second floor)
  • One primary kitchen and two kitchenettes
  • Large first-floor living room, as well as additional common space on the third floor and basement

First Floor

The first floor of this sample home offers most of the available common area. It also has a small private bedroom, as well as a triple bedroom. Finally, this first floor offers the home’s main kitchen and a half bathroom. 

Second Floor

The second floor of this home offers most of the bedroom space in this building. There is a common full bathroom in the front, as well as a full bathroom in the rear of the building shared between the two triple bedrooms in the back of the building. There is a shower room located in a common hallway, allowing for quick showers by guests without having to wait for a full bathroom to become available.

Third Floor

The third floor of this model home contains additional bedrooms and some private common space for the House Mentor and desired guests, including a kitchenette. In some circumstances, house mentors will share some private space with senior guests to assist in leadership, while others encourage new guests to move into spaces close to House Mentors to allow for closer oversight.

 

Basement

Many homes have finished basements. It's always worth considering finishing a basement to add additional common space, bedrooms, and storage.

 

 


πŸ‘€ Guests in a Recovery Home


Overview

The single most valuable component of sober living is its community environment. The design of shared living space with others who have similar goals and challenges helps to create a built-in support network.

Recovery home model overview

  • Independent Living: Homes for men, women, or coed.
  • Room Sharing: Rooms typically shared with one or more peers.
  • Rent: Paid weekly or monthly (health insurance is not accepted).
  • House Mentor: Each home has a dedicated House Mentor.
  • Environment: Homes are convenient, comfortable, affordable, and supportive.
  • Structure: Residents live according to our Guest Handbook and House Rules.

Guest Progress and Support

Guest Demographics and Acceptance Criteria

  • Demographics: Our guests come from diverse backgrounds but share the common goal of sobriety. There's no real defining demographic trend among recovery home guests, beyond a shared interest in continuing their recovery journey.
  • Fundamental Acceptance Criteria:
    • Over 18 years old
    • No drug or alcohol use in the past 14 days
    • Commitment to personal recovery and growth
  • Applications: Applications are accepted via website, fax, email, or phone. Careful screening and a telephone interview ensure a good fit.

Guest Progress

  • Progress Monitoring: Guests should show progress towards their personal goals. This is typically monitored informally by the House Mentor and/or the Operator.
  • House Mentor Support: House Mentors assist with goal setting and monitoring.
  • No Time Limit: Guests can stay as long as they are progressing.

Typical Next Steps

The unfortunate truth is that guests often leave recovery housing due to returning to use or being discharged for one reason or another. Our goal is always a successful transition, but statistically speaking that does not always happen. Our goal is to help each guest transition to:

    • Individual apartment
    • Apartment with roommates (preferably in recovery)
    • Living with a significant other
    • Returning to a previous, healthy living arrangement

Guest Support Structure

Community Structure

  • Peer-Led Environment: Encourages community support and accountability.
  • Role of House Mentors and Operators:
    • Support guests' success by guiding them to resources rather than providing direct services.
    • Help guests navigate real-life challenges, preparing them for life after sober living.

Coaching Model

  • Socratic Method: Encourages self-discovery and personal growth.
    • Asking Questions: Instead of giving direct answers, ask guests about their goals and available resources.
    • Example: If a guest wants to work at a bar, ask if they think it's a good idea and guide them to reflect on their choices.

Referral Sources

The majority of applications are received directly from referral sources either in the clinical or Judicial System.

Read more: 🀝 Types of Referral Sources



 


πŸ’² Recovery Housing as a Business

Recovery homes are businesses dedicated to supporting sobriety 


Typical Operator structures

The typical structure for the ownership and operation of a sober living home is that one or more individuals will choose to establish one or more homes, typically through an LLC or Corporation, but also through various other means, including non-profit entities, and sole proprietorships.

Legal structure: Legal entities help shield the owners from the liability of owning and operating a sober living home, and VSL always recommends operators consider forming an appropriate legal entity as they seek to establish their sober living business.


Income and expenses

βž• Sources of income

Recovery homes sustain themselves largely through payments from guests, funding sources, grants, or other forms of income. The primary sources of income are:

  1. Rent from guests. Rent is typically charged on a weekly or monthly basis and covers the cost of the guest's bed and shared living spaces.
  2. Intake fees, also known as admission fees, are one-time fees charged to cover the cost of processing a new guest's application and other administrative expenses.
  3. Other income items including donations (if nonprofit), charges for coin-op laundry, etc.

βž– Expense expectations

Here are some typical expenses that may be incurred by a sober house operator:

  1. Lease: The cost of leasing the property that the sober house is in is typically one of the largest expenses for a sober house operator.
  2. Utilities: Utilities such as heat, electricity, water, and sewer are also significant expenses for a sober house operator. These costs can vary depending on the size of the residence and the number of guests living in the house.
  3. Supplies: Sober house operators may need to purchase supplies for guests, such as cleaning supplies, toiletries, and bedding. The cost of drug testing and other related screening services may also be an expense for sober house operators.
  4. Maintenance: Repairs and maintenance costs for the property, including general upkeep and repairs to fixtures, appliances, and other equipment, may be incurred by the sober house operator.
  5. Liability insurance: Sober house operators may need to purchase liability insurance to protect themselves and their guests from potential liabilities.

πŸ’² Profit for the Operator

The profitability of a sober house can vary depending on several factors, such as the occupancy rate, the level of demand for sober housing in the area, and the quality of the sober house itself. To maintain profitability, sober house operators may need to carefully manage expenses and ensure that rent and intake fees are sufficient to cover operating costs.

 


Sample Income Statement

Below, find a sample income statement. An income statement is a financial statement showing revenue, expenses, and net income to the Operator. In this case, this sample income statement corresponds with the home displayed in the floor plans above.

Financial model highlights

  1. 22 total beds, charging $180 per bed, per week
  2. One House Mentor earning free rent
  3. 16% estimated vacancy rate
  4. Approximately 3.5 new move-ins per month, $200 per move-in (intake fee)
  5. Standard expenses for a home located in New England (estimates)

Ready to run numbers? We've taken what we've learned over the years and developed a helpful tool which we call our Sober House Financial Calculator. Read more and download this free tool: πŸ“Š Potential Site Analysis.


Sample Income Statement

 

 


β˜‘οΈ Recovery Residence Certification


The National Alliance for Recovery Residences (NARR) is a non-profit organization founded in 2011, dedicated to expanding the availability of high-quality recovery housing in the United States. NARR's four levels of recovery homes provide a continuum of care for individuals in recovery, ranging from peer-run residences with minimal professional staff involvement to service provider residences with a high level of professional support services. Each level has its own set of quality standards that must be met to ensure a safe and supportive living environment for individuals in recovery.

This article will focus only on Level II recovery homes, but you can read about the other levels in the article linked above.

Level II recovery homes, also known as monitored recovery homes, provide a structured and supportive living environment for individuals in recovery. These residences typically have a paid house manager or other professional staff involved in their operation. Here are some key characteristics of Level 2 recovery homes:

Key Components of a Level II Home:

  1. Support services: Level 2 homes often offer more structured support services than Level 1 homes. This may include drug testing, case management, and life skills training. Staff may also provide guidance and support for residents in areas such as employment and education.
  2. Peer support: Like Level 1 homes, Level 2 homes emphasize peer support and group accountability. Residents are expected to attend 12-step meetings and participate in community-based recovery programs. This social support network can provide encouragement, understanding, and motivation during the recovery process.

  3. Rules and regulations: Level 2 homes may have more rules and regulations in place to ensure a safe and supportive living environment. For example, residents may be required to adhere to curfews, participate in house meetings, and maintain their living space. These requirements promote responsibility and accountability, fostering a sense of purpose and accomplishment.

  4. Compliance with quality standards: To be certified as a Level 2 recovery home by NARR, the home must comply with a set of quality standards established by the organization. These standards ensure that the home provides a safe and supportive environment for individuals in recovery.

Overall, Level 2 recovery homes provide a structured and supportive environment for individuals in recovery, with a greater emphasis on support services and more rules and regulations than Level 1 residences. By offering these resources and support, Level 2 residences can help residents maintain their sobriety and build a foundation for a successful, sober life outside of the residence.