How to Open a Sober Living Home in Pennsylvania: Complete 2026 Operator Guide

How to Open a Sober Living Home in Pennsylvania: Complete 2026 Operator Guide

Important: This guide provides general information for educational purposes only. It is not legal, financial, or compliance advice. Recovery housing regulations vary by state, county, and municipality. You must consult with a qualified local attorney and your municipality’s code enforcement office to confirm all requirements at every level of jurisdiction before opening a sober living home. Regulations change frequently — always verify current requirements directly with relevant government agencies.

Pennsylvania represents a significant opportunity for sober living home operators. As the fifth-largest state with nearly 13 million residents, Pennsylvania has a substantial need for quality recovery housing. An estimated 785,000 Pennsylvanians (7% of the population) struggle with substance use disorders, creating sustained demand for recovery residences.

The regulatory landscape in Pennsylvania changed significantly in 2021 when 28 Pa. Code Chapter 717 established licensing requirements for certain recovery houses. Understanding when licensing is required versus optional is critical for operators planning their business model.

What this guide covers:

• Pennsylvania DDAP licensing requirements and when they apply
• PARR (Pennsylvania Alliance of Recovery Residences) voluntary certification
• Step-by-step startup roadmap from business formation to opening day
• Startup costs by major Pennsylvania market (Philadelphia, Pittsburgh, Allentown, Harrisburg, Scranton)
• $2.2 billion in opioid settlement funding and how to access it
• Zoning navigation and Fair Housing Act protections
• Building referral relationships with SCAs, treatment centers, and courts

Whether you’re a recovery professional expanding services or an entrepreneur passionate about helping others, this comprehensive guide provides everything you need to build a thriving sober living business in Pennsylvania while making a meaningful community impact.

Is Pennsylvania a Good Market for Sober Living Operators?

Pennsylvania offers strong opportunities for recovery housing operators. Here’s why the Keystone State deserves your attention.

Market Opportunity

Population and Demand:

• Nearly 13 million residents make Pennsylvania the fifth-largest state
• An estimated 785,000 Pennsylvanians (7%) struggle with substance use disorders
• Approximately 301,000 residents have an active illicit drug use disorder
• 68,125 admissions to substance use disorder treatment programs (most recent data), with 58% opioid-related
• Overdose deaths peaked at over 5,000 in 2021, now declining to approximately 3,300 in 2024

Treatment Infrastructure:

• 600+ DDAP-licensed SUD treatment facilities statewide
• Strong network of Single County Authorities (SCAs) administering local programs
• 81% of licensed treatment facilities enrolled in Treatment Atlas
• Growing need for step-down housing as treatment capacity expands

Economic Factors:

• Lower cost of living compared to New York and New Jersey
• Strong job markets in Philadelphia, Pittsburgh, and Lehigh Valley
• Healthcare and medical sectors provide employment opportunities
• Diverse economies from urban centers to rural communities

Regulatory Environment:

• Clear licensing framework under 28 Pa. Code Chapter 717
• State DDAP licensing only required for homes receiving government funding/referrals (local permits may still apply)
• PARR provides voluntary certification pathway
• Fair Housing Act protections for recovery residences

Competition Landscape by Market

Market	Competition Level	Opportunity	Average Rent (5BR)
Philadelphia	High	Large population, strong treatment infrastructure, urban need	$2,500-4,000
Pittsburgh	Moderate-High	Growing market, $20M in opioid settlement allocated to housing	$1,800-3,000
Allentown/Lehigh Valley	Moderate	Strategic location near NYC/Philly, growing market	$2,000-3,600
Harrisburg	Low-Moderate	State capital, affordable entry, underserved	$1,600-2,800
Scranton/Wilkes-Barre	Low	Affordable, university town, significant unmet need	$1,400-2,400
Reading	Low-Moderate	Underserved community, affordable	$1,400-2,200
Erie	Low	Northwestern PA underserved, affordable entry	$1,200-2,000

Underserved Populations and Regions

Pennsylvania has significant unmet needs in several areas:

Underserved Regions:

• Northeastern Pennsylvania (Scranton, Wilkes-Barre)
• Central Pennsylvania outside Harrisburg
• Northwestern Pennsylvania (Erie region)
• Rural communities across the state

Underserved Populations:

• Single parents in recovery (only four licensed homes for pregnant women/mothers statewide)
• LGBTQ+ affirming recovery residences (several operators publicly resisted non-discrimination requirements)
• Mixed-gender/couples housing (only one licensed facility statewide)
• Veterans (Pennsylvania has large veteran population)
• Court-ordered and probation referrals
• Spanish-speaking residents

According to the DDAP licensed recovery house directory, there are significant gaps in specialized housing that operators can target for differentiation.

Pennsylvania Legal Requirements for Sober Living Homes

Pennsylvania’s regulatory framework for recovery houses is more developed than many states. Understanding the licensing requirements is essential for compliance.

State Licensing Under DDAP

The Key Question: When is Licensing Required?

Under 28 Pa. Code Chapter 717 and Act 59 of 2017, Pennsylvania requires licensing for recovery houses that:

1. Want to receive referrals from state agencies or state-funded facilities, or
2. Want to receive federal or state funding to deliver recovery house services

Additionally, the law imposes requirements on referral sources:

• Persons whose treatment is funded with state or federal funds shall only be referred to licensed recovery houses
• Courts shall give first consideration to licensed recovery houses when making residential recommendations

What This Means for Operators:

If you plan to operate a purely private-pay model with no government referrals or funding, Pennsylvania does not require state-level DDAP licensing. However, this does not mean you can operate without any permits or oversight. Many cities and counties have their own group home, boarding home, or rooming house regulations that may require local permits, inspections, or licensing regardless of your funding model. Always check with your municipality’s code enforcement office and a local attorney to identify all applicable local requirements. That said, if you want to:

• Accept residents from treatment centers receiving state funding
• Work with Single County Authorities (SCAs)
• Access opioid settlement funding
• Receive court or probation referrals
• Accept residents with state-funded housing subsidies

…then you must obtain DDAP licensing.

Enforcement:

As of January 1, 2023, DDAP exercises enforcement authority to impose fines of up to $1,000 per day on persons who operate recovery houses receiving government funds without proper licensing. SCAs may only fund licensed recovery houses.

DDAP Licensing Requirements

Application Process:

The DDAP licensing application is submitted online through the DDAP portal.

Application Fee: $250 (American Express and Discover not accepted)

Required Documentation:

Document	Purpose
Ownership and Business Management form	Establishes ownership structure
Photo ID for 5%+ owners	Verifies ownership
Certificate of Occupancy Attestation	Confirms building compliance
Proof of Zoning Approval Attestation	Confirms residential use allowed
Floor plans with checklist compliance	Documents facility layout
Articles of incorporation/operating agreement	Legal business formation
Orientation handbook (house rules, fee schedule)	Documents resident expectations
Organizational structure and job descriptions	Shows staffing model
Fire-retardant mattress documentation	Safety compliance
PA State Police Criminal History Background Check	For all staff
Written policies and procedures	Operational compliance

Policy Requirements Under Chapter 717:

Your written policies must address:

• Prohibition on alcohol/drug use on premises with consequences
• Relapse protocols for staff and volunteers
• Criminal history requirements for house manager, staff, and volunteers
• Personnel policies and training requirements
• Resident rights and responsibilities
• Medication control and storage
• Financial transaction procedures
• Complaint handling procedures
• Safety protocols and emergency procedures
• Unusual incident reporting

Complaint and Fine Structure:

• $100 fine for each legitimate complaint filed
• Complaints can be made anonymously by residents, family, friends, or community members
• More than three legitimate complaints risks license revocation

Application Support:

DDAP offers free “Recovery House Application Workshop” sessions. Contact: ra-licensuredivision@pa.gov

What Triggers Additional Licensing

If you provide clinical treatment services, you’ll need additional licensure as a treatment facility:

Services Requiring Treatment Facility License:

• Detoxification services
• Group or individual counseling/therapy
• Treatment planning
• Medication management
• Clinical assessments
• Educational sessions focused on addiction treatment

What You Can Provide Without Treatment License:

• Safe, drug-free housing environment
• Peer support and accountability
• House meetings about rules and responsibilities
• Drug and alcohol testing
• Transportation to external treatment and meetings
• Basic life skills support
• Structured living with curfews and house rules
• Connection to community recovery resources

PARR Certification: Voluntary Quality Standards

While DDAP licensing is the legal requirement for government-funded operations, PARR (Pennsylvania Alliance of Recovery Residences) provides voluntary certification that demonstrates quality and helps prepare for state licensing.

What is PARR?

Founded in 2011, PARR is an independent 501(c)(3) nonprofit and the official Pennsylvania affiliate of NARR (National Alliance for Recovery Residences). PARR certifies recovery residences based on national standards and provides:

• Certification at all four NARR levels
• Consultative support through the certification process
• Training and education for operators
• Advocacy for recovery housing interests
• Directory listing for certified homes

How PARR Certification Helps with DDAP Licensing

PARR-certified residences are better prepared for state licensing because they already meet most requirements. PARR provides:

• Hand-holding through the licensing process
• Checklists for compliance
• Training and support
• Guidance on meeting DDAP requirements

Many operators pursue both PARR certification and DDAP licensing to maximize credibility and funding opportunities.

NARR Certification Levels Through PARR

Level	Description	Staffing	Best For
Level I: Peer-Run	Democratic, self-governing	No paid staff	Oxford House model, experienced residents
Level II: Monitored	Administrative oversight	House manager	Most common for independent operators
Level III: Supervised	24/7 support available	Paid staff presence	Higher-needs residents
Level IV: Service Provider	Licensed treatment standards	Credentialed staff	Treatment organization-operated

Most independent operators pursue Level II certification.

PARR Certification Process

1. Review Standards - Study the PARR Standard and NARR Standard 3.0
2. Submit Application - Apply online at parronline.org/application-process
3. Document Review - PARR reviews policies, procedures, and governance
4. On-Site Inspection - Inspector tours facility, interviews staff/residents
5. Training - Complete required training within 120 days
6. Certification Issuance - Post Resident Rights & Responsibilities in each location

Ongoing Requirements:

• Annual inspections
• Random audit inspections without advance notice
• Embed PARR Grievance form link on website
• Share Ethics Standards with all staff

For complete details, see our Pennsylvania NARR State Affiliate (PARR) guide.

Regional Support: WestPARR

Operators in Western Pennsylvania can also connect with WestPARR (Western Pennsylvania Alliance of Recovery Residences), which provides regional guidance and resources for recovery residence providers in the Pittsburgh area.

Step-by-Step: Opening a Sober Living Home in Pennsylvania

Step 1: Form Your Business Entity

Choose Your Business Structure:

Structure	Pros	Cons	Best For
LLC	Liability protection, flexibility, pass-through taxation	Self-employment taxes	Most operators
S-Corp	Potential tax savings, liability protection	More complex, payroll requirements	Higher-revenue operations
Non-Profit 501(c)(3)	Grant eligibility, tax exemption, donations deductible	Complex setup, oversight requirements	Mission-driven, grant-focused operations
Sole Proprietorship	Simple setup	Personal liability exposure	Not recommended

Business Formation Steps:

1. Choose your business name - Search the PA Department of State database to ensure availability
2. File with PA Department of State - Submit Certificate of Organization online at dos.pa.gov
3. Obtain EIN from IRS - Apply free at irs.gov (required for business bank account)
4. Register with PA Department of Revenue - For tax purposes
5. Open business bank account - Keep business and personal finances completely separate
6. Set up accounting system - QuickBooks, Wave, or professional bookkeeper

Pennsylvania-Specific Considerations:

• Starting in 2025, LLCs and corporations must file Annual Reports with the Department of State
• Pennsylvania has corporate net income tax and personal income tax considerations
• Consider hiring a Pennsylvania business attorney for entity formation ($500-1,500)

Step 2: Secure Funding

Starting a sober living home in Pennsylvania requires significant upfront capital. Here’s a realistic breakdown:

Startup Cost Breakdown:

Expense Category	Low Estimate	High Estimate	Notes
Property (first/last/deposit or down payment)	$8,000	$50,000	Leasing vs. purchasing
Renovations and safety upgrades	$5,000	$25,000	Fire safety, accessibility
Furniture, beds, and equipment	$8,000	$20,000	Quality mattresses essential
Insurance (first year)	$4,000	$12,000	Liability, property
DDAP licensing fee	$250	$250	Fixed fee
PARR certification	$300	$600	Varies by size
Legal and professional fees	$2,000	$8,000	Entity formation, contracts
Marketing and technology	$2,000	$6,000	Website, management software
Operating capital (3-6 months)	$15,000	$40,000	Cover expenses before break-even
Total	$44,550	$161,850	Varies by market and approach

Pennsylvania Funding Sources

Opioid Settlement Funding:

Pennsylvania expects to receive approximately $2.2 billion in opioid settlement money distributed through 2038 via the Pennsylvania Opioid Misuse and Addiction Abatement Trust.

Key funding developments:

• Over $80 million spent on opioid remediation programs as of December 2024
• Recovery housing is an approved use of settlement funds
• DDAP announced $2.5 million in grants specifically for linking individuals to licensed recovery houses
• Philadelphia allocated nearly $6 million to housing programs for people experiencing homelessness
• Allegheny County (Pittsburgh) allocated $20 million toward housing and substance use programs

DDAP Grant Opportunities:

DDAP and the Department of Community & Economic Development (DCED) have announced grants for licensed recovery houses:

• Grants capped at $50,000 each
• Focus on physical upgrades for compliance (including ADA)
• Check DDAP newsroom for current opportunities

County-Level Funding:

Many Pennsylvania counties have their own opioid settlement allocations:

• Delaware County: $62.5 million settlement, accepting RFPs for 2025 grants
• Philadelphia: $80 million received, with significant housing allocations
• Allegheny County: $7.2 million annually through 2038

Contact your Single County Authority (SCA) for local funding opportunities.

Federal Grants:

• SAMHSA Recovery Housing Grants - $50,000-500,000 for qualifying programs
• HUD Recovery Housing Program - State-administered funds for transitional housing
• DOJ Second Chance Act - For facilities serving people leaving incarceration

For comprehensive funding strategies, see our Grants for Recovery Homes guide.

Step 3: Find the Right Property

Property selection is critical to your success in Pennsylvania.

Property Costs by Major Market:

City	Avg Monthly Rent (5-6 BR)	Purchase Price Range	Market Characteristics
Philadelphia	$2,500-4,000	$300,000-500,000	Largest market, strong treatment infrastructure, diverse neighborhoods, high opioid crisis impact
Pittsburgh	$1,800-3,000	$200,000-350,000	Growing market, strong healthcare sector, $20M opioid settlement for housing
Allentown/Lehigh Valley	$2,000-3,600	$250,000-400,000	Strategic location, growing market, 4.77% rent increase year-over-year
Harrisburg	$1,600-2,800	$180,000-300,000	State capital, affordable entry, government/healthcare employment
Scranton	$1,400-2,400	$150,000-275,000	University town, affordable, northeastern PA hub
Reading	$1,400-2,200	$140,000-250,000	Underserved market, affordable entry
Erie	$1,200-2,000	$120,000-220,000	Northwestern PA, lowest competition

Ideal Property Characteristics:

Location Factors:

• Residential neighborhood with good reputation
• Near public transportation (SEPTA in Philly, PAT in Pittsburgh, LANTA in Lehigh Valley)
• Close to employment opportunities
• Proximity to treatment centers and recovery meetings
• Access to grocery stores and essential services

Property Features:

• 4-6 bedrooms for optimal occupancy (verify your municipality’s occupancy limits for unrelated adults — limits vary by jurisdiction)
• Multiple bathrooms (aim for 1 per 3-4 residents)
• Large common areas for house meetings
• Adequate parking
• Outdoor space for gatherings
• Separate room for office/intake interviews
• Fire-retardant mattresses (required for licensing)

What to Avoid:

• HOA-restricted communities
• Properties near schools or daycares (perception issues)
• High-crime neighborhoods
• Properties with major deferred maintenance
• Locations far from public transit and services

Lease vs. Purchase Considerations:

Factor	Leasing	Purchasing
Initial Capital	Lower ($8-15K)	Higher ($40-80K down)
Monthly Cost	Fixed rent	Mortgage + maintenance
Flexibility	Can relocate easily	Long-term commitment
Equity Building	None	Build ownership stake
Landlord Approval	Required for use	Full control
Best For	First-time operators, testing markets	Established operators, long-term investment

Step 4: Navigate Zoning and Fair Housing

Pennsylvania sober living homes are protected under federal Fair Housing Act, but understanding local requirements is essential.

Fair Housing Act Protections:

People in recovery from substance use disorders are considered disabled under the Fair Housing Act. This means:

• Cities cannot zone out recovery residences from residential areas
• Sober living homes must be treated the same as any family residence
• Spacing requirements between recovery homes may be challenged
• Operators cannot be required to get special use permits not required of families

Practical Zoning Guidelines:

Occupancy Limits Vary by Jurisdiction:

Many Pennsylvania municipalities set limits on how many unrelated adults may live together in single-family residential zones, and these limits vary significantly. Some municipalities allow up to 6 unrelated adults without special permits, while others set the threshold at 3 or 4 and define “family” differently. You must verify your specific municipality’s occupancy limits and definition of “family” with a local land use attorney and your city’s zoning office before signing a lease or purchasing a property. Operating with fewer residents may reduce zoning complications, but local rules ultimately control.

Larger Operations:

For homes exceeding your municipality’s occupancy threshold, you may need:

• Conditional use permit
• Property in multi-family zoned area
• Variances or special exceptions

Certificate of Occupancy:

DDAP licensing requires a Certificate of Occupancy Attestation confirming your building meets local codes. Obtain this from your local building department before applying for licensing.

Building Positive Community Relations:

Several Pennsylvania operators publicly resisted non-discrimination requirements during the 2021 regulatory process. To avoid community opposition:

• Introduce yourself to neighbors before opening
• Provide your contact information for concerns
• Maintain excellent property appearance
• Address any issues immediately
• Enforce quiet hours and visitor policies
• Consider a community advisory board

Step 5: Obtain Required Credentials

DDAP Licensing Process:

1. Prepare Documentation - Gather all required documents (see list above)
2. Create Online Account - Visit the DDAP licensing portal
3. Complete Application - Submit all documentation online
4. Pay Fee - $250 application fee
5. Await Review - DDAP reviews application and may request additional information
6. Site Inspection - DDAP may conduct facility inspection
7. Receive License - License issued upon approval

PARR Certification Process:

1. Review Standards - Study PARR Standard and NARR Standard 3.0
2. Submit Application - Apply at parronline.org
3. Document Review - PARR reviews materials
4. On-Site Inspection - Facility tour, staff/resident interviews
5. Complete Training - Within 120 days of notification
6. Certification Issued - Valid with annual inspections

Contact Your Single County Authority:

Your local SCA is a critical resource for:

• Understanding local licensing nuances
• Funding opportunities
• Referral relationships
• Treatment provider connections

Step 6: Create Policies and House Rules

Pennsylvania regulations require comprehensive written policies. Develop these before accepting your first resident.

Required Policy Areas Under 28 Pa. Code Chapter 717:

Sobriety and Drug Testing:

• Zero tolerance drug and alcohol policy
• Random testing schedule (minimum weekly recommended)
• Testing methods and chain of custody
• Consequences for positive tests
• Relapse response protocols (required for staff too)

Personnel Policies:

• PA State Police criminal background check requirements
• Staff training requirements
• Relapse policies for recovering staff
• Job descriptions and qualifications

Resident Rights and Responsibilities:

• Privacy protections
• Grievance procedures
• Fair housing compliance
• Confidentiality of resident information
• Requirements for program participation

Financial Policies:

• Weekly/monthly rent amounts
• Payment due dates and methods
• Late fee structure
• Security deposit requirements
• Refund policies
• Financial transaction documentation

Safety Protocols:

• Fire safety compliance
• Emergency response plans
• Unusual incident reporting
• Medication control and storage

House Rules:

• Curfew and overnight policies
• Visitor rules and hours
• Cleaning and chore responsibilities
• Common area usage
• Noise levels and quiet hours
• Electronics and media policies
• Vehicle and parking rules

Step 7: Hire Staff

Staffing requirements depend on your operational model and certification level.

Common Staff Roles:

Role	Responsibilities	Pennsylvania Pay Range
House Manager	Day-to-day operations, resident support, rule enforcement	$38,000-55,000/year
Assistant Manager	Coverage, resident support, documentation	$30,000-42,000/year
Peer Recovery Specialist	Resident mentoring, recovery support	$16-24/hour
Administrative Support	Billing, documentation, phone	$35,000-45,000/year

Pennsylvania Background Check Requirements:

Under Chapter 717, you must complete PA State Police criminal history background checks for:

• House manager
• All staff members
• All volunteers

These must be completed before staff begin working at the recovery house.

Certification Options:

While Pennsylvania doesn’t require specific certifications for sober living staff, these credentials add value:

• Certified Recovery Specialist (CRS) - Pennsylvania certification for peer support workers
• NARR Certified Recovery Residence Administrator (CRRA) - National credential for house managers
• PARR Required Training - For PARR-certified homes

Hiring Tips:

• Many successful house managers are themselves in long-term recovery
• Consider live-in house managers to reduce costs and increase presence
• Train all staff on fair housing, confidentiality, and emergency procedures
• Document all training for licensing compliance

Step 8: Build Your Referral Network

Success in Pennsylvania depends on building strong relationships with referral sources.

Priority Referral Sources:

Single County Authorities (SCAs):

• Primary gateway to government-funded referrals
• Contact your local SCA
• DDAP licensing required for SCA referrals

Treatment Centers:

• Residential treatment facilities in your area
• Outpatient programs
• Detox facilities
• Hospital substance abuse programs

Criminal Justice:

• County probation departments
• Parole officers
• Drug courts (courts must give first consideration to licensed homes)
• Pre-trial diversion programs
• County jails with reentry programs

Healthcare:

• Hospital emergency departments
• Community mental health centers
• Primary care physicians
• Federally Qualified Health Centers

Building Relationships:

1. Research facilities in your area - Create a list of all treatment centers and referral sources
2. Ensure you’re licensed - Most referral sources will only work with DDAP-licensed homes
3. Schedule introduction meetings - Meet with discharge planners, case managers, and SCA staff
4. Provide professional materials - Brochure, business cards, intake requirements
5. Offer facility tours - Invite referral sources to see your operation
6. Maintain regular contact - Follow up monthly, share success stories (with permission)
7. Join industry associations - PARR, WestPARR, local recovery community organizations

Step 9: Set Up Operations

Efficient systems from day one set you up for success.

Management Software:

Modern sober living operations require technology. Sober Living App provides:

• Resident admissions processing
• Bed management and occupancy tracking
• Billing and payment processing
• Drug testing result documentation
• Incident reporting and logs
• Housing notes and documentation
• Staff communication tools

Drug Testing Supplies:

• Instant test cups (THC, opioids, benzodiazepines, amphetamines, cocaine minimum)
• Confirmation lab account for contested results
• Secure storage for samples
• Documentation forms

Office Essentials:

• Resident file system (physical or digital)
• Intake paperwork and forms
• Computer and printer
• Secure Wi-Fi network
• Phone line for inquiries

House Supplies:

• Quality fire-retardant mattresses (required for licensing)
• Common area furniture
• Kitchen equipment and dishes
• Cleaning supplies
• First aid kit
• Fire extinguishers
• Smoke and CO detectors

Pennsylvania Funding Opportunities

Pennsylvania offers significant funding opportunities for recovery housing operators.

State Opioid Settlement Funds

Pennsylvania expects to receive approximately $2.2 billion in opioid settlement money, distributed through 2038.

How Pennsylvania Distributes Funds:

The Pennsylvania Opioid Misuse and Addiction Abatement Trust manages the funds:

• Uses must be listed on Exhibit E to the Settlement Agreements
• Recovery housing is an approved use category
• DDAP licensing required for funding eligibility
• Questions can be submitted through the Trust’s Contact Us form

Recent Funding Announcements:

• DDAP $2.5 million grant for linking individuals to licensed recovery houses
• DCED/DDAP grants for physical upgrades (up to $50,000 each)
• County-level allocations in Philadelphia, Allegheny, Delaware, and others

How to Position for Funding:

1. Obtain DDAP licensing (required for state funding)
2. Consider PARR certification for additional credibility
3. Monitor DDAP newsroom for grant announcements
4. Contact your SCA about local funding opportunities
5. Document your outcomes and impact
6. Build relationships with your state legislators

County-Level Opioid Settlement Funding

Many Pennsylvania counties have their own allocations:

Philadelphia:

• Received $80 million, spent approximately $20 million
• Nearly $6 million allocated to housing programs
• Housing First Initiative and Kensington Resident Support programs

Allegheny County (Pittsburgh):

• $20 million allocated toward housing and treatment
• Receives approximately $7.2 million annually through 2038
• Focus on unstable housing populations

Delaware County:

• $62.5 million settlement, average $3.5 million per year for 18 years
• Currently accepting RFPs for 2025 grant initiatives

Contact your county’s opioid settlement coordinator for local opportunities.

Federal Grant Programs

SAMHSA Grants:

• State Opioid Response (SOR) grants flow through DDAP
• Grants for Benefit of Homeless Individuals (GBHI)
• Recovery Community Services Program

HUD Programs:

• Recovery Housing Program
• Continuum of Care grants
• Community Development Block Grants

Search Grants.gov for current opportunities, filtering by “Housing,” “Substance Abuse,” and Pennsylvania.

Pennsylvania Market Considerations

Insurance Requirements

Essential Coverage for Pennsylvania:

Coverage Type	Recommended Amount	Annual Cost
General Liability	$1-2 million	$2,500-5,000
Property Insurance	Replacement value	$1,500-4,000
Professional Liability	$500K-1 million	$1,000-2,500
Workers’ Compensation	State minimum	$2,000-5,000 (if employees)
Umbrella Policy	$1-5 million	$500-1,500

Pennsylvania-Specific Considerations:

• Flood insurance for properties near rivers (Susquehanna, Delaware, Ohio watersheds)
• Winter weather considerations (heating system failures, ice damage)
• Consider business interruption coverage

Weather Considerations

Winter Operations:

• Budget for higher heating costs (October-April)
• Snow removal responsibilities and liability
• Ensure heating systems are properly maintained
• Emergency plans for power outages

Seasonal Factors:

• Plan for higher utility costs in winter ($150-300/month additional)
• Consider energy efficiency upgrades for cost savings
• Ensure adequate insulation and weatherization

Common Challenges in Pennsylvania

NIMBYism and Community Opposition

Some Pennsylvania neighborhoods resist recovery housing. Proactive strategies:

Prevention:

• Choose properties carefully (avoid contentious neighborhoods)
• Introduce yourself to neighbors early
• Maintain impeccable property appearance
• Address concerns immediately
• Enforce strict visitor and noise policies

If Opposition Occurs:

• Document all interactions
• Reference Fair Housing Act protections
• Contact HUD Philadelphia Regional Office: (215) 656-0500
• Consult an attorney specializing in fair housing
• Engage PARR for support and resources

Competition from Unethical Operators

Pennsylvania’s licensing requirements help distinguish quality operators:

• Pursue and maintain both DDAP licensing and PARR certification
• Maintain transparent operations
• Document outcomes and share success stories
• Build strong referral relationships based on quality
• Report unlicensed operators receiving government funds to DDAP

Staffing Challenges

Finding quality staff can be difficult:

• Offer competitive wages (reference ranges above)
• Consider housing as part of compensation for live-in managers
• Partner with recovery community organizations for recruitment
• Develop internal training programs
• Create advancement opportunities

Pennsylvania Resources

Department of Drug and Alcohol Programs (DDAP)

Main Website: https://www.pa.gov/agencies/ddap

Licensing Information: https://www.pa.gov/agencies/ddap/for-professionals/licensing

Apply for License: https://www.pa.gov/services/ddap/apply-to-become-a-licensed-recovery-house

County Drug and Alcohol Offices (SCAs): https://www.pa.gov/en/agencies/ddap/treatment-and-support/county-drug-and-alcohol-offices.html

Licensing Email: ra-licensuredivision@pa.gov

Phone: (717) 783-8675

PARR (Pennsylvania Alliance of Recovery Residences)

Website: https://www.parronline.org

Application Process: https://www.parronline.org/application-process

NARR Affiliate Page: https://narronline.org/affiliate/pennsylvania-association-of-recovery-residences/

WestPARR (Western Pennsylvania)

Website: https://westparr.org

Pennsylvania Opioid Trust

Website: https://www.paopioidtrust.org

Legal and Regulatory Resources

28 Pa. Code Chapter 717 (Recovery House Regulations): https://www.pacodeandbulletin.gov/Display/pacode?file=/secure/pacode/data/028/chapter717/chap717toc.html

PA Department of State (Business Formation): https://www.dos.pa.gov

HUD Philadelphia Regional Office: (215) 656-0500

Industry Associations

National Alliance for Recovery Residences (NARR): https://narronline.org

Your Next Steps

Starting a sober living home in Pennsylvania offers opportunities for both financial success and meaningful community impact. The state’s clear regulatory framework, substantial opioid settlement funding, and strong need for quality recovery housing create favorable conditions for dedicated operators.

Immediate Action Items:

1. Research Your Target Market - Visit existing facilities, meet with treatment providers, assess competition in your area
2. Contact Your Local SCA - Build relationship with your Single County Authority
3. Develop Your Business Plan - Use the cost estimates and revenue projections in this guide
4. Form Your Business Entity - LLC formation through PA Department of State
5. Begin PARR Certification Process - Review standards and prepare documentation
6. Apply for DDAP Licensing - If you plan to accept government referrals or funding
7. Monitor Funding Opportunities - Watch DDAP newsroom and county opioid settlement announcements

Long-term Success Strategies:

• Build deep relationships with SCAs, treatment providers, and courts
• Invest in quality management systems and staff training
• Maintain both DDAP licensing and PARR certification
• Focus on outcomes and resident success
• Plan for expansion once your first facility stabilizes

Pennsylvania needs more quality recovery housing. Position yourself now to capture this opportunity while making a lasting difference in people’s lives.

How Sober Living App Can Help You Succeed

At Sober Living App, we’ve helped hundreds of operators across Pennsylvania and nationwide build successful recovery housing businesses. Our comprehensive management platform handles complex operational details so you can focus on creating supportive environments for recovery.

Our Platform Includes:

• Comprehensive Admissions Management - Streamline intake with digital applications, document collection, and resident onboarding workflows
• Intelligent Bed Management - Track occupancy, waiting lists, and room assignments in real-time from any device
• Automated Billing and Operations - Handle rent collection, late fees, and financial reporting with integrated payment processing
• Housing Documentation - Maintain detailed records for DDAP licensing inspections and PARR certification
• Resident and Staff Communication - Keep everyone connected with announcements, messaging, and incident reporting

Every feature is designed specifically for recovery housing operations, with input from successful operators across Pennsylvania. Our cloud-based system means you can manage your facilities from anywhere while keeping all information secure and accessible.

Ready to Get Started?

Claim your free trial today and see why Pennsylvania’s most successful sober living operators choose Sober Living App to power their operations.

Join the growing community of recovery housing providers who’ve discovered that the right technology platform makes the difference between struggling to keep up and building a thriving business that truly serves the recovery community.