Running a halfway house is a labor of love – you’re providing a safe, structured environment for people rebuilding their lives, whether they’re coming out of addiction treatment or transitioning from incarceration. But love alone doesn’t pay the bills! Finding money to keep the lights on and the program running is one of the biggest challenges halfway house operators face. The good news is that there are grants for halfway houses out there, from government agencies to private charities, that can help fund your mission. In this post, we’ll break down where to find these grants and how to increase your chances of getting them. We’ll keep it straightforward and practical, so you can get a jump on funding your transitional home. (If you also work with sober living homes, be sure to check out our more in-depth article on grants for sober living homes over at BehaveHealth.com.)

Understanding Grants for Halfway Houses

First, a quick overview: a “halfway house” can refer to a few types of transitional housing. In the context of addiction recovery, halfway houses (or sober living homes) support people coming out of rehab as they adjust to sober life. The term can also apply to reentry programs for people leaving prison or jail. In both cases, the goal is to provide structure, accountability, and support so residents can successfully transition back into independent living.

Grants are essentially gifts of money to support a specific purpose – in our case, helping your residents on the road to recovery and stability. Unlike loans, grants don’t need to be repaid, so they’re ideal for nonprofit organizations or small operators. They can come from the government (tax-funded programs) or from private entities like foundations. Below, we’ll explore the main sources of grant funding relevant to halfway houses:

Major Sources of Grant Funding

Halfway house programs often patch together funding from multiple places. Here are the heavy hitters you should know about:

1. Federal Government Grants

The U.S. government provides a variety of grants that halfway houses can benefit from, especially if you operate as a nonprofit. Here are some key federal grant opportunities:

SAMHSA Grants (Substance Abuse and Mental Health Services Administration): SAMHSA is a federal agency that funds substance use treatment and recovery support services. If your halfway house serves people recovering from addiction, SAMHSA programs are highly relevant. For example, SAMHSA’s Grants for the Benefit of Homeless Individuals (GBHI) program funds community-based treatment along with housing support for people with substance use disorders. Similarly, many states receive SAMHSA’s State Opioid Response (SOR) grants, and some of those dollars are used to support recovery housing for individuals on medications for opioid use disorder (Best Practices for Recovery Housing). Keep an eye on SAMHSA’s grant announcements for opportunities focusing on recovery housing or supportive services – landing one of these can significantly bolster your halfway house’s resources.
Housing and Urban Development (HUD) Grants: HUD is all about housing. While a lot of HUD funding goes toward permanent housing, they also recognize the need for transitional housing in recovery. The Recovery Housing Program (RHP) is a HUD initiative that gives money to states to fund stable transitional housing for people in recovery (Draft FY 2022 Recovery Housing Program Action Plan | dhcd). Additionally, halfway houses that serve homeless individuals might tap into HUD’s Continuum of Care grants, which fund transitional housing as part of local homeless services. It’s worth connecting with your area’s HUD Continuum of Care lead or state housing department to see if there’s support for recovery-focused halfway houses.
Department of Justice (DOJ) Grants (Second Chance Act): If your halfway house specifically helps people coming out of incarceration (who often also have substance use issues), DOJ grants are key. The Second Chance Act program, managed by the Bureau of Justice Assistance, offers grants to nonprofits and governments to improve reentry outcomes (Second Chance Act | National Reentry Resource Center). These grants can fund transitional housing, mentoring, job training, and other services that your halfway house might provide. In short, Uncle Sam wants to reduce recidivism, and funding halfway houses is one way to do it. Check the DOJ’s grant page for Second Chance Act opportunities or related reentry grant programs (like ones for community-based adult reentry).

Pro tip: To find federal grants, use Grants.gov for a one-stop search, and filter by categories like “Housing,” “Substance Abuse,” or “Justice.” Also, sign up for email updates from agencies like SAMHSA or BJA (Bureau of Justice Assistance) so you’ll know when new funding announcements come out.

2. State and Local Grants

State governments and even city/county governments often have grant programs to support housing and recovery services. These can be easier to get than federal grants (less competition nationally) but you have to know where to look. Some pointers:

State Behavioral Health Agencies: Many states offer grants or contracts for recovery housing as part of their addiction services. For example, a state might use federal block grant funds to issue grants to halfway house providers. The specifics vary a lot by state. Texas, California, New York – each will have its own programs (sometimes called “Recovery Housing Initiative” or similar). Check your state’s health and human services or substance abuse agency website regularly for grant announcements.
County or City Grants: Don’t overlook local funding. Large counties or cities battling homelessness and addiction may put out funding opportunities for transitional housing providers. These might be funded through local taxes, or opioid settlement funds, or federal pass-through money. Try to connect with your local Continuum of Care or attend community meetings on homelessness/addiction – being in the loop can alert you to upcoming grants.
Example – Ohio’s Recovery Housing Program: To see what state-level support can look like, consider Ohio: in 2023, the Ohio Department of Mental Health and Addiction Services offered $4 million specifically for recovery housing rental assistance (FY24 Recovery Housing Program). Other states have similar initiatives on different scales.

In short, always network locally. Sometimes the best funding tips come by word of mouth in your community of practice. Get to know your state’s recovery housing coordinator (if there is one) or the leaders of any state recovery residence associations.

3. Foundation and Nonprofit Grants

Plenty of money is out there beyond the government. Private foundations and nonprofit organizations are potential grant-makers for halfway houses:

National Foundations: Big names like the Robert Wood Johnson Foundation or Open Society Foundations have been known to fund addiction recovery and reentry projects. These are competitive, but if your mission aligns with their focus areas (e.g., community health, criminal justice reform), it’s worth a try. Foundations often have an open application or at least accept letters of inquiry.
Community Foundations: Many communities have local foundations that provide small grants to improve local welfare. A community foundation or a United Way chapter might have a grant specifically for housing or substance abuse programs in your area. These grants might be a few thousand dollars – not huge, but every bit helps, and success with small grants can build your track record for bigger ones.
Nonprofits and Charities: Some nonprofit organizations act as intermediaries that re-grant funds. For example, the National Reentry Resource Center and similar groups sometimes announce grant opportunities funded by larger agencies or donors. Keep an eye on national recovery and reentry organizations’ websites for any funding programs.
Corporate Grants: Don’t forget corporate social responsibility programs. Companies (especially those in healthcare, pharmaceuticals, or even local businesses) may have grants or donation programs. A hospital network might fund halfway houses as part of community health, or a local business might sponsor renovations. Corporate grants often require demonstrating community impact and may prefer organizations with 501(c)(3) status.

Tips to Ace Your Grant Application (Without the Headache)

Applying for grants can feel intimidating, but you don’t need a PhD in grant writing to put together a compelling application. Here are some friendly tips to help you through:

Tell Your Story: Grant reviewers read a lot of applications, so make yours memorable. Clearly explain what your halfway house does and why it matters. Who do you serve, and what challenges do they face? Use a real-life example or two if possible (while keeping privacy in mind) to put a human face on your work. Make the reviewers feel the importance of giving your residents a second chance. Passion and authenticity can go a long way.
Back It Up with Facts: While you want to tug at heartstrings, you also need to show that your halfway house produces results. Share any data you have: percentage of residents who get jobs, who stay sober, who avoid re-arrest, etc. Cite evidence that the model works in general – for instance, research shows recovery housing leads to lower relapse and higher employment for participants (Best Practices for Recovery Housing). If you don’t have formal stats, even testimonials or letters from community leaders can demonstrate impact. The goal is to prove that funding your program will yield positive outcomes.
Align with the Funder’s Goals: Always frame your proposal to match what the grantor is looking for. If the grant is from a criminal justice agency, emphasize how you help reduce recidivism. If it’s a health grant, focus on how you support long-term recovery and wellness. Use some of the same terminology from the grant announcement. Essentially, show that your halfway house is the perfect vehicle to achieve the grant’s objectives.
Get Your Documents in Order: Most grants will require a bunch of paperwork. Common items include your nonprofit status letter, financial statements, a program budget, resumes of key staff, and letters of support or references. Start gathering these early. It’s much less stressful when you’re not scrambling the night before the deadline to find last year’s tax forms or to get a city council member to sign a support letter.
Mind the Details: This is a big one – always follow the application instructions. If there’s a template or a set of questions, stick to it. Stay within page or word limits. Have someone proofread your proposal for typos and clarity. Submit all required attachments in the format asked (PDF, Word, etc.). Little mistakes can knock you out of the running. Show the funder that you’re organized and attentive to detail – it gives them confidence that you’ll be responsible with their funds.
Build Relationships: Sometimes it’s not what you know, but who you know. Don’t be afraid to reach out to the grant program contact person with intelligent questions before you apply – their answers can provide insights and also put your name on their radar. If you have colleagues or mentors who have won similar grants, ask if they’ll review your draft or give feedback. And after you submit, if you don’t get selected, politely ask for reviewer feedback (not all will provide it, but it’s gold when they do). Use it to improve next time.

Final Thoughts: Funding Your Mission

Keeping a halfway house running is hard work, but with the right mix of grants and funding, you can focus more on helping residents and less on worrying about finances. Remember that persistence is key – you might apply for several grants before hitting one. Each application is a learning experience that brings you closer to the funding you need.

Don’t hesitate to celebrate and publicize your wins. If you receive a grant, even a small one, let your community know (press release, social media, etc.). This can attract additional donors or partners and build momentum for your program.

Finally, consider using tools and technology to streamline your operations. Managing grants often means tracking outcomes and reporting data. Having a solid system (even something as simple as spreadsheets or as sophisticated as a dedicated sober living management software) can lighten the admin burden. The more efficient you are, the more time you can devote to what truly matters: supporting your residents.

You’re doing important work by giving people a second chance and a supportive home on their journey to independence. With these funding resources and tips, we hope you feel more empowered to go out and grab those grants. Good luck – and start a free trial today.