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As Minnesota begins transitioning to its new recovery residence model, which will take effect Jan. 1, 2027, the Behavioral Health Administration (BHA) is highlighting a few funding programs that may be available to sober home/recovery residence operators in the interim.
To help our local governments and community members connect with each other to engage in strong, ongoing partnerships, below are some options to consider.
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Opioid Settlement funds are funds that are allocated to cities and counties as part of an effort to combat the ongoing national opioid crisis. With a focus on evidence-based practices, there are several ways that these funds can be utilized. The Minnesota Attorney General and Minnesota Management and Budget (MMB) have recognized that permanent supportive housing programs such as Supportive Housing, recovery housing and housing assistance programs have been identified as evidence-based services that are working as part of a continuum of treatment for opioid use disorder in Minnesota (see Minnesota Opioid State-Subdivision Memorandum of Agreement, Section B and Evidence-based practices to prevent treat and advance recovery of OUD). Recognizing the importance and success that supportive housing programs provide to individuals with substance use disorder, BHA wants to ensure that all parties are aware that this could be a pathway to sober homes that may need additional support.
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Another program to highlight is the Small Cities Development Program (SCDP) through the Department of Employment and Economic Development (DEED). This grant program could potentially be utilized for sober home operators in Greater Minnesota. DEED just opened their 2026 proposal cycle with the preliminary proposal deadline ending Nov. 26, 2025, so local governments are encouraged to reach out to their regional SCDP representatives with more questions about the program.
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We encourage larger communities to look into the Recovery Housing Program, which is a Community Development Block Grant through the U.S. Department of Housing and Urban Development (HUD). These funds are available to larger cities and metropolitan areas and are used for providing "decent housing and a suitable living environment" for people with low incomes. Interested individuals can connect with their local officials to reach out to the Minnesota HUD Office to get more information on the Recovery Housing Program.
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If available in your county or Tribe, the Housing Support Program pays for room and board for seniors and adults with disabilities who have low incomes. The program aims to reduce and prevent people from living in institutions or becoming homeless.
Additionally, BHA is encouraging counties and cities to collaborate with their county jails and Tribal governments to look at creative ways to utilize the Capacity Building grant that was put out on Sept. 25, 2025.
At DHS, we remain committed to working closely with our recovery housing providers, community leaders, and Tribal partners through this transition. If you have questions, please send reach out to recovery_supports_bha.dhs@state.mn.us.
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