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10 Grants to Start a Group Home or Assisted Living Facility

Yes, both private and government establishments make available grants for group homes in the United States. Group homes are well-organized residential facilities established in typical residential neighborhoods and often exhibit the typical features of a household.

But, instead of traditional families, they cater to a group of unrelated individuals who all get support services while staying at the home.

Different kinds of people can reside at group homes, including those that are physically, chronically, or mentally disabled; or in drug or alcohol rehabilitation programs.

Regardless of the group a home caters to, finding grants to adequately manage the home can be quite challenging. When seeking grants or government funding for a group home, it is imperative you research organizations within your community, county, or state that provide financial assistance for group homes.

Learn what you can about the organization by going to its website or visiting the facility in person. Grants can be broadly categorized as those awarded by the federal government and those awarded by non-federal entities.

Determining whether you are eligible to apply for and receive any of this funding is very important. If you are not legally eligible for a specific funding opportunity, you mustn’t waste a lot of time and money completing the application process.

You should understand that many of the top-level government agencies directly do not give out grants to recipients. Instead, they give out the funds to state and local agencies and charities, who then create an eligibility and application process to offer the grants to qualified recipients.

Top Grants and Government Funding for Group Homes

Have it in mind that the application process of grants changes often. Nonetheless, here are some grants and government funding that can help you start a group home.

1. ACDS Grant

Arundel Community Development Services, Inc. is a well-known nonprofit organization that is focused on creating affordable housing opportunities and bettering the lives of low-income individuals through community development.

This grant provider offers assistance to group home providers who are eager to develop affordable group home units serving persons with special needs, including persons with developmental disabilities, mental illness, and the chronically homeless.

Application Process

Applicants are expected to contact ACDS Executive Director or planning staff at or call 410-222-3956 to schedule a meeting to discuss the proposed project.

However, before the meeting, the applicant will also be expected to submit to ACDS a full detail of the project along with the resources needed from ACDS.

  1. Children’s Welfare League of America Grants

The Children’s Welfare League of America is known to make available a good number of grant opportunities for group home administrators.

These grant programs can be used for facility repairs and supply acquisition. The Children’s Welfare League of America is funded by the federal government as well as by private and public donations.

Application Process

American Legion Child Welfare Foundation (CWF) grant applications are done online at To be considered for a CWF grant, applications are expected to be received at American Legion National Headquarters no later than July of each application year.

  1. National Institute of Mental Health Grant

The National Institute of Mental Health is a vital element of the United States Department of Health and Human Services. This department offers small business grants and institutional training grants that can be provided to group homes.

Also note that small business grant awards can be utilized for start-up and administration costs, while institutional training grants can be used to educate social workers and administrators working in group home environments.

Application Process

For any application, contact program staff for the most current information on submission. However, most competing “single-project” (e.g., R01, R03) and “multi-project” (e.g., P50, P01) grant programs at NIH now require electronic application submission or SF 424 (R&R).

You are expected to submit your applications via and track your applications as they move from to the eRA Commons, NIH’s system for grants administration, to complete the submission process.

  1. Transitional Living/Maternity Group Homes for Runaway and Homeless Youth Grants

The United States Administration for Children and Families handles the Transitional Living/Maternity Group Homes for Runaway and Homeless Youth Grant Program.

This grant program is well-tailored to offer states, local governments, Native American tribal organizations, and non-profit organizations additional funding to start and manage group homes in their jurisdiction.

Grants can be awarded up to $200,000 and can be utilized for a vast range of purposes depending on the needs of the applicant.

Application Process

Since this is a federal grant, no paper format applications are required. Applicants will be expected to apply online via

  1. National Institute on Aging (NIA) Grants

The National Institute on Aging (NIA) is known to offer various categories of grants to group homes to research various aspects of aging and care for the adults at these homes.

According to the NIA, this type of research will involve “mechanisms of aging, the processes of aging, aging and the nervous system, aging in relation to health and disease.”

One peculiar aspect of this grant is that it is targeted at homes that are fitted with research facilities such as a hospital, clinic, university, or similar organization. These grants come in varying awards, depending on the type of care required for the level of elderly care being conducted.

Application Process

Group homes seeking this grant can start the process by visiting NIA at:

  1. Developing Center Grants

According to reports, this federal grant is aimed at group homes that are focused on helping adults with mental disabilities.

A Developing Center Grant can be given out in various amounts, depending on the level of research going on at the facility, and can be used to help the group home in catering for the adults at the home. The National Institute of Mental Health (NIMH) also sponsors and awards this grant yearly.

Application Process

Since this is a federal grant, no paper applications are required. Applicants will have to apply online at

  1. Treatment and Prevention Services for Drug and Alcohol Abuse Grants

Both the National Institute on Drug Abuse (NIDA) and the National Institute on Alcohol Abuse and Alcoholism (NIAAA) offer numerous forms of grants to assist group homes with adults recovering from drug and alcohol abuse.

Have it in mind that these grants range in funding for two years maximum, depending on the level of care required in the group home.

Also note that these grants are awarded yearly, and can be shared in different amounts each year, but for no more than two consecutive years.

Application Process

Have it in mind that this is a federal grant and no paper format applications are accepted. Applicants will have to apply online through or contact the NIDA or NIAAA directly with questions.

  1. Maternity Group Homes for Pregnant and Parenting Youth Program (MGH)

MGH, fully sponsored by the FYSB within the ACF, offers extensive support for homeless pregnant and/or parenting youths between the ages of 16 and 22, as well as their dependent children.

Note that this grant program provides similar services to TLP, as well as services that incorporate positive youth development and teach parenting skills, child development, family budgeting, and health and nutrition.

Application Process

This is also a federal grant and no paper format applications are accepted. Applicants just have to apply online via

  1. Community Facilities Grant Program

The U.S. Department of Agriculture is known to be behind the Community Facilities Grant Program. This grant can be used to finance the construction, renovation, and expansion of facilities used to house, rehabilitate and treat individuals with substance abuse problems.

It can also be used to cover equipment purchases necessary for facility operations. The program awards grants to towns, districts, and counties with fewer than 20,000 residents. Have it in mind that priority funding is given to areas with the lowest population and income levels.

Application Process

This will surely vary from one location to another, and interested candidates are advised to contact their local USDA Rural Development offices for information on applying for these programs.

  1. Shelter Plus Care Grant

In the United States, the Shelter Plus Care program is fully sponsored by the Department of Health and Human Services and is awarded to state and local government agencies as well as public housing authorities to make available rental assistance and supportive services to homeless substance abusers and individuals with disabilities.

Application Process

Since this is a federal grant, no paper format applications will be needed. Applicants will only have to apply online at

Just like it was noted above, finding grants and government funding tailored specifically for group homes can be quite challenging.

Since competition for grants can be very ferocious, a good number of organizations seek the expertise of professional grant writers and consultants to assist with the process.

These professionals can also help you find grants that your group home qualifies for, and even help complete the application process.

How to Start a Group Home

10 Grants to Start a Group Home or Assisted Living Facility

Starting a group home requires a lot of planning. I mean, what business doesn’t? What makes starting a group home unique is the business model that you may be adopting when it comes to running your care home facility. The first step you want to take is determine what type of care home you would like to start.

There are several options and you can find them listed below. The other step would be to ensure that you meet the local, county and state and federal requirements for your proposed care home. Some other points that you have to take into consideration is listed below:

  • Register a business entity
  • Have a well-crafted business plan
  • Incorporate an institution manual
  • Secure physical location
  • Apply for funding
  • Lanch your care home facility

5 Reasons to Start a Group Home

In order to get grants for your care home facility, you would need a “why”, a well-documented business plan, that clearly states your overall business plans, source of funding, acquisitions, revenue, plan of expansion, and more.

If you understand why you want to start a care facility, then it would be a lot easier explaining to grant-issuing agencies, venture capitalists, and other organizations who may be interested in funding your project.

1. Give Back to the Community
  • The purpose: Giving back to the community is a great reason to want to start a care facility in your community.
  • The reward: Widely varied. This largely depends on if you are setup as a non-profit or a for-profit agency.

Great options abound when it comes to choosing what care facility you would like to establish. What you have to bear in mind is that some programs can be funded by the county, others are made available by the state and federal governments.

However, some agencies and organizations can fund your project too. Whatever funding sources you may have explored or would like to go with.

It is important to have all of your documentation in hand, so you are able to present your case convincingly when the time calls for it.

Applying and receiving grants can be quite competitive, so being extra prepared does go a long way. If you’ve got a computer and expertise working from home, your home-based business can come handy too. 

  • The good bits: Your housing business qualifies for diverse funding such as grants and loans. 
  • The challenging bits: The process of learning housing regulations. Getting all the require licensing.
2. Provide Community Services
10 Grants to Start a Group Home or Assisted Living Facility
  • The purpose: To provide housing and other essential services to the community.
  • The reward: Widely varied. Again, this largely depends on if you are setup as a non-profit or a for-profit agency.

You also have options when it comes to providing housing services to your community. Remember you have to be familiar with the different housing options available, so you can get state and federal government funding. Different states have different housing laws you should be familiar with.

In the light of the foregoing, it is important to explore different funding sources that you may find helpful in your quest to provide services to your immediate community.

No doubt, applying and receiving the needed grants to kickstart your business can be quite challenging, so being knowledgeable about your options can help a great deal.

If you’ve got skills that are marketable, then you can put these skills to work to help you make extra income to get you started.

  • The good bits: Your business qualifies for diverse funding such as grants and loans. 
  • The challenging bits: The process of applying. Getting all the required paperwork, licensing, and budgeting.
3. Start a For-Profit Business
  • The purpose: To provide a means of revenue for your business.
  • The reward: Get paid by the county, organizations, guardians and other funding options.

If you are considering making good revenue from a care home, then starting a group home is a great option. You can register as a “for-profit” and create a steady stream of income.

It is important to ensure that you take your time to understand what business model you wish to apply to your care home project.

This is particularly important if this is your very first home. When you get the funding options taken care of, then it becomes easier to understand how to efficiently run your business without any hassles.

The process of finding clients that you need to help you get your business going is one other thing you may need to research ahead of time before launching your business.

Again, having some marketing skills you have can come in handy for funding options. Using what you currently have can help you create the dream business that you desire.

  • The good bits: This business model guarantees great income, especially once it is established.
  • The challenging bits: Finding your first client can be quite challenging, but it sure gets better from there.
4. Community Problem Solving
10 Grants to Start a Group Home or Assisted Living Facility
  • The purpose: To find lasting solutions to community challenges.
  • The reward: Get rewarded in diverse ways solving your community problems.

If you are a community-oriented person who likes to solve problems and help better their community, starting a care home is laudable. It is important to examine the different aspects of your contribution to the community. How do you intend to provide these services?

What are the hidden costs of providing these services? When you have determined all of the costs and the licensure that you need to provide the needed community services, then you may proceed with applying for funds. Remember that you do not have to invest all of your retirement funds to be able to provide the needed services in your community.

You can reach out to different organizations that are vested in providing funding options for individuals who are ready to start care homes in their community.

Again, ensure that you do not over-stretch yourself. Seek out available grants that you need to start your care home, find clients, and maintain it successfully.

  • The good bits: Community services are a great way to give back in a fulfilling way.
5. Creating a Lasting Legacy
10 Grants to Start a Group Home or Assisted Living Facility
  • The purpose: To leave a lasting legacy for upcoming generation.
  • The reward: Finding a purpose that represents your ideals.

Last but not least is starting a care facility business of leaving a legacy of what you stand for. The business of group home has people at its very core.

When you care about people, then you do not mind going all out to do what’s right. Having the zeal and the commitment to make a difference in your community is a great motivation to build a care home that can carry your dreams through generations.

You still have to get all the necessary information that you need to help you get this business running. Having the foresight of making your documentation a priority is key to your continued success.

Finally, if you have some partnerships that you have started, as a result, ensure that you keep your agreement as transparent as possible. Having a clearly written business agreement can make all the difference in how far you go when it comes to building the care home of your dreams.

  • The good bits: Leaving a legacy can make all the difference. It’s definitely worth more than the financial rewards.
  • The challenging bits: Partnerships may be required unless you intend funding out of pocket.

What Types of Care Homes Exist?

10 Grants to Start a Group Home or Assisted Living Facility

Care homes and residential facilities are segmented into different class categories. These classifications help you differentiate the different levels of care that may be required by the individuals served, and the provisions made by the care facility.

According to the Ohio Department of Mental Health Services (MHA) Residential facilities are grouped into 3 classes namely:

Class 1 – The facilities in this category provides accommodation, feeding, supervision, personal and mental health service to the individuals who live in these homes.

Class 2 – The care homes listed in this class provide accommodation, supervision, feeding, supervision, mental and physical health services. However, with some limitations of the number of recipients of these services.

Class 3 – If your facility belongs to this category, room and board would be provided to 5 or more adults with mental illness.

Some of the types of care home facilities include:

  • Independent Living Facilities (ILFs)
  • Adult Care Home Facilities (ACHs)
  • Skilled Nursing Facilities (SNFs)
  • Long Term Care Facilities (LTCFs)
  • Family Type Homes (FTHs)
  • Enriched Housing (EHs)

For the purpose of this article, we shall. be referring to all. of the mentioned types of care homes as “care facilities”. Starting a care facility can be quite challenging in many ways.

The process of applying and finding appropriate funding to get the property that you intend to make use of as your care facility to licensing, staffing, billing, and budgeting amongst others.

Care facilities are a great way to contribute meaningfully to the community that you live in, especially if you are someone that is passionate about making a difference.

There are different options you can look into if you are looking for dining to get your care facility established. A great way to start in your search for funding would be by looking at different governmental agencies that offer grants such as Small Business Administration (SBA).

This can be quite helpful in getting you the grants you need. The different types of care home you are likely to invest in include:

Independent Homes (IHs)

These are typically tailored toward seniors who do not need personal or any medical care but would love to live with fellow seniors for companionship. Most senior living provide shared activities and events for seniors who live in these facilities.

Independent Living Facilities do the best they can to provide continued independent living for seniors who are actively engaged in the communal settings of these ILFs.

Adult Care Homes (ACHs)

Adult Care Homes are licensed facilities that are regulated and reserved for temporary and long-term stays by adults who are unable to live independently.

The location of this facility is usually within the community. Routine checks may be applicable to ensure that these facilities are following regulations that govern care home establishments.

Skilled Nursing Facilities (SNFs)

Just like the name suggests, Skilled Nursing Facilities offer 24-hour service to people who are unable to live independently.

Trained medical professionals from doctors to nurses, care aides, and other staff members provide care for these individuals in these Nursing Homes.

Nursing homes also provide personal care services such as bathing, feeding, activities of daily living for the residents in the group homes.

Long Term Care Home (LTCH)

Long Term Care Facilities are tailored toward those who require long-term care. This can be as a result of an injury, a change in mental health, or some other conditions. These facilities provide accommodation, food, physical and mental health support for their residents as needed.

Family Type Homes (FTHs)

Family Type Homes as the name suggests, is more of a homelike, laidback environment. The facility takes care of the housing, feeding and supervision for the individuals who are part of the program. These types of facilities are usually built with a limited number of individuals and are usually temporary.

Enriched Group Homes (EGHs)

These are group homes, except that they are not meant for just seniors. Meals are usually provided once a day. The program gets funding from State Department of Health. This program can also be supported by the community, especially in the area of food and volunteer opportunities.