Recovery Homes for Substance Abusers

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In 1998 Federal law required states to establish revolving loan funds for Recovery Homes. Nebraska continues to have a loan fund. The Substance Abuse and Mental Health Services Administration Technical Assistance Publication #5 entitled "Self Support/Self Run Recovery Homes for Substance Abusers" explains the concepts and rules for recovery homes. Oxford House, Inc., is the national organization that is the model.

Loan Requirements:

  • Loans are for the costs of establishing housing for individuals recovering from alcohol or drug abuse.
  • Loans are made for initial deposit, furnishings and supplies to start a house.
  • Not less than six individuals must live in the home.
  • Maximum loan is $4,000.
  • Each loan is repaid through monthly installments.
  • Penalties are assessed for late payment.

Operational Guidelines Include:

  • The use of alcohol or drugs on the premises is prohibited.
  • Residents violating use prohibition are expelled.
  • Costs of the housing, including fees for rent and utilities, are paid by residents.
  • Residents of house, through majority vote, establish house rules.
  • Residents of house, through majority vote, approve new residents.

Loan Provisions:

  • Loans made only to non-profit, private entities.
  • Four percent simple interest is charged.
  • Monthly payments due by the 15th or a $25.00 late fee is assessed.
  • The repayment is two years.
  • In case of default, reclaimable items purchased will revert to the State.
  • Non-profit entities are required to supply State with data on residents.

pdficon.gif (914 bytes) Recovery Loan Application

For more information, contact:

Recovery Home Manager
Department of Health and Human Services
Division of Behavioral Health
P.O. Box 95026
Lincoln, NE 68509-5026
Phone: (402) 471-7818


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