Kentucky State Laws, Policies and Funding
RH terminology used by the Department for Behavioral Health, Developmental and Intellectual Disabilities (DBHDID) “‘Recovery residence’” (RR) is a broad term describing a sober, safe, and healthy living environment that promotes recovery from alcohol and other drug use and associated problems.”
Accreditation, Certification, and State Licensing Requirement: Certification required to be listed on the state registry.
RH Law(s): SB90 (2022) Establishes a pilot program in no less than ten counties to participate in a behavioral health conditional dismissal program designed to provide an eligible person who has a mental health disorder and who has been charged with a qualifying offense an alternative to receive treatment and recovery support services addressing the mental health disorder instead of incarceration, resulting in dismissal of the charges upon successful completion. The act includes recovery housing assistance, defines eligibility for recovery housing providers, establishes and implements a value-based payment system for recovery housing services, and requires the development of a qualified recovery housing provider network.
SJR59 (2021) A JOINT RESOLUTION directing the Cabinet for Health and Family Services to create an advisory committee to investigate funding mechanisms and feasibility studies around recovery housing including a full continuum of care for the treatment of individuals with substance use disorders.
RH Legislation: None/unknown
Regulations: 124.01 Definitions (Recovery Residence)
SABG Program: The “Planned Priority Areas” documents for your state’s Substance Abuse Prevention and Treatment Block Grant (SABG) program and Community Mental Health Services Block Grant (MHBG) program do not specifically mention recovery housing as a priority, nor do they list recovery support services as an allowable activity. To learn more about specific recovery housing activities that are eligible for funding through these grant programs, please reach out to your state’s Single State Agency (SSA) that’s responsible for administering these funds by visiting https://dbhdid.ky.gov/kdbhdid/default.aspx
SOR Program: Your state’s Department of Health and Social Services (DHSS) has previously funded recovery activities using State Opioid Response (SOR) funds. To learn more about specific recovery housing activities that are eligible for funding through this grant program, please reach out to your state’s Single State Agency (SSA) that’s responsible for administering these funds by visiting https://dbhdid.ky.gov/kdbhdid/default.aspx
Medicaid Funding: Nothing in the state Medicaid plan suggests direct support for RH, however, certain covered activities could evolve to be provided in RH settings include peer support, case management, and counseling.
Housing Assistance Funding: https://www.kyhousing.org/Partners/Developers/Multifamily/Pages/Applications-Guidelines-Scoring.aspx
Community Foundation of Louisville
The Community Foundation of Louisville was established in 1984 and aims to support communities in the region. The Foundation also strives to partner with local groups to strengthen philanthropy and best serve communities’ needs.
Regions: The Foundation’s area of focus is Kentucky and Southern Indiana, including both rural and non-rural counties. Examples of rural counties served include Kosciusko in Indiana and Letcher,
Washington, and Whitley, in Kentucky.
Issues Supported: The scope of issues that the Foundation supports is broad, with a focus on arts and culture, education, and human services.
Grant Process and Application: The Community Foundation of Louisville only accepts proposals through invitation or partnerships. Contact the Foundation directly by phone at 502-585-4649 or by email at email@example.com.
Grant-Making Per Year: In 2020, the Community Foundation of Louisville provided grants in the amount of $68 million.
Recovery and Supportive Housing Grantee Example: Shepherds House in Lexington, Kentucky, is a group that provides recovery housing for up to 18 months for individuals recovering from substance use disorders. The residential program offers therapy, peer support, and employment guidance to facilitate reintegration into society.
Honorable Order of Kentucky Colonels
The Honorable Order of Kentucky Colonels was established in 1944 and is based in Louisville, Kentucky. The term “Colonel” referred originally to individuals serving military roles, though it later assumed a symbolic meaning. Colonels began coming together in support of advancing and improving Kentucky. Together, a group of Kentucky Colonels established a charitable fund that gained momentum after World War II. Notably, the Colonels established a fund to support students to attend medical school and serve rural areas of the state.
Regions: Grant-making is focused on Kentucky, including rural areas like McCracken, Woodford, and Washington Counties.
Issues Supported: The Honorable Order focuses grantmaking on human services, health, and education, especially for disadvantaged and vulnerable populations. Abuse prevention, family services, mental health care, and rehabilitation are also key areas of interest.
Grant Process and Application: Organizations can request funding through an initial letter. The final application deadline is in March each year. You can find out more information by visiting the Honorable Order of Kentucky Colonels website.
Grant-Making Per Year: In 2020, the Honorable Order of Kentucky Colonels provided grants in the amount of $2.9 million.
Recovery and Supportive Housing Grantee Example: Isaiah House is a grantee located in Willisburg, Kentucky, in rural Washington County. The Isaiah House offers a variety of programs for individuals struggling with substance use disorders. Services include long term residential treatment, transitional living, and job skills training.
Kentucky Opioid Settlement Funds
Total Settlement Funds in Kentucky
- $483 million
- 50% to local governments
- 50% to the state through the Opioid Abatement Trust Fund
- Funds from three distributors will be paid over 18 years
- Funds from Johnson & Johnson will be paid over 9 years
- Not established
Spending So Far
- Office of the Attorney General Daniel Cameron, 502-696-5300
How About Your County?
To get a quick overview of the resources available in your county, including gaps that may need to be addressed, visit the Recovery Ecosystem Index Map developed through a partnership between the Fletcher Group Rural Center of Excellence, the NORC Walsh Center at the University of Chicago, and East Tennessee State University.
Need More Info?
A year in the making by a staff of ten, the Fletcher Group’s 82-page Recovery Housing Landscape Report provides an in-depth overview of the most recent laws, policies, and funding affecting recovery housing. You’ll find sections devoted to state laws, SAMHSA funding, Medicaid, corrections, and housing assistance plus numerous links to valuable resources and official documents. To see the complete downloadable report, click the image to the left.
This web page is supported by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services (HHS) as part of an award totaling $13.7 million with 0% financed with non-governmental sources. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by HRSA, HHS, or the U.S. Government.