DSHA Opens $2.6M Recovery Housing Block Grant Pilot Program for Delaware Nonprofits

The Delaware State Housing Authority (DSHA) announced on July 17, 2023 that it is seeking applications for its Recovery Housing Pilot Program, a $2.6 million initiative funded through Community Development Block Grant (CDBG) dollars from the U.S. Department of Housing and Urban Development (HUD). The pilot is designed to expand the inventory of safe, stable, substance-free housing for Delawareans in recovery from substance use disorders.

How the Program Works

The Recovery Housing Program (RHP) provides capital funding to 501(c)(3) nonprofit developers to acquire, construct, or rehabilitate recovery houses. Residents of these homes may stay for up to two years while they rebuild their lives in a peer-supported environment. DSHA funds the bricks-and-mortar side of the program, while the Delaware Department of Health and Social Services and its Division of Substance Abuse and Mental Health fund the recovery services delivered inside the homes.

"Recovery Housing is an essential part of the substance use disorder treatment and recovery continuum of care," said Cindy Deakyne, DSHA Housing Project Manager. "It provides safe, healthy, and substance-free living environments centered on peer support."

Why Delaware Was Chosen

Delaware has one of the highest per-capita rates of substance addiction in the United States. HUD identified the state in 2019 as one of the jurisdictions eligible to receive Block Grant funding under the federal Recovery Housing Program pilot, which targets states hit hardest by the opioid and substance use crisis.

Who Can Apply

Only 501(c)(3) nonprofit developers are eligible to apply for RHP funds, although DSHA strongly encourages partnerships with other nonprofit and for-profit organizations to strengthen project capacity. Applications are open to eligible developers in any of Delaware's three counties: New Castle, Kent, and Sussex.

Application Deadline

Applications were due by 4:00 p.m. on August 11, 2023, with grant awards expected to be announced in October 2023. DSHA anticipated funding two or three additional recovery houses through this round.

Building on an Earlier Round

This funding round builds on an earlier $2.2 million RHP allocation that DSHA awarded in 2022 to two Delaware nonprofits: Impact Life Inc., which operates a recovery farm in Seaford for women and children, and the atTAcK Addiction Foundation, which operates a recovery house for men in Harbeson. Together those projects demonstrated the model DSHA is now scaling up.

Looking Ahead

The Recovery Housing Program is a multi-year pilot. DSHA has signaled that additional allocations are on the way — the agency has begun planning for subsequent RHP Action Plans covering roughly $1.43 million per allocation through 2032, meaning Delaware nonprofits working on recovery housing should expect continued funding cycles over the coming years.

Next Steps for Interested Nonprofits

Eligible nonprofit developers are encouraged to contact DSHA directly for current Notice of Funding Availability (NOFA) documents and application materials, and to monitor the State of Delaware housing authority website for upcoming application windows tied to future RHP allocations.