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Ohio Recovery Housing Overhaul: New Standards and Certification Requirements Reshape Sober Living Spaces

Client Alert

For years, the State of Ohio lacked uniformity over the operation of “recovery houses” — sometimes referred to as “sober living” spaces, “halfway houses,” and so on. Ohio law broadly defines these as residences “for individuals recovering from alcohol use disorder or drug addiction that provide an alcohol-free and drug-free living environment, peer support, assistance with obtaining alcohol and drug addiction services, and other recovery assistance for alcohol use disorder and drug addiction.” See R.C. 5199.01(A)(17). 

Operators could, for example, voluntarily obtain certification through the Ohio-certifying body or, alternatively, elect to run their recovery residence(s) with no oversight and/or certification — in turn, creating a statewide system of residential recovery spaces that provided inconsistent functions and standards. That system, however, is in the midst of a complete overhaul. 

Now, “recovery houses” (and all other similarly named residential recovery spaces) have statutory standards to satisfy pre-operation — a process which is a considerable undertaking. 

One new measure requires all existing recovery housing residences, as well as those intending to operate in the future, to register with the Ohio Department of Mental Health & Addiction Services (OHMHAS). Under Ohio law, existing operators were required to register on or before October 3, 2023; however, the form remains open for late filings and updates as necessary. Newly established recovery housing residences have a grace period of thirty (30) days from the start of their operation (i.e., the date on which the first resident occupies the residence) to complete the OHMHAS registration form. 

In addition to the OHMHAS registration requirement, effective January 1, 2025, the State of Ohio will begin enforcing new requirements which bar individuals and/or entities from operating, advertising, or even representing any residence as a “recovery housing residence, sober living home, or any other alcohol and drug free housing for persons recovering from alcohol use disorder” or substance use disorder without taking the appropriate certification steps through, without limitation, Ohio Recovery Housing or Oxford House, Inc. See R.C. 5119.39.

Certification is a substantial process — requiring, among other things, policies and procedures governing residents’ rights and responsibilities; a resident agreement and legally compliant leasing arrangement; and completion of, and compliance with, a checklist of pre-operation deliverables. 

The range of requirements as applied to the individual circumstances of each recovery housing operator can make identifying priorities and achieving compliance incredibly complex. For more information or for assistance navigating and completing the recovery housing registration and/or certification processes, please contact Monica Andress at (330) 253-9153 or mbandress@bmdllc.com.


Implications of Supreme Court Stay for Business Operations in Noem v. Vasquez Perdomo

On September 8, 2025, the U.S. Supreme Court temporarily reinstated immigration officers’ authority to conduct brief stops based on factors such as location, work type, language, or appearance. This stay in Noem v. Vasquez Perdomo allows enforcement actions to resume in California pending appeal. Employers in industries like construction, agriculture, landscaping, and day labor should prepare for increased worksite disruptions and review compliance protocols.

Ohio House Bill 429: Potential Relief for Providers Facing Same-Day Reimbursement Restrictions

Ohio House Bill 429 aims to prevent third-party payers from reducing provider reimbursement for multiple procedures performed on the same day. The bill could improve payment practices for a range of specialties, including surgery and gastroenterology.

FTC Continues to Target Noncompetes

The FTC is intensifying its focus on noncompete agreements in healthcare, urging employers to review contracts for compliance. While Ohio still generally enforces noncompetes, pending legislation could limit their use.

Medicare Updates: Prior Authorizations and Physician Fee Schedule

The Centers for Medicare & Medicaid Services (CMS) has announced two key updates effective January 1, 2026: a six-state prior authorization pilot program targeting high-risk services under the WISeR Model, and proposed revisions to the Physician Fee Schedule (PFS) that include increased payment rates, expanded telehealth coverage, and updated policies for chronic care, behavioral health, and rural providers.

USCIS Policy Updates: Implications for Business Immigration

In August 2025, USCIS issued three key policy updates enhancing vetting, good moral character (GMC) evaluations, and scrutiny of "anti-American" conduct in immigration adjudications. These policy memos will impact employers sponsoring foreign workers, including H-1B, L-1, EB visas, adjustments, and naturalization.