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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.


Corporate Transparency Act Overhauled: U.S. Entities No Longer Required to Report

The Department of Treasury has issued an interim final rule significantly altering the Corporate Transparency Act (CTA). As of March 21, 2025, all U.S.-created entities and their beneficial owners are exempt from reporting requirements. Only non-U.S. entities registered to do business in the U.S. must still report, but they are not required to disclose U.S. citizen owners. Business owners should stay informed on these changes and consult legal counsel for compliance guidance.

ODM to Implement Medicaid Work Requirements: What Providers and Medicaid Expansion Recipients Need to Know

The Ohio Department of Medicaid (ODM) has submitted a waiver to impose work requirements for Medicaid expansion recipients. If approved, the new eligibility criteria will take effect on January 1, 2026. A federal public comment period is open until April 7, 2025.

Ohio Appellate Court Rules in Favor of Gender-Affirming Care

On March 18, 2025, the 10th District Court of Appeals in Franklin County ruled that Ohio’s House Bill (HB) 68, which restricts puberty blockers and hormone therapy for minors seeking gender-affirming care, violates the Health Care Freedom Amendment and is therefore unenforceable. The court found that the law unlawfully interferes with parental rights and medical decision-making. The case, Moe v. Yost, has been remanded, and Ohio Attorney General Dave Yost intends to appeal.

HHS Revokes Public Comment Requirement on Certain Policy Changes

The U.S. Department of Health and Human Services (HHS) has revoked the Richardson Waiver, eliminating the requirement for public notice and comment on certain policy changes. This decision allows HHS to implement new policies more quickly, potentially affecting healthcare funding rules like Medicaid work requirements. While it speeds up policymaking, it also reduces opportunities for stakeholder input, raising concerns over transparency and unintended consequences for healthcare providers, states, and patients.

Don't Get Caught Dazed and Confused: Another Florida Court Weighs in on Employer Obligations to Accommodate Medical Marijuana Use

A Florida trial court ruled in Giambrone v. Hillsborough County that employers may need to accommodate off-duty medical marijuana use under the Florida Civil Rights Act (FCRA). This contrasts with prior rulings and raises new compliance challenges for employers. With the case on appeal, now is the time to review workplace drug policies.