§300x–25 — Title 42 The Public Health and Welfare | U.S. Code

§300x–25 Group homes for persons in recovery from substance use disorders

Title 42 › Chapter CHAPTER 6A— - PUBLIC HEALTH SERVICE › Subchapter SUBCHAPTER XVII— - BLOCK GRANTS › Part Part B— - Block Grants Regarding Mental Health and Substance Use › Subpart subpart ii— - block grants for substance use prevention, treatment, and recovery services › § 300x–25

Last updated Apr 6, 2026|Official source

Summary

Lets a State use certain federal funds to set up a revolving loan fund to help pay for group homes for people recovering from alcohol or other drug problems. The fund must start with at least $100,000. Loans can be up to $4,000 each. Each loan must be paid back by the house residents within 2 years in monthly payments. Late payments can get a reasonable penalty. Each house must have at least 6 residents. Loans go only to nonprofit groups that agree the house will be drug- and alcohol-free, that anyone who breaks that rule can be kicked out, that residents pay rent and utilities, and that residents choose other house rules and approve new residents by majority vote. The federal official in charge must create rules for how these programs operate. These rules do not apply to U.S. territories except for the Commonwealth of Puerto Rico.

Title 42, §300x–25

The Public Health and Welfare — Source: USLM XML via OLRC

(a)A State, using funds available under section 300x–21 of this title, may establish and maintain the ongoing operation of a revolving fund in accordance with this section to support group homes for persons in recovery from substance use disorders as follows:

(1)The purpose of the fund is to make loans for the costs of establishing programs for the provision of housing in which individuals recovering from alcohol or other substance use disorders may reside in groups of not less than 6 individuals. The fund is established directly by the State or through the provision of a grant or contract to a nonprofit private entity.

(2)The programs are carried out in accordance with guidelines issued under subsection (b).

(3)Not less than $100,000 is available for the fund.

(4)Loans made from the revolving fund do not exceed $4,000 and each such loan is repaid to the revolving fund by the residents of the housing involved not later than 2 years after the date on which the loan is made.

(5)Each such loan is repaid by such residents through monthly installments, and a reasonable penalty is assessed for each failure to pay such periodic installments by the date specified in the loan agreement involved.

(6)Such loans are made only to nonprofit private entities agreeing that, in the operation of the program established pursuant to the loan—

(A)the use of alcohol or any illegal drug in the housing provided by the program will be prohibited;

(B)any resident of the housing who violates such prohibition will be expelled from the housing;

(C)the costs of the housing, including fees for rent and utilities, will be paid by the residents of the housing; and

(D)the residents of the housing will, through a majority vote of the residents, otherwise establish policies governing residence in the housing, including the manner in which applications for residence in the housing are approved.

(b)The Secretary shall ensure that there are in effect guidelines under this subpart for the operation of programs described in subsection (a).

(c)The requirements established in subsection (a) shall not apply to any territory of the United States other than the Commonwealth of Puerto Rico.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1925 of act

July 1, 1944, was classified to section 300x–11 of this title prior to repeal by Pub. L. 102–321. Another prior section 1925 of act

July 1, 1944, was classified to section 300y–4 of this title prior to repeal by Pub. L. 99–280.

Amendments

2022—Subsec. (a)(1). Pub. L. 117–328 substituted “alcohol or other substance use disorders” for “alcohol or drug abuse”. 2016—Pub. L. 114–255, § 8002(d)(1), substituted “persons in recovery from substance use disorders” for “recovering substance abusers” in section catchline. Subsec. (a). Pub. L. 114–255, § 8002(d)(2), substituted “persons in recovery from substance use disorders” for “recovering substance abusers” in introductory provisions. 2000—Subsec. (a). Pub. L. 106–310, in introductory provisions, substituted “A State, using funds available under section 300x–21 of this title, may establish and maintain the ongoing operation of a revolving fund in accordance with this section to support group homes for recovering substance abusers as follows:” for “For fiscal year 1993 and subsequent fiscal years, the Secretary may make a grant under section 300x–21 of this title only if the State involved has established, and is providing for the ongoing operation of, a revolving fund as follows:”.