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Group Homes for Disabled Adults
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Shereen Lehman, MS, is a healthcare journalist and fact checker. She has co-authored two books for the popular Dummies Series (as Shereen Jegtvig).
Group homes for the disabled are an alternative to institutional care . They may be a privately run for-profit business, a nonprofit facility, or run by the government. Privately run group homes do not have government oversight unless they receive government funding. A nonprofit or government-run facility must adhere to certain rules and regulations, which can determine to whom they may provide services.
Each facility is different, depending upon state and local regulations, and the options available will vary. However, a group home usually provides:
- Activities, such as field trips, crafts, and transportation services to medical appointments, shopping, and entertainment
Group Home Residents
Many group homes cater to a particular group, such as disabled adults , teenagers, or children. For this reason, you need to research a group home before committing to a particular one.
Some families believe that a group home setting, in contrast to an institution, provides a community feeling absent in other types of facilities. Relatives report their loved ones who previously lived in an institution seem:
- More alert and engaged
- Have regained skills they may have lost while in institutions (such as feeding and toileting themselves)
- Healthier overall in appearance
Selection Tips
Choosing a group home is a big responsibility. You should sit down and speak with an administrator at length about expectations and needs before choosing a facility.
Do not let administrators rush you through the interview, and make sure they answer all of your questions to your satisfaction. The administrator should welcome your questions and not be agitated. If they seem unable to answer your questions or appear irritated by them, look for a better run facility that is open to your inquiries and concerns.
Things to Look For
The following are things to look for when choosing a group home:
- Does the facility look and smell clean? Ask to inspect a resident room.
- Do the current residents look (and smell) clean and well-groomed?
- How do they handle urgent health concerns?
- Are medical professionals available on-site to care for special-needs patients around the clock?
- Who will administer medicine?
- How do the employees interact with visitors?
- Who assists the residents in keeping in contact with their family, and how will they accomplish this (i.e. TTY, letters, phone calls, video calls)?
- For employees who interact with residents, what type of training course did they complete, and how long was the training?
- What are the week's scheduled activities?
- Do the employees seem engaged with the residents, or are most of the residents alone?
Visiting a group home should occur more than once when you are in the selection process, and preferably at least once unannounced. This should give you a good idea of what things are like during their day-to-day operation. After you choose a facility, it is important to visit regularly so you can spot potential problems or abuses.
Resources for More Information
To find out more about group homes, residential homes or nursing homes for the disabled, contact the following organizations in your state or locality:
- State Department of Health and Human Services
- Division of Developmental Disabilities
- State Human Rights Committee
- Commission on Quality of Care and Advocacy for Persons with Disabilities (New York )
By Charlotte Gerber Charlotte Gerber is a disability writer and advocate. She has made a career of educating the public about various diseases and disabilities.
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Home » Healthcare » Group Home
How to Start a Group Home for Disabled Adults [Business Plan]
Group homes for adults with disabilities are designed to provide personalized and individualized care that promotes independence for such adults. Many people with disabilities choose to live in supportive group homes with several other people with special needs. Depending on the program, these homes can be staffed with counselors and other workers who help the residents live on their own, and in some cases, the residents live without live-in assistance.
Group homes come in many varieties and can be paid for in many ways, including private payments or grants. Available statistics show that there are now about 7,629 group homes (group homes for adults with disabilities inclusive) in the United States in 2023, an increase of 1 percent from 2020.
The data also shows that California has 754 group homes (group homes for adults with disabilities inclusive), Florida has 296 group homes and New York has 284 group homes. These are the States with the greatest number of group homes in the United States of America.
Steps to Start a Group Home for Adults With Disabilities in 2023
Table of Content
1. Conduct Market Research
Memorable business name ideas for group home for adults with disabilities , register your business, cost analysis and budgeting, write a business plan, marketing plan, financial projection, set up your office, hire employees, launch the business proper.
If you intend to start a group home for adults with disabilities, then you must make sure you conduct thorough market research. Your aim of conducting market research for your group home is to get an in-depth analysis of the industry, generate new questions, concepts, and understand the market space better. With successful market research, you will be able to explore the unknown and unlock new possibilities in the industry.
a. Who is the Target Market for Group Home for Adults With Disabilities?
The target market for a group home for adults with disabilities are adults who are suffering from;
- Cerebral palsy
- Down syndrome
- Spina bifida
- Traumatic brain injury
- Visual impairments
- Mental/psychiatric challenges
b. Is Group Home for Adults With Disabilities a Profitable Business?
Yes, Group home for adults with disabilities is a profitable business and statistics show that the market size of the group home was $9.9 billion in 2023.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to group homes for adults with disabilities because this line of business is a niche idea in the group homes industry.
d. Who are the Major Competitors?
- CHAI Dallas
- Griswold Home Care
- Right at Home
- New England Village
- Oak Hill Homepage
- Camp Bloomfield.
e. Are There County or State Regulations or Zoning Laws for Group Home for Adults With Disabilities?
Yes, and zoning laws require group homes for adults with disabilities to follow specific rules and regulations, including some that apply only to group homes. Please note that in many communities, zoning laws require group homes for adults with disabilities to apply for a permit from the city.
This application process allows the city’s zoning department to determine whether the group home meets the zoning rules of the community. Permits also ensure that all group homes are properly licensed with the county or state agencies.
f. Is There a Franchise for Group Home for Adults with Disabilities?
Yes, there are franchise opportunities for a group home for adults with disabilities. Here are some of them;
- Right at Home.
g. What Do You Need to Start a Group Home for Adults with Disabilities?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Startup and Working Capital
- More Care® Group Home For Adults With Disabilities, LLC
- Edna Cole® Group Home For Adults With Disabilities, LLC
- Able Care™ Group Home For Adults With Disabilities, Inc.
- Blessed Hands™ Group Home For Adults With Disabilities, LLC
- All Care® Group Home For Adults With Disabilities, Inc.
- Pro Care® Group Home For Adults With Disabilities, LLC
- Destiny Helpers® Group Home For Adults With Disabilities, LLC
- Becky Zion® Group Home For Adults With Disabilities, Inc.
- Comfort Care® Group Home For Adults With Disabilities, Inc.
- Synergy Care® Group Home For Adults With Disabilities, LLC
- Louisa Mendez® Group Home For Adults With Disabilities, LLC
- Axel Care™ Group Home For Adults With Disabilities, Inc.
- Golden Care™ Group Home For Adults With Disabilities Inc.
- Inner City® Group Home For Adults With Disabilities, LLC
- Covenant Care® Group Home For Adults With Disabilities, Inc.
- Universal Care® Group Home For Adults With Disabilities, Inc.
- Landers Smith© Group Home For Adults With Disabilities, Inc.
- Ready Care™ Group Home For Adults With Disabilities, LLC
- Rose® Group Home For Adults With Disabilities, Inc.
- Green Tree® Group Home For Adults With Disabilities, Inc.
a. What Type of Business Structure is Best for Group Home for Adults with Disabilities?
Even though there are several options when it comes to the business structure for a group home for adults with disabilities, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Group Home for Adults with Disabilities?
- General Business License
- Care Giver or County Worker License
- Health and Safety Permit
- Zonal Permits
- Director’s License
d. What Type of Certification is Needed to Open a Group Home for Adults with Disabilities?
You don’t need any certification to open a group home for adults with disabilities.
e. What Documents are Needed to Open a Group Home for Adults with Disabilities?
These are some of the basic legal documents you need to legally open a group home for adults with disabilities in the United States of America;
- Business and Liability Insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (for your office)
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLC
- Insurance Policy
- Online Privacy Policy Document (basically for online payment portal)
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a group home for adults with disabilities, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
a. How Much Does It Cost to Start a Group Home for Adults with Disabilities?
When it comes to starting a group home for adults with disabilities, startup costs can range from $150,000 (if you are opting for a franchise) to over $500,000.
b. What are the Cost Involved in Starting a Group Home for Adults with Disabilities?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $3,000.
- Business Consultant Fee – $2,500.
- Insurance – $2,400.
- Rent/Lease – $50,000.
- Other start-up expenses including, satellite TV subscriptions, stationery ($500), phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Start-up inventory – $5,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $10,000
- Website: $600
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Group Home for Adults with Disabilities?
- The location you intend covering
- The required licenses and permits
- The type of office facility
- Additional service offerings
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing the group home
- The cost for furnishing and equipping the group home
- The cost of insurance policy covers
- The cost of registering the business
- Sourcing of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
You don’t need to build a facility for your group home because you can rent a decent facility to get the business started.
e. What are the Ongoing Expenses of a Group Home for Adults with Disabilities?
- Cost of stocking up supplies such as medications, toiletries, beddings et al
- Cost of food supplies and ingredients
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Head of Group home for adults with disabilities (President) – $45,000 Per Annum
- Administrator – $36,034 Per Annum
- Home Caregivers/County Aging Workers – $32,878 Per Annum
- Account Officer – $35,000 Per Annum
- Front Desk Officer – $28,000 Per Annum
- Cleaners – $22,000 Per Annum
g. How Do You Get Funding to Start a Group Home for Adults with Disabilities?
- Raise money from personal savings and sale of personal stocks and properties
- Raise money from investors and business partners
- Sell shares to interested investors
- Apply for a loan from your bank/banks
- Applying for business grants and seed funding from the government and donor organizations
- Source for soft loans from family members and friends.
a. Executive Summary
Axel Care™ Group Home for Adults with Disabilities, Inc. is a registered home for adults with disabilities that will be based in Dallas, Texas, USA. Our Group home will focus on providing companionship, giving adults the social support they need to live an active, enriching lifestyle. Our Group home for adults with disabilities will also focus on providing help with routine activities of daily living, like sitting, standing, or moving around.
b. Our Service
- Care-planning services
- Using the bathroom and bathing.
- Dressing and grooming.
- Walking, sitting, standing, and transferring in and out of bed.
- Shopping, preparing, and serving nutritious meals.
- Light housekeeping
- Providing driving services to help run errands, attend appointments, or enjoy social outings
- Companionship — including playing games, sharing meals, doing art projects, and enjoying pleasant conversation
- Social activities.
c. Mission Statement
Our mission is to build a highly successful group home for adults with disabilities that provides dependable and convenient accommodation, and multiple opportunities for ongoing family interaction for adults with disabilities.
Vision Statement
Our vision is to better the lives of individuals and families with unique developmental needs by guiding and supporting them every step of the way.
d. Goals and Objectives
The goals and objective for a group home for adults with disabilities are for them to learn from others with different abilities as they interact regularly. For these reasons, group homes offer a variety of activities for adult residents.
e. Organizational Structure
- Head of Group home for adults with disabilities (President)
- Administrator
- Home Caregivers/County Aging Workers Fundraiser
- Account Officer
- Front Desk Officer
- Security Guards
a. SWOT Analysis
The strength of a group home for adults with disabilities lies in the fact that they have a team of qualified professionals manning various job positions in the organization. So also, the location, the business model they will be operating on, and their excellent customer service culture will count as a strong strength for the group home.
The group home for adults with disabilities is a new business that is owned by an individual (family), and they may not have the financial muscle to sustain the kind of publicity that will give the business robust visibility.
Opportunities:
The opportunities that are available to a group home for adults with disabilities are unlimited because we have loads of adults with disabilities who need the care of Group homes in the United States.
Just like any other business, one of the major threats that you are likely going to face is an economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront a group home for adults with disabilities is the arrival of a bigger/well-established group home for adults with disabilities in the same location where your facility is located.
b. How Does Group Home for Adults with Disabilities Make Money?
A group home for adults with disabilities makes money by charging their clients for services rendered or via grants and donations from donor agencies and individuals.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Place adverts on both print (newspapers and health-related magazines) and electronic media platforms
- Sponsor relevant community-based events/programs for the elderly
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your group home for adults with disabilities
- Install your Bill Boards in strategic locations all around your city or state
- Distribute your fliers and handbills in target areas
- Contact households, businesses, and every adult in the neighborhood where your group home will be located informing them of your business and the services you render
- List your group home for adults with disabilities in local directories / yellow pages
- Advertise your Group home for adults with disabilities on your official website and employ strategies that will help you pull traffic to the site.
- Position your Flexi Banners at strategic positions in the location where your Group home for adults with disabilities is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo et al.
a. How Much Should You Charge for your Service?
Our average service cost will be between $35,000-$65,000 annually; this covers the entire cost of the individual living in the facility, including food, utilities, and the payment to the caregivers who help the residence daily.
b. How Much Profit Do Group Home for Adults with Disabilities Make a Year?
It depends, but available reports show that owners of a group home for adults with disabilities profit an average of $54,000 per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the group home (number of clients they are servicing per time)
- The location the group home is covering
- The management style of the group home for adults with disabilities
- The business approach and model of the group home
- The advertising and marketing strategies adopted by the group home
- The number of years the group home is in business
d. What is the Profit Margin of a Group Home for Adults with Disabilities?
The profit margin of a group home for adults with disabilities is not fixed. To a large extent, after subtracting your overhead, you could make close to 20 percent as profit.
e. What is the Sales Forecast?
Below is the sales forecast for a group home for adults with disabilities. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year: $340,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $580,000
a. How Do You Choose a Perfect Location for Group Home for Adults with Disabilities?
- The demography of the location especially as it relates to the population of adults with disabilities
- The demand for group homes for adults with disabilities in the location
- The purchasing power of residents of the location
- Accessibility of the location
- The number of group homes for adults with disabilities and other facilities like senior care, and nursing homes in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Group Home for Adults with Disabilities?
- Las Vegas, Nevada
- Los Angeles, California
- Chicago, Illinois
- Boston, Massachusetts
- Silver Spring, Maryland
- Rowland Heights, California
- Portland, Oregon
- New York City, New York
- Atlanta, Georgia
- Dallas, Texas
c. What Equipment is Needed to Operate a Group Home for Adults with Disabilities?
When starting opening a Group home for adults with disabilities, you will not need any technical gadgets except office and nursing equipment, first aid kits, smoke detectors, carbon monoxide detectors, fire extinguishers, an emergency preparedness kit, an emergency plan, among others.
In setting up a small office, you will need a computer, printer, software apps, telephones, pager, photocopier, and scanner. This equipment, tools, and instruments can be purchased as fairly used especially if you have limited finance to meet your budget.
As regards the number of employees you are expected to kick start the business with, you would need to consider your finance before making the decision. When it comes to starting a standard group home for adults with disabilities on a large scale, you would need the services of the following professionals; the head of business (you can occupy this position), administrator, caregivers, front desk officer, cleaners, and security guard.
You can decide to start your group home for adults with liabilities by organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the group home for adults with disabilities, you will be able to officially inform people in your city that your group home is open for business.
a. What Makes a Group Home for Adults with Disabilities Successful?
- Ability to attract clients regularly
- Disciplined and dedicated workforce
- The heart to serve and care for people with disabilities
- A good relationship with stakeholders
- Good care techniques and programs.
b. What Happens During a Typical Day at a Group Home for Adults with Disabilities?
- The group home for adults with disabilities is open for the day
- Caregivers are briefed in the office (in some cases though)
- Caregivers provide all the needed support and care to adults with disabilities
- Marketing/website upkeep
- Administrative duties are carried out
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Group Home for Adults with Disabilities?
- Good managerial and human development skills.
- An interest in helping and caring for other people, regardless of their condition.
- The ability to communicate clearly and sensitively when talking to people and their families.
- Good listening skills.
- Great problem-solving skills and the ability to adapt and act accordingly.
- Organizational skills.
- Experience working as a caregiver or social worker
- Experience working for a group home for adults with disabilities.
More on Group Home
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- U.S. Assisted Living Facility Market Size & Share Report, 2030

U.S. Assisted Living Facility Market Size, Share & Trends Analysis Report By Age (More Than 85, 75-84, 65-74, Less Than 65), Region (West, South, Midwest), And Segment Forecasts, 2023 - 2030
- Report ID: GVR-4-68038-060-6
- Number of Pages: 66
- Format: Electronic (PDF)
- Historical Range: 2017 - 2021
- Industry: Healthcare
- Report Summary
- Table of Contents
- Segmentation
- Methodology
- Request a FREE Sample Copy
Report Overview
The U.S. assisted living facility market size was valued at USD 91.8 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.53% from 2023 to 2030. Major factor driving the market growth is the growing geriatric population seeking companionship, security, and assistance with daily activities, are residing in ALFs. The rise in the geriatric population due to increased life expectancy is expected to grow rapidly in the future. According to National Institute on Aging (NIA), globally, around 8.5% of the population is aged 65 and above. As per data published by Population Reference Bureau, the number of Americans aged 65 years & above is projected to reach 95 million by 2060, from 52 million in 2018.

The rise in the geriatric population due to increased life expectancy is expected to grow rapidly in the future. According to National Institute on Aging (NIA), globally, around 8.5% of the population is aged 65 and above. As per data published by Population Reference Bureau, the number of Americans aged 65 years & above is projected to reach 95 million by 2060, from 52 million in 2018.
Technological developments for ALFs are expected to propel its U.S. market. The development of sophisticated & easy-to-use devices and services, such as Internet-enabled home monitors, telemedicine , and apps for mobile health, is likely to boost the market over the forecast period.
The COVID-19 U.S. assisted living facility market impact: 5.0% increase from 2020 to 2021
Over the past few years, the healthcare sector has witnessed various technological advancements, such as wireless data communication, electronic health records , telemedicine/telehealth, activity monitoring systems, fall prevention or detection systems, tracking or wandering management systems, and medication adherence systems. For instance, an electronic medication adherence system enables tracking a patient’s medication schedule and whether they are following it.
Based on the nature of the population served and service provision, residents at assisted living facilities may be at a high risk of contracting COVID-19. According to the CDC, in the early months of the pandemic, around 2.1 million people lived in residential care or ALFs and nursing homes, which represents 0.6% of the U.S. population. A number of these facilities became hotspots for the transmission of the novel coronavirus and 42% of the total COVID-19 deaths in the U.S. were ALF residents.
Age Insights
An increase in the baby boomer population, rising incidence of brain injury, growing prevalence of target diseases, and technological advancements are major factors contributing to the growth of the market. More than 85 years segment accounted for the largest market share of 52.35% in 2022 and is expected to register the fastest CAGR of 5.65% during the forecast period, while the 75 to 84 age group was the second largest segment in 2022.
In the U.S., the growing geriatric population is seeking ALF services to improve their quality of life. According to the United States Census Bureau, the 75 to 84 age group made up roughly 14.3 million or 29% of the senior population in 2016, which is more than double the number and proportion (6.3 million or 13 percent) of those 85 & older. Around 27% of the population is between the ages of 75 and 84.
According to data published by Aging.com, two million housing facilities will be needed for senior residents for adequate living space by 2040. The concept of continual care retirement communities is gaining traction among seniors with high disposable income. Such retirement communities are known to cater to people aged 50 years and above. The idea behind these communities is to prevent seniors from relocating when additional care is needed. As a result, the less than 65 years segment is likely to receive a moderate boost over the forecast period.
Regional Insights
On the basis of region, the market is categorized into West, South, Midwest, and Northeast. The west region dominated the segment with the largest market share of 41.38% in 2022, which can be attributed to the presence of the highest number of ALFs in the region. The South is expected to witness the fastest growth owing to the increasing geriatric population and rising demand for senior care facilities.

ALFs in the South are evenly distributed among small, medium, and large facilities. Some of the largest senior care organizations, such as Brookdale Senior Living, Inc. and Sunrise Senior Living, Inc. are located in the South. The south region is estimated to register the fastest CAGR of 6.20% from 2023 to 2030. Texas is one of the fastest-growing states in terms of improved living conditions and a number of facilities for senior residents. However, ALFs in certain states of the Southern region are facing a shortage of healthcare workers.
Key Companies & Market Share Insights
The U.S. market for the assisted living facility is consolidated with a presence of a few large and various medium & small service providers. Sunrise Senior Living, Brookdale Senior Living, and Kindred Healthcare, LLC are some of the established ALF providers in the U.S. Service providers are taking initiatives such as the construction of new facilities to strengthen their market presence. For instance, in January 2021, Kindred Healthcare, LLC and Tampa General Hospital initiated the construction of a joint rehabilitation facility as per their joint venture in May 2020.
Some of the key players in the U.S. assisted living facility market include:
Kindred Healthcare, LLC
Brookdale Senior Living Inc.
Sunrise Senior Living, LLC
Atria Senior Living, Inc.
Five Star Senior Living
Capital Senior Living
Merrill Gardens
Integral Senior Living (ISL)
Belmont Village, L.P.
Gardant Management Solutions
U.S. Assisted Living Facility Market Report Scope
U.s. assisted living facility market segmentationt.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the U.S. assisted living facility market report based on age and region:

Age Outlook (Revenue, USD Billion, 2017 - 2030)
More than 85
Less than 65
Frequently Asked Questions About This Report
b. The U.S. assisted living facility market size was estimated at USD 91.8 billion in 2022 and is expected to reach USD 96.6 billion in 2023.
b. The U.S. assisted living facility market is expected to grow at a compound annual growth rate of 5.53% from 2023 to 2030 to reach USD 140.8 billion by 2030.
b. The west region dominated the regional segment of the U.S. assisted living facility market with a share of 41.4% in 2022. This is attributable to the presence of the highest number of ALFs in the region.
b. Some key players operating in the U.S. assisted living facility market include Kindred Healthcare, Inc.; Atria Senior Living, Inc.; Integral Senior Living; Brookdale Senior Living Solutions; Five Star Senior Living; Sunrise Senior Living, Inc.; Capital Senior Living; Merrill Gardens; Gardant Management Bradley; and Belmont Village Senior Houston.
b. Key factors that are driving the U.S. assisted living facility market growth include increasing awareness and desire of consumers to age in home-based services and lower cost of assisted living facilities (ALFs) as compared to nursing homes.

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Important: Covid19 pandemic market impact
With COVID-19 infections rising globally, the apprehension regarding a shortage of essential life-saving devices and other essential medical supplies in order to prevent the spread of this pandemic and provide optimum care to the infected also widens. In addition, till a pharmacological treatment is developed, ventilators act as a vital treatment preference for the COVID-19 patients, who may require critical care. Moreover, there is an urgent need for a rapid acceleration in the manufacturing process for a wide range of test-kits (antibody tests, self-administered, and others). The report will account for COVID-19 as a key market contributor.
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How to Start a Group Home
Last Updated: June 15, 2022 References Approved
This article was co-authored by Dan Bodner and by wikiHow staff writer, Christopher M. Osborne, PhD . Dan Bodner is a Transitional Shelter & Homelessness Expert and the CEO & Founder of QuickHaven Transitional Shelters. With over 20 years of experience, he specializes in executive leadership, product development, and innovation, which have helped him develop modular tiny homes to improve the lives of those affected by homelessness. Dan earned a BA from Vassar College and an MS from the University of Texas at Austin. There are 12 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 47 testimonials and 91% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 724,033 times.
A group home can refer to many things, but it generally is a site that provides twenty-four hour non-medical care in a structured environment. [1] X Research source They often focus on the elderly, people with mental or physical disabilities, or those dealing with substance abuse. Starting a group home can lead to a rewarding career helping people in need.
Comparing Your Vision to Reality

- In all honesty, if your primary goal is anything other than to help vulnerable people, running a group home probably isn’t for you. The job requires hard work, long hours, significant expense, and ample frustration, so you need to be able to find your reward in the good you’re doing for others. [2] X Research source
- Think about who you want to serve with your group home. Seniors? The disabled? At-risk children? Despite some similarities, each option offers its own unique challenges and rewards. You may want to visit several types of group homes to get a feel for the differences. [3] X Research source

- Conduct a “needs assessment” of the local area in which you hope to start your group home. How many similar homes exist in the area? What is their average occupancy level? Is there a need for more? Can you provide a group home setting that will distinguish you from the pack?
- Here, as with numerous other times during this process, you should contact the government agencies that oversee group homes in your area (this will vary by jurisdiction). Ask if there is a need for another group home, and if so, what type is most in demand. You can also contact local social service organizations, hospitals, probation offices, and such for insights into group home needs in the area.

- There is, in fact, some political momentum in the U.S. to cut federal funding for group homes for children, based on examples of abuse and exploitation and questions about their effectiveness. [5] X Research source
- You may well find opposition among local homeowners when it comes time to locate your group home. Even if you’re looking to serve only senior citizens, some people reflexively oppose the notion of having any sort of group home in their midst, often citing the potential risk to property values. When the time comes, make sure you have all your legal “ducks in a row,” and also work on soothing neighborhood nerves by explaining the purpose and need for the group home and the provisions you will make to be a beneficial neighbor.

- Title Page and Table of Contents.
- Executive Summary, in which you summarize your vision for the company.
- General Company Description, in which you provide an overview of your company and the service it provides to its market.
- Products and Services, in which you describe, in detail, your unique product or service.
- Marketing Plan, in which you describe how you'll bring your product to its consumers.
- Operational Plan, in which you describe how the business will be operated on a day-to-day basis.
- Management and Organization, in which you describe the structure of your organization and the philosophy that governs it.
- Financial Plan, in which you illustrate your working model for finances and your need from investors.
- The U.S. Small Business Administration ( https://www.sba.gov/ ) and similar small business support entities can also offer guidance on developing a business plan.

- Along with guidance for your business plan, the U.S. Small Business Administration also offers a wealth of information on the process and expectations for securing small business loans from financial institutions.
- Inquire with the local and state agencies responsible for overseeing group homes in your jurisdiction, to see if there are grants or low-interest loans available.
- Don’t be afraid to get creative in securing start-up funding for your group home. The options can range from crowdfunding to renting out part of your residence. Borrowing from friends and family is often an option as well, although you must balance its benefits with the possible awkwardness that can arise from imposing a business relationship on a personal one. [7] X Research source
Navigating the “Red Tape”

- In California, for example, a group home for children must have the written support of the host county (among other requirements) to be eligible for essential reimbursement funding via the AFDC-FC program. [8] X Research source
- Connecticut, as another representative example, has regulations for group homes covering areas ranging from telephone service to clean bathrooms. You are likely to need all the help you can get in navigating through the red tape necessary to start a group home. [9] X Research source

- In California, group homes for children are licensed by the state Department of Social Services (CDSS). [10] X Research source
- In Florida, the Department of Health provides information but not licensing for group homes; that responsibility lies (depending on the nature of the facility) with either the Agency for Health Care Administration or the Department of Children and Families (DCF). [11] X Research source
- In Connecticut, the Department of Developmental Services (formerly the Department of Mental Retardation) handles licensing for group homes for the mentally disabled. [12] X Research source
- State licensing for your facility is likely only the start of the process. You may need to be personally licensed as a Certified Administrator of Group Homes, for instance. [13] X Research source

- Start by contacting your local (such as county) department of health, or human services, or social services, or whatever other unit seems most likely to deal with the operation of group homes in your area. Step up to the state and federal levels as warranted.
- Ask lots of questions, and be very patient. Remember why you want to render this valuable service to your community. It can never hurt to solicit guidance from existing group home operators as well.

- Unfortunately but not surprisingly, establishing non-profit status in the U.S. is not a quick and easy process. You need to create a corporate entity by filing Articles of Incorporation with your state, then begin work on the lengthy Form 1023 provided by the IRS, then, if approved, circle back to the state level to ensure your exemption from state taxation. You may find it beneficial to hire an attorney well-versed in this process. [17] X Research source [18] X Research source
- Check to determine whether your state requires insurance coverage for your group home, [19] X Research source but make sure you obtain sufficient insurance covering liability, fire, and theft, among other areas. [20] X Research source

- Completing Form I-9, which verifies an employee’s eligibility to work in the U.S.
- Providing Form W-4, which determines federal tax withholding for each employee.
- Determining your individual state’s requirements regarding new hire reporting, tax reporting, and worker’s compensation insurance.
- Establishing a functional record-keeping operation so you can keep track of your many responsibilities as an employer.
Establishing Your Home

- Familiarize yourself with local zoning regulations, so you know where you can legally establish a group home. Also look into local and state requirements for group home facilities; in Connecticut, for instance, there are specific square footage requirements for resident bedroom sizes. [21] X Research source
- You may face opposition from local residents who are not keen to have a group home in their midst. They will often cite safety concerns, decreased property values, or even traffic and parking problems as reasons for opposition. Even if you have verified your legal right to establish your home, be prepared to explain and defend (in a neighborly manner) the benefits your group home will offer to the community.

- Although based on 1998 figures, the sample budget for a group home serving 8-12 children in Georgia provided at https://www.cga.ct.gov/2003/rpt/2003-R-0169.htm may prove a useful point of reference. Note the estimated expenses of $250,000 per year for a relatively small group home, and the importance the 60% per diem reimbursement rate provided by the state of Georgia after the first year of operation.
- Basically, don’t expect to make big money by operating a group home. Focus on the good work you are doing for those in need.

- Finding people with (positive) experience working in a group home setting is great, of course, but don’t automatically exclude everyone without experience. Consider educational backgrounds and training, as well as temperament and personality traits. Working in a group home setting requires lots of patience, perseverance, and compassion; it takes the right kind of person with the right kind of attitude to succeed.
- At the interview, asking questions like "Can you provide an example of a problem that you successfully solved?" may offer insights into a potential employee's ambition, ingenuity, and work ethic. [22] X Research source Keep in mind that such questions are common, however, and the interviewee may have prepared stock answers already. (An inability to answer effectively is thus a bad sign.) In addition, try to think up a few problem-solving hypotheticals, for instance, that are specific to the group home setting (“How would you deal with a resident that is / says / does …?").

- For example, if you are operating a group home for abused children, it will be essential to your survival as a business that such children “in the system” be located with you.
- Depending upon your location, a legitimate “host letter” (or similar) may be required in order to receive reimbursements. [24] X Research source
- Inquire with the local government authority responsible for group homes regarding the requirements and process for acquiring this document.

- How to Open a Small Business offers a nice range of general advice on the topic, much of which is relevant to the group home experience.
- Advertising is important, even if logo balloons and prize giveaways may not be right for your group home’s grand opening. But, spreading the word about your business through traditional, digital, and social media methods is still valuable. For group homes in particular, making connections with the proper government agencies and community organizations — charitable, religious, educational, and so forth — may be your most vital form of advertising.
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- ↑ http://www.cdss.ca.gov/cdssweb/entres/forms/english/pub223.pdf
- ↑ http://www.peace-university.net/41016.php
- ↑ http://valleyteenranch.org/programs/additional-programs/starting-a-group-home/
- ↑ http://www.psmag.com/politics-and-law/is-it-time-to-start-shutting-down-group-homes-for-troubled-children
- ↑ https://www.sba.gov/writing-business-plan
- ↑ http://www.businessnewsdaily.com/1733-small-business-financing-options-.html
- ↑ https://www.cga.ct.gov/2003/rpt/2003-R-0169.htm
- ↑ http://www.floridahealth.gov/environmental-health/group-care-facilities/residential-group-care.html
- ↑ http://www.ccld.ca.gov/PG519.htm
- ↑ http://www.nolo.com/legal-encyclopedia/nonprofit-tax-exempt-status-501c3-30124.html
- ↑ https://www.501c3.org/how-to-start-a-501c3-nonprofit/
- ↑ http://www.entrepreneur.com/article/241524
About This Article

Before you start a group home, analyze your local market to make sure there is a need for a new facility in your area. Then, create a detailed business plan in which you describe your unique service, how you plan to serve the community, and how your business will be operated on a day-to-day business. Take this time to create a budget as well, including finding sources for financing. Keep reading for information on how to navigate red tape on the road to starting your group home. Did this summary help you? Yes No
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Group Home For Disabled Adults
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About On Angels Wings Inc
As an organization based in Christian values, On Angels Wings, Inc. has been providing care and support to special needs individuals and their families since 2003. We strive to create a safe, caring, and loving environment while teaching educational and daily living skills to each individual. Our services include
Cost Analysis And Budgeting
A. how much does it cost to start a group home for adults with disabilities.
When it comes to starting a group home for adults with disabilities, startup costs can range from $150,000 to over $500,000.
b. What are the Cost Involved in Starting a Group Home for Adults with Disabilities?
- Business Registration Fees $750.
c. What Factors Determine the Cost of Opening a Group Home for Adults with Disabilities?
- The location you intend covering
- The required licenses and permits
- The type of office facility
- Additional service offerings
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing the group home
- The cost for furnishing and equipping the group home
- The cost of insurance policy covers
- The cost of registering the business
- Sourcing of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
You dont need to build a facility for your group home because you can rent a decent facility to get the business started.
e. What are the Ongoing Expenses of a Group Home for Adults with Disabilities?
- Cost of stocking up supplies such as medications, toiletries, beddings et al
- Cost of food supplies and ingredients
- Salaries of employees
f. What is the Average Salary of your Staff?
- Head of Group home for adults with disabilities $45,000 Per Annum
- Administrator $36,034 Per Annum
Things To Think About When Looking For A Group Home
Some group homes are better than others. It’s important to take your time when looking for one. Do not give up if your first try is not a good fit. You can always try another one.
Here are some things to look for or ask at a group home:
- What do residents do during the day?
- How many staff are working at one time?
- What is the ratio of staff to residents?
- Does the staff seem caring and respectful?
- What training or experience do staff have?
- What is the turnover rate for staff?
- Does my child have to share a room with roommates?
- What house chores will my child have to do?
- Is there transportation, such as to work or for doctor’s visits?
- Does the home seem safe, clean and organized?
- Does the neighborhood feel safe?
- How can other family members or I stay in touch with my child?
- When can my child have visitors?
See this Texas HHS checklist that can help when looking for a group home.
It’s a good idea to visit at different times of the day. That way, you can see what the home and staff are like in the day, evening, weekend and more. Think about if your child will be safe and happy there.
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Residential Services In Georgia
Our residential services in Georgia provide a full continuum of options for people with disabilities to live in a healthy and safe environment that helps them achieve the highest level of independence. RHAs group homes for disabled adults help integrate the individual into the community to nurture their autonomy.
Care Options For Seniors And People With Disabilities

There are three levels of assisted living: assisted living communities, independent living communities, and home care. Home care brings assistance with daily living to the home, independent living offers a community with convenient amenities, and assisted living combines a community that offers convenient amenities with support for daily living tasks.
Assisted Living
Assisted living is a residential community for people who need help with everyday activities, such as bathing and dressing. Since residents usually live in their own private or semi-private apartments, these communities are able to offer a supportive atmosphere that is still independent. Residents can typically tailor the support services to match their needs, so they can perform more of less of their own daily tasks according to their current abilities.
Who its for: Assisted living communities are a good choice for seniors and people with physical disabilities who need help with tasks such as bathing, dressing, eating, taking medications, and using the restroom.
What it costs: According to the Genworth 2017 Cost of Care Survey , you can expect assisted living to cost about $3,750 per month.
Independent Living
Independent living offers a home or apartment in a community designed for seniors and people with disabilities. Residents live in private apartments or homes with access to common areas. It offers convenience and a low-maintenance lifestyle, but does not have the same level of support as assisted living.
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Providing The Needed Support For Adults With Disabilities To Thrive In Community Living
Our group homes are located throughout the DFW Metroplex in Northeast Tarrant County, within close proximity to our day program and administrative offices. We strive to make each house a home through the decorations, furnishings, and care of the homes.
Homes range in size from 1600 to 2400 square feet
Each person has a private bedroom and may share a bath
- 1 to 2 staff members are in the home at all times depending upon individuals needs
Menus are healthy and tailored to meet the needs and tastes of our individuals. We do not use processed foods and use fresh vegetables and fruit. All of the meals are fixed in the home by the staff and the individuals.
Individuals participate in household chores: cleaning, cooking, laundry, shopping, etc.
Our staff is trained to meet the unique needs of each individual
Family members can choose to pay for room and board out of SSI/SSDI check or through earned income
The staff and management of the house are funded through the HCS plan of care
- 4-bed homes have awake staff at night and 3-bed homes have live-in staff that sleep at night.
Individuals participate in all kinds of social, cultural, and recreational activities that are organized and planned by staff
Families are encouraged to stay very involved in individuals lives by taking them home regularly for home visits, spending holidays with families, holding birthday/special parties at individuals houses, decorating their room, and supplying room furniture.
The Benefits Of A Smart Home For People With Disabilities
A smart home is a home equipped with technology that allows the home to be controlled and monitored remotely by a smartphone, tablet, or computer. This can include features such as turning lights on and off, setting the thermostat, locking and unlocking doors, and controlling appliances. For people with disabilities, a smart home can provide much-needed independence and convenience. For people with physical disabilities , a smart home can provide the ability to control their environment without having to rely on someone else to do so for them. This can give them a sense of independence and control over their own lives. For people with cognitive disabilities, a smart home can provide a way to manage their environment in a way that is less confusing and more organized. This can help them to live more independently and confidently. In general, a smart home can provide people with disabilities with a greater sense of control over their lives and their environment. This can lead to improved independence, confidence, and quality of life.
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Are Group Homes Safe
Its perfectly normal to be concerned about your loved ones safety while they are away from home. But we can assure you that group homes are a safe place for your loved one to live. In all of our group homes there are always 1-2 trained caregivers on site 24 hours a day, 7 days a week. These caregivers are trained to provide support and assistance that is personalized to your loved ones needs. Caregivers are also trained on how to respond to emergency situations.
Group Training Homes And Group Homes
Group Training Homes and Group Homes are community-based, residential facilities who typically serve 5-12 adults. The homes provide 24-hour support services. This includes one-onone support and services are based on individual need and the sharing of support within a household. Services are offered in an integrated setting and support personal power, choice and full access to the greater community. Individuals pay monthly participation based on their income which covers the basic expenses of food and shelter.
Group Training Homes are certified by DSHS Residential Care Services Division.
Group Homes are licensed as an Assisted Living Facility or Adult Family Home in addition to being certified by DSHS Residential Care Services Division.
Additional Information:
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How Do You Value A Business What Should I Expect As An Offer For My Business
Unfortunately, there is no specific formula to determine what your business is worth. We incorporate multiple levers into assessing a companys value. These levers include historical financial performance, overall margin, opportunity for growth, uniqueness of the geographic area relative to our existing locations, uniqueness and diversification of the payor mix, and access to human capital. Overall, we are willing and able to pay prices representative of the fair market value of recent sales prices within our space.
Finding Housing Options For Adults With Special Needs Can Be Complicated
Group homes and assisted living facilities are a fairly new concept, as years ago it was a given that the majority of adults with special needs would be institutionalized for the duration of their adult lives.
Thankfully, after decades of societal change and also countless cases of litigation, that type of thinking has changed. Now most special needs adults, even including those with very severe needs, live in a group home, assisted living facilities, or a community setting rather than a hospital or institution.
The US Supreme court has even taken action, ruling that adults with special needs who receive government benefits be housed in the least restrictive setting as is possible. There are different housing options available and finding the right one for each special needs adult is a very important process.
Many special needs adults live with their parents or other family members.
Special needs adults who spend their adulthood living at home with their parents are not subjected to what can sometime be a very stressful transition when they move away from home.
An additional benefit is that they are also usually in a home with several different caregivers, rather than just one, as many family members will have experience tending to various needs. Medicaid is often times used to pay family members for providing care in their homes as it is better than the cost of providing care elsewhere.
Along with the pros and benefits of living at home, come some pitfalls as well.
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S To Start A Group Home For Adults With Disabilities In 2023
Table of Content
- Launch the Business Proper
1. Conduct Market Research
If you intend to start a group home for adults with disabilities, then you must make sure you conduct thorough market research. Your aim of conducting market research for your group home is to get an in-depth analysis of the industry, generate new questions, concepts, and understand the market space better. With successful market research, you will be able to explore the unknown and unlock new possibilities in the industry.
a. Who is the Target Market for Group Home for Adults With Disabilities?
The target market for a group home for adults with disabilities are adults who are suffering from
- Mental/psychiatric challenges
b. Is Group Home for Adults With Disabilities a Profitable Business?
Yes, Group home for adults with disabilities is a profitable business and statistics show that the market size of the group home was $9.9 billion in 2023.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to group homes for adults with disabilities because this line of business is a niche idea in the group homes industry.
d. Who are the Major Competitors?
- Oak Hill Homepage
- Camp Bloomfield.

e. Are There County or State Regulations or Zoning Laws for Group Home for Adults With Disabilities?
F. is there a franchise for group home for adults with disabilities.
Yes, there are franchise opportunities for a group home for adults with disabilities. Here are some of them
What The Arc Is Doing

People with I/DD have the right to live in accessible, affordable housing in the community. The Arc advocates to protect and improve federal housing laws and regulations and to ensure adequate funding for federal housing programs that assist people with I/DD and their families.
Our Public Policy Goals The Arcs Public Policy Goals include many recommendations for improving access to affordable housing in the community.
Our Coalition Work The CCD Housing Task Force , which The Arc co-chairs, works with Congress and the Department of Housing and Urban Development to increase access to decent, safe, and affordable housing for all people with disabilities and to protect the rights guaranteed under the Fair Housing Act. The Arc is also a member of the Campaign for Housing and Community Development Funding and a partner in Opportunity Starts at Home .
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Our Residential Home Design
We design our residential home setting around each persons needs rather than trying to force a pre-determined solution. Before moving individuals into a residential home, we take the time to learn each of their needs, preferences, and background. We also consider the other members of the home, ensuring that each of the individuals is a good fit for each other. This provides a smooth and successful transition.
Our goal at RISE is to make these houses feel like home as if they are living with family and not simply a group of individuals. With the assistance of our trained and compassionate direct support professionals, we do our best to make everyone feel comfortable in their residential home as well as part of a unique family.
Group Homes For Special Needs Adults With Coexisting Physical & Intellectual Disabilities
Adults who live at The Brambles must have intellectual disabilities, which is generally characterized by intellectual functioning and adaptive behavioral limitations. An individual with an intellectual disability may experience challenges and need support in areas such as learning, reasoning, problem-solving, and social, conceptional, and practical skills.
Residents may also live at The Brambles if they have certain coexisting conditions, including:
- Among many others
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Where Can I Find Some Options For Christian Group Homes For Disabled Adults
There are many group homes available in Arizona and around the Greater Phoenix area. This can make the process of finding a group home seem overwhelming. Start by searching for Christian group homes for disabled adults near you and see how far away your loved one is willing to live. On Angels Wings, Inc. provides numerous group homes throughout the Greater Phoenix and North Phoenix areas. We are happy to help you learn more and tour the residences.
Get All The Information And Paperwork You Can
It all starts with getting the right information. The best way to be informed is by approaching or contacting a social service agency. Now there are several, however, the most prominent and authoritative source is the Department of Human Services .
Others include private social services such as the Lutheran Social Service and the Catholic Social Services. Here, you get the full details on what it takes to start a group home for adults with disabilities. All the fine details and guides on starting and operating such a home are found in the guide or regulations book.
You should ask this as well as an application packet. These are useful tools that set you on the path of success with your group home. Youll find all that needs to be done as well as what requirements you must meet to make your group home a reality.
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When To Sign Up For Benefits
Just like beneficiaries who qualify for Medicare based on age, you enter an initial enrollment period when you become eligible due to disability. This period is when you choose what kind of Medicare coverage to get.
The initial enrollment period begins before your 24-month waiting period is over. It starts the 22nd month you have SSDI benefits and lasts for seven months.
Making Too Much But Not Enough
Advocates say one of the main challenges people with disabilities face is the so-called benefits cliff, which can limit wealth building and keep families in poverty. This is when employment income increases and benefits phase out or go away.
The challenges to working are more than just a difficulty with getting a job or having the ability to do a job, itâs also about the benefits that people rely on ⦠that they risk losing if they become financially independent. Itâs a Catch-22, said Kristen Milefchik, a vaccine advocate with Disability Rights Michigan.
The cost of living is higher for people with disabilities, advocates said. Power wheelchairs, personal care and assistance technology all cost money, Cosma said. The price tag for a wheelchair accessible van alone might be $60,000, she said.
But its not just cash benefits that are at risk, Milefchik said.If a person somehow loses Medicaid because they earn too much money, they may not be able to afford to pay for the cost of care out of pocket, she said, reflecting on her own experiences. Employer insurance may not cover long-term care . That may lead a person to quit their job and get back onto programs like Supplemental Security Income .
And so the cycle continues, advocates said.
Milefchik who has a form of muscular dystrophy and has used a wheelchair her entire life spent much of her adulthood on SSI but still had to have roommates to share caregiving support services and cover expenses.
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Apply For Short Term Disability Online
How do you sign up for disability, social security disability status check online, what is long term disability insurance, how to get disability in ohio, short term disability and pregnancy, related articles, can’t work due to disability, back pay for va disability, filing for disability in nc, what happens if you become disabled while on social security, latest news, sign up for social security disability, popular news.
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- Family Caregiving
- Care at Home
- Nursing Homes
- Financial & Legal
- Life Balance
- Local Resources & Solutions
Group Homes: A Small-Scale Option for Assisted Living
Residential care facilities offer older adults who can’t age in place an alternative to large institutions.
by Sally Abrahms, AARP , Updated October 26, 2022

didesign021/Getty Images
Most people want to age at home, but that is not always possible, physically or financially.
Rather than move to a large assisted living community or a skilled nursing facility , another alternative exists, perhaps in an area near home. Depending on where you live, the concept may be called adult family homes, board and care homes, residential assisted living or residential care homes.

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States, which license the homes, have more than 30 terms to refer to these types of living arrangements. Think of it as assisted living but in a house.
In Wisconsin, about half of the assisted living providers are adult family homes, but they offer only about 1 in 7 of all assisted living beds. In many states, these small homes are an option that often slips under the radar.
Residential care homes can provide the same basic services as large assisted living centers. Staffers help with personal needs such as bathing, dressing, eating, medication management and toileting and can respond to emergencies. Some states allow for various levels of care in the homes, from independent living to high levels of assisted living, so make sure you know what’s included.
Most offer transportation to medical appointments or will contract with a third party. What you won’t find is the same level of care as in a nursing home.
Group homes are licensed by states under the same requirements as any other assisted living community. They typically house five to 10 people (but there may be as many as 20, depending on state regulations). Staff who directly care for residents have mandated annual training.
Residents must have care plans. Employees are required to keep records on them, too.
Some homes allow pets or have staff that can speak multiple languages. Some focus on memory care , specific disease management or general care. Someone is on site 24/7.
Group homes are usually owned by private individuals, although some are owned by companies that may operate several facilities. Staff may live in the house, sometimes along with their families.
Residential care homes often cheaper
The cost for services at board and care homes across the country hasn’t been precisely calculated. A 2021 cost-of-care survey from Genworth, a Richmond, Virginia-based company that sells long-term care insurance, puts the national median charge for assisted living at $54,000 a year and the median annual charge for skilled nursing at $95,000 to $108,000, depending on whether a resident is living in a double or single room.
The report does not include the costs at group homes, but the fees are typically less than traditional assisted living or skilled nursing.
For example, in California — one of the most expensive states to live in, according to the Council for Community and Economic Research’s annual Cost-of-Living Index — Genworth estimates median annual costs of $63,000 for assisted living and $117,530 to $146,000 for a nursing home.
However, a shared bedroom in a six-bed group home costs about $34,000 a year, and a private room runs from $48,000 to $78,000, according to William Young, founder and president of Residential Care Facilities for the Elderly, an association of California group homes.
Group homes generally charge less than larger assisted living communities, in part because they offer fewer amenities such as on-site beauty salons or art classes. Expect homes that specialize in dementia care to be on the higher side because of additional safeguards to keep residents from wandering or engaging in other behavior that could put them in danger.
Monthly charges are either paid out of your own pocket, through long-term care insurance or, if the home has a Medicaid contract, via government financing. A veterans benefit called Aid and Attendance can help former service members and their surviving spouses cover group home costs.
How group home living is different
The lower price, higher staff-to-client ratio — for example, Florida limits its adult family care homes to five residents at most — and family-oriented setting distinguish this option from assisted living communities and nursing homes.
Residential care homes also had fewer pandemic restrictions than larger facilities, according to Young. They generally didn’t confine people to their rooms and allowed family members to visit, which helped them retain residents, he says.
Advantages of group homes can include:
- A higher staff-to-client ratio than in assisted living complexes or nursing homes.
- More personalized care and greater continuity of care. With fewer residents to monitor, staff can more easily detect physical and emotional changes.
- A homelike setting that encourages socialization and can facilitate bonding with other residents and staff. It may also be a better fit for people with dementia.
- Meals are home-cooked and can be customized.
The disadvantages of small scale
Living in a small house with just a few people can feel homey, but it isn’t going to fit every older adult’s needs. Here are some possible downsides to this arrangement.
- Fewer opportunities to discover compatible friends.
- Fewer amenities and activities than at larger assisted living communities. That can mean less stimulation.
- Potentially less privacy. Residents live in closer quarters, more akin to boarding in a private home than having an apartment in assisted living.
- No physician and rarely an on-site nurse. Some group homes do contract with a medical professional or practice to make house visits, but residents who need more frequent or complex medical attention will likely need to bring in help or move to a nursing home.
What to ask when visiting
To explore residential care homes for your loved one or yourself, you need to visit and ask a lot of questions . This is a major move, so you’ll want to look at places more than once and at different times of the day.
Before you go further, though, make sure state officials have licensed the home. Depending on where you live, that might be a department of health, social services or aging services. While you’re at it, see if the agency’s website lists any formal complaints against the home.
Taking the pulse of the place is a must. Does it seem relaxed? Are residents up and about? Are staff warm, welcoming and receptive, or do they seem rushed and indifferent? See how they interact with residents.
If you can, ask residents about their experiences and definitely talk to their families. Find out what they like or don’t like about the place. Are their needs being met? Is the staff responsive?
Many of the questions you’ll want answered are the same ones that would be on a checklist for vetting assisting living facilities . Here are some other things you’ll want to know about.
- Ownership. Who are the owners? What is their background, and how long have they been in business? Do they live on-site, and how involved are they?
- Staffing. Is there a staff member on duty at all times? What is the staff-to-resident ratio? What are employees’ qualifications?
- Cleanliness and safety. How clean are residents’ rooms and common spaces? Are private and shared rooms available? Where are the bathrooms? Are there handrails and call buttons? (And if there aren’t call buttons, how do residents reach staff?)
Ask to see an inspection report and complaints against the home; officials are required to show you.
- Costs. What does the monthly fee include? Three meals a day, snacks, housekeeping, laundry, cable TV and internet access? Does the home have more than one pricing model?
- Health care. How do residents access medical services? Does the home arrange transportation to appointments, and is that included in the monthly fee? Does it work with medical professionals who make house calls? If someone needs more help than is routinely offered, what is the next step? What happens when a resident is hospitalized?
- Other residents. How many others live in the home, and what are their needs? How independent or impaired are they? What measures are in place to care for and safeguard residents with dementia?
- Social interaction. What happens on a typical day? Does the staff organize activities? What are the house rules?
And don’t forget the most important question of all: Can you see yourself, or can your loved ones see themselves, living here? Does it feel like the right fit? If you’re not sure, take a look at other group homes. One of them is likely to feel the most like home.
House hunting for group homes
Because most group homes are a fraction of the size of assisted living communities, you won’t see advertisements as you often do for the larger facilities, but you can get personalized help:
- The Eldercare Locator , a service of the federal Administration for Community Living, can steer you to local resources online (or call 800-677-1116 between 9 a.m. to 8 p.m. ET weekdays to speak to a specialist).
- Your local senior center or county senior services department can offer referrals.
- A geriatric care manager can act as a private advocate for you or your loved one and help you find a group home. These aging-services specialists typically charge an initial assessment fee of several hundred hours and hourly rates ranging from $90 to $250. This service is not covered by Medicare or most private insurance plans.
In addition, state governments offer searchable or downloadable listings of licensed residential care homes. Here’s where to find information in the 10 states with the most residents age 65 and older as of 2020 (according to U.S. Census Bureau estimates):
- California (6 million residents age 65-plus): Department of Social Services
Group homes are listed within the “elderly assisted living” category.
- Florida (4.6 million): Agency for Health Care Administration
Choose “adult family care home” as facility/provider type.
- Texas (3.9 million): Texas Health and Human Services
Personal care homes are listed among Type A assisted living facilities.
- New York (3.4 million): Office of Children and Family Services
Click on your county for a local list of what the state terms “family type homes for adults” or FTHAs.
- Pennsylvania (2.4 million): Department of Human Services
Choose “personal care homes” as the service code.
- Ohio (2.1 million): Department of Aging
Choose “assisted living (RCF)” as the type of facility (the results will include both large and small residential care facilities). The department’s long-term care consumer guide has more information on facilities.
- Illinois (2.1 million): Department of Public Health
View or download (as a PDF, Word document or Excel spreadsheet) a list of assisted living and shared housing establishments.
- Michigan (1.8 million): Department of Licensing and Regulatory Affairs
Choose “adult family home” as facility type (results will include some places for developmentally disabled adults).
- North Carolina (1.8 million): Department of Health and Human Services
Download a PDF or spreadsheet of adult care homes. The list includes facilities of all sizes but notes each home’s capacity.
- Georgia (1.6 million): Department of Community Health
Choose “personal care home” as facility type.
Sally Abrahms, a longtime AARP contributor, cared for both her parents and in-laws. She writes on aging and boomers for national publications.
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More From Forbes
An overlooked and growing market: people with disabilities.
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U.S. Paralympic athlete Bpb Lujano speaks at the recent Innovation Summit at Johns Hopkins ... [+] University, co-hosted by the American College of Sports Medicine, the Global Obesity Prevention Center (GOPC), the Laureus Sports for Good Foundation, and The Aspen Institute. (Photo courtesy of the GOPC and provided by Sarah Rebbert, GOPC Communications Specialist, and Maggie Chesson, GOPC Administrative Coordinator.)
Here’s a business idea. Ignore a potential market. That’s what many sports and athletics-related businesses did until they realized in the mid-1990’s that they had been passing on a gold mine: women. Yes, you know half the population that some thought should just play with Barbie dolls and Easy-Bake ovens? Well, the 1990s were a turning point as NBC's 1996 Summer Olympic Games coverage targeted women much more than previously and many more female-oriented sports leagues (e.g., soccer and basketball), apparel and equipment lines, and sports-related advertisements emerged. Imagine that, women would actually be interested in doing the same things as other humans, such as sports? Well, could many businesses once again be ignoring and missing other potential markets?
Consider, for example, a population that has clear persistent needs that are not being adequately fulfilled. This population spans the world, is growing and includes very motivated customers. Since this population is currently being underserved and misunderstood by many businesses, many of the customers could be very grateful and loyal.
What's this market? People with disabilities. According to the World Bank , o ne billion people (15% of the world’s population) experience some form of disability, with one-fifth (between 110 million and 190 million people) experiencing significant disabilities. In fact, trends, such as the aging of the population, and medical advancements that help people survive disease and injury could mean that this market will continue to grow. Katie Kenny in this Stuff piece describes people with disabilities as the "world's fastest-growing minority."
You may ask, aren’t there items, services and events such as the Paralympic Games every four years for those with disabilities? That may be a bit like saying to women who wanted to play sports in the 1970s, "Yeah, don’t you have hopscotch?" While some businesses do seem to understand the market of people with disabilities, many don’t. Just ask, Bob Lujano, U.S. Paralympic athlete, rugby national champion, ambassador for the Laureus Sports for Good Foundation and a speaker at our recent Innovation Summit: Moving American Health Across the Spectrum of Physical Activity held at Johns Hopkins University and co-hosted by the American College of Sports Medicine (ACSM) , Global Obesity Prevention Center (GOPC) , Laureus Sports for Good Foundation and t he Aspen Institute .
“There are still a lot of disparaging images in advertising and broadcast of events involving those with disabilities,” says Lujano. “Even the Paralympic Games, the images are designed to warm and fuzzy, different from other athletes and people.”
You've probably seen these images. Heart-warming Celine Dion music playing in the background. Everything in slow motion, even when the athletes with disabilities are moving at speeds far greater than most people can. Hugs. Tears. Kisses. Not exactly like usual sports coverage.
Well, here's some more standard coverage of wheelchair rugby from the 2012 London Paralympic Games:
When you see such events without the editing, you realize the skill, athletic abilities and talent involved in playing the sport, with standards getting higher every year. Moreover, these athletes may be even more relatable because unlike star athletes in well-paid professional sports, Lujano explains, “We have to work a full-time job while training and competing. Squeezing all of this in 24 hours a day can be challenging, if you actually want to sleep and eat.”
The situation is similar to sports before they achieved popularity and offered the financial means to focus solely on the sport such as…well, basically every sport. Yes, there were times when even top football, baseball and basketball players could not afford to just focus on the sport. And only two decades ago, if you said that you wanted to earn a living playing beach volleyball, people may have responded, "You want to do what ?"
Paralympians and sisters Hannah and Tatyana McFadden wave to the crowd before throwing out the ... [+] ceremonial first pitch before a baseball game between the Baltimore Orioles and the Arizona Diamondbacks on September 24, 2016, in Baltimore. (AP Photo/Gail Burton)
Many businesses just don’t seem to understand people with disabilities. Take, for example, the movie Forest Gump . Recounts Lujano, “The actor who played Lieutenant Dan wasn’t really disabled. Many people with disabilities recognized that immediately. Why didn't they choose someone who actually had the disability to play the role? There certainly were actors available.” Even though the movie did well in the box office, Forrest Gump missed an opportunity to do even better. The same phenomenon occurs when you see non-Asian actors play Asian characters. Missing such opportunities to capture an even larger market is indeed very Strange.
The problem is many marketers (and people, for that matter) focus too much on the differences between “groups” of people rather than the similarities. True, segmenting the market is standard business practice. But segmenting doesn’t necessary mean just trying to find or even invent differences between groups, such as Blacks do this, Latinos do that, women like this, people with disabilities people do such and such, etc. etc. etc.
For example, are policies, equipment and services that benefit people with disabilities really exclusively for people with disabilities? Take, for example, curb pits. Those slopes that allow wheelchairs to move from the street up to the sidewalk can also help those with bicycles, rollerblades, rolling luggage and shopping carts (not the ones that you really shouldn’t be taking away from the supermarket).
The concept is universal design, which essentially is being more inclusive versus exclusive. Making things more accessible doesn’t shrink but instead expands a market. For example, would having an actor who actually had the disability play Lieutenant Dan have cost Forrest Gump viewers? The same can be said about making movies and television shows more diverse in general. Changing the design of buildings, offices, outdoor areas such as state parks, clothes, equipment and technology can allow more people to use them, expand the market, boost revenues and potentially override real or perceived cost in doing so. For instance, while installing a ramp may cost money, providing better access to more customers who will spend more money could eventually be a net positive…profit-wise. In fact, as universal design becomes more commonplace, even the initial expenses of universal design may drop.
People with disabilities present additional targeted business opportunities as well, such as new equipment, technology and services to facilitate adaptive sports and daily activities. To really seize such opportunities, businesses must truly understand the disability culture. And it’s difficult to really understand a culture without talking to people who are part of the culture and getting them involved in decision making. Of course, the alternative is to ignore the potential market and its accompanying opportunities. Businesses may want to approach people with disabilities differently than they are doing now and instead approach this market in the same manner as they would others: better understand and reach the market.

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Transitional Housing of Pittsburgh
Market analysis summary how to do a market analysis for your business plan.">.
Transitional Housing has identified two distinct market segments of customers based on age; those who are under 30 and those who are 30 and over. The distinction is important because of the high percentage of clients with children, and those in the younger market segment having far younger children. The under 30 age group is growing annually at 9%, and the 30 and over age group growing at 8%. The two groups respectively have 165,454 and 158,745 potential clients. The overwhelming majority of clients come from lower socio-economic population groups. These segments can be difficult to communicate with, yet their use of Transitional Housing’s services would give them some profound benefits. The good news is if the people are willing to accept help from Transitional Housing they are far more likely to be able to get out of the dire circumstances that they currently face.
The other service providers are temporary shelters that only allow stays of less than 30 days. These service providers are only housing shelters, they do not offer the in-depth self empowerment programs. Some alternative service providers take the form of religious service organizations that assist clients, but on a much smaller scale. The lack of true competition makes Transitional Housing the premier source of interim housing and life skill training. Other agencies would like to offer the comprehensive services that Transitional Housing offers but are unable to because of organizational design constraints or economic restraints. The following sections provide demographic detail regarding the target market.
4.1 Market Segmentation
Transitional Housing has segmented the market into two distinct categories: women under 30 years old and those 30 and older. This is a significant distinction since the children of the younger group will be younger as well. Some demographic information that is relevant to both groups:
- 95% are or were chemically dependent.
- 17% have undergraduate coursework.
- 85% are African-American.
- 80% have children (but generally no custody).
- 6% are H.I.V. positive- generally a result of their drug addiction.
- 7% are Hepatitis C positive- generally a result of their drug addiction.
- 22% were at one time prostitutes.
- 20% have been in prison.

4.2 Target Market Segment Strategy
Transitional Housing has chosen to target their services to these two market segments because they are the segments that are in the most need of the services. Because of a variety of factors including: time in prison, abusive relationships, alcohol and drug dependencies, and exposure/participation to prostitution, these women have nowhere else to go, no one to turn to. They are in desperate need of transitional housing as well as life skills to empower them to self sufficiency.
Transitional Housing has chosen to serve only women because women who are homeless are far more vulnerable than homeless men. They need more protection because of the increased risk of sexual abuse.
4.3 Service Providers Analysis
The services provided within this industry are typically broken down into two segments: transitional housing and life skills.
- Housing- These services are provided by shelters that offer temporary shelters.
- Life skills- Skills to help empower the individual are offered through daytime programs, but are never (at least in Pittsburgh) part of a transitional housing program where the skills training is part of a comprehensive program.
The following section, 4.3 offers an analysis of the alternative service providers.
4.3.1 Alternatives and Usage Patterns
Housing Please note that the shelters are only housing and do not offer any type of life skills.
- Womenspace: This is a temporary shelter with an emphasis on women. The maximum stay is 30 days. It is first-come first-served with the prerequisite that the client does not have any other alternatives. This shelter has space for 25 clients with a central cooking area that is staffed. Children are not allowed.
- The 42nd Street Shelter: This is also a temporary shelter with a maximum of 10 clients, also with a central kitchen area. This shelter allows at most two children under the age of 18 to stay with the parent. This facility is typically full, it is difficult to get a room in it.
- The Refuge Shelter: This is a Catholic Church operated temporary shelter that has two main rooms with bunk beds that supports 16 people per male and female room.
Life skills There are several service providers that teach these skills. They are typically religious based organizations or community based organizations. The courses are generally one hour long and span a few weeks. They are far less comprehensive than Transitional Housing’s and many people miss several sessions because they are taught over a longer period of time.
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Finding Stable Housing
Know the warning signs.
Learn the common signs of mental illness in adults and adolescents.
Mental health conditions
Learn more about common mental health conditions that affect millions.
Find Your Local NAMI
Call the NAMI Helpline at
800-950-6264
Or text "HelpLine" to 62640
For someone with a mental health condition, the basic necessity of a stable home can be hard to come by. The lack of safe and affordable housing is one of the most powerful barriers to recovery. When this basic need isn’t met, people cycle in and out of homelessness, jails, shelters and hospitals. Having a safe, appropriate place to live can provide stability to allow you to achieve your goals.
You may run into housing issues after being discharged from an inpatient care unit or jail and find that you have no home to return to. Even if you haven’t been hospitalized, finding an affordable home can be difficult. Many people with a serious mental illness live on Supplemental Security Income (SSI), which averages just 18% of the median income and can make finding an affordable home near impossible.
Finding stable, safe and affordable housing can help you on your journey to recovery and prevent hospitalizations, homelessness and involvement in the criminal justice system.
What Should You Look for in Housing?
A good housing match is one that meets four key needs.
Housing should be affordable. Ideally, this means you would have to pay no more than 30% of your income for housing costs. Having to pay more may make it hard to afford needs like health care, food or clothing. Many people with mental illness may have low incomes. To meet housing costs they may need additional financial assistance, like government-funded rental assistance or rental subsidies.
Housing should offer the right amount of independence. An important part of housing is the freedom to choose where and what type you want. Different types of housing can offer someone living with mental illness different levels of independence and care, so it’s important to determine which type would work best for you.
Housing should meet your physical needs. If you have a mental illness and a physical disability you may need housing features like ramps or alarms with blinking lights. Many people with mental illness also may not drive and therefore would need a home close to treatment providers and community resources, as well as public transportation.
Housing should be discrimination-free. The Fair Housing Act bars discrimination in rental housing based on disability. This means that landlords and property owners cannot refuse to rent to you because of a disability. They must also make reasonable accommodations and allow for modifications to fit your needs.
Types of Housing
Housing options range from completely independent living to 24/7 care. The type of housing that is right for you can depend on whether you need assistance paying your bills, cleaning, making appointments or require no assistance at all. Choose a type of housing that fits your individual needs so your recovery can be your priority.
Supervised Group Housing
This type of housing provides the most support for its residents. Trained staff members are present 24/7 to provide care and assistance with things like medication, daily living skills, meals, paying bills, transportation and treatment management. These group homes provide their residents with their own bed, dresser and closet space, and shared bathrooms and common areas. This is the best type of housing for people experiencing a serious mental illness which may affect their ability to perform their daily tasks.
Partially Supervised Group Housing
Some support is provided for the residents, but staff isn’t there 24 hours a day. The residents can be left alone for several hours and are able to call for help if needed. People who choose to stay in these group homes can perform their daily living tasks independently or semi-independently, help with cooking and cleaning and may even hold a part-time job or participate in a day program.
Supportive Housing
Supportive housing provides very limited assistance. The residents of these homes live almost independently and are visited by staff members infrequently. However, they do have someone to call and resources available to them if a problem does arise.
Rental Housing
This type of housing is for someone who is completely independent. Rent can be paid for in full by the individual or subsidized by a third party, such as the government or a non-profit agency. Someone who chooses this type of housing can take care of all their basic needs like cooking, cleaning, paying bills and managing their medication. They also may have a job and have or be seeking custody of children. If this is the right type of housing for you then you will still most likely work with a caseworker to manage and maintain the different aspects of your recovery.
Home Ownership
A homeowner is able to live completely independent and manage both their responsibilities of day to day living and the responsibilities of caring for and maintaining a home. They must be able to stay in one location for longer than renters and should involve themselves in the community. A homeowner is usually someone who has a steady income, can handle their bills and can maintain taxes and insurance on their home.
Finding Housing Support
Reach out to your local NAMI Affiliate . They may be able to help put you in touch with support and housing resources in your area.
The United States Department of Housing and Urban Development (HUD) provides a number of housing assistance and counseling programs. The Housing Choice Voucher Program (Section 8) is the federal government’s program for assisting low-income families, the elderly and the disabled. Check out the Public Housing Agency to help you find public housing using the Housing Choice Voucher Program.
HUD also helps apartment renters by offering reduced rents to low-income residents. Under this program, a renter pays 30 percent of their gross adjusted income for housing and utilities. The landlord then receives a voucher from the federal government which covers the remainder of the rent.
Section 811
The Supportive Housing for People with Disabilities Program (Section 811) is a federal program dedicated to developing and subsidizing rental housing for very or extremely low income adults with disabilities, like a chronic mental illness. The biggest difference between this program and similar ones is that it provides housing specifically for the disabled and ensures that all housing has access to appropriate supportive services like case management and employment assistance.
In a crisis? Call or text 988.
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The Target team believes in making joy accessible for every guest and team member, from the inclusive product designs across our assortment to the technology that powers our shopping experiences.
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To truly live out our joyful purpose, we offer our team members a place to feel connected and included. The Disability & Mental Health Business Council (DMHBC) is one of eight Diversity and Inclusion Business Councils at Target, and it provides a supportive community for our team, along with resources aimed at eliminating barriers and stigma. DMHBC members also play a critical advisory role, helping to ensure that our products, services and marketing reflect the communities we serve.
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Meet a few of our partners.
Target’s relationship with Oakland, California-based nonprofit Creative Growth goes way back. Their mission: to provide artists with disabilities invaluable resources like a professional studio environment for artistic development, gallery exhibitions and representation. Over the years, Target has featured some of those artists' work on our products and in stores, and we continue to sponsor the organization's annual Beyond Trend Runway Event + Fundraiser to help create even more opportunities.
As a member of the National Organization on Disability’s Corporate Leadership Council , Target continues to learn and find new, innovative ways to eliminate barriers for our guests and team members with disabilities. We’ve also been recognized as a Leading Disability Employer on their Disability Employment Tracker .
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Target is among seven retailers that received the highest possible score on the 2021 Disability Equality Index , earning us the distinction of "Best Place to Work for Disability Inclusion."
Target CEO Brian Cornell also joined hundreds of leaders in signing on to Disability:IN's CEO to CEO letter to advance disability inclusion.
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It’s our goal at Target to always make sure we have products that fit our guests’ needs, and all at a reasonable price point. We heard from our guests—and members of our own team—that there’s a need for adaptive clothing for kids that is both fashionable and affordable, so we set out to create exactly that.
Julie Guggemos Senior Vice President and Chief Design Officer

Group homes are homes in the community where a disability service provider both maintains and controls a household as well as coordinates the supports for those who live in the home. (Learn more about this and other models by watching the Autism Housing Network’s Virtual Tour of Housing Options) There is some stigma surrounding group homes, but we have met and heard from residents of group homes who love where they live and the support they can count on. What has been made clear is that the quality of the service provider, the training of their staff and their commitment to the residents is largely determinant on the quality of that particular group home provider. Life Services Alternatives (LSA) is known in California as an exceptional group home (Adult Residential Home) provider. As a parent leader who has advocated for and opened a dozen group homes, LSA’s Executive Director Dana Hooper spoke with us about what group homes can offer and things to look for in a service provider. Watch the video below to learn more about Hooper’s work and continue further to read our conversation.
Q: What is and who typically lives in a group home?
A: Group homes (aka Adult Residential Facilities) are homes for 4-6 adults with developmental disabilities. In California, these homes are licensed by Department of Social Services and are vendorized by one of 21 Regional Centers. The homes fall into various categories and provide different levels of care and support that reflect the differing needs of the residents, such as how much help is needed for daily living, getting around, medical conditions and to keep them safe and healthy.
Q: What types of support needs, family circumstances, or personalities are best served in a group home setting?
A: Certain types of needs (such as around-the-clock nursing care) are best served in a group home. No one family circumstance or personality is best served.
Q: What are the pros of living in a group home?
A: The opportunity to develop relationships with roommates and to work together to learn to be more independent. Living in a group home can provide opportunities for socialization and an opportunity to work with others to build upon these skills. This can be hard to find when living alone or in a smaller group setting. We have found that when people with differing abilities live together, they complement and learn from each other.
Q: What should be considered about choosing life in a group home instead of one’s own apartment or an adult foster care arrangement?
A: Consider which environment the individual would rather live in and take a close look at the providers and the specific programs offered to see what is most beneficial to the individual. This is where knowing the needs and individual’s preferences and personality is so important. Everyone is different. I’d suggest seeing the program in action and meeting the individuals and staff members before choosing.
Q: Why do group homes sometimes get negative press?
A: First of all, quality can vary in any industry. There is a natural tendency to assume that all providers are bad just because a few received negative press. In California, providers may be “for profit” or “not for profit” organizations. The State sets the rates for residential services, and it’s the same for all providers. Unfortunately, the State has a history of freezing rates and/or not keeping up with the cost of doing business. This puts a tremendous amount of pressure on providers to keep costs down to survive. Providers have to find ways to maintain quality. This may include outside fundraising, better cost control or efficiencies.
Q: What are characteristics to look for when considering a specific group home provider?
A: Visit the homes to see how well maintained they are, as this is a good indication of how well funded and run the organization is. Talk with staff and ask questions to get to know how they run their program and how they operate. (See the questions below that may be useful in determining the quality of the staff and programs and determining the fit for you and your family member.)
Q: What questions should be asked when considering a specific group home provider?
A: Here is a list of questions to consider:
- What are their values – can I trust them?
- What is the level of quality of their homes/program and staff? Can I observe and verify the quality through references?
- Have they demonstrated that they have adequate financial resources and stability?
- How involved in the community are residents?
- What does community involvement look like?
- How do they view family involvement?
- What kind of a track record do they have?
Q: Do you have any ideas on improving the quality and/or ensuring accountability of group home providers?
A: Yes, absolutely. The rate structure needs to be overhauled and rates aligned with outcomes/performance. Higher quality programs and/or programs located in higher cost of living areas should have higher rates. The oversight today is oriented toward detecting/correcting deficiencies and doesn’t address quality.
About the Author
Desiree Kameka, Director of Housing
Desiree is the project lead for the Autism Housing Network. Her work for the Madison House Autism Foundation focuses on researching housing issues, advocating on issues of autism in adulthood, and presenting her work at local and national gatherings. She visits residential communities and social enterprises across the USA and highlights their unique victories and learning curves while sharing stories of individuals on the spectrum or who have other developmental disabilities. Her passion is empowering autistic adults and parents to create a future that is exciting and life affirming by offering small group consultations for forming projects.
5 Comments on “What Can Group Homes Offer People with Disabilities?”
Dont have a comment.Am looking for some help for my grandson . I dont know what to do.he autism living in a home and they want him out.need help finding a group home for him.
Greetings Marcia!
1) It’s important to explore what type of housing and support arrangements may fit your loved one best. I suggest watching our Virtual Tour of Housing options video series to get an idea of options: http://www.autismhousingnetwork.org/education/virtual-tour-housing-options/
2) Here are our suggestions on how to use the resources on the Autism Housing Network to start moving forward with a plan. There are financial assistance and support systems, but they are disconnected so the key is understanding them and seeing if your loved one would qualify. DO NOT count your income or any help you give her financially when questions ask about “income”: http://www.autismhousingnetwork.org/education/explore-housing-options/
3) Take a look at our online housing directory. http://www.autismhousingnetwork.org/housing/ It is continually updated as more projects come up.
4) We do offer direct consultations for a $100 fee which helps us continue to run our free programming. I would try to understand your family needs and preferences which would lead to a list of steps, links to options and resources specifically for your situation. Simply fill out this form if you would like to schedule a consultation: http://www.autismhousingnetwork.org/schedule-30-minute-consultation/
Hope this is a good start!
I have a large home in 92009; How do I find special needs adults or children for the home?
My 36 year old daughter with high functioning autism needs her own apartment with supervision. She has mood and anxiety disorders which makes it difficult for her to live independently. She is very capable in most areas of her life. She had lived in her own apartment for almost 7 years, but her emotional needs and loneliness got the better of her. She needs a quiet environment but enjoys having people nearby to socialize with. Currently she resides in a shared apartment in an apartment building with 24/7 supervision. Though the supervision brings peace of mind, this is a stressful environment for my daughter…too noisy and chaotic. And she’s not doing well sharing an apartment. I’m constantly looking for alternatives as what is available through the state funded agencies is next to none. I’m willing to think outside of the box. My search for a suitable residence for my daughter is ongoing. My husband and I are getting on in years and this weighs heavily on our minds. Any suggestions, would be appreciated!
We are looking for help for our 26 year old son, non-verbal and in the low functioning side of the Autism spectrum. We have heard of adult autistic persons who found a second home through the Autism Housing Network. My husband and I are full time in taking care of our son and it has been getting difficult each day as he is only confined within the house. Exposing him to a community may be good for him as he will be able to be around both with people with the same disabilities and caregivers.
We truly appreciate your help.
Maritess Rivera
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Who needs what? – Target groups and their needs
Target groups are individuals or groups (families, teams, organizations) that generally live in a geographically circumscribed area (thus, in cities, individual municipal or rural districts).
For the needs assessment, it’s important to describe the target group as precisely as possible .
The trick here is to avoid creating a target-group definition so broad that it becomes difficult to create a narrowly targeted project. At the same time, the group must not be so tightly drawn that the description hardly applies to anyone.
The following questions will help you in describing the target group :
Be aware! Many projects...
... act at multiple levels, and thus have more than one target group – for example, a project that cares for neglected children (target group 1) while at the same time lobbying for children’s rights (target group 2: politics and public).
- Who are the members of the target group? How old are they?
- What geographic area do they come from (a particular city neighborhood, a rural district)?
- What is their social situation, family status, and/or education status? Do they have a migration background?
- What is their financial situation? What problems are the target group facing? What are the group’s potentials and strengths?
Descriptions of the existing situation and needs often emphasize target groups’ problems and deficits. This is an obvious way forward, as most such projects are aimed at alleviating hardship. However, it is equally important to consider positive aspects . Therefore, you should ask:
- What development opportunities does the target group have?
- What strengths, talents and resources do its members possess?
- What are target-group members’ wishes and hopes?

In the target group description, it is useful to distinguish between direct and indirect target groups.
The direct target group includes the individuals you want to target in an unmediated way with your project activities, and among whom you want to achieve an effect. There may be subgroups within direct target groups, which requires further differentiation within your offering.
YEA and its diverse target groups
Among YEA’s direct target group – disadvantaged children – some children may demonstrate a need for additional support. These children make up a subgroup.
- The indirect target group includes persons in the general environment of the direct target group. They often contribute to the project’s success within the direct target group. Because they play an important intermediary role, indirect target groups should always be taken into account.
In a mentoring project, for example, children belong to the direct target group, while their parents are part of the indirect target group.
Group Homes: Pros and Cons for Senior Care
Smaller and cozier than standard long-term care facilities, group homes may provide comparable care for some older adults.
This article is based on reporting that features expert sources.
Group Homes for Senior Care
You won’t walk lengthy corridors with identical rooms, or see a calendar chock-full of structured activities – but you may smell a home-cooked meal. For some older adults who need long-term care, group homes are providing a more family-style alternative to nursing homes or assisted living facilities .

(Getty Images)
Also known as adult family homes or board and care homes, these relatively small residences are found in regular neighborhoods. Older adults who require help with their daily personal needs, and who may have dementia or cognitive impairment, live among peers with 24/7 assistance and supervision from caregivers. Some group homes offer skilled nursing care, similar to a nursing home. Still, a home-like setting – not an institutional atmosphere – is a key attraction.
As with other long-term care options, group homes are licensed in their state and must meet certain standards. Staff members undergo mandatory yearly training, plus additional education and training by the facility.
Typically, group home care costs less than traditional long-term care options, particularly if you’re paying for long-term care out of pocket. However, group homes aren’t for everyone – but they’re worth considering for older adults who can’t live independently but still crave the feeling of being at home.
What Is a Group Home?
Group home definitions, licensure, costs, services, availability and even names vary from state to state. In Washington, for instance, adult family homes provide skilled nursing care, in addition to personal caregiving and assistance with activities of daily living, for older adults.
“They’re a good fit when people need more one-on-assistance, particularly if they’re a fall risk or need additional help with toileting or eating,” says Lisa Mayfield, the founder of Aging Wisdom, a care management practice in the Seattle area, and a past president of the Aging Life Care Association. “Also, there are smaller settings to navigate, which can be an advantage as mobility decreases. They tend to be on one level, which makes navigating easier and safe.”
Each home has a relationship with a nurse delegator, who can supervise and oversee nursing skills or tasks that residents require. In addition, residents have an array of health care services available, when needed.
“In our state, there are many visiting medical providers that will visit the adult family home to provide the primary care onsite,” Mayfield says. These homes can help coordinate care for residents with providers such as primary care physicians , physical and occupational therapists and extra nursing support. “You can even engage hospice support in adult family homes,” she notes.
“More and more states are licensing group homes,” says Sandy Markwood, the CEO of USAging, formerly known as the National Association of Area Agencies on Aging. “Typically, they’re privately owned, so you really need to dig in to find out what services and supports they offer.” As with any long-term care decision, she says, “There should be a lot of questions when you move someone into a group home situation.”
Pros & Cons
It’s essential to research, visit, ask questions and compare because each group home is unique. These are some basic pros and cons:
- Higher staff-to-resident ratio allows individualized care. “You get more personalized care because they’re usually five to 10, maybe maximum 20 people in a facility, so the staff-client ratio is much better," Markwood says.
- Homelike vs. more institutional feel . "In some ways, it’s much more homelike,” Markwood says. "Sometimes the meals are much better because they’re not as institutional as they may be in an assisted living (facility).”
- Typically lower-cost than nursing homes or assisted living facilities in the surrounding area.
- Smaller, more manageable spaces for those with mobility issues.
When group homes are a suitable choice, feedback from families is positive, Mayfield says. “We find that when people move to adult family homes, they actually tend to improve because they’re getting that extra attention and TLC,” she says. “The caregivers can really dote on them and make sure they’re getting their meds, and eating and drinking.”
- Structured activities are minimal . If ongoing activities such as games, exercise classes or communal movie nights are important to an older adult, group homes might not be the best bet. “One of the biggest downsides in adult family homes is lack of structured activities that families would find in a setting such as assisted living or memory care – although families can certainly find ways to supplement social engagement or activities,” Mayfield says.
- Privacy can be a challenge . Some group homes offer all private bedrooms, while two people share bedrooms in others. From a social and compatibility standpoint, “You’re with a smaller group of people, so you better hope you like them,” Markwood says. “You oftentimes have less privacy than you do in a larger-scale living situation.” Common areas are often smaller than those in larger assisted living facilities, she adds.
- Private pay is the norm . “Some long-term care policies will cover it,” Mayfield says. “In our state, there are Medicaid-eligible adult family homes.”
How much does the government pay for group homes? That depends on the type of care offered, such as skilled nursing like complex wound care or oxygen therapy, portions of which Medicaid may cover. According to Susan Ryan, senior director of the Green House Project, a not-for-profit organization focused on the right to age with dignity and offering an alternative model to traditional senior care facilities, a survey found that in Green House homes, about 42% of people were supported by Medicaid as the long-term government funder.
Green House Concept
Depending on where you live, a certain type of group home may be an option. In general, “We think of group homes as smaller, congregate living settings that are really a home,” Ryan says. “A Green House home is something very specific that is licensed as skilled nursing.”
Residents can continue to live in a Green House home as their care needs progress, without having to undergo transfers to different facilities, which can be more traumatic as people age.
Of the 372 Green House homes in 32 states across the U.S. to date, about 80% are skilled nursing residences, like nursing homes, but with only 10 to 12 people living there, Ryan explains. Some Green House homes are licensed as assisted living, still in a small-home setting. The open-concept homes include all private rooms and enclosed courtyards to allow residents free access to outdoor mobility and fresh air, Ryan says. Deinstitutionalization is a core value, she adds, noting that each home has a regular kitchen, with 24/7 access to meals, snacks and hydration, rather than a centralized dining department.
Typically, at least two Green House homes are located close to each other in a community. Registered nurses go back and forth between those homes to provide skilled nursing coverage, with 24/7 availability. Each home has its own embedded caregivers. “In a home of 10 people, you would have two caregivers on day shift and one on the overnight,” Ryan says.
Caregivers are certified nursing assistants with extra training to work in the group home model. In Green House and many other group homes, these caregivers are universal workers who typically do housekeeping, laundry and cooking along with engaging with residents and providing their daily care.
What to Look For in a Group Home
When you’re evaluating a group home as a possibility for a family member, in many ways it’s the same as for any long-term care option. Ask about and look for the following:
- Licensure. Group homes are licensed by the states and sometimes individual counties, as well. Check the Department of Health and Human Services in your area for licensure requirements for group homes for the elderly.
- First impression. “I always recommend that families trust their gut,” Mayfield says. “How does it feel in the home? What’s the environment like? I like homes that feel warm and inviting, and where families would feel comfortable spending time with their loved ones. There are homes that feel more institutional, and cold and not very inviting to guests.”
- Staffing. Ask about staffing levels during the day and at night, as well as nurse delegators who may provide supervision for more than one group home. Also, whether there is an awake caregiver in the home at night. Find out about staff turnover and consistency (a challenge for all types of long-term care facilities throughout the pandemic).
- Safe setting. Particularly if a parent wanders, “Is this a secured setting?” is a good question to ask, Mayfield says. You can see whether a group home has an outside gate or fencing, and ask about door alarms and other safety measures.
- Space to move freely. If your parent likes to walk, or paces with dementia, “Is there enough space in the home to pace around?” Mayfield says. “Is there a neighborhood for walking that families can take walks in with their loved ones or where the caregiver might take walks?” Overall, what does the surrounding neighborhood like?
- Survey/inspection results. You can access annual state inspections online to look for red flags or deficiencies.
- Approach to care. “Is there a holistic approach?” is a good question, Ryan says. “I would ask: How are they honoring residents’ preferences?”
As you walk into a potential group home option – or any long-term care setting – approach it with curiosity, Ryan suggests. Ask yourself some questions:
- Can you visualize your loved one there?
- Look at individual residents: Are they slumped over in their chairs or are they having conversations with other residents?
- How are staff members engaging with residents?
- Do residents look comfortable, well-kempt and content?
- If it’s lunchtime, does the food smell appetizing?
- In short: How is the quality of life?
Group Homes in the Pandemic
The COVID-19 pandemic put a spotlight on long-term care issues with infection control as many vulnerable residents became extremely sick with the virus. Then, as nursing homes and assisted living facilities followed Centers for Disease Control and Prevention guidelines on restricting visitors and keeping residents apart from one another, social isolation and depression often resulted, despite facilities’ best efforts with virtual activities and window visits. Some family members were motivated to seek alternatives.
“What we found here with COVID was when facilities would go into lockdown, people would be isolated in their rooms in assisted living and memory care,” Mayfield says. “But in adult family homes, if the home went into lockdown, that meant they couldn’t have visitors – but within the home, they operated as normal. So, the residents weren’t stuck in their room all alone (in contrast) to where they were in assisted living and memory care.”
In Green House homes, Ryan says, data showed lower rates of COVID-19 cases and related mortality compared to traditional long-term care counterparts.
Resources for Finding Group Homes
If you’re looking for long-term care options including group homes, these organizations can help:
- Area Agency on Aging. These non-profit agencies are designated by the state to address the needs and concerns of older people. Contact your local AAA for expert assistance with local resources.
- Aging Life Care Association. Also known as geriatric care managers, aging life care professionals can help you understand and compare available choices.
- Green House Project. If you’re interested in exploring Green House homes in particular, this interactive map gives their locations.
The U.S. News Health team delivers accurate information about health, nutrition and fitness, as well as in-depth medical condition guides. All of our stories rely on multiple, independent sources and experts in the field, such as medical doctors and licensed nutritionists. To learn more about how we keep our content accurate and trustworthy, read our editorial guidelines .
Mayfield is the founder of Aging Wisdom, a care management practice in the Seattle area, a certified aging life care professional and a past president of the Aging Life Care Association.
Markwood is the CEO of USAging, formerly known as the National Association of Area Agencies on Aging, based in Washington, D.C.
Ryan is senior director of the Green House Project, a not-for-profit organization focused on the right to age with dignity and offering an alternative model to traditional senior care facilities.
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Group Homes for Adults with Developmental Disabilities at SCARC
When an individual and their family are exploring the residential option of a group home, there are many questions and concerns:
- For the individual, there may be questions such as – What will it be like living there? Will my life completely change? Who will I live with? And, there are more personal questions – Can I still have Cheerios for breakfast every morning? Will somebody help me get dressed? Can I go bowling on Saturday morning?
- Families and guardians have concerns about quality of life, safety, and stability.
- Everyone, including the provider, wants a positive, adult living situation that provides an individual with opportunities to grow within a secure and nurturing home environment.
SCARC currently provides group homes for adults with developmental disabilities in twenty-two homes located throughout Sussex County. Most residents are Medicaid eligible and have an individual budget for their supports through the Division of Developmental Disabilities (DDD). Residents of the group homes have varying levels of intellectual and physical challenges, and direct support staff are specifically trained in meeting the support needs of these individuals in a residential setting. In order to achieve balance in an individual’s life and provide the assistance and supervision that is required, direct support professionals must address global needs:
- Day- to-day living – Individuals are assisted with carrying out the day-to-day tasks of meeting personal care needs, cooking, cleaning, and doing laundry. Some residents need minimal assistance while others are afforded the more intense levels of support dictated by their challenges.
- Diet – A registered dietician works with staff and individuals to assure healthy and varied diets. Nutrition is discussed. Special diets are accommodated. Menus are developed and recipes discussed. Cooking and shopping strategies and hints are provided to maximize the efficiency and completion of the tasks.
- Health – Physican and other health-related appointments are scheduled and residents are accompanied by a staff member as needed. Many residents must take medications. Strict oversight is provided to insure that medications are dispensed in a timely and physician-directed manner. SCARC accurately dispenses 35,000 doses of medication every month. Each dose is recorded and staff must sign off on the dispensing of that medication.
- Community Interaction – Most group home residents attend a day program or work in the community. On evenings and weekends, residents participate in a broad range of activities and explore personal interests. They may engage in a sport such as bowling or basketball. They may take in a movie, go out to dinner, or take a walk in the park. Social activities are planned as well, including group homes getting together with each other or with neighbors, to have a barbecue or celebrate a holiday.
- Planning – Each year a personalized plan is developed that explores the success and appropriateness of the life that each individual is leading. Outcomes and strategies are set and options explored. This meeting is attended by the individual, a family member or guardian, their Support Coordinator, the group home manager, a SCARC Director of Community Services, and, as needed, by the SCARC Chief Operating Officer and DDD monitor.
SCARC has internal oversight mechanisms that monitor the operation of well-run and well- maintained homes. Their goal is that each home be run safely, efficiently, and smoothly.
- Administrative staff visit each home at least once a month.
- Two staff meetings with the direct support staff of the home are held each month.
- Three fire drills are held every month, one during each shift.
- The Board of Trustees Safety Committee makes annual visits to each home to check on a variety of structural, systems, maintenance, and safety issues.
- Monthly reports are completed by the group home manager detailing activities, completion of required tasks, and any issues that have arisen over the course of that month.
External oversight is also a routine part of assuring the well being and security of group home residents.
- Each individual’s Support Coordinator must check in on the resident monthly by phone and quarterly in person.
- A DDD Monitor is required to make two unannounced visits each year.
- All group homes for adults with developmental disabilities are subject to annual licensing. The New Jersey Department of Human Services’ Office of Program Integrity and Accountability determines each year if the home is measuring up to requirements for individual safety and well-being, person-centered practices, strengths-based approaches to support, cultural competence and sensitivity, and accountability in staffing, training, record keeping, and financial matters.
- Each year all homes must obtain a Fire Safety License granted by the Department of Community Affairs .
Providing group homes for adults with developmental disabilities requires flexibility, dependability, and a diverse skill set. SCARC has been providing services to individuals with developmental disabilities for sixty years and opened their first group homes thirty-seven years ago. They contribute extensive experience and unwavering commitment to meeting the residential needs of individuals with developmental disabilities. Every effort is made to assure quality of life for each resident guided by personalized goals and interests. The result: each residence, as unique as its residents, successfully offers a warm and welcoming retreat to all that are content to call it “home”.
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The Benefits of Group Homes for Adults with Disabilities
Posted on August 15, 2018
Here are the Benefits of Group Homes for Adults with Disabilities
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Carroll & Montgomery Counties
At Target Community & Educational Services, Inc., we understand that each individual we serve has a distinct and personal set of needs. We strive to provide community living services that accommodate the unique needs of each participant, while providing structure and integration into the larger community.
Target homes.
Each of the seven Carroll County homes owned by Target is occupied by three adults with intellectual and developmental disabilities and two live-in graduate student Community Living Managers. This arrangement ensures that Target participants are provided 24/7 assistance and oversight.
Apartment Program
Target’s Apartment Program in Rockville, MD provides an independent, private living environment for individuals with disabilities. Community Living Managers provide 24/7 on-site supervision and assistance. Most of the clients in this program have jobs and are active in the community but may need assistance with transportation, medical coordination, and daily living skills.
For more information on Target Homes & our Apartment Program:
Jessica Dixon , Vice President of Programs & Quality Assurance, [email protected] or 410-848-9090 , ext. 120
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Five Activities to Target Adults with Disabilities
At Accessibility Summit in March my husband Lee and I spoke on outreach events for families with disabilities . During the Q & A time we talked about activities specifically for teens/adults with disabilities (including those living in group homes). Here are some ideas we came up with after the discussion and as we've been talking about it in the weeks since then:

Coffee shop with praise band - One disability coordinator who attended our session said on the night the praise team practices, they set up a coffee shop concert-like atmosphere and the older teens and adults in their church with disabilities are the audience. The band loves having people to play for and those who attend are free to move around and enjoy the music without the formality of the Sunday morning service.
Square dance - If the teens and adults in your church enjoy the Tebow Night to Shine prom, maybe they would enjoy getting together more often for dancing and socializing.
Walking club/exercise class - It would be great to explore you area together as a walking club that meets at different state parks or walking trails. If that isn't an option where you live, an exercise class would also be fun. My older sister (who has Down syndrome) goes to an exercise class at her church twice a week and loves it.
Game night - It could include dominoes, bingo, board games, or even X Box games set up to play together.
Sporting events - The adults at your church may enjoy getting together for a baseball game or other sporting event. We live near Houston, so we have lots of opportunities, but even when we lived near the smaller town of York, PA, we enjoyed going to York Revolution games, a smaller league team.
These activity ideas are great for older teens and adults with disabilities and anyone in your church looking for social activities. What other ideas have worked at your church?
Sandra Peoples is a special-needs mom and sibling. She and her family live outside of Houston, TX where she serves her church as the director of special-needs ministry. She’s the author of Unexpected Blessings: The Joys and Possibilities of Life in a Special-Needs Family and the host of the podcast, Self Care and Soul Care for the Caregiver . You can connect with her at sandrapeoples.com.


Group Homes
In accordance with All County Information Notice (ACIN) I-49-20 , which was released on June 23, 2020, AFDC-FC group home rates are no longer approved and existing group home rates approved through the rate classification level (RCL) system are terminated December 31, 2020.
Historical Background: Group homes provided the most restrictive out-of-home placement option for children in foster care. They provided a placement option for children with significant emotional or behavioral problems who require more restrictive environments. The licensed group home is defined as a facility of any capacity which provide 24-hour nonmedical care and supervision to children in a structured environment, with such services provided at least in part by staff employed by the licensee. Group homes run the gamut from large institutional type environments which provide an intense therapeutic setting, often called "residential treatment centers," to small home environments which incorporate a "house parent" model. As a result, group home placements provide various levels of structure, supervision and services.
Group homes may offer specific services targeted to a specific population of children or a range of services depending on the design of their program. These services include substance abuse, minor-parent (mothers and babies), infant programs, mental health treatment, vocational training, mental health day treatment, sex offenders, wards only, emancipation and reunification. Many programs provide more than one service and list their primary service function as reunification of children with the biological family. A high number also list their primary function as emancipation.
Historic Group Home Rate Classification Level (RCL) system Overview For Additional Information:
Foster Care Rates & Outcomes Bureau (formerly named the Foster Care Rates Bureau) 744 P Street, MS 8-3-570 Sacramento, CA 95814
Email: [email protected] (916) 651-9152
Foster Care Rates Bureau 744 P Street, MS 8-3-38 Sacramento, CA 95814 (916) 651-9152
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What Is a Target Market?
- Defining a Product's Target Market
- 4 Target Markets
Why Are Target Markets Important?
What are market segments, target market and product sales.
- Target Market FAQs
The Bottom Line
Marketing Essentials
Target Market: Definition, Purpose, Examples, Market Segments
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A target market is a group of people that have been identified as the most likely potential customers for a product because of their shared characteristics such as age, income, and lifestyle.
Identifying the target market is a key part of the decision-making process when a company designs, packages, and advertises its product.
Key Takeaways
- A target market is a group of customers with shared demographics who have been identified as the most likely buyers of a company's product or service.
- Identifying the target market is important in the development and implementation of a successful marketing plan for any new product.
- The target market also can inform a product's specifications, packaging, and distribution.
How Do I Define My Product's Target Market?
Part of creating a new product is envisioning the consumers who will want it.
A new product must satisfy a need or solve a problem, or both. That need or problem is probably not universal unless it reaches the level of indoor plumbing. More likely, it is needed by a subset of consumers, such as environmentally-conscious vegetarians, or science nerds, or outdoor enthusiasts. It may appeal to a teenager or a middle-aged professional, a bargain-hunter or a snob.
Envisioning your likely target market is part of the process of creating and refining a product, and informs decisions about its packaging, marketing, and placement.
What Are the 4 Target Markets?
Marketing professionals divide consumers into four major segments:
Demographic: These are the main characteristics that define your target market. Everyone can be identified as belonging to a specific age group, income level, gender, occupation, and education level.
Geographic: This segment is increasingly relevant in the era of globalization. Regional preferences need to be taken into account.
Psychographic: This segment goes beyond the basics of demographics to consider lifestyle, attitudes, interests, and values.
Behavioral: This is the one segment that relies on research into the decisions of a company's current customers. New products may be introduced based on research into the proven appeal of past products.
What Is an Example of a Target Market?
Each of the four target markets can be used to consider who the customer for a new product is.
For example, there are an estimated 100,000 Italian restaurants in the U.S. Clearly, they have enormous appeal.
But a corner pizza joint might appeal mostly, although by no means entirely, to a younger and more budget-conscious consumer, while an old-fashioned white tablecloth place might be dominated by older folks and families who live in the neighborhood. Meanwhile, a newer place down the street might cater to an upscale and trend-conscious crowd who will travel a good distance for the restaurant's innovative menu and fancy wine list.
In each successful case, a savvy business person has consciously considered the ideal target market for the restaurant and has tweaked the menu, decor, and advertising strategy to appeal to that market.
Few products today are designed to appeal to absolutely everyone. The Aveda Rosemary Mint Bath Bar, available for $23 a bar at Aveda beauty stores, is marketed to the upscale and eco-conscious woman who will pay extra for quality. Cle de Peau Beaute Synactif Soap retails for $110 a bar and is marketed to wealthy, fashion-conscious women who are willing to pay a premium for a luxury product. An eight-pack of Dial soap costs under $5 on Amazon, and it is known to get the job done.
Part of the success of selling a good or service is knowing to whom it will appeal and who will ultimately buy it. Its user base can grow over time through additional marketing, advertising, and word of mouth.
That's why businesses spend a lot of time and money in defining their initial target markets, and why they follow through with special offers, social media campaigns, and specialized advertising.
Dividing a target market into segments means grouping the population according to the key characteristics that drive their spending decisions. Some of these are gender, age, income level, race, education level, religion, marital status, and geographic location.
Consumers with the same demographics tend to value the same products and services, which is why narrowing down the segments is one of the most important factors in determining target markets.
For example, people who fall into a higher income bracket may be more likely to buy specialty coffee from Starbucks instead of Dunkin' Donuts. The parent companies of both of these brands need to know that in order to decide where to locate their stores, where to stock their products, and where to advertise their brand.
A business may have more than one target market—a primary target market, which is the main focus, and a secondary target market, which is smaller but has growth potential. Toy commercials are targeted directly to children. Their parents are the secondary market.
Identifying the target market is an essential part of a product development plan, along with manufacturing, distribution, price, and promotion planning. The target market determines significant factors about the product itself. A company may tweak certain aspects of a product, such as the amount of sugar in a soft drink or the style of the packaging, so that it appeals more to consumers in its target group.
As a company’s product sales grow, it may expand its target market internationally. International expansion allows a company to reach a broader subset of its target market in other regions of the world.
In addition to international expansion, a company may find its domestic target market expands as its products gain more traction in the marketplace. Expanding a product's target market is a revenue opportunity worth pursuing.
How Detailed Should a Target Market Be?
It depends. Broadly speaking, a product may be designed for a mass market or a niche market, and a niche market can be a very small group indeed, especially in a product's early introductory phase.
Some carbonated beverages aim for a practically universal market. Coca-Cola had to branch out to 200 markets abroad to continue growing its customer base. Gatorade is owned by Pepsi Cola, but the brand is positioned as a drink for athletes. The soda brand Poppi, which is branded as a "Healthy, Sparkling, Prebiotic Soda with Real Fruit Juice, Gut Health, and Immunity Benefits," is clearly aimed at a younger, healthier, and more trend-conscious target market.
Consider a casual apparel company that is working to build its distribution channels abroad. In order to determine where its apparel will be most successful, it conducts some research to identify its primary target market. It discovers that the people most likely to buy their products are middle-class women between the ages of 35 and 55 who live in cold climates.
It's reasonable for the company to focus its advertising efforts on northern European websites that have a strong female audience.
But first, the company may consider how its apparel can be most attractive to that target market. It may revise its styles and colors and tweak its advertising strategy to optimize its appeal to this new prospective market.
What Is the Purpose of a Target Market?
A target market defines a product as well as vice versa.
Once a target market is identified, it can influence a product's design, packaging, price, promotion, and distribution.
A product aimed at men won't be packaged in pink plastic. A luxury cosmetic won't be sold in a pharmacy. An expensive pair of shoes comes with a branded cloth drawstring bag as well as a shoebox. All of those factors are signals to the target audience that they have found the right product.
Identifying the target market is part of the process of creating and refining a new product.
A target market can be translated into a profile of the consumer to whom a product is most likely to appeal. The profile considers four main characteristics of that person: demographic, geographic, psychographic, and behavioral.
University Lab Partners. " 4 Key Types of Market Segmentation: Everything You Need to Know ."
National Geographic. " How Italian Cuisine Became as American as Apple Pie ."
Aveda. " Rosemary Mint Bath Bar ."
Cle de Peau. " Synactif Soap ."
Amazon. " Dial Antibacterial Bar Soap, Gold, 4 Ounce (Pack of 8) ."
Chron. " What Is a Secondary Target Audience? "
Coca-Cola Australia. " Coca-Cola: From Start-Up to Global Enterprise ."
Pepsico Partners. " Gatorade ."
DrinkPoppi. " Home ."
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- What Is Commercialization, Plus the Product Roll-Out Process 33 of 46
- Digital Marketing Overview: Types, Challenges, and Required Skills 34 of 46
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- Marketing in Business: Strategies and Types Explained 36 of 46
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- Researching the Market: How to Conduct Market Research, Types, and Example 38 of 46
- Micromarketing Explained: Definition, Uses, and Examples 39 of 46
- Network Marketing Meaning and How It Works 40 of 46
- Product Differentiation: What It Is, How Businesses Do It, and the 3 Main Types 41 of 46
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Target Ad Includes Model With Disability
by Shaun Heasley | October 27, 2015
National retailer Target is earning praise for prominently featuring a child with a disability in a Halloween advertisement seen by millions.
A recent weekly circular included a girl with arm crutches and leg braces modeling a costume of Elsa from Disney’s “Frozen.” The image captivated many online.
“I love you,” Jen Spickenagel Kroll wrote to Target on Facebook in a post that’s been shared nearly 6,000 times. “Thank you for including a child with braces and arm crutches into your advertising campaign! And as Elsa, no less! My daughter (with arm crutches and prosthetic legs) is going to FLIP when she sees this! Including children with special needs into advertising makes them less of a spectacle to the general public when they venture out into the real world.”
Advertisement - Continue Reading Below
A girl with a disability poses in an Elsa costume from Disney’s “Frozen” in a recent Target ad. (Target)
This is not the first time Target has featured a model with a disability in its advertising. In 2012, the store’s ad included Ryan Langston, a boy with Down syndrome.
“At Target, our core beliefs of diversity and inclusivity are reflected in our advertising and in our business overall. We’ve included people with disabilities in our advertising for more than 25 years and are humbled by the support we’ve received recently,” the company said in a statement. “We look forward to a day when diversity of all types in advertising is no longer a topic of discussion, but a way of life.”
The weekly circular reaches tens of millions across the country, according to Jenna Reck, a Target spokeswoman.
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Politics & Law
Biden budget seeks added spending on special ed, disability programs.
President Joe Biden is calling for major investments in special education, home and community-based services and other programs that people with disabilities rely on.
College For Those With IDD Looks To Add Campuses
Aiming to duplicate 15 years of success in Wisconsin, Shepherds College is making plans to expand with new campuses serving students with developmental disabilities far from its base.
Health & Behavior
Many young children are not getting needed early intervention services.
Infants and toddlers with developmental delays or disabilities are going without early intervention services or waiting longer than they should to receive them, a problem exacerbated by the pandemic.
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COMMENTS
Group homes for the disabled are an alternative to institutional care. They may be a privately run for-profit business, a nonprofit facility, or run by the government. Privately run group homes do not have government oversight unless they receive government funding.
The target market for a group home for adults with disabilities are adults who are suffering from; Cerebral palsy Down syndrome Epilepsy Spina bifida Traumatic brain injury Visual impairments Mental/psychiatric challenges b. Is Group Home for Adults With Disabilities a Profitable Business?
The U.S. assisted living facility market size was valued at USD 91.8 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.53% from 2023 to 2030. Major factor driving the market growth is the growing geriatric population seeking companionship, security, and assistance with daily activities, are residing in ALFs.
Starting a group home can lead to a rewarding career helping people in need. Part 1 Comparing Your Vision to Reality 1 Assess your goals. There is a growing demand for group homes in the U.S., due in large part to the growing elderly population, along with increasing numbers of other adults and youths who can benefit from this setting.
When it comes to starting a group home for adults with disabilities, startup costs can range from $150,000 to over $500,000. b. What are the Cost Involved in Starting a Group Home for Adults with Disabilities? Business Registration Fees $750. c. What Factors Determine the Cost of Opening a Group Home for Adults with Disabilities?
The American Association of People with Disabilities and Public Opinion Research Inc. report that more than 70 percent of members choose to buy from retailers that support people with...
However, a shared bedroom in a six-bed group home costs about $34,000 a year, and a private room runs from $48,000 to $78,000, according to William Young, founder and president of Residential Care Facilities for the Elderly, an association of California group homes. Group homes generally charge less than larger assisted living communities, in ...
Target the audience. People with disabilities use group homes, but it is typically family members, friends, health care workers, social workers and educators who refer someone to a group...
What's this market? People with disabilities. According to the World Bank, o ne billion people (15% of the world's population) experience some form of disability, with one-fifth (between 110...
4.1 Market Segmentation. Transitional Housing has segmented the market into two distinct categories: women under 30 years old and those 30 and older. This is a significant distinction since the children of the younger group will be younger as well. Some demographic information that is relevant to both groups: 95% are or were chemically dependent.
The Supportive Housing for People with Disabilities Program (Section 811) is a federal program dedicated to developing and subsidizing rental housing for very or extremely low income adults with disabilities, like a chronic mental illness. The biggest difference between this program and similar ones is that it provides housing specifically for ...
Target is among seven retailers that received the highest possible score on the 2021 Disability Equality Index, earning us the distinction of "Best Place to Work for Disability Inclusion." Target CEO Brian Cornell also joined hundreds of leaders in signing on to Disability:IN's CEO to CEO letter to advance disability inclusion.
A: Group homes (aka Adult Residential Facilities) are homes for 4-6 adults with developmental disabilities. In California, these homes are licensed by Department of Social Services and are vendorized by one of 21 Regional Centers.
Nestled in communities throughout the state, our specialized group homes feature state-of-the-art equipment—such as lift-tracking systems—that helps support those who require physical assistance. The adults in our 962/853 homes have Individual Service Plans and Individual Health Care Plans that keep the focus on personalized goals.
Target groups are individuals or groups (families, teams, organizations) that generally live in a geographically circumscribed area (thus, in cities, individual municipal or rural districts). For the needs assessment, it's important to describe the target group as precisely as possible. The trick here is to avoid creating a target-group ...
For some older adults who need long-term care, group homes are providing a more family-style alternative to nursing homes or assisted living facilities. (Getty Images) Also known as adult...
Providing group homes for adults with developmental disabilities requires flexibility, dependability, and a diverse skill set. SCARC has been providing services to individuals with developmental disabilities for sixty years and opened their first group homes thirty-seven years ago.
Some benefits of group homes for adults with disabilities are: A Homelike Environment A group home is just that - a home. It may have rules about how it needs to run, but it helps disabled adults live in a real community in a real house with a real continuity of people around them. Peer Interaction
Target Homes Each of the seven Carroll County homes owned by Target is occupied by three adults with intellectual and developmental disabilities and two live-in graduate student Community Living Managers. This arrangement ensures that Target's clients are provided 24/7 assistance and oversight. Apartment Program
Coffee shop with praise band - One disability coordinator who attended our session said on the night the praise team practices, they set up a coffee shop concert-like atmosphere and the older teens and adults in their church with disabilities are the audience. The band loves having people to play for and those who attend are free to move around and enjoy the music without the formality of the ...
The licensed group home is defined as a facility of any capacity which provide 24-hour nonmedical care and supervision to children in a structured environment, with such services provided at least in part by staff employed by the licensee. Group homes run the gamut from large institutional type environments which provide an intense therapeutic ...
Target Market: A target market is the market a company wants to sell its products and services to, and it includes a targeted set of customers for whom it directs its marketing efforts ...
Target Ad Includes Model With Disability. National retailer Target is earning praise for prominently featuring a child with a disability in a Halloween advertisement seen by millions. A recent weekly circular included a girl with arm crutches and leg braces modeling a costume of Elsa from Disney's "Frozen.". The image captivated many online.