Detroit

Michigan Allocates $37.5 Million for Recovery Housing to Support Individuals with Substance Use Disorder

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Published on December 10, 2025
Michigan Allocates $37.5 Million for Recovery Housing to Support Individuals with Substance Use DisorderSource: Google Street View

In a substantial move aimed at battling the opioid crisis, the Michigan Department of Health and Human Services (MDHHS) has earmarked $37.5 million for recovery housing to assist those grappling with substance use disorder (SUD) in finding their footing post-treatment. This funding is a slice of the larger $131.75 million pie set aside in the FY 2026 state budget for the broader spectrum of SUD-related services, including prevention, treatment, and harm reduction, along with recovery efforts, according to a detailed plan put forth by MDHHS.

The gravity of the situation is reflected in the words of MDHHS director Elizabeth Hertel, who told the MDHHS newsroom, "Ensuring someone has a safe place to live is one of the most powerful resources we can provide to prevent setbacks in recovery," she further stressed the importance of these investments, saying they offer "security, structure and dignity" needed by individuals in recovery - the $37.5 million is projected to help ameliorate the plight of over 7,500 people discharged from SUD treatment annually, who previously found themselves without stable housing. Michigan eyes to boost recovery bed availability by 40%, proposing a total of 3,467 new safe havens by 2028.

A generous fund, stemming from the national opioid settlements, which is expected to inject more than $1.8 billion into Michigan's recovery network by 2040, will be distributed with 50% going to the State of Michigan Opioid Healing and Recovery Fund and the other half reaching county, city, and township governments; MDHHS has utilized these funds to increase recovery housing beds by over 200 through $8 million in investments over the past two years. Dr. Natasha Bagdasarian, chief medical executive and co-chair of the Michigan Opioids Task Force, highlighted the pivotal nature of the transition out of treatment, where the absence of secure housing can sharply raise the risk of substance relapse and overdose, according to the Michigan Department of Health and Human Services.

Recent efforts in the recovery housing front include a mix of projects and programs, such as $1.5 million backing a new development by Wellspring in Southfield, in partnership with the Michigan State Housing Development Authority and Oakland County government, which will yield 60 new units and another $3 million for the McDaniel Apartments at Andy’s Place in Jackson, which features 26 affordable apartments coupled with critical recovery services catering to expectant families battling opioid addiction; moreover, another $3.8 million has been funneled through the Recovery Housing Investment Program to facilitate the purchase or leasing of homes dedicated to supporting those in recovery. MDHHS senior advisor Tommy Stallworth points out the significance of these steps for socially vulnerable groups, saying in the MDHHS news release, "Black and low-income communities are disproportionately impacted by housing instability and the heightened risk of overdose."