Department of Human Services

New Jersey Makes $5 Million Available to Help Expand Community Housing for Individuals with Intellectual and Developmental Disabilities & Acute Needs

July 6, 2023

(TRENTON)Commissioner Sarah Adelman today announced that the Department is making $5 million available to help developmental disability providers purchase, develop and renovate group homes serving newly placed individuals with acute behavioral and/or medical needs.

“This initiative is another step in Human Services’ efforts to develop and expand home and community-based services and to integrate physical, behavioral and social services in order to improve overall health outcomes and quality of life for individuals with intellectual and developmental disabilities,” Commissioner Adelman said. “This plan focuses on increasing community capacity and housing options, so we are able to serve individuals with intellectual and developmental disabilities who have acute behavioral and medical needs in the most appropriate settings.”


 “Community housing is always in demand for individuals with acute needs,” Deputy Commissioner for Aging and Disability Services Kaylee McGuire said. “Expanding our capacity further empowers individual choice, with our ultimate goal being to strengthen community infrastructure and ensure individuals are supported in their homes.”

The initiative’s $5 million stems from the federal Money Follows the Person (MFP) Program, which enables the Division to receive federal funding for eligible individuals for the first year of their home- and community-based services enrollment. Eligible individuals are those residing in a qualified institution for at least 60 days before their move to a community setting, are Medicaid eligible, and are moving to a setting with four or fewer unrelated individuals.

State savings realized through MFP must be reinvested, and New Jersey has implemented several other initiatives, including increasing access to affordable and accessible housing for Medicaid-eligible individuals transitioning from institutions to the community, strengthening Medicaid and housing partnerships, and coordinating with community partners to improve direct supports for eligible individuals.

“This initiative allows the Division to continue working in concert with providers to incentivize targeted housing for individuals with complex needs,” said Assistant Commissioner Jonathan Seifried, who directs the Division. “These new settings will enable individuals with high-level needs to choose from a larger array of providers and geographic locations across the state.”

Under the plan, the Division will allocate up to $90,000 per home, subject to criteria such as:

  • Funding is available to offset costs incurred directly by providers in developing group homes licenses, as well as for accelerated principal payment related to the financing of such costs. This funding is in addition to funding for sprinklers and fire suppression, which the Division will also provide.
  • Homes eligible for this funding are limited to those with four, single-occupancy bedrooms, at least two of which will be reserved for individuals determined by the Division to have, among other criteria, acute need or a placement disposition challenge.
  • Reimbursement for services associated with target individuals will be through the fee-for-service system using the established fee schedule associated with the assigned tier of the individual.
  • Only new sites shall be considered.
  • Individuals moving into the homes are eligible for Division services and actively enrolled on the Community Care Program.
  • Funding will not be released to a community-based provider unless the individuals seeking a community-based setting and provider have agreed to placement, and the provider has secured 100% of the financing required to fund the entire project cost.

The $5 million designated for this initiative can potentially be paid over multiple allocation cycles until all available funds have been paid out. Providers can learn more here about how to apply for the funding.