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Michigan directs part of its opioid settlement money to recovery housing options

The Michigan Department of Health and Human Services said it plans to invest $37.5 million into "stable housing" efforts to help Michigan residents who are recovering from substance abuse. 

The money is part of an overall investment of $131.75 million during fiscal year 2026 toward substance abuse prevention, harm reduction, treatment and recovery. 

"Ensuring someone has a safe place to live is one of the most powerful resources we can provide to prevent setbacks in recovery," said Elizabeth Hertel, MDHHS director. "These investments provide people in recovery with the security, structure and dignity they need to thrive. By directing opioid settlement funds to stable housing, we are creating meaningful, lasting change in communities across the state."  

State health officials said they have learned that about 7,500 people a year are discharged from publicly-funded substance abuse disorder treatment without a stable place to live immediately afterwards.  

To help fill that gap, the MDHHS plans to add about 3,400 recovery housing beds by 2028. This would be an increase of about 40% from the current availability. Recent investments in recovery housing include a development by Wellspring in Southfield that will provide 60 new housing units; along with plans for The McDaniel Apartments at Andy's Place in Jackson. 

"We know that the transition out of treatment is one of the most critical times for individuals with substance use disorder," said Dr. Natasha Bagdasarian, chief medical executive and Michigan Opioids Task Force co-chair. "It's a time when individuals face an increased risk of returning to substance use. Without safe and stable housing, the risk of overdose increases dramatically." 

Michigan is expected to receive more than $1.8 billion from several national opioid lawsuit settlements by 2024. Half of that money will go to the State of Michigan Opioid Healing and Recovery Fund for projects selected by state officials; the other half will be distributed to county, city and township governments. 


The above video originally aired Feb. 12, 2024.

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