First steps to consider before opening an Adult Foster Care (AFC) Home

Is an AFC is right for you?

You’re passionate about caring for others—it’s more than just a job to you. Perhaps you’re currently working at an AFC home, providing senior care, or supporting residents in group homes for disabled adults.

Yet, despite your dedication, you often find yourself wondering, “What if I took the leap and opened my own Adult Foster Care (AFC) home?”

The thought of being your own boss and creating a nurturing environment where you set the standards is exciting, but it also feels overwhelming. How do you make the jump from employee to owner? What are the steps to open a group home in Michigan? If these questions are on your mind, consider the following information before starting the process to open your own AFC home.

Licensed or Unlicensed?

Possibly you heard of people who own group homes with unrelated individuals living in them. The owners of these properties provide a safe environment and sometimes offer care. You wonder, are they licensed? You also wonder, in what case is a license required?

The State of Michigan provides a clear definition to help understand when a license is required. An AFC must be licensed if personal care, supervision, and protection in addition to room and board is provided to 3 to 20 unrelated individuals. These individuals may be aged, mentally ill, developmentally disabled, or physically disabled. Services in the home are provided 24 hours a day, at least five days a week, for at least two consecutive weeks.

Understanding these requirements helps determine whether the facility you decide to open is licensed or unlicensed. 

Considerations for a licensed facility

Before diving in, ask yourself: Is opening a licensed adult foster care home right for you? To help answer this, consider the business implications and personal commitment involved. The AFC Tutorial: Part One and AFC Tutorial: Part Two videos, provided by Michigan’s Department of Licensing and Regulatory Affairs (LARA), are excellent resources for understanding the steps to becoming a licensed AFC provider.

Determine the Population You Want to Serve

Are you passionate about providing foster care for adults with disabilities, or do you prefer offering senior living for adults with dementia or mental illness? Identifying the specific population you want to serve allows you to focus your care and tailor your home to meet the unique needs of your residents. It also influences your staffing, training, and marketing strategies.

Confirm Your Qualifications and Meet Licensing Requirements

To open an AFC home, you need to meet specific Michigan AFC home, educational and experience requirements. At a minimum, a high school diploma and at least one year of experience serving the desired population are required. Additionally, you must pass a background check, have a medical clearance, and provide a negative TB test. 

Decide on the Type and Capacity of Your AFC Home

AFC homes can vary in type and capacity. You can choose to operate a Family Home or a Group Home. Additionally, you must determine the capacity of your home, whether it will be a small group capacity (6 or under), a medium group capacity (7-12), or a large group capacity (12-20). Each type and size comes with different licensing requirements, costs, and regulations.

Choose the Right Location and Secure the Property

Selecting the right location is one of the most critical steps in opening an AFC home. Will you operate from your personal home, lease a property, or purchase one? If you’re considering purchasing a property, discuss financing options with investors or secure a mortgage.

Also keep in mind that homes with a private water and sewer system require an environmental health inspection by the local county health authority before a license is granted. For a facility with 7 or more residents, zoning approval, a sprinkler system and fire inspection are required.

In addition, room sizes are also critical. A bedroom size of 80 sq feet is required for an occupancy of one. A bedroom size of 140 sq feet is required for an occupant of two.

Set Up Your Business Structure and Finances

Establishing your AFC home as a legitimate business involves securing an Employer Identification Number (EIN) and creating a State of Michigan ID. Open a business bank account, and fund it with 3 months of budgeted operating expenses. This money helps cover expenses until residents move into the facility. If cash is not available, consider securing a line of credit. These steps ensure that your AFC home is set up for financial stability and compliance with state regulations.

Getting Help to Open and Operate an AFC Home

After reviewing these steps,  you might feel overwhelmed by the amount of work involved in opening an AFC home. This is where partnering with a specialist in adult foster care system management can be incredibly beneficial. Organizations like Care Provider Solutions offer mentoring for adult foster care providers, helping you navigate the complexities of opening and operating AFC homes. They provide residential care facilities management training, assist with regulatory compliance, and offer step-by-step guidance to reduce stress, save time, and avoid costly mistakes.

Take the Next Steps with Confidence

If you’re serious about moving forward, consider consulting with an adult foster care system specialist at Care Provider Solutions to open your own licensed facility. Their expertise can guide you through every step to set up your facility for success.

With the right knowledge, resources, and support, you can open an AFC home that provides high-quality care while running a sustainable and successful business. Start today by scheduling a consultation with Care Provider Solutions or exploring the AFC Tutorial series for a more detailed understanding of what it takes to open and operate an AFC home.

By taking these steps, you’ll be well on your way to making a meaningful impact in your community through adult foster care.