HomeMy WebLinkAboutExecutive Summary 2023 update
Iowa City Sober Living is a designated non-profit organization under Sec. 501(c)(3) of the Internal Revenue Code.
Tax ID#: 87-1512823.
www.iowacitysoberliving.com
iowacitysoberliving@gmail.com
P.O. Box 2946, Iowa City, IA 52244
EXECUTIVE SUMMARY
Iowa City Sober Living: A Recovery Home for Women
The mission of Iowa City Sober Living (ICSL) is to provide a safe, sober haven for women in recovery from substance use disorder,
primarily alcohol (AUD). Key points for those interested in this community-service project are presented below.
THE PROBLEM
• 15 million people in the US are affected by AUD—5.3 million are women
• 95,000 die from the effects of AUD every year--27,000 are women
• 13,000 Iowans are admitted for AUD treatment every year--6,000 are women
• 80% of these women will return to use within 90 days of discharge
National data regarding the rise of alcohol consumption and abuse by women is staggering, a clear and troubling trend. Relap se rates
are daunting and the need for more options is apparent. During the lock down for Covid (March 2020), groce ry home delivery of alcohol
increased 246% in 30 days.
Health insurance typically pays for the first 28 days of inpatient rehab. It takes much more TIME to repair damaged neural pa thways
altered by AUD and to internalize skills, knowledge, and self-care practices that enhance physical, mental, and spiritual well-being; both
keys to long term sobriety. Those recently discharged from treatment have limited defenses against the many triggers that lea d to
return to use. Returning ‘home” too soon is a MAJOR tri gger for many women.
• Overwhelmed and stressed with substantial family and parental responsibilities
• Environment unchanged; people, places, or things are constant reminders of past use
• Serious relationship strains yet to be resolved; partners in active addiction
• Fear, agitation, and discontent when leaving a rehab facility
• Neglecting their program of recovery
• Options other than returning home do not exist for women in Eastern Iowa.
THE SOLUTION
Recovery residences, or sober living homes, bridge the gap between primary treatment and the full resumption of pretreatment
responsibilities and living conditions. “The purpose of a recovery residence is to provide a safe and healthy living envir onment to
initiate and sustain recovery”. . . (A primer, 2012, p.5). Sober living homes provide TIME, which is essential for healing an d growth.
70% of sober living residents remain sober at 6 and 12 months. Sober living homes are not covered by health insurance and operate
on a “few for service” revenue model.
RECOVERY PROGRAMMING
Iowa City Sober Living is a sober living home for women recovering from alcohol, providing 8 women a safe haven to break the bonds
from their primary addiction. The supportive environment facilitates the rebuilding of physical, mental, and spiritual well -being under
one roof, which are key during early stage recovery. The core components of the recovery program are:
• Accountability: Random drug screening, house rules, post-treatment care and immersion into a 12-step recovery program
• 24/7 Staff Support: On-site House Manager and on-call Co-operators
• Peer support: All residents and house manager are in recovery, regular house meetings
• Self-care: Onsite yoga and guided meditation sessions, prompts for routine health and wellness care; exercise and good
nutrition
• Community Transition: Gradual resumption of employment, education, and/or volunteer activities.
• TIME: Flexible lengths of stay, typically 3 to 6 months, but may be up to 1 year.
The programming was developed through consulting National Alliance for Recovery Residences quality standards for recovery
residences and by attending the Annual NARR conference in October, 2020. We solicited testimonials on the value of sober living from
those who had experienced them via a Facebook Recovery Group. 11 people commented and 100% were positive. Some of
testimonials included “helped save my life,” “best thing I ever did for myself,” “gave me the security and space to gain stre ngth in my
sobriety,” and “sober living is great to build bonds, identify and deal with triggers.” These sentiments validated the great need f or our
value proposition. Certification by NARR will be available in Iowa within the next year. ICSL has recently secured a seat on that state
wide formation committee, recently named Iowa Coalition of Recovery Support Providers (ICSRP).
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MANAGEMENT TEAM
Co-Founders and Co-Operators
Sue Gardner and Merrilee Ramsey. Sue is a Professor of Nursing; Merrilee is a retired Nurse Practitione r. Both are in recovery from
AUD. We are passionate about this project because we know first -hand the need exists and because we want to pay forward the
support and help that was given to us. We are not expecting to or wanting to make a profit. Our goal is to help women get sober and
stay sober.
House Manager
A woman with 1-2 years of recovery will be selected as house manager. The house manager will live at ICSL, organizing house
meetings/activities and monitoring adherence to house rules. The house ma nager will receive room and board and/or salary for these
duties.
Board of Directors
ICSL has a 10-member Board of Directors to oversee organizational planning, legal obligation, and financial oversight. Board members
are not compensated. ICSL does not have an Executive Director currently. We have a committee structure in place. Meetings are held
monthly and as needed. Position descriptions, bylaws, COI documents have been legally drafted and are available for review. O ur
board is represented by various members of the community to include, education, health, human resources, legal, finance, marketing,
sales and include persons in and not-in recovery.
AUDIENCE STRATIFICATION
Recovery Resident
Customer discovery was completed during a 7-week Venture School Program through the University of Iowa JPEC. Women in
recovery and treatment center staff were interviewed. Based on 27 customer interviews, we unexpectedly discovered two distinc t
customer archetypes:
Archetype 1:
• > 35 years of age
• Partner and/or children (at home or grown)
• Established career
• Financially stable
Archetype 2:
• 21 to 35 years of age
• No stable partner or children
• Unemployed, underemployed, or attending college
• Parental financial support; less financial independence
Although the demographics of these two groups differ, both groups indicated they would (or would have) benefited from the same
value propositions as described. The desire and willingness to put recovery first is a common thread and therefore programmin g will
remain the same for both groups.
Healthcare/Recovery Professionals
As part of a marketing survey, we found an audience niche that will be critical for referring, caring for, and educating our recovery
residents. Professionals that work in the recovery industry and the medical field in general. We will call on these support professionals
to help us educate the women of the house regarding health and wellness, as well as recovery. Activities such as yoga, medita tion,
exercise, and nutrition will be part of the program at ICS L. Volunteers from the recovery fellowship have been engaged to help with
these activities.
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Community Support
Although the stigma of substance abuse is perhaps less than years ago, there is much education to be done in our community. The
University of Iowa has developed a Student Life Program to curb binge drinking and is very encouragement that there will be a program
to help nonstudents as well. University of Iowa Health Care and ICSL have had conversations on how best to partner with such
initiatives such as the Medication Assistance Treatment clinic and even the Perinatal Department for pregnant women with addiction.
Presentations to area businesses and neighborhoods have been helpful in dispelling the misconception of what happens at sober
homes. Our residents will be required to strictly adhere to “good neighbor” policies and will be encouraged to be involved in community
activities and residence fundraising.
MARKETING STRATEGIES
Referral Base
• Inpatient treatment facilities
• Abbey Addiction Treatment Center, Bettendorf, Iowa
• Prairie Ridge, Mason City, Iowa
• Top of the Ranch, Milan, Illinois
• University of Iowa Health Care, Iowa City, Iowa
• Community Family Resource, Iowa City, Iowa
• Outpatient programs
• University of Iowa Health Care, Iowa City, Iowa
• Mercy Sedlacek Treatment Center, Cedar Rapids, Iowa
• Unity Point Chemical Dependency Center, Cedar Rapids, Iowa
• Community Family Resource, Iowa City, Iowa
• GuideLink Iowa City
• 12 Step Meetings
• 71 in-person meetings, Iowa City, Coralville, Muscatine, Tiffin, North Liberty, Solon, North English
• Zoom and hybrid meetings available nation-wide
• Social Media
• www.iowacitysoberliving.com
• Facebook @icsoberliving
• LinkedIn
• News media partnership
• Community Events
• Platinum Sponsor for the 2023 Mental Health Expo presented by Living Undeterred. Cedar Rapids Iowa May 2023
• 5k Marathon (TBD)
• Gala Event (TBD)
• Music Festival (TBD)
• Customer Relationships
• Development of discharge protocols
• Visit women at facility before discharge
• Maintain excellent customer relations with in and outpatient facilities
COMPETITION
• Cedar River Haven, Letts, Iowa
• Opened summer 2022—24 beds; staffed for only 7 currently; have a waiting list
• Rural setting—access to meetings, sponsorship/fellowship difficult
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• Work program for room/board
• Cooperative programming with ICSL—events, retreats
• Out of state sober houses
FINANCIAL PROFORMA
Current financial status
• Nonprofit State of Iowa 07-01-2021 (see attached)
• 501c3 03-01-2023: EIN 87-1512823 (see attached)
• Current debt: none
• Initial Expenses: $14,396 (legal, CPA, board education, marketing)
• Hills Bank Account balance : $39,000+
• Mortgage lender: Hills Bank
• Real Estate broker: Lepic Kroeger
• Legal: Shuttlesworth and Ingersoll
• CPA: TDT CPAs and Advisors
Fundraising
• HTFJC Grant $75,000 (exp 10/2023)—available at close on residence)
• Iowa Womens Foundation $25,000 (received $12,500 in 1/2023; remainder 07/2023)
• Future grants: Emerging A2A; Prairie Meadows Foundation, WCRF; Walmart; ACT
• Charitable donations YTD $52,000+ (ongoing emails, website, events, Giving Tuesday)
Future Start-up Expense
• Down payment on home (25%) $150,000-$200,000
Single family home (5-6 bedroom/3-4 bath; >3200 sq ft) to house 8 women in recovery.
Purchase price will be $600k-$800k financed through a conventional mortgage.
Mortgage lenders will require 25% down for a 30 year loan at current rate.
• Closing costs $5000-$10,000(variable)
• First month expense $5,000 (utilities, insurance, taxes)
• House payment $4,000 (P/I) ($600K @ 7%)
• Furnishings $50,000 (one time)
Revenue Projections
• Resources for rent calculation: realtor, national sober home rates, current rental market in geographic area.
• Value estimates ranged from $600 - $1500/month
• 6 full price beds $850 = $5100
• 2 low income beds $400 = $ 800
• $5900 monthly income at 100% occupancy
Current Need
• additional $100,000 to complete down payment, closing costs, insurance, and first month expenses until at 100%
occupancy
• $ 35,000-50,000: furnishings and possible repairs (paint, carpet)
• $ 5000 Computer system and software
• $ 1000 Security system
• $ 1000 Fire safety equipment
• $ 1000 Telephone system
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REFERENCES
A primer on recovery residences: Frequently asked questions. (2012). National Association of Recovery Residences. Accessible at
www.narronline.com.
Centers for Disease Control and Prevention (CDC). (2021). Alcohol and Public Health. https://www.cdc.gov/alcohol/features/exces sive-
alcohol-deaths.html
SAMHSA, Center for Behavioral Health Statistics and Quality. 2019 National Survey on Drug Use and Health. Table 5.4B – Alcohol Use
Disorder in Past Year among Persons Aged 12 or Older, by Age Group and Demographic Characteristics: Percentages, 2018 and
2019. https://www.samhsa.gov/data/sites/default/files/reports/rpt29394/NSDUHD….
Iowa Department of Public Health. Division of Behavioral Health. Bureau of Substance Abuse. State Epidemiological Workgroup 2018
State of Iowa Epidemiological Profile 2018. Des Moines: Iowa Dept. of Public Health, [2018].
Moos, R. and Moos, B. (2006). Rates and predictors of relapse after natural and treated remission from alcohol use disorders.
Addiction, 101(2), 212–222
National Alliance of Recovery Residences (2018). NARR Quality Standards for Recovery Residences 3.0
Polcin, D. L., Korcha, R., Bond, J., & Galloway, G. (2010). What did we learn from our study on sober living houses and where do we
go from here? Journal of psychoactive drugs, 42(4), 425-433.
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Attachment A: IRS Determination Letter
Attachment B: Certificate of Existence
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Attachment C: EIN Assignment