Colorado SB26-113: what sober living operators need to know before July 1, 2027
Colorado is changing who oversees recovery residences. Under Senate Bill 26-113, sober living homes will need a license from the state’s Behavioral Health Administration (BHA) instead of relying on third-party certification. If you run a house, here’s what’s confirmed, what’s still being decided, and what you can do now so the change is a formality instead of a scramble.
- Starting July 1, 2027, a recovery residence in Colorado needs a license from the BHA.
- This replaces the current model, where homes are certified by a third party (today, Ohio Recovery Housing administers certification under contract with the BHA, known as ORH-C).
- The BHA is writing the licensing rules now. The final standards, fees, and application aren’t published yet.
- The BHA is expected to start accepting applications around May 2027.
- Homes that are certified today have a transition path. Confirm your exact deadline with the BHA; don’t let your current certification lapse in the meantime.
What’s changing
Today, Colorado recognizes recovery residences through certification: an outside organization reviews a home against a national standard and certifies it. SB26-113 moves that responsibility to the state itself. The BHA becomes the licensing authority, sets the standards, reviews applications, and handles complaints and investigations.
For operators, that means a different reviewer, a different rulebook, and an application you’ll file with the state. The day-to-day work of running a good house doesn’t change much, but the documentation that proves it matters more.
Key dates
| When | What |
|---|---|
| Now through early 2027 | The BHA drafts the recovery residence licensing rules and gathers public feedback. Watch for comment periods and use them. |
| Around May 2027 | Rules are expected to be final, and the BHA expects to begin accepting license applications. |
| July 1, 2027 | A BHA license is required to operate a recovery residence in Colorado. |
| Transition Confirm | The bill includes a transition for homes that are already certified. Published summaries describe it differently, so confirm your specific notice and application deadlines with the BHA directly. |
If you’re ORH-C certified today
Your current certification doesn’t disappear overnight, and you don’t have to choose between maintaining it and preparing for licensure. The safest approach:
- Keep your certification in good standing through the transition. It’s your proof of standing until your license is issued.
- Note your certification’s expiration date. Transition deadlines may be tied to it.
- Get on the BHA’s notification list so you see rule drafts, comment periods, and application instructions as they’re released.
- Start building your license file now, alongside your certification file, so you’re not doing both under deadline pressure.
What’s still being decided
It’s worth being honest about what nobody knows yet. Until the BHA publishes final rules, these are open:
- The exact standards a home will be licensed against
- Application forms, fees, and how long review takes
- How inspections and renewals will work
- The precise transition deadlines for currently certified homes
- The details of any incident-reporting and complaint processes
Anyone telling you exactly what the final rules require is guessing. What you can do is make sure the fundamentals are documented, because those carry over no matter where the rules land.
What you can do now: a readiness checklist
These are the records a licensing reviewer is likely to ask about, because they’re what certification looks at today. Check what you have on file:
Policies and procedures
- Written house rules and a signed resident agreement for every resident
- A grievance procedure residents can use without fear, and a record of how concerns were resolved
- Admission, discharge, and transfer policies, including how a resident can appeal a discharge
- A drug and alcohol screening policy, and a clear response plan that prioritizes safety and connection
- An overdose response plan, including where naloxone is kept and who is trained to use it
- A good-neighbor policy
- A medication policy, if residents store or take medications at the house
Records
- Resident files: move-in date, emergency contact, signed documents
- Meeting attendance and any required recovery activities, recorded and dated
- Screening logs with results and who administered them
- Incident reports: dated, factual, and describing what happened rather than judging the person
- Staff and house manager information, and any training records
The house itself
- Working smoke and carbon monoxide detectors, fire extinguishers, and posted emergency exits
- Occupancy that matches local zoning and your certification
- An emergency contact posted for residents
Stay involved
- Sign up for BHA updates and read the draft rules when they’re posted
- Comment during public feedback periods. Operators who know the day-to-day are exactly who the rules need to hear from
- Set aside budget for licensing fees and any changes to your house
Not sure where your house stands?
Continuum Compliance Group runs a gap analysis: we compare your current documentation against the licensing requirements as they’re published, give you a clear list of what’s missing, and help you close the gaps with templates and support. We also help you keep your current certification in good standing through the transition.
Book a gap analysis →This article is general information, not legal advice. Rules and deadlines may change as the BHA finalizes them. Always confirm your specific requirements with the Colorado Behavioral Health Administration.
Sources
- SB26-113: Require Recovery Residences to Obtain Behavioral Health Administration License (Colorado General Assembly)
- SB26-113 Fiscal Note (Legislative Council Staff)
- Laws and Rules (Colorado Behavioral Health Administration)
- Behavioral health licensing, designation, and approvals (Colorado Behavioral Health Administration)
