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Provider-Owned Housing

Lease and rental agreements for provider-owned housing

In its community integration rule, the Center for Medicare and Medicaid requires that provider-owned and provider-controlled homes have a lease or comparable rental agreement with individuals living in those homes. 

In response to this, DODD, with a workgroup of stakeholders, developed a rule regarding settings in which HCBS services may be delivered which includes specific requirements for a lease or rental agreement. Learn more by reading OAC 5123:2-9-02.

This rule includes the specific requirements for a lease or rental agreement that seek to ensure that a person enrolled in waiver service

  • can choose their own roommates,

  • maintains their right to privacy including locks and keys to living spaces,

  • is able to personalize their living spaces, and

  • is able to set their own hours and schedules, specifically meal times and access to food.

Licensed residential facilities are owned by a provider and are the only homes that may actually be owned by a provider.

A provider controlled residential setting is a home where the landlord is either an independent provider or a provider agency who meets the criteria established in the rule.


For independent providers

One of the following must apply

  • The landlord is a corporation, limited liability company or other entity owned partly or entirely by the independent provider, or
  • The landlord is an immediate family member of the independent provider, including a spouse, parent or step parent, child or step child, sibling or step sibling, grandparent or grandchild.


For a provider agency

One of the following must apply

  • The landlord is an immediate family member, including a spouse, parent or step parent, child or step child, sibling or step sibling, grandparent or grandchild) of an owner or management employee of the provider, or
  • The landlord employs a person who is also an owner or management employee of the provider, or
  • A board member of the provider is also a board member of the landlord’s company, or
  • The landlord is owned partly or entirely by an owner or management employee of the provider, or
  • The landlord is an owner or management employee of the provider.

Cost of Rent

There is a requirement in the rule that the rent be reasonable and comparable to community standards and that it be set based on the residence and not upon a person's ability pay.

The intent of this section of the rule is to ensure that people who are paying rent for their living arrangement, are doing so in a manner consistent with typically accepted practices consistent with community standards, and that when people share the rent for a setting, everyone has a responsibility to pay an equal amount of rent.