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Published at Monday, February 11th, 2019 - 09:11:32 AM. House. By Hamas Charlie.

The Macro-Dynamics of the US and the Canadian Housing Markets: An Analytical Comparison Introduction: This article examines three key fundamental questions: (1)-Would the US housing market face any reversal given what is happening in the US and global economy? (2)-As predicted by some pundits, would the Canadian economy undergo any serious correction? (3)-What are the key macroeconomic factors which impact the Canadian and the US housing markets? And using this framework what predictions can we make both for short and long term trends of real estate markets? The US Housing Market: Its Evolution from Crisis (2007-2008) to Present: The US housing bubble was created by Steroids Banking using Securitization process and taking advantage of low interest rates and massive inflow of investment money from abroad. The housing prices in most regions almost doubled 2001 to 2006; and subprime lending escalated astronomically. The private Mortgage banks were applying their creativity and greed in designing highly risky esoteric mortgage products using the Securitization process. What is Securitization? Put simply this is packaging of mortgages (including subprime) into structured products (Mortgage backed securities, Collateralized debt obligations). The manufacturing mortgage bank then removes these esoteric products from its balance sheets to minimize any risks and sells these products to institutional investors using SIV (Structured investment vehicles). The buyers of these products erroneously assumed that the underlying mortgages of these securities were safe collateral given upward trending housing market. However, when subprime mortgages defaulted and housing market began to sink, these structured products built around defaulting mortgages fell sharply in value, thereby freezing the entire global credit system. Added to this turmoil was dilution of commercial paper because of potential default of big lending institutions. The global financial system was under siege. Ironically, the Credit default swaps, which mean to insure against default of these mortgages collapsed under their own weight, thereby reinforcing the Credit crisis. The US Treasury and the Fed intervened and injected trillions of dollars to save the collapsing US Housing and Banking system. This crisis is a classic example of Moral Hazard issue. Who was responsible for over-leveraging the system beyond its buoyancy point? Technically the Mortgage banks had packaged the mortgages and passed on the risks to the institutional investors. The institutional investors made the wrong assumption that the US housing market will move North forever. The Fed and other institutions did not have a proper regulatory-monitoring structure as envisioned in the BASEL guidelines to avert such over-leveraging. Nobody knew who will be responsible if the edifice collapses. Worst of all, the institutional investors assumed wrongly that the Credit default swaps (CDS) instruments would work miracles; and bail out defaulting mortgages. This is known as Moral hazard problem. Ultimately everybody was looking forward to the Fed and the Treasury to bail out the global financial system from reaching the doomsday. The US Housing Market in the aftermath of Crisis: The Mortgage Delinquency Rate (MDR) is a key metric that speaks of the real fallout of the US housing crisis (2007-2008). It measures the percentage change in delinquency of residential loans. In June 2007, the MDR was 2.17% and reached its highest level in March 2011 at 11.36%. It recovered back to 2008 levels at 10.4% recently. MDR is a key lagging indicator that reflects economic difficulties. Another key metric reflecting the state of housing health in the US is the S&P/Case Shiller Home Price Index. This is an index reflecting change in housing prices of 20 (and 10) key US metropolitan areas. The home prices in April 2012 for 20-city composite have reached the level existing in the start of 2003. In April 2012, the home prices have declined about 34-35% from its peak level in 2006. The main reason for a stagnant US housing market as evidenced from the MDR data is a fragile labor market. Slow job growth rate is due to weak consumer spending, which is the 70% component of real GDP and key driver of job creation in the US. Consumer spending is directly related to job growth rate, the saving rate and the consumer confidence. In an uncertain environment, spending falls and both the US dollar and saving rate increases. Although savings are recycled by the intermediaries as investments for businesses, this does not necessarily translate onto investment spending and GDP growth. Companies in a high risk environment aim to trim their balance sheets by paying off their debts, a process called as deleveraging. They do not want to burden their balance sheets by borrowing from banks. This deleveraging process slows down the level of investment in the economy thereby indirectly moderating the job growth rate. Deleveraging also runs counterproductive to low interest rates and impedes growth in jobs and therefore fast recovery of real estate prices. Why the Canadian housing market is not poised for a serious correction? The Canadian Mortgage system is more robust and conservative than the one prevailing in the US. First of all, the Canadian subprime market is only 5% of total outstanding mortgages whereas during its peak years 2004-2006, the US subprime market captured 25% of total outstanding US mortgages. The Canadian mortgage system executes better risk management tools including limited exposure to securitization and tight lending practices backed by insurance mortgage. The recent changes in the Mortgage lending have further tightened the belts to avoid any risks to healthy housing in Canada. The supply and demand conditions in Canada are monitored by all players actively. There is a great degree of transparency and authenticity in the housing data and practices. Supply dovetails both current and future demand leaving little room for creation of bubbles. Remember bubbles happen when there is a huge undiscovered lag between supply and demand. For example, there is an anticipated constraint of commercial real estate supply in the wake of surging demand both in Toronto area and Western Canada. A large number of Canadians are currently disillusioned by lower and volatile investment returns in the core financial assets, stocks and bonds. The ongoing volatility in the Capital markets is expected to last in the next few years, given some long lasting problems like risks of Sovereign debt crisis in Europe & the US. This situation has mobilized a great number of people to invest in real estate as most viable alternative investment in the wake of record low interest rates. This process might continue for some years as the core financial assets (stocks, bonds and mutual funds) may not pick up momentum soon. The concept of a bubble is not quite relevant in the context of the Canadian housing market. This is explained in terms of a typical sales cycle witnessed in Toronto and other places in Canada. The sales cycle woven around tighter demand-supply conditions mitigates the probability of bubbles. For example, in Toronto, condos are sold or flipped by investors, who generally do not live in those condos. When interest rates would inch up in future, these investors will find it difficult to keep highly expensive condos. They will sell these condos putting downward pressure on prices of the condominium market. Intuitively, the falling prices will give opportunity to new immigrants and other investors to purchase condos, as they could not previously afford it. This process is further strengthened by different ethnic groups who support their new immigrant friends and families toward the purchase of their first homes in Canada. Overall these processes would push prices upwards again. To conclude, given these tight supply-demand conditions, the chances of any serious correction are quite minimal in Toronto. What are the Macroeconomic factors which impact the prices of Real Estate? Interest Rates and Inflation: Interest rate is the price of money. It is determined by supply and demand of loanable funds. However the countrys Central bank can greatly influence the rate by tightening credit conditions or making those relaxed by pumping money into the system. This is typically done through Monetary Policy and open Market operations. Lower rates make it cheaper for potential buyers to borrow money and make purchases. It also helps current homeowners to refinance their homes and save money. All this will lead to stronger demand for mortgages and housing. Increasing rates will have the opposite effect and dampen the level of sales activity in the Mortgage market. Carry forward trades, borrowing at lower rates in one region and investing it in other, also indirectly impact real estate. For example, foreign institutional investors can borrow money overseas at cheaper rates and invest in Canadian real estate market. More important, real interest rates equal nominal rates minus inflation. Rising level of inflation will lower the real interest rates and declining levels will inflate real rates. Inflation typically feeds into asset prices including real estate. Tightening of money supply is done to control inflation, and this process leads to rising interest rates. Easing of money supply is done to trigger growth and this is accompanied with declining interest rates. However greater supply of money and rising oil prices (supply side) feed into inflation and ultimately inflates asset prices. Economic Growth, Consumer spending and Employment level: Economic growth is measured by growth in the real GDP. Slowdown in economic growth-both global and regional-raises fears of deflation or declining prices, which does not bode well with overall economic affluence. Deflation can be compared to freezing of an economy. Japan experienced sustained recession due to deflation for a long period. Fear of deflation due to declining growth can have negative impact on the real estate market. Labor Market dynamics and in particular the level of unemployment has a critical relationship to the health of the housing sector. Rising unemployment during recession is often accompanied with low housing demand and mortgage delinquencies. For example, when Enron crisis erupted, there was general softening in the regional housing market. Another example is the current state of the US housing market. Economists say that the slow pace of housing recovery is attributed to a stagnant US labor market, which is stuck up at over 8% of unemployment rate. Consumer spending plays a key role in the US while the export sector plays an important role in China. As well in Canada, consumer spending has correlation to the GDP growth. In case of the US, Consumer spending constitutes 70% of GDP and is therefore most important driver of GDP growth rate. Higher consumption level, driven by consumer confidence levels, leads to greater economic (job creation) activity and ultimately translates into greater demand for housing. Surging consumer debt, as it is happening in Canada, is also not healthy for a sustainable consumption and GDP growth. Over-leveraged consumers do not have the capacity to absorb shocks like layoffs or increase in interest rates & inflation. Institutional Capacity of Economy to absorb External shocks: The housing crisis of 2007-2008 contaminated the global financial system. The Fed and G-7 countries had to undertake unprecedented bail out measures to save the global financial system from getting derailed. Fortunately, the Canadian housing market was resilient enough to absorb the shocks and did not sink. This happened because of a relatively conservative mortgage system prevailing in Canada. Regulatory measures also impact the resilience of the housing market. For example, tax credits in the US had triggered growth of the housing sector in the aftermath of crisis. Canada has applied its regulations to keep the housing sector strong and healthy. Demographics and Migration: These play an important role in shaping the long term prospects of the real estate market. In Canada and the US, the aging population of baby boomers will create more demand for residential and vacation homes in the next decade. International migration to Canada is also an important determinant of housing market in Canada. Technology, Oil-Commodities boom and Exports: The Canadian economic and housing activity is also impacted by three external forces: Chinese Investors, Oil-commodities prices and economic activity in the US. The Western Canada is impacted by the level of Chinese and foreign investments, mainly in the Mining and Oil sector. The Eastern region, mainly Ontario and Quebec, is impacted by the level of exports to the US and therefore indirectly on the state of the US economy. Stronger Canadian dollar does not augur well for exporters. Overall, the Canadian economy and dollar are strengthened by rising demand for Oil and commodities. National Level of debt: In the US, the national level of debt is reaching about $14 trillion and will continue to grow in the years to come. National debt piles up due to persistent fiscal deficits in the economy. In the US, there is a challenge of twin deficits-both fiscal deficit and external imbalances. The twin deficits not only lead to faster growth of national debt but trigger anticipation of higher interest rates and inflation. This happens through the following mechanism: Higher debt in the US is monetized by either selling bonds to China (or other surplus countries) or by printing money from thin air. In either case it leads to greater risks and consequently higher interest rates, fast depreciating currencies and therefore more inflation. Some economists say that if debt is not contained by the US policy-makers, we may enter an era of hyperinflation where all asset prices (including real estate) will become very costly. Applying Macroeconomic Framework to analyze current & future trends: (I)-Current Global Economic Outlook: The global economic growth is expected to moderate in 2012 (and perhaps 2013). Concomitantly, the global real estate market is cooling down a bit. The moderation in growth is spread unequally across different geographical regions. In the US, which been the central point of housing crisis, there is some improvement in key housing indicators. Given sustained low rates, minimal probability of deflation (freezing of economy) and complete preparations by European Central Bank to cope with Eurozone debt crisis-there is less likelihood of any major reversal to the US economic fundamentals and therefore the housing market. The key emerging Global housing trends are captured in the following summary: (A)-The battered US housing market is relatively stable, with less increase in foreclosures and mortgage delinquencies. The US market is currently an ideal buyers market. However, there will be a substantial lag time before we can witness a complete turnaround in the US housing market. (B)-The vibrant Canadian housing market is generally perceived to be ready for some correction in 2012 and 2013. Chart V shows key housing trends in Canada. (C)-The European housing market is (and will in future) undergoing a degree of correction. This stems from recent fiscal crisis in Europe as well as fragility of the German economy exposed recently. The housing market in the emerging global economies is also cooling down a bit. (II)-Some Predictions using the Macroeconomic Framework: The short term perspective of the Canadian housing market might witness come corrections in 2012 and 2013, but as argued in this paper this will be minimal. Also, as argued further, the commercial real estate market will stay steady and strong in 2012 and 2013 in Canada. Given the complex interplay of global economic forces and what is happening in the Eurozone and the US in terms of debt crisis, it is rather difficult to make any certain long term predictions. However, growing complexity warrants a more holistic inter-market analysis to predict about the real estate trends. The seven key global economic trends of the next decade can help us understand the future real estate prospects as well. These seven trends are as follows: (1)-The bubble of Sovereign debt crisis in the US and Europe will last for sometimes, at least next decade. Governments in this part of the world are running unsustainable massive debts, which will ultimately put an upward pressure on inflation and interest rates. (2)-The clear outcome of (1) above will be depreciating value of currencies. (3)-Another consequence of (1) above will be fragile and volatile bonds and stock markets. (4)-Commodities, gold and some alternative investments will become attractive as they will be perceived to store real value. Currencies, stocks and bonds will depreciate fast. (5)-Inflation will be triggered by massive monetization of debt (printing currency from thin air). This situation may be exacerbated if China pulls out trillion of dollars of US bond purchases it made in the last decade; and if oil prices continue to move north. (6)-Demographic trends entail growth of baby boomers in North America and Europe leading to migration to North America. (7)-The US dollar will not evaporate because of spectacular performance of the US companies and technological advancement in North America. Given these seven key economic trends of the next decade, the housing market will stay vibrant and steady in Canada and the US. Baby boomers, foreign investors and immigrants will continue to play a critical role in strengthening the housing demand in North America. Hyperinflation, as worst case scenario, might pull down demand of assets because it would stoke prices of those assets including real estate. At this stage, however, it cannot be predicted whether the European and the US governments will take concrete measures to contain their debts and put in place sustainable debt management policies. Future events will unravel the political commitment of these governments. At this stage, one thing is certain: the current debt monetization policy of these governments is not sustainable in the long run.

How to Find a Quality Halfway House in the United States : WHAT YOU NEED TO KNOW ABOUT HALFWAY HOUSES* The first thing you need to know is that most halfway houses are NOT regulated. Many operate without a state license. Most halfway houses, regardless of whether they are licensed or not, do a great job at helping a person stay sober, and can assist a person in reconnecting with family, and also becoming a contributor to society. Many Halfway Houses operate without a license simply because the licensing agency and/or the zoning commission prevent halfway houses from operating in their neighborhoods by restricting census (total amount of residents in any single location or house). Few halfway houses can stay open when a licensure agency and/or zoning department tell them they can only have 4 residents in a large 4 bedroom house. Few places can keep their doors open with these unfair and illegal tactics due to the large overhead incurred (lights, electricity, heating, cooling, insurance, mortgage payments, staff, etc.). What is most important is how they go about helping people to stay sober and keeping residents on track- what is their main focus, making money or helping people- this is typically the main difference between a quality run halfway house and a poorly run facility. There are many questions to ask to determine the difference between the two. Are they staying on top of their residents sobriety? How do they maintain a clean and sober environment, etc.? Do they have rules? What are the rules? How do they enforce them? Always ask to see a copy of the rules!!! Are they a coed facility? Typically, a male or female only halfway house has better odds at maintaining sobriety and dealing with length of stay issues. You will want to know what happens if you come home drunk at 2 A.M. on a Friday- do they just kick you out of the halfway house into the neighborhood? Do they have protocols for dealing with this and many other possible scenarios? Find out how they deal with situations before moving in. You should definitely be given a complete tour (especially visiting exactly where you are going to be placed), along with explaining all the rules and regulations, as well as a residents responsibilities. Note: Most Halfway Houses require, at least initially, a resident to have a roommate, as this helps make sure a person is accountable by at least one other person besides the House Manager and the General Manager/Owner. You should take note of how the place looks. A few years ago I was involved in property assessments for a program helping mentally ill patients. One of the first things we would take note of is whether there was grass growing in the cracks of the concrete. Another item was the condition of the landscaping (was the grass mowed, the bushes trimmed, the trees pruned, etc.). We would then move on to how the paint looked, the roof, whether the windows were clean, etc. With this same approach, you should be looking to see how clean the house is. Are the grounds well kept? Is the roof showing signs of possible leaks? How does the entire exterior look? What shape is the room you will occupy, etc? Another issue you may find at halfway houses are the managers. Most, if not all, are in recovery themselves. There is a big difference between what is called a General Manager and a House Manager. It is very typical, and normal, for a house manager to have only a few months clean and sober. This does not mean the halfway house has poor management. It is not so much time clean, but the quality of clean time that matters most. It is typical that a House Manager will move on to getting their own place by the time they get 6 months to a year clean, so this makes sense why House Managers have little clean time. On the other hand, the General Manager typically has years of sobriety. Whats most important is how many years the General Manager has running a halfway house system as opposed to how long the House Manager has clean. A General Manager that has both years of sobriety coupled with years of experience running a halfway house is a winning combination. One of the most important factors in whether a halfway house is of good quality is how the General Manager and/or Owner deal with the overall handling of each and every resident. They should be forever vigilant, and firm. They should be able to tell you how often they are around the residents and the house, and if they run more than one house, they should be able to tell you how they stay on top of all their houses- what system is in place so that residents and houses are not left unattended for any length of time. A quality run house should require a length of stay commitment from the potential resident prior to moving in (this is usually anywhere from 3 months to 1 year- the longer the stay, the higher the success rates). All facilities should be set up so that every resident MUST report to the General Manager or House Manager, and that the House Manager reports directly to the General Manager or Owner. A quality run halfway house should have sign in/sign out sheets designating why a resident is going off grounds including where they are going and what time they will leave as well as when they will be back- make sure there is a system in place that checks and verifies this information both before a resident leaves and how they appear upon return. This includes going to work, a job search, (this should include a separate list of places they are applying at and how long they will be at any one given employment office/business), 12-Step Meeting attendance (this should state which meeting, time of meeting, and any other important information), visiting family, (who, where, etc.), visiting a friend (This should be looked at by the General Manager/Owner and not just the House Manager- keeping in mind that certain people and places are off limits), as well as any other reasons and times for leaving the house- responsibility and accountability are important components at a good halfway house- look for this. Money is another issue. If a person will be tempted to drink/drug, a quality house should have a safe place to hold a residents money. If, for instance, a resident has another person (family member, case worker, etc.) paying for their stay at a halfway house, this money should go directly to the company/Owner, and not to the resident. Employment may be required as part of a residents stay, and there are certain high-risk jobs that should not be allowed by management. These include driving a cab, working at a bar, graveyard shifts, and working too many hours that the resident does not leave time to engage in their recovery effort. More information on typical fees can be read further down on this article. Responsibility- Most halfway houses require residents to attend what is called House Meetings. House Meetings should occur on specific days at specific times, for the purpose of reviewing how a resident is doing, if they are attending 12-Step meetings, counseling sessions (if offered), and any other issues that may have come up during their stay. Most good halfway houses require residents to attend either or both inside and off grounds 12-Step Meetings (Typically 12-Step attendance is a minimum of 1 per day initially, and at least 3 meetings per week as a maintenance level- most quality houses require a resident to have a sheet signed by the meeting chairperson stating the name of the meeting, day, date, and time). It is very important how a halfway house handles a residents free time (at least for the first 30 days), as new residents should only be allowed off grounds with a stable resident to go with them, and it should be noted if they are utilizing this privilege without abusing it. Typically, a new resident may be restricted to the unit for the first few days. After between 1 week and 30 days, if a resident has shown responsibility and accountability, a resident will be allowed more freedom, but keep in mind that a quality house should always have curfews in place regardless of length of stay. Most will have specific wake-up times. It is also important to find out how they handle visitations (family, friends, case workers, etc.) Free time includes going to off grounds 12-Step Meetings, working with a 12-Step Sponsor, working the 12-Steps, etc. Free time is extremely dangerous for a newly recovered person, so a good run house should have programs and activities to keep them occupied. Most require a resident to do chores (gardening, sweeping, cleaning, cooking, etc.) and these are usually done without pay. If a resident has a vehicle, it should be either paid for or they are making payments on it- these payments should be verified as being up to date. A resident must be properly and currently licensed to drive it, and the tags should be current as well. On another note, the level of care at a halfway house can vary greatly. Some offer the bare minimum- a bed with a roof over it. Others provide counseling, 12-Step Meetings, guidance, true random drug testing of their residents, food, and transportation to/from outside meetings, job coaching, training, placement, and many other services. The key is to find a halfway house that is run well, as well as one that meets your needs. Keep in mind that many who choose, or are placed into, a halfway house do get better and can stay sober, but this requires a combination of resident dedication and good management. Also keep in mind that halfway houses are not treatment centers, not a place of luxury, and definitely not responsible for a persons sobriety. Be aware of so-called flop houses which are just places to sleep without any supervision or accountability- these usually have high rates of failure/relapse. Some houses deal with dual diagnosis issues (substance abuse and mental health problems). Most provide a safe place, depending on the quality of the program, a facility manager and/or owner to oversee it, and some basic needs for the person living there. Please dont start checking out various halfway houses with the expectation of going to a country club, or more importantly, that everybody who is there is happy, healthy, and mature individuals- remember, they too are trying to get their lives together; some for the first time after decades of abusing alcohol and/or drugs- in other words, there is no perfect fit. If you are in need of detox services, this should be done with medical supervision- withdrawal can be deadly without the proper medical care in place- you may need to go to a separate place to detox safely before moving into a halfway house. If a halfway house provides detox, they should have qualified medical staff to deal with this issue- make sure you verify credentials. It helps to keep in mind why you are going to live at a halfway house... and that reason is, to be at a place that is alcohol and drug free, to be surrounded by people trying to build a better life for themselves, and a place that will keep an eye on you until you start to get on a successful path to making your life better. Keep this on your mind the whole time you are in a halfway house!!! Besides the basics provided, at a typical halfway house, be grateful if they provide anything else for you- remember your purpose for being there (to get a good shot at sobriety) and dont expect extras. There are many resources within each state to help you obtain a list of halfway houses near you (see resources below this article). Keep in mind that the lists provided to you contain mostly licensed facilities- a licensed facility does not mean they are better- just that they do a good job at paperwork and at paying licensing fees. A CASE IN POINT I had a very, very, very dear close friend named Bob (actually he was the best friend I ever had in my 50+ years on earth) and he had been sober for 6+ years. He took a relative, (who was actively using drugs) into his house to help him get his life back in order. As time went on, this relative and his influence took my friend Bob down the dark path of relapse. I worked as best I could with Bob, being that I was in Southern California and he was in Mesa, Arizona. Bob decided he had enough, and wanted to get clean again. Bob checked into a licensed halfway house and 1 day into staying at the house he had to pick up his last paycheck, so he could pay his rent at this halfway house. The halfway house let him leave alone, to get his check- a bad move on the managements decision to allow him to go by himself to do this (all they were concerned with was getting rent money from him) and so he picked up this large check and immediately got a hotel room, drugs, and proceeded to get high. Bob died in that hotel room. A quality run halfway house, licensed or not, would never have allowed him to do this, considering the risk, as a quality run halfway house would have arranged for the employer to mail the check, or that the House Manager or General Manager would have escorted Bob to the company and made Bob accountable and would never have permitted him to cash it and be left to his own devices- alcoholics/addicts are impulsive, especially early in their road to recovery- and Bob would have returned to the halfway house and the manager would have held his money to pay rent and also, hopefully, given him money to live on, but not enough to get high on. It is, in large part, the halfway houses part to intervene and assist a newcomer in making sound decisions instead of an impulsive weak moment that eventually lead to Bobs death. I continue to place a large amount of blame on this halfway house for playing a large role in my dear friends death. Had Bob been in a quality halfway house, licensed or not, he would still be alive today. There isnt a day that goes by that I dont miss my best friend. This article is dedicated to him in the hopes it doesnt get repeated. Additional Information A special amount of attention should be paid to the weekly costs and up front monies a particular halfway house charges to their residents. Typical average charges at halfway houses from state to state in the USA run from $90.00 to $150.00 per week. Some will take anybody in without upfront monies as long as the facility is reasonably confident the resident is either employed or employable and will be able to make their weekly rent payments and be able to make up for back rents. Some houses require up front monies prior to admission, a security deposit, and rent paid in advance. This may be a barrier to getting into certain facilities. There are no insurance companies that cover halfway house rents, unless the house provides specific treatment, counseling, etc., and even at this, it is difficult to get insurance companies to commit to extended periods of coverage. Also of concern, is if the resident is able to work- A Halfway House is a business, and overhead plays a big part in whether or not they can keep their doors open. It doesnt do much of anything if all the right pieces fall into place at a quality house, if they cant pay the bills. Many facilities go under, not because they dont care or want to help, but simply because they have too many residents who are not working, not enough residents, some who cant work, or are unable to cover and/or pay back the rent payments owed and/or the initial move in costs. So what can you expect for the amount of money you pay to a halfway house? This varies greatly. For some houses it is all-inclusive, meaning they provide everything from phone service, food, counseling, job seeking assistance, etc. For others, they may offer some or none of these services. Much has to do with whether you are going, or sending someone, to a 1/2 way house, or to a 3/4 house, or a sober living environment, recovery home, etc. (see additional information concerning this factor below). Typically, a Halfway House is for those just starting to get their life in order. A 3/4 house, sober living house, recovery home, etc. does not provide the intense monitoring of their residents. The residents pretty much go and do as they please, without meetings, UA tests, or signing in and out, as opposed to a quality run halfway house that should monitor all activities and services. It is best to check out what type of house you NEED and are interested in- this includes going to the possible house, talking to current residents, and checking out the outside as well as how the internal accountability (both for residents and managers/owners) factors are carried out on a daily basis. An additional word should be mentioned about the differences between a halfway house and a ¾ house, sober living home, recovery homes, etc. There is a distinct difference in all of these compared to a typical halfway house operation. First off, a halfway house is typically the place to go to, or be referred to, when someone has been actively using drugs, drinking alcoholically, or has been discharged from a treatment center or a prison for a non-violent drug offenders. It is not a detox ward, (unless they state this service is provided), as detox should be handled only by a medical facility run by professionals, (doctors, nurses, etc.). So, how do you know you are going to a quality run halfway house? This requires research, asking many, many, many questions directed to the owner and/or halfway house manager. NOTE: If they dont answer their phone calls or emails, dont return phone calls or emails, will not give you a tour, or have an attitude of indifference towards you for asking so many questions, it is best to find another place and start the process of finding a quality run halfway house all over again- keep in mind that you are literarily placing your very life into their hands, so you dont want to get this wrong.



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