How to Start a Group Home in Virginia: Licensing and Compliance Guide

In 60 Seconds

• DBHDS now classifies new applications as Priority 1, Priority 2, or Non-Priority.

• Priority 1 and 2 services are reviewed within 90 days once complete.

• Priority 1 applications are assigned in 5–10 business days; Priority 2 in 21 business days.

• You do not need to secure a property until after your policy review.

• Magnate Consulting helps providers prepare compliant policies, applications, and inspections.

Introduction

Starting a group home in Virginia requires structure, documentation, and compliance with the Department of Behavioral Health and Developmental Services (DBHDS) licensing regulations under 12VAC35-105.

Magnate Consulting helps providers navigate the state’s updated 2025 process, from completing DBHDS orientation to inspection readiness, without wasting time or money on steps that come too early.

1. Understanding Virginia’s Licensing Framework

DBHDS regulates all group homes serving individuals with developmental disabilities through its Office of Licensing.

To qualify for approval, providers must demonstrate:

• Safe environments that meet zoning, fire, and health standards.

• Qualified staff who complete background checks and required DBHDS training.

• Resident rights protections that preserve dignity, privacy, and choice.

• Person-centered services that align with each Individual Support Plan (ISP) and comply with the HCBS Final Rule (42 CFR §441.301).

Licensing delays often occur when providers secure a home too early or submit incomplete policies.

2. Priority and Non-Priority Service Classifications (DBHDS 2025 Update)

In July 2025, DBHDS updated its Priority Service Categories to focus licensing resources on programs most needed across the Commonwealth.

Priority 1 Services

These address critical statewide service shortages.DBHDS assigns Priority 1 applications to policy review within 5 to 10 business days and aims to complete the full review and licensing process within 90 days of a complete submission.

Examples include:

• DD Non-Center-Based Day Support for Adults and Children

• MH and SA Crisis Receiving Centers (CRC, 23-hour stabilization)

• MH Sponsored Residential Homes

• MH Residential Therapeutic Group Homes for Children and Adolescents

• SA Clinically Managed Medium-Intensity Residential (ASAM 3.5)

Priority 2 Services

These programs meet important regional needs but are less urgent statewide.DBHDS assigns Priority 2 applications within 21 business days and follows the same 90-day review goal once the application is complete.

Examples include:

• DD Residential Supervised Living for Adults

• DD and MH Residential Respite Services

• SA Clinically Managed Low-Intensity Residential (ASAM 3.1)

• MH Partial Hospitalization or Intensive Outpatient Programs

• DD In-Home Respite

Non-Priority Services

Non-priority programs are considered adequately available statewide or outside current state priorities.These applications are placed on a waitlist and reviewed in order received. DBHDS removes at least one non-priority applicant per month for policy review.

Examples include:

• DD Residential Group Home for Adults

• DD Center-Based Day Support Services

• DD Case Management

• MH Intensive In-Home Services

Applicants may request reclassification if they can show local data supporting unmet need.

DBHDS Initial Applicant Orientation and Exam (Effective November 7, 2025)

Starting November 2025, all applicants for Priority 1 or Priority 2 services must complete the DBHDS Initial Applicant Orientation and pass a Comprehensive Knowledge Exam with a minimum score of 85 percent before review.

The orientation includes 16 self-paced online modules on:

• DBHDS licensing and compliance standards

• Provider readiness and policy development

• Application preparation and documentation

• Quality assurance and operational structure

Applications without proof of orientation completion are automatically moved to the non-priority queue until verified.

Comparison at a Glance

Category	Definition	Examples	Assignment to Policy Review	Review Goal	Additional Time Factors
Priority 1	Critical statewide need	MH CRC, Sponsored Residential, SA ASAM 3.5	5–10 business days	Within 90 days	Varies by documentation and inspection readiness
Priority 2	Regional or moderate need	DD Supervised Living, DD Respite	21 business days	Within 90 days	Depends on applicant responsiveness
Non-Priority	Adequate statewide availability	DD Adult Group Homes, Day Support	Waitlist (1 per month)	No set timeline	May reclassify with local data

3. Provider Responsibilities After Licensure

After licensure, providers must maintain ongoing compliance through:

• Policy Development: Written procedures for medication, incidents, and confidentiality.

• Staffing: Maintaining approved ratios and staff competency.

• Documentation: Retaining service notes, training logs, and records for at least five years.

• Quality Improvement: Conducting internal audits and corrective actions.

• Confidentiality: Meeting HIPAA and state privacy requirements.

Magnate Consulting develops and audits compliance systems to help providers stay in full DBHDS alignment.

4. Steps to Start a Group Home in Virginia

Step 1: Register Your Business

• Register your agency with the Virginia State Corporation Commission (SCC).

• Define your ownership structure and business model.

• Identify your service type and confirm its Priority classification.

Step 2: Complete DBHDS Orientation and Exam (if Priority 1 or 2)

• Enroll in the Initial Applicant Orientation and complete all 16 modules.

• Pass the Comprehensive Knowledge Exam with at least 85 percent.

• Attach proof of completion to your licensing application.

Step 3: Submit Your Licensing Application

• Prepare all required documentation, including policies, staff training plans, and service descriptions.

• You do not need to secure a physical home yet.DBHDS reviews policies and your administrative readiness before approving a site.

Step 4: Secure the Home (After Policy Review)

• Once DBHDS confirms your policies and service description, identify and secure the home.

• Obtain local zoning approval for residential use.

• Complete required fire and health inspections.

• The property must meet 12VAC35-105 physical environment standards before the pre-licensure inspection.

Step 5: Pass the DBHDS Pre-Licensure Inspection

• DBHDS will conduct an on-site review to confirm your home, documentation, and staff meet all regulatory standards.

• Providers who complete earlier steps accurately often pass inspection on the first attempt.

Magnate Consulting helps you time each step correctly, ensuring resources are invested only when required.

5. Staying Informed About DBHDS Changes

DBHDS continues to evaluate regulations related to:

• HCBS community integration standards

• Incident reporting and risk management

• Direct support staff competency verification

Magnate Consulting monitors these changes and helps providers stay ahead of compliance updates.

Conclusion

Starting a group home in Virginia means understanding DBHDS priorities, orientation requirements, and when to secure your property. Priority 1 and 2 applications are reviewed within 90 days once complete, but readiness and documentation quality determine how quickly each provider moves through the process.

Magnate Consulting helps providers meet every DBHDS requirement step-by-step so you can open your home with confidence and full compliance.

Verified Sources

• DBHDS Office of Licensing: Initial Applicant Orientation for Priority 1 and 2 Services (October 2025)

• DBHDS: Updates to Priority Service Categories and Review Timelines Memo (July 2025)

• Virginia Licensing Regulations (12VAC35-105)