business plan for a maternity home

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Embarking on Your Postpartum Care Business Journey

Launching a Postpartum Care business requires passion, dedication, and a deep understanding of new mothers' needs. It's about creating a sanctuary for mothers navigating the delicate postnatal period. The first step is crafting an empathetic business plan that resonates with your vision of supporting and empowering mothers. Conduct thorough market research to understand your competition and identify your unique selling proposition (USP). Establishing a comprehensive service offering that includes emotional, physical, and educational support is crucial. Remember, this is more than a business; it's about making a significant impact on families during one of the most transformative times of their lives.

Understanding the Market Needs

When diving into the postpartum care industry, one of the first hurdles you'll encounter is comprehending the extensive needs of your market. It's not just about offering a service; it's about fitting into the delicate ecosystem of new parenthood. Families often don't realize they need support until they're in the thick of postpartum challenges. This means your marketing has to be empathetic and educational, highlighting not just the services you offer but also why they're essential. Remember, your business isn't just providing care; it's offering peace of mind.

Navigating Legal Requirements and Certifications

In the realm of postpartum care, adhering to legal standards and obtaining the right certifications cannot be overlooked. Each state has its own set of rules governing healthcare services, including postpartum care. This might require you to invest time and resources into understanding these regulations thoroughly and ensuring compliance. Additionally, being certified in various aspects of postpartum care can significantly bolster your credibility with potential clients. Therefore, navigating these requirements is not just about legality but establishing trustworthiness in a sensitive market.

a cup of coffee and some books on a bathtub

Finding Your Unique Selling Proposition (USP)

In a market that's becoming increasingly saturated, identifying and communicating your USP is crucial for standing out. What makes your postpartum care service different from others? Perhaps it's your comprehensive approach or a unique package deal that caters extensively to new mothers' needs. Maybe it's your team's qualifications or perhaps your commitment to using only natural products. Pinpointing this unique aspect isn't just beneficial--it's essential for carving out your niche in a competitive market.

Setting Up an Effective Marketing Strategy

Your marketing strategy is what breathes life into your brand's message and services. In today's digital world, leveraging social media platforms to reach potential clients is non-negotiable. But more than mere presence, engaging with your audience through valuable content that resonates with their journey can create lasting connections. SEO optimized blog posts, testimonials from satisfied clients, and engaging video content are just some avenues to explore. Remember, consistency in your messaging and visuals goes a long way in building a recognizable brand.

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The Importance of Building a Supportive Network

A network of professionals within the healthcare industry can prove invaluable for a postpartum care business startup. Such connections can provide referrals, advice, and even partnership opportunities to help grow your business. It's also beneficial for the families you serve; knowing that you have a network of specialists means they're getting comprehensive support. Networking doesn't happen overnight but investing time in building these relationships will pay off significantly in terms of both knowledge gained and business growth. Moreover, joining professional associations related to maternity and postnatal care can elevate your business's credibility.

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Maintaining Quality Service as You Scale

Growth is an exciting prospect for any startup, but with growth comes the challenge of maintaining quality service. As demand increases, so does the pressure on your resources and team members. Implementing scalable processes and training programs early on can ease this transition, ensuring every member upholds your high standards of care. Additionally, regularly soliciting feedback from clients provides insights into areas needing improvement or expansion. Balancing growth while maintaining quality requires foresight and adaptability--two key attributes for success in this field.

Leveraging Technology for Efficiency

Embracing technology can dramatically improve efficiencies within your postpartum care business operations. From scheduling appointments online to using client management software, technology offers solutions that save time and reduce errors. Clients expect convenience at every turn; fulfilling this expectation not only improves their experience but also streamlines your workflow. Furthermore, data analytics tools can uncover trends within your client base, guiding more informed business decisions moving forward. Ultimately, integrating technology isn't an option; it's a necessity for staying competitive and responsive.

Utilizing Design Tools Like Desygner

Lastly, when considering how to start branding or rebranding efforts for your postpartum care business effectively aligns with visual branding's power--this is where tools like Desygner come into play. Desygner allows you to create professional-looking graphics without needing extensive design skills or expensive software subscriptions. Whether it's for social media posts or promotional materials, having visually appealing assets can significantly enhance how potential clients perceive your brand. Utilizing such user-friendly design tools ensures that even small startups can produce quality visual content consistently. Considering how crucial first impressions are in digital spaces, investing time in creating compelling visuals is indispensable for marketing success.

Concluding Thoughts on Starting Your Postpartum Care Business

Embarking on the journey to start a postpartum care business is a rewarding venture that not only offers the opportunity to support new mothers but also opens up a pathway to entrepreneurship. Having navigated through the essentials of setting up, it's clear that with passion, dedication, and strategic planning, success is within reach.

The importance of understanding your target market cannot be overstressed. Tailoring services to meet the unique needs of postpartum mothers ensures that your business stands out in this niche industry. Moreover, investing in professional development and staying abreast of the latest in maternal care will position you as a trusted authority in your field.

Marketing your business effectively is crucial for growth. Today's digital landscape offers a plethora of tools and platforms to reach your audience effectively. Remember, building a strong online presence and engaging with your community through social media can significantly boost your visibility and attract more clients.

Finally, reflect on these key takeaways as you move forward:

Identify your niche within the postpartum care industry.
Create a comprehensive business plan.
Obtain necessary certifications and training.
Develop a robust marketing strategy.
Foster partnerships with local healthcare providers.
Offer exceptional customer service to build loyalty.
Leverage social media for brand visibility.
Incorporate tools like Desygner for professional branding materials.

To elevate your brand and ensure it resonates with your target audience, consider signing up at Desygner for creating high-quality visual content that sets your postpartum care business apart. Start designing today and watch your business flourish!

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Starting a maternity housing ministry

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Maternity housing programs are a special part of the spectrum of services offered by pregnancy help organizations. Heartbeat is delighted that you are considering this ministry. The Scriptures are very clear that we must help those in need by meeting their needs.

For I was hungry, and you gave Me something to eat; I was thirsty, and you gave Me something to drink; I was a stranger, and you invited Me in (Matthew 25:35 NASB).

We are seeing homes develop independently as well as in partnership with other pregnancy help organizations.

It is important to lay a good foundation in every ministry and this is certainly true for a housing ministry. This work requires great faith and strength and planning. Below are a few things to initially consider.

Six basic steps as you plan

1. Gather data and information on the needs in your community. Talk to other ministry leaders and understand their perceptions of “gaps in services.” Have a solid understanding of the existing resources in your area. Gather research on unique factors that affect your community. This information will both inform your vision and help make a case for future donors.

2. Begin to write down your vision and how you see it unfolding. Be as specific as possible.

Record the vision and inscribe it on tablets,that the one who reads it may run. For the vision is yet for the appointed time;it hastens toward the goal and it will not fail though it tarries, wait for it; for it will certainly come, it will not delay (Habakkuk 2:2-3 NASB).

Who will you serve? How long can they stay?
What type of activities are going to happen in the home?
What type of property do you think you will need? Who will you serve? How many are you planning to serve? Give the age group and types (i.e., pregnant, single parents). Write these things down.

3. Make plans to visit existing programs. See what other housing ministry locations and programs may be in existence already by visiting the Worldwide Directory . Just type in your city or zip code and it will show you the life-affirming organizations that already exist in your area. To focus on housing organizations, use the Directory Code “Housing.”

4. Look for a small group of people to work with you as you plan. It is often a small group of key visionaries (sometimes called a Founding Committee) who set the cornerstones of the vision in place, recognizing that changes will be made along the way. Eventually, these people could be the beginning of your Board.

5. Be aware of the regulations that govern the work. In the US, a 501(c)3 and/or fiscal agent relationship is necessary to receive tax-deductible gifts. Understand state-level guidelines that impact housing organizations. Research the city-level regulations related to being a “group home” or having a “special use permit.”

6. Start working on a budget. Initial resources may be thought of as Seed Money (funding to begin the ministry) or Capital (funding for purchase of large ticket items like a property, vehicle, computer network, etc). Over time, you will prepare an Operating Budget to outline the annual expense of running the ministry. As needed, begin learning about fundraising strategies and create a fundraising plan.

We look forward to walking with you as you begin this journey. Housing is a beautifully messy ministry filled with life-changing relationships. It is your opportunity to change the life of others…and be changed in the process! Welcome to the maternity housing community!

Housing resources:

A Vision for Your Organization
Maternity Housing Essentials
Affiliate with Heartbeat International and Join the National Maternity Housing Coalition
FREE Webinar on 10 Things to Think About in Starting a Home
In-depth Webinar for Housing Start-ups
Join the National Maternity Housing Coalition Facebook group
National Christian Housing Conference

We pray God’s blessing on you as you consider this very important ministry of the pro-life community.

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What Is a Maternity Home?

How maternity homes are changing the narrative of the pro-life movement .

By Brittany Smith

When Tammy showed up at The Pregnancy Center in Sanford, Fla. she already knew she was pregnant. Her foster father, Tom, was with her for support but he was worried about future housing for Tammy and her baby.

“My boyfriend’s family doesn’t like me,” she explained to the nurse. Implying that she wouldn’t be getting help from them for housing or raising their child.

“We went over the options with Tammy and Tom, as well as resources available to her,” explained Teresa Marquez, the center’s sonographer (RDMS, RVT). “She had a great relationship with her foster family but because of financial and space constraints she couldn’t stay with them with a baby.”

That’s when Marquez brought up the idea of a local maternity home.

“A maternity home is a place you can go and they will help financially support you and provide a place to live until you get on your feet. They provide housing even after the baby is born,” Marquez told Tammy, giving her the information for an organization called Redeeming Life.

Tammy and Tom both felt strongly about the maternity home and she decided to pursue living there.

“I made a follow-up call to Tammy a week later,” Marquez said. “It was like talking to a different person. She was happy, excited, and seemed to have a handle on her next steps forward. She felt like there was a light at the end of the tunnel.”

The Maternity Home Movement

Critics of the pro-life movement often say it is one that only cares about the baby, but not the well-being of the mother. Tammy’s story highlights how the maternity home movement is changing that.

According to the pro-choice research group, The Guttmacher Institute 73 percent of women have an abortion because they can’t afford a baby, and 19 percent of women have an abortion because they would have to find a new place to live.

In other words, lack of resources and housing are two large factors as to why women don’t feel equipped to bring a child into the world. Additionally, pregnant women who lack housing often have limited access to medical and prenatal care.

Heartbeat International’s Maternity Housing Coalition Specialist, Mary Peterson said maternity homes of today have expanded their scope and services to combat this problem.

“The heart of a maternity home is working with pregnant women facing various circumstances,” she explained.

Maternity homes are a concrete response to the ongoing needs of pregnant women. When a woman makes a decision to carry her child, she needs infrastructure and outside help. Maternity home staff are set up to help her with employment, education, long term healing, and practical skills.

“It is a long-term response in the life movement,” Peterson said.

Maternity Housing Coalition

While they range in size and level of support, maternity homes exist to provide housing and other needs for pregnant or parenting moms. Currently, there are more than 400 maternity homes in the United States. About 100 of these are affiliated with Heartbeat International’s National Maternity Housing Coalition (NMHC).

The NMHC is a group of maternity homes that promote life-affirming efforts and housing across the U.S. It is a way for maternity homes to share best practices and efforts with each other. They’re also able to gain training and help in their individual missions.

Maternity homes help women meet goals in areas such as education, employment, financial stability and who need temporary shelter and help to get on their feet. Most maternity homes provide prenatal care, parenting classes, housing, education support, and adoption referral process help.

Although not all maternity homes look the same.

4 Types of Maternity Homes

There are currently four models of maternity homes that exist across the United States today:

Live-In House Parents: These homes house pregnant or parenting moms anywhere from 12-16 weeks after they give birth. There are “house parents” or couples who live in the home with moms and help them on a day to day basis. There are also counseling services, life-skills training, and job or educational support.

Live- In Staff: Various staff members live with the moms on-site to develop relationships and establish a stable setting.

Shift Staff: Specially trained staff work in 24-hour shifts and allow the homes to hire staff members with specialized services for the needs of the women living at the home.

Host Homes: These consist of organizations that facilitate certified host families to help house pregnant moms who need a place to live. These organizations also provide training and resources throughout her stay.

“Maternity homes show we care about the mom and the baby,” Petersen said.

She noted that many of the women living in maternity homes have faced tough home lives and even trauma.

“We’re going to walk with someone for months, or years even. We know healing happens in the context of relationships, and in community. A home life where people are engaged and watching out for each other. That’s where real healing work happens.”

Learn more about Maternity Homes

Heartbeat International has a directory of over 400 maternity homes in the United States . Find the nearest one to your church and learn about the programs they offer. Figure out where you and your church can get involved, whether it’s volunteering, donating resources, time or money.

Read more about how housing makes all the difference.

Tags housing , maternity home , maternity housing

DEAR READER

We hope this article enlightened and inspired you to stand up for life.

Despite the overturning of Roe v. Wade, abortions are still prevalent in our nation. As a response to the overturning, the media: from the news to entertainment sources to even political figures and celebrities, have pushed abortion as an ongoing agenda, shaping the way this generation thinks and acts. Misinformation is being spread every day, and people are sadly believing the lies.

Our articles and stories aim to tell one thing: the truth.

We know that it is both a blessing and a challenge to understand the reality of abortion, because knowledge incites belief, and belief incites action. But we’re in this together. We believe that we can make abortion unthinkable.

With your support, we look forward to a future where young women are empowered to fight for their own rights: a right to bring life into the world, to be fearless leaders, to be examples of hope, strength, and undeterred resilience. We look forward to a future where life can happen.

If this article strengthened your belief to reach women everywhere with the truth and to let life happen, then please consider helping us extend our reach by making a gift right now. Your gift of just $10 or $20 helps our mission to create a story of hope and empowerment for every woman facing an unplanned pregnancy.

We aim to create a culture that views “pro-life” as equivalent to having empathy and compassion, providing holistic care (before and beyond pregnancy) and education, and most importantly, choosing to speak and act in love. We are pro-life, pro-love, pro-woman, pro-solution.

Don’t just be part of the movement, be part of the solution, and give today.

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Office of the Assistant Secretary for Planning and Evaluation

The Implementation of Maternity Group Home Programs: Serving Pregnant and Parenting Teens in a Residential Setting

Prepared by: Lara K. Hulsey, Robert G. Wood, and Anu Rangarajan Mathematica Policy Research

April 22, 2005

ASPE Project Officer: Brenda Benesch

Contract No: 233-02-0086

Acknowledgements

This report, which presents implementation lessons learned from visits to several maternity group home programs, has benefited from the efforts and contributions of many people. Appreciation goes first of all to efforts of people in the sites who are working hard to implement maternity group home programs. Many of these individuals also played an important role in this study by providing valuable information on the functioning of the homes, the services they provide, and their organizational structure. Particular thanks go to the network and program directors in the seven study sites who helped organize our site visits, provided us with program documents, and responded to follow-up questions. They include Michele Ozumba, Molly Casey, and Vincent Smith in Georgia; Greg Foltz and Jane Vachon in Maine; Paula Callahan and Kellie Hurley in Massachusetts; Donna Roraback in Michigan; Barbara Otto Dennis in New Mexico; Patricia Beresford in New York; and Kelly Land in Washington. The program staff and residents who met with us have also been indispensable to the study, and we thank them for their willingness to share information on the homes with us.

The study has also benefited from the wise advice and guidance of many people. Thanks go to the staff at the U.S. Department of Health and Human Services (DHHS), Office of the Assistant Secretary for Planning and Evaluation (ASPE) who provided substantive input on the study and the design of this report. In particular, Brenda Benesh, the project officer for this study, provided invaluable guidance throughout the development of the report, including carefully reviewing site profiles. We also thank Martha Moorehouse, Meredith Kelsey, and Sonia Chessen from ASPE and Nancye Campbell, Harry Wilson, Stan Chappell, and Curtis Porter from the Administration for Children and Families (ACF) for their input during the early stages of the study.

Many thanks go also to the study’s Technical Working Group (TWG) members, Patricia Beresford, Barbara Otto Dennis, Ron Haskins, Rebecca Maynard, and Matt Stagner. These TWG members and staff from ACF and ASPE provided valuable guidance in the early stages of the study, including recommending the addition of the implementation component of the study. Appreciation goes also to Kate Sylvester at the Social Policy Action Network for her participation in the TWG meeting as well as providing earlier input on the study.

At Mathematica Policy Research, Barbara Devaney and Kimberly Boller carefully reviewed a draft of the report, and provided valuable guidance and incisive analytic suggestions. Roy Grisham carefully edited the report, and Marjorie Mitchell and Jennifer Chiaramonti provided exemplary production support. We are grateful for the efforts of all those who helped complete this report.

We gratefully acknowledge these many contributions and accept sole responsibility for any errors or omissions in the report.

Executive Summary

Maternity group homes offer an innovative and intensive approach to addressing the needs of an extremely vulnerable population — teenage mothers and their children who have no other suitable place to live. Interest in these homes has increased in recent years, due in part to recent welfare reform rules that require minor parents to live in an adult-supervised setting as a condition of Temporary Assistance for Needy Families (TANF) receipt. Yet surprisingly little is known about maternity group homes; to date there have been few studies of the implementation of maternity group home programs and no rigorous evaluations that examine their effectiveness.

Given the considerable interest in maternity group homes and the roles they can play in assisting pregnant and parenting teens’ transition to independence, it is important to fill some of the gaps in the existing research. For this reason, the Office of the Assistant Secretary for Planning and Evaluation (ASPE) at the U.S. Department of Health and Human Services is interested in learning more about maternity group home programs and in assessing the feasibility of conducting a rigorous evaluation to measure the effectiveness of such programs. To this end, ASPE contracted with Mathematica Policy Research, Inc. to conduct a study of how these programs operate and to explore options for studying them further. The study has two main objectives: (1) document the implementation of maternity group home programs and (2) explore the feasibility of conducting a rigorous evaluation of their effectiveness. This report addresses the first of these two objectives; a future report will address the second objective.

Methodology and Research questions

This study examines maternity group home programs in seven states. In this study, a maternity group home is defined as a residential program providing substantial supervision and other services primarily to pregnant and/or parenting teenagers. Because one main goal of the current study is to assess the feasibility of conducting a more rigorous evaluation of the effectiveness of maternity group home programs, our emphasis was on programs that seemed to have the highest potential for inclusion in such an evaluation. Thus, the homes included in this study are not necessarily typical or representative of maternity group homes nationwide. In particular, the programs in the study are relatively large, most including multiple homes. Table 1 provides a brief overview of the seven programs in this study.

We conducted two-day site visits to each of these programs, visiting up to five maternity group homes in each program. During the visits, we met with staff of the agency or organization that oversees all the homes in the program, and sometimes with staff of another agency that provides the majority of funding or referrals. At each home, we toured the facility, met with key staff, and, where possible, spoke with residents and observed program activities.

This report describes the implementation of these seven large maternity group home programs. In particular, the report addresses three sets of research questions:

Management, Funding, and Target Population. What kinds of management structures support and guide larger maternity group home programs? What are the sources of funding for these programs? What are the eligibility requirements and typical referral sources? What are the characteristics of the population these homes serve?
Services Provided. What are maternity group homes like? What kinds of facilities house the programs? What kinds of services do they provide?
Staffing and Costs. How are maternity group homes staffed? What are the levels of funding for these programs? Why do program costs vary across homes?

Key Findings

Management. Maternity group homes are often operated by larger organizations with broader social service missions. In some cases, a single parent organization — such as St. Andre Home, Inc. in Maine or Friends of Youth in Washington — operates multiple maternity group homes. In addition, some large maternity group home programs have another layer of management. Four of the seven study programs are networks, consisting of several homes that are each operated by a different parent organization. Networked homes are linked together by a state or county agency that provides funding, oversight, and other support to the homes.

Both parent organizations and network agencies provide extensive support to their homes. Network managing agencies can provide their homes with funding and technical assistance, facilitate interactions between different homes, and encourage standardization or deliberate variety among their homes. Parent organizations can take on similar roles, particularly for homes that do not belong to a network. Parent organizations can also provide more direct management to maternity group homes, often taking responsibility for all financial matters and sometimes sharing staff and facilities. Providing such assistance, however, uses financial resources, and centralized networks may limit homes’ flexibility to tailor their programs to meet local needs. Agencies and organizations should take these tradeoffs into account when considering opening a maternity group home program or creating a network.

Funding Sources. The study programs rely on various funding sources (see Table 1 ). Each typically depends on a single major government funding source, that covers two-thirds or more of the cost of the program. However, the main source of funding varies substantially across the programs. Two programs rely primarily on federal child welfare funds, and two others receive the majority of their funding from Supportive Housing Program grants from the U.S. Department of Housing and Urban Development (HUD). One program uses federal Medicaid funds — for the professional services received by maternity group home residents — supplemented by specially allocated state funds. Two other programs are funded primarily with state funds. The study programs typically supplement funds from their primary source with smaller amounts of funding from other governmental and nongovernmental sources. For example, most homes receive private donations — either cash or in-kind contributions — from charities and individuals. In addition, most homes require residents to make small monthly contributions, typically set at 25 to 33 percent of residents’ monthly income.

Target Population. Maternity group home programs serve a highly disadvantaged population with many special needs. Program staff reported that histories of physical, emotional, and sexual abuse were common among the residents of the homes. Residents often come from chaotic family backgrounds that put them at high risk for adverse outcomes. Many were raised in unstable family situations, often involving frequent moves and a lack of structure. In other cases, residents have spent many years in the foster care system with little or no contact with their families. Program staff frequently indicated that their residents had extremely poor models of parenting as young children and, therefore, now find it extremely challenging to be good parents themselves.

Most maternity group home programs share a basic set of eligibility requirements. In general, residents must be young single women who are in need of housing and are either pregnant or raising a young child. The homes in this study primarily serve teenage mothers. Programs typically screen out young women with severe mental health and behavior problems, active drug abusers, and those who might be a danger to themselves or others at the home. Even so, many residents have histories of psychological and behavioral problems.

In many cases, maternity group home programs have additional eligibility rules tied to their funding sources. For example, programs that receive HUD funding, such as those in Washington and Michigan, require residents to meet the HUD definition of homelessness as a condition of program eligibility. Homes in the Massachusetts and New York programs may not accept residents who are not referred by the agencies that provide the homes’ funding.

Other programs accept referrals from multiple sources, although some have a primary source that provides the bulk of their residents (see Table 1 ). For example, the Georgia and Maine programs receive most of their referrals from local child welfare agencies, while the Michigan program homes receive most of their referrals from the TANF agency. Most homes also accept referrals from various other sources, including schools, the juvenile justice system, homeless shelters, hospitals, and informal channels — for example, friends, relatives, and churches. In other cases, the young mothers themselves request assistance from the program.

Services Provided. The potential of maternity group home programs to address the numerous problems facing pregnant and parenting teens rests in the range of services they provide to their residents. The maternity group homes in this study are intensive, comprehensive support programs for pregnant and parenting young women and their children. The homes provide a safe place to live, constant supervision, and an extensive array of services to the families living there. All the homes visited for this study provide the following core set of services:

Housing. Probably the most fundamental need filled by maternity group homes is that of secure housing. The majority of the study homes are congregate facilities, in which all residents share common areas, such as living rooms, dining rooms, and kitchens. However, many programs also include some facilities in which residents live in individual or shared apartments.
Supervision and Structure. In response to the need of teen parents for support and supervision, maternity group homes typically have staff on site 24 hours a day, 7 days a week. In addition to providing general supervision and other services to their residents, staff provide structure by establishing and enforcing rules under which maternity group home residents must live. Homes often impose numerous restrictions and obligations on residents, both to provide needed structure to the lives of those living there and to teach them responsibility and skills they will need to be self-sufficient once they leave the home.
Case Management. All homes in this study provide case management services to their residents, usually through regularly scheduled, mandatory individual meetings with staff. Case management sessions often involve setting personal goals and discussing progress on achieving them. In addition, case managers work to connect residents with external providers of other services that the homes themselves cannot offer.
Parenting and Life Skills. The constant presence of home staff offers residents many opportunities for informal lessons on the skills needed to parent and live independently. Moreover, some of the required chores are specifically designed to give residents a chance to practice these skills. In addition, maternity group homes offer formal instruction in parenting and life-skills topics, and attendance at these classes typically is mandatory for all residents. Some homes require residents to attend several group sessions each week, while others offer such classes only a few times a month.

The homes also often provide logistical supports — such as child care and transportation assistance — to enable residents to access additional services outside the home and to attend school, work, and other activities. In addition to these common services, some maternity group homes strive to offer additional services on site, such as mental health services, educational assistance, follow-up services for former residents, and services to the fathers of residents’ children. Through these intensive programs of comprehensive services, maternity group homes have the potential to benefit disadvantaged young mothers and their children in both the short and long term.

Staffing and Costs. Operating a residential program that provides supervision, structure, and other services to pregnant and parenting teens and their children can require a large staff. On average, the homes in our study have about five full-time and six part-time staff. In addition to their own staff, homes often rely on external providers to perform certain services, such as teaching classes or providing therapy to residents within the homes. These providers may be unpaid partners, paid contractors, or staff of the home’s parent organization.

Staffing — which can make up 70 percent or more of overall operating expenses — is by far the largest expense in operating maternity group home programs. The cost of operating a maternity group home can be high, due to the number of staff needed. The average monthly cost per resident family ranges from $1,200 to $8,600 in the study homes.

The number of staff varies considerably across the homes, depending in part on the size and type of facility, the specific population served, and the intensity of supervision and other services provided directly by home staff. Since staffing is the single largest component of program expenses at most homes, any program feature that has strong implications for staffing will have similar implications for costs. Thus, programs serving populations that require more intensive supervision — such as younger teens or those placed in the homes by child welfare agencies — will typically have higher costs. Homes able to rely on other community organizations to provide many services to residents can realize cost savings by not providing these services directly. In addition, programs that operate larger homes tend to have lower per-resident costs, due to economies of scale. Policymakers and social service organizations should consider these factors when determining the features and likely costs of operating maternity group home programs.

Recommendations for Further Research

By systematically examining the implementation of maternity group home programs in 22 different homes, this report fills some of the gaps in the existing literature. However, much remains to be learned about the operation and effectiveness of maternity group homes. For one thing, this study examined only 7 of the more than 100 maternity group home programs in the country. Moreover, this study focused on relatively large programs, most of which included a number of different affiliated homes. Future research would be necessary to determine to what extent, and in what ways, the many smaller programs and independent maternity group homes might differ from those included in this study. In addition, we cannot know to what extent maternity group home programs live up to their potential to address some important consequences of teen pregnancy without a rigorous evaluation of their effectiveness. Future research should include a careful examination of the impact of these programs on the well-being of the young mothers and children they serve.

Research Summary

Methodology and Research Questions

This study examines maternity group home programs in seven states. In this study, a maternity group home is defined as a residential program providing substantial supervision and other services primarily to pregnant and/or parenting teenagers . Because one main goal of the current study is to assess the feasibility of conducting a more rigorous evaluation of the effectiveness of maternity group home programs, our emphasis was on programs that seemed to have the highest potential for inclusion in such an evaluation. Thus, the homes included in this study are not necessarily typical or representative of maternity group homes nationwide. In particular, the programs in the study are relatively large, most including multiple homes. Table 1 provides a brief overview of the seven programs in this study.

This report describes the implementation of these seven large maternity group home programs. In particular, the report addresses three sets of research questions:

Management, Funding, and Target Population. What kinds of management structures support and guide larger maternity group home programs? What are the sources of funding for these programs? What are the eligibility requirements and typical referral sources? What are the characteristics of the population these homes serve?
Services Provided. What are maternity group homes like? What kinds of facilities house the programs? What kinds of services do they provide?
Staffing and Costs. How are maternity group homes staffed? What are the levels of funding for these programs? Why do program costs vary across homes?

Both parent organizations and network agencies provide extensive support to their homes. Network managing agencies can provide their homes with funding and technical assistance, facilitate interactions between different homes, and encourage standardization or deliberate variety among their homes. Parent organizations can take on similar roles, particularly for homes that do not belong to a network. Parent organizations can also provide more direct management to maternity group homes, often taking responsibility for all financial matters and sometimes sharing staff and facilities. Providing such assistance, however, uses financial resources, and centralized networks may limit homes' flexibility to tailor their programs to meet local needs. Agencies and organizations should take these tradeoffs into account when considering opening a maternity group home program or creating a network.

Other programs accept referrals from multiple sources, although some have a primary source that provides the bulk of their residents (see Table 1). For example, the Georgia and Maine programs receive most of their referrals from local child welfare agencies, while the Michigan program homes receive most of their referrals from the TANF agency. Most homes also accept referrals from various other sources, including schools, the juvenile justice system, homeless shelters, hospitals, and informal channels — for example, friends, relatives, and churches. In other cases, the young mothers themselves request assistance from the program.

Housing. Probably the most fundamental need filled by maternity group homes is that of secure housing. The majority of the study homes are congregate facilities, in which all residents share common areas, such as living rooms, dining rooms, and kitchens. However, many programs also include some facilities in which residents live in individual or shared apartments.
Supervision and Structure. In response to the need of teen parents for support and supervision, maternity group homes typically have staff on site 24 hours a day, 7 days a week. In addition to providing general supervision and other services to their residents, staff provide structure by establishing and enforcing rules under which maternity group home residents must live. Homes often impose numerous restrictions and obligations on residents, both to provide needed structure to the lives of those living there and to teach them responsibility and skills they will need to be self-sufficient once they leave the home.
Case Management. All homes in this study provide case management services to their residents, usually through regularly scheduled, mandatory individual meetings with staff. Case management sessions often involve setting personal goals and discussing progress on achieving them. In addition, case managers work to connect residents with external providers of other services that the homes themselves cannot offer.
Parenting and Life Skills. The constant presence of home staff offers residents many opportunities for informal lessons on the skills needed to parent and live independently. Moreover, some of the required chores are specifically designed to give residents a chance to practice these skills. In addition, maternity group homes offer formal instruction in parenting and life-skills topics, and attendance at these classes typically is mandatory for all residents. Some homes require residents to attend several group sessions each week, while others offer such classes only a few times a month.

The homes also often provide logistical supports — such as child care and transportation assistance — to enable residents to access additional services outside the home and to attend school, work, and other activities. In addition to these common services, some maternity group homes strive to offer additional services on site, such as mental health services, educational assistance, follow-up services for former residents, and services to the fathers of residents' children. Through these intensive programs of comprehensive services, maternity group homes have the potential to benefit disadvantaged young mothers and their children in both the short and long term.

Chapter 1. Introduction

Maternity group homes offer an innovative and intensive approach to addressing the needs of an extremely vulnerable population — teenage mothers and their children who have no other suitable place to live. Interest in maternity group homes has increased in recent years, due in part to recent welfare reform rules that require minor parents to live in an adult-supervised setting as a condition of Temporary Assistance for Needy Families (TANF) receipt. Yet surprisingly little is known about maternity group homes; to date there have been few studies of the implementation of maternity group home programs and no rigorous evaluations examining the effectiveness of these programs.

Given the considerable interest in maternity group homes and the roles they can play in assisting pregnant and parenting teens transition to independence, it is important to fill some of the gaps in the existing research. The Office of the Assistant Secretary for Planning and Evaluation (ASPE) at the U.S. Department of Health and Human Services (DHHS) is interested in learning more about maternity group home programs and in assessing the feasibility of conducting a rigorous evaluation to measure the effectiveness of such programs. To this end, ASPE contracted Mathematica Policy Research, Inc. (MPR) to explore options and design an evaluation of maternity group homes. The study has two main objectives: (1) document the implementation of maternity group home programs and (2) explore the feasibility of conducting a rigorous evaluation of their effectiveness. This report addresses the first objective; a future report will address the second.

The Consequences of Teenage Parenthood

Although the rates of pregnancy among teenagers have fallen steadily throughout the past decade, teenage pregnancy and parenthood remain serious problems in the United States. More than 800,000 teenagers become pregnant each year, and about a third of all young women experience a pregnancy before age 20 (Henshaw 2004; National Campaign to Prevent Teen Pregnancy 2004). The majority of teenagers who become pregnant are from disadvantaged backgrounds, and early pregnancy and childbirth create additional challenges. These teen parents and their children struggle with difficult circumstances in the short term and throughout their lives.

The problems facing pregnant and parenting teens are well documented. Teen mothers tend to be very poor, and most are single parents; this stress is often compounded by physical or sexual abuse and other health issues (U.S. DHHS 2000). Pregnancy can interrupt teens’ educational pursuits and early employment experiences (Maynard 1996). The negative outcomes associated with teenage pregnancy, including lifelong poverty and lengthy spells on public assistance, can follow mothers and their children for the rest of their lives (U.S. DHHS 2000). The daughters of teen mothers often become teen mothers themselves, with all the accompanying negative outcomes, thus perpetuating the intergenerational cycle of poverty and disadvantage.

Homelessness increases their risk of negative outcomes. Teens with tenuous living situations may have to leave their homes when they become pregnant. Pregnancy may be the final straw in an already unstable living situation, or their homes may be unsuitable environments in which to raise their babies due to issues of overcrowding, unsafe living conditions, domestic violence, or other extenuating circumstances. Teens in foster care who become pregnant may find that their current home is unable to accommodate their infant, and foster care placement cannot always ensure that a teen and her child will be placed together.

However, there are few housing options for pregnant and parenting teens who cannot live with a parent or responsible adult. Homeless shelters and battered women shelters often do not accept minor teens or their young children. Few teens have the financial and personal resources to live independently, particularly while caring for a young child, and teens facing housing instability are likely to be among the most disadvantaged. Furthermore, in some cases, teen parents must live in a supervised setting as a condition of receiving TANF benefits or as a condition of retaining custody of their babies.

Background on Maternity Group Homes

Maternity group homes are a potential solution to this housing issue, and possibly to other challenges facing teen parents. Maternity group homes can offer an intensive package of services to meet the short- and longer-term needs of pregnant and parenting teens. In the short term, these homes provide a secure living environment with adult supervision and material and emotional support for teen parent families. Maternity group homes can also promote more positive long-term outcomes for teen parents and their children, by providing more extensive services to better prepare residents for independence. Maternity group homes can also provide necessary logistical supports such as transportation and child care to enable teen parents to pursue avenues to better their lives and their families’ futures.

History. Maternity group homes have a long history. Some of the maternity group homes in operation today — such as Inwood House in New York, St. Ann’s in Maryland, and the Florence Crittenton agencies — trace their origins to the 1800s (Reich 1996; Reich and Kelly 2000; and Child Welfare League of America 2004). A number of “rescue homes” were opened in the United States in the late 19th century to aid unwed mothers who, at the time, faced considerable social stigma in addition to economic hardship. These homes provided a safe place for young “fallen women” to live during and after pregnancy, as well as services intended to “rehabilitate” them and teach them to care for their children. Some traditional maternity homes provided services only during pregnancy, after which the usual outcome was for the mothers to give their babies up for adoption.

The need for this type of home was reduced over time, however, due to gradual social changes that made single parenthood more socially acceptable. 1 Particularly during the 1960s and 70s, increased access to contraception made unintended pregnancies more preventable, and the reduced stigma of single parenthood led to a growing desire of unwed mothers to keep their babies. These changes led to the closing of some traditional maternity homes and the re-focusing of other programs. Some homes closed entirely, stopped providing residential services, or diversified to serving a broader population of young women in need (Child Welfare League of America 2004). Others continued their mission as maternity group homes, but with alterations to meet the changing needs. Some relocated from large facilities to smaller, community-based homes. Some homes that had only served pregnant residents extended their programs to provide assistance to the growing number of mothers who decided to keep their babies. In addition, some programs shifted from serving unmarried mothers in general to focusing on a population with the greatest need — teenagers.

Teen mothers in particular still face considerable challenges in caring for themselves and their children, as discussed above. In addition, recent welfare reform rules that require minor parents to live in approved housing as a condition of TANF receipt have contributed to a resurgence in maternity group homes specifically targeted to serve pregnant and parenting teenagers who, for one reason or another, cannot live in their parents’ homes. 2 For example, welfare reform prompted the creation of a few networks of maternity group homes, such as the statewide Teen Living Program established in Massachusetts in 1995.

Prior Research. While maternity group homes have the potential to address some important consequences of teen pregnancy, there are a number of gaps in the breadth and depth of knowledge collected about their operations. There have been a number of descriptive studies of maternity group homes in recent years, which have examined the characteristics of their programs and, sometimes, of their residents. 3 However, while the existing studies provide helpful descriptive information on maternity group homes and their residents, they suffer from limitations that reduce the usefulness of their findings. In particular, most studies either provide a very brief look at a number of different homes, or a more intensive examination of a single maternity group home or network. In addition, few studies explored the implementation of maternity group homes, resulting in limited information on the challenges faced and lessons learned as staff operate maternity group home programs.

Study Approach and Methodology

This report aims at filling some of the gaps in the past research by systematically examining the implementation of maternity group home programs across a large number of sites. To do this, we selected interesting maternity group home programs in seven states and conducted site visits to more than 20 different homes.

Site Selection. In determining which maternity group home programs to focus on in this study, we found it useful to first clarify what exactly a maternity group home is. For the purposes of the study, we defined a maternity group home as a residential program providing substantial supervision and other services primarily to pregnant and/or parenting teenagers. 4 This definition excludes programs that provide only limited adult supervision — such as having staff on site only during standard business hours on weekdays — as well as programs that provide housing and supervision but no other services to their residents.

After restricting the definition, we developed a set of other criteria to help us select sites for this study. Because one main goal of the current study is to assess the feasibility of conducting a more rigorous evaluation of the effectiveness of select maternity group homes, our emphasis was on sites that seemed to have the highest potential for inclusion in such an evaluation. To this end, we focused primarily on programs that met the following four broad criteria:

Strong, well implemented intervention
Ability to generate adequate sample sizes
Services offered distinct from what participants would otherwise receive
Unmet need for program services

We relied on a variety of resources to explore how well various maternity group home programs meet each of these criteria. These resources included the directory of maternity group homes compiled by the Social Policy Action Network (SPAN), a review of past studies of maternity group homes, Internet searches, reviews of program websites, and preliminary telephone conversations with staff from certain programs.

It was difficult to find programs that clearly met all four criteria. In particular, identifying programs that were both large enough to generate adequate samples for an evaluation and operating in environments with clear evidence of substantial excess demand for program services proved to be particularly challenging. When necessary, we prioritized the ability to generate adequate sample sizes above the existence of unmet need for program services.

Because of these selection criteria, the homes included in this study are not necessarily typical or representative of maternity group homes nationwide. In particular, because a rigorous evaluation would require large sample sizes, our selection process focused on relatively large maternity group home programs — those serving relatively large numbers of resident families. To achieve these numbers, most of the sites included in this study are actually either networks of homes operated by several different organizations or programs in which multiple homes are operated by a single organization. Thus, although the individual homes included in our study are not necessarily any larger on average than other homes, those in our study are more likely to be part of larger programs. These program ties may have implications for homes’ funding, structure, and operations. 5 For example, being part of a larger program my provide the homes in our study with access to resources that independent homes may not have. In addition, homes that are part of larger programs may have to follow program guidelines concerning whom to serve or how to structure the home. Thus, the homes included in our study may be different from other maternity group homes in a variety of ways.

Data Collection. Once we had selected the sites, we contacted the director of each program to request program documents and plan a site visit to gather additional information. Two site visitors went to most programs and spent two or three days in the program’s coverage area. During the visits, we met with network- or program-level staff at each of these seven sites, in addition to visiting maternity group homes themselves. The text box below shows the topics discussed during conversations with staff.

At each program, we met with the program director and other staff of the network agency or managing organization. We collected any additional program documents that were available. In some cases, we also met with staff of an agency that provided the majority of funding or referrals for the maternity group home program.

We visited every maternity group home in the three programs that included fewer than four homes each (see Table I.1 ). In the other programs, we visited between three and five homes each. We selected which homes to visit in consultation with the network or program director, based on representativeness, variety, and location. In some cases, we also visited other, unrelated, homes in the same area. At each home, we toured the facility and met with key staff. Where possible, we also spoke with residents and observed program activities.

Programs Included in This Report

We visited maternity group home programs in seven states ( Table I.1 ). Each of these programs is described briefly below. Additional detail on each program can be found in Appendix A.

Georgia — GCAPP Second Chance Homes. The Georgia Campaign for Adolescent Pregnancy Prevention (GCAPP) operates a network of eight maternity group homes, located throughout the state, serving 44 teenage mothers and their babies. The program began serving teens in 2001 and is funded primarily by the Georgia Department of Human Resources (DHR). DHR provides both funding to GCAPP — which uses some of this funding to support network-level staff and passes the remaining funds along to the homes — and payments to homes directly for providing shelter and services to children in state custody.

Residents must be between the ages of 13 and 20. Although both pregnant and parenting teens are eligible to live in the homes, in practice most teens have had their babies before they enter the program. The program serves primarily teens in state custody. About two thirds of program residents are referred by local child welfare agencies, and another 10 percent by juvenile justice agencies.

The eight homes all offer a similar set of services, including weekly parenting and life-skills classes, regular individual therapy sessions, and weekly case management sessions. Homes also offer tutoring services, as well as transportation to medical appointments, educational events, and group outings. All homes involve congregate living, in which the each teen family has its own bedroom but shares living, dining, and kitchen areas. All provide a very high level of supervision for their residents, including staff on site 24 hours a day and low resident-to-staff ratios — these staffing patterns are required by state law for facilities that house minors in state custody, as these homes do.

Maine — St. Andre Home, Inc. St. Andre Home, Inc. operates four maternity group homes in Maine, which can serve a total of 16 pregnant and parenting young women and their children. The organization was founded in 1940 by a local order of nuns. Three of the homes opened in the mid-1970s; the fourth opened in 1998. Funding for the four homes is primarily through Medicaid and a state contract.

To reside in a St. Andre group home, young women must be Medicaid eligible and either be pregnant or parenting a child younger than age three. All homes serve young mothers ages 15 to 24. One of the four homes can serve women up to the age of 30 and can accommodate mothers with two children. Most residents were referred to the program by the Maine Department of Health and Human Services, and living in the home is often a condition either of retaining custody of their children or being reunited with their children in state custody.

All of the homes follow a congregate model and have staff on site 24 hours a day. The homes all have low resident-to-staff ratios, each employing six full-time and one part-time staff member, and the program also contracts with a number of consultants. In addition to housing and supervision, each home provides a number of individual and group services to its residents. Homes convene group sessions — including parenting and life-skills classes and house meetings — three or four times a week, and residents must meet individually with the home’s social worker each week. Some residents also meet regularly with psychiatrists who come to the home to provide therapy. Homes also occasionally provide child care and transportation for their residents.

Massachusetts — Teen Living Program. The Massachusetts Teen Living Program includes 20 maternity group homes for pregnant and parenting teens throughout the state. The homes can house 167 teens and their children, making the network the largest maternity group home program in the country. The network began in 1995 as part of state welfare reform. It is managed by the Massachusetts Department of Social Services(DSS), which oversees child welfare issues for the state, in partnership with the Massachusetts Department of Transitional Assistance (DTA), which manages the state’s TANF program. The network receives most of its funding from DTA and the remainder from DSS.

All homes require that residents be: (1) between the ages of 13 and 20 years old, (2) Massachusetts residents, and (3) pregnant or parenting. Each bed within the network is designated as either “DTA” or “DSS,” which indicates the referral source and eligibility requirements for that bed. All DTA-bed residents must receive TANF, while all DSS-bed residents must have an open DSS case for their children or themselves (although there is considerable overlap between these two groups).

Most of the homes in the network are congregate facilities, but five programs follow an apartment model, in which two or three teens and their children share an apartment. 6 Apartment-model programs are designed for older teens who are better able to take care of themselves and their children. Both types of homes have staff on site 24 hours a day, but congregate homes must have awake staff at all times, while some apartment-model homes have live-in house parents instead.

Homes typically have three or four group sessions a week, including life-skills/parenting groups and house meetings. Residents also meet weekly with their case manager, and some provide counseling to residents. Residents’ children are screened by Early Intervention Services and are often assigned to Early Head Start. Homes will also assist residents in finding child care and many will provide transportation in some situations. Besides services to current residents, the homes offer follow-up assistance to former residents. The programs also provide outreach and case management services to the fathers of current residents’ children.

Michigan — Teen Parent Supportive Housing Services Collaborative. The Family Independence Agency (FIA) of Wayne County oversees a small county-based network of providers serving pregnant and parenting teens in the Detroit area. The network includes three maternity group homes, with total capacity to serve 34 pregnant and parenting teens and their children. In addition, the network includes a parenting program and an agency that provides mental health and outreach services to support the maternity group homes. The U.S. Department of Housing and Urban Development (HUD) Supportive Housing Program is the primary source of funding for all the homes in the network, although none relies exclusively on this source.

All homes serve both pregnant and parenting teens, and each home can accommodate at least a certain number of parents with two children. None of the homes accepts teens younger than 15 or older than 18, and some individual homes have narrower age ranges. Residents must be from Wayne County, and all homes require parental consent for minors. FIA is the primary source of referrals for all three homes, and all admissions decisions are made with the approval of FIA caseworkers.

Two of the homes are congregate living facilities, and in one of these homes teens even share bedrooms. The third facility, which targets slightly older teens than the other homes, is an old apartment building in which each teen parent has her own one-bedroom apartment. All three homes have staff on site 24 hours a day, and staff at the two congregate homes must be awake at all times. Each home has at least four full-time staff and a number of part-time staff, plus some partner staff who come in to the homes to provide specific services.

Besides housing and supervision, all the homes provide case management and a number of scheduled classes and individual meetings. The homes typically offer classes for the residents most weekday evenings, covering topics related to parenting and life skills. Group and individual counseling are also commonly provided. Some homes provide child care and transportation to enable residents to attend school or work, and some homes take residents on group outings. In addition to services provided to residents, each home also offers some continued assistance to former residents after they leave the home.

New Mexico — Teen Parent Program. The New Mexico Teen Parent Program, which is managed by the state’s Children, Youth, and Family Department, funds five group homes and three non-residential programs for pregnant and parenting teens throughout the state. The homes can serve a total of 38 pregnant or parenting young women and their children. The program began operating in 1990 and is the oldest statewide network of maternity group homes in the country. The network provides funding toward the operating expenses at all five homes, but some of the homes have substantial funding from other sources, including HUD, the child welfare system, and Catholic Charities.

By design, program operations are very decentralized, and individual homes have considerable flexibility in determining the specific services they offer and population they serve. All of the homes serve pregnant or parenting young women under age 21, but some have additional eligibility requirements, such as meeting the HUD definition of homelessness.

The setting and physical structures of the five homes vary substantially. Two are in converted single-family homes, and one is in a converted motel in a remote location. Another home is in a set of three attached two-bedroom apartments in a small town, and another is in a set of eight clustered one- and two-bedroom apartment units in a large privately owned apartment complex in an urban area.

Most of the homes provide 24-hour supervision. The number of full-time staff at each home ranges from two to five; however, those with fewer full-time staff typically employ more part-time staff. In addition to paid staff, most homes rely on volunteers from partner organizations to provide some services to home residents. All homes offer case management services and regular parenting and life-skills classes to residents, typically meeting once or twice a week. Some provide other direct services such as tutoring, respite child care, and transportation.

New York — Inwood House Maternity Residence. Inwood House is one of three New York City maternity homes for pregnant teens in the foster care system. It was founded in 1830 and has been serving pregnant teens from the city’s foster care system since the 1930s. In addition to its maternity residence, which has capacity to serve 36, Inwood House operates several other programs to serve pregnant and parenting teens, as well as programs designed to reduce teen pregnancy. 7 The Administration for Children Services (ACS), the city’s child welfare agency, contracts with Inwood House to provide maternity home services and provides most of the home’s funding.

The program serves pregnant young women under the age of 21 until the birth of their child. After their babies are born, state law requires that residents and their babies be placed elsewhere, typically with a foster family or in a group home for teen parents. In addition, since ACS regulations prohibit babies from residing in the maternity home, residents must not have custody of any other children. All residents must in the foster care system, and all referrals to the program come from ACS.

Inwood House operates out of three floors in a six-story former apartment building in a quiet, residential neighborhood in New York City. Residents all have their own bedrooms and share living rooms and dining areas. ACS regulations require 24-hour-awake staff, as well as a low resident-to-staff ratio. For these reasons, the program has a large staff of social workers, paraprofessionals, administrators, and support staff. The home offers a wide array of support services, including six mandatory weekly classes — on independent living skills, child birth, infant care, health, substance abuse prevention, and other special topics — and weekly meetings with their case managers. Inwood House offers an on-site school for teens who are not able to find an appropriate educational program in the community. The home also offers case management services to the fathers of the residents’ babies, who are also invited to attend the childbirth and other classes Inwood House offers for its residents.

Washington — Friends of Youth Transitional Living Program. Friends of Youth operates a small Transitional Living Program network including two maternity group homes and three residential programs for other youth populations in the Seattle area. 8 The two maternity homes serve 20 pregnant and parenting young women and their children. Friends of Youth has operated other residential programs for youth since 1951 and opened their first maternity home exclusively for pregnant and parenting teens in 1991. The network’s management is fairly centralized — one Friends of Youth staff member is the program manager for both maternity homes. The majority of funding for both maternity homes is provided by HUD.

The eligibility requirements are the same at both Friends of Youth maternity homes. Residents must be pregnant or parenting young women between the ages of 18 and 21 at time of entry into the home. They can have only one child, and their children must be no older than age 4 when they enter the home. The homes must verify and document that applicants are homeless according to HUD’s definition.

The two homes offer a similar set of services; however, one is a congregate living facility while the other is an apartment model facility. Each of the homes has a resident manager who lives on site, so someone is available to residents day and night. Each of the homes also has its own full-time case manager, and the two homes share a program manager, assistant program manager, and a pool of relief staff. The homes offer group sessions — such as house meetings, parenting classes, and cooking/nutrition classes — approximately weekly, and residents at both homes are required to meet weekly with their case manager. One home also contracts with external providers for mental health services. One home provides child care for its residents, while the other has only limited funding for occasional child care. Both homes provide bus passes to their residents.

Overview of this Report

The current report discusses the implementation of maternity group home programs in 22 different homes across these seven sites. This systematic examination should both fill gaps in the existing literature and provide useful information for policymakers and for organizations considering establishing maternity group homes. The rest of the report focuses on describing the implementation of maternity group home programs in these seven sites. In particular, this report addresses three sets of research questions:

Organization and Target Population. What kinds of management structures support and guide larger maternity group home programs? What are the sources of funding for these programs? What are their eligibility requirements and typical referral sources? What are the characteristics of the population these homes serve?
Services Provided. What are maternity group homes like? What kinds of facilities house these programs? What kinds of services do they provide? What types of rules must residents follow?
Staffing and Costs. How are maternity group homes staffed? What are the levels of funding for these programs? Why do funding levels vary substantially across homes?

Chapters II through IV of this report discuss each of these topics in turn. Chapter V summarizes the implementation lessons presented in the earlier chapters and makes recommendations for further research in this area.

1 In addition, the enactment of Aid to Families with Dependent Children (AFDC) in 1935 had reduced the need for maternity group homes by providing financial support for single mothers — whether widowed or unwed — and their children (Cooper 2004). 2 The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) included requirements concerning the living arrangements of teenage parents on welfare. Unmarried minor parents must live with a parent or guardian, with few exceptions, as a condition of receiving benefits. States are required to provide or facilitate alternative adult-supervised living situations for those unable to live with a parent. 3 A recent review of the literature discussed the methodology of 17 past studies of maternity group homes and summarized their findings on a wide variety of issues (Hulsey 2004). 4 This definition excludes programs that primarily serve a much broader population (such as teens who may not be pregnant or parenting, or pregnant and parenting women who may not be teens) of which only a minority are pregnant or parenting teens. However, this definition does not exclude homes that serve a few residents who are outside of the teen age range. Most of the programs discussed in this report serve exclusively residents between the ages of 13 and 21, but a few serve women through their middle or later twenties. 5 Chapter II discusses this issue in detail. 6 In addition to these two types of homes, Massachusetts’ statewide network includes three transitional Supportive Teen Parent Education and Employment Program (STEP) facilities. STEP homes are apartment-model programs for older teens who have “graduated” from regular TLPs and are deemed ready by program staff to transition to semi-independent living. STEP programs do not fit the definition of maternity group home used in this study, because they provide considerably less supervision than other homes. None of the STEPfacilities have 24-hour staff, and some are staffed as little as 20 hours per week. Residents of STEP homes still receive some supervision and case management and attend group sessions and classes, but less frequently than other TLP residents. 7 Inwood House officially has capacity to serve 36 residents. However, the home has been operating well below this capacity for some time and has reduced staff and converted some space for other uses. Thus, in this report, we consider the home’s capacity to be 24 residents when computing staff ratios and costs per resident. 8 Until recently, one of the other residential programs was a maternity group home, but FOY staff decided to transition this facility into a home for young women (ages 18 to 22), as they felt that there were fewer facilities and greater needs for this population than the young parent population.

Chapter 2. The Organization and Target Population of Maternity Group Home Programs

An important first step in understanding how maternity group home programs operate is to examine their organization and target population. As discussed in Chapter I , this study focuses primarily on large maternity group home programs, usually consisting of multiple homes. Therefore, the information described in this chapter represents what is typical among larger programs operating multiple facilities. We begin the chapter with a discussion of how these programs are managed, describing two types of organizational structures: networked programs and independent programs. We then discuss the government and non-government funding sources that these larger programs typically rely on. Next, we examine the typical referral sources these programs use, as well as their referral and application processes. We then discuss eligibility rules, ending the chapter with a brief discussion of the kinds of residents these programs typically serve and the challenges they face.

How are large maternity group home programs managed?

We begin our examination of large maternity group home programs by considering how these programs are typically managed. The seven study programs follow two distinct models of management: (1) “networked programs” consisting of several homes operated by different social service providers and linked through a common funding source; and (2) “independent programs” consisting of a single home or multiple homes operated by one social service provider. Four of the study programs are networked and three are independent. We define and discuss these two program models in more detail below.

Networked Programs. Networked maternity group home programs are those in which one organization manages the overall program and contracts with several social service organizations to operate the homes and provide services to residents. These networked programs are usually overseen by the state or county government agency that is responsible for child welfare issues. For example, the Massachusetts Teen Living Program and the New Mexico Teen Parent Program are overseen by the state child welfare agencies in these states ( Table II.1 ). Similarly, the Michigan Teen Parent Supportive Housing Services Collaborative is sponsored by the Wayne County Family Independence Agency, which is the county agency in charge of both welfare and child welfare programs. In contrast, the Georgia Second Chance Home program is operated by the Georgia Campaign for Adolescent Pregnancy Prevention (GCAPP), a private, nonprofit advocacy organization that works to reduce teenage pregnancy in the state. However, GCAPP runs the program under contract and in collaboration with the Georgia Department of Human Resources, the state agency responsible for both welfare and child welfare programs.

The agencies that manage these networked maternity group home programs serve two main functions: (1) providing general oversight and management, and (2) offering ongoing technical assistance and support. The oversight and management functions of the network agencies primarily involve providing funding to the homes and monitoring them to make sure they are complying with program rules and guidelines. In addition, in the Massachusetts Teen Living Program, this function includes managing the program’s referral process.

In Massachusetts, referrals for most program beds are handled centrally by the Massachusetts Department of Social Services (DSS), the state agency that oversees the Teen Living Program. DSS employs a full-time program coordinator, who decides which homes to place teens in when they enter the program. In the other three networked programs, individual homes generally handle their own referrals. 1

Network agencies typically provide ongoing technical assistance and support to the homes in their network. For example, they sponsor meetings several times a year with the program managers from each of the homes in their network. These meetings typically involve in-service training, as well as discussions and presentations on important issues facing the homes, such as changes in state regulations or funding.

In addition, the networked programs offer ongoing support to the homes beyond these regular meetings, with the Massachusetts and Georgia programs providing the most assistance of this type. Both programs employ a full-time program coordinator, who provides ongoing technical assistance and support to the homes in the network. In both programs, the coordinators are in frequent contact with the staff at the homes, typically talking with them at least weekly and often speaking with them even more frequently. Coordinators are also available to help staff at the homes troubleshoot when problems arise, such as staffing issues or problems with resident behavior. In addition, the Georgia network agency provides the homes with both monthly and annual reports describing the characteristics of the population they serve and the kinds and amounts of services they provide. 2 Staff in the Georgia maternity group homes indicated that the information provided in these reports was very helpful in understanding the population they work with and in improving the services they deliver.

The Michigan and New Mexico network agencies also provide some ongoing support for their homes, but on a much more limited basis. In Michigan and New Mexico, the network-level coordinators (both of whom devote only part of their time to the program) have ongoing contact with staff at the homes; however, this contact is considerably less frequent than in the Massachusetts and Georgia programs. In the Michigan and New Mexico programs, home staff typically have contact with staff from the network agencies substantially less often than once a week. 3

Providing a high level of ongoing support to the homes in the network requires considerable staff time on the part of the network agency. The network agencies in both Georgia and Massachusetts have a full-time program coordinator whose primary function is to provide such support. In addition, both agencies devote considerable time to their maternity group home programs from other staff members, who typically handle administrative issues. This allows the program coordinators to devote the bulk of their time to ongoing assistance to the homes.

In contrast, the network agencies in Michigan and New Mexico do not devote any staff members exclusively to the maternity group home program. The network-level program coordinators for these two programs both have other duties and devote only about half their time to the group home programs. Therefore, they have less time available to provide ongoing support to the homes. In addition, there are generally no other staff at their agencies who devote substantial time to the program. Therefore, the time these staff members have to devote to the program must be divided between administrative and support functions.

Independent Programs. Independent maternity group home programs are those in which services are provided by one social service organization that operates a single home or multiple homes. Nationwide, most maternity group home programs are of this type. However, since this study focuses on larger programs and since networked programs are typically larger than independent ones, we observed more networked than independent programs ( Table II.1 ).

The three independent programs included in the study are organized and managed in fairly different ways. The Maine program is organized the most like a network. St. Andre Home, Inc., a private, nonprofit organization founded by a local order of nuns, operates four group homes in central and southern Maine. The program has a director and financial officer, both of whom work out of the central office. These staff members handle all financial issues and provide general oversight of the homes. Each of the four homes has its own director who oversees and manages the day-to-day functioning of the home. The St. Andre program director oversees the home directors and works closely with them in dealing with the various issues that arise in operating the homes. She is in contact with each home director several times a week. During these contacts she discusses staffing issues and problems with residents and thus plays a role similar to that of the network coordinators in the Massachusetts and Georgia programs: offering ongoing support and assistance to the staff in the homes.

The Transitional Living Program operated by Friends of Youth consists of five residential programs, two of which are maternity group homes. These five homes in the Seattle, Washington area are all directed by one staff member who works out of the central Friends of Youth office. Since the number of staff at each home is small (typically two full-time staff, compared with six in each of the Maine homes), there are no home directors. Because the distinction between central office and home staff is less clear in the Friends of Youth program, there is less of a parallel between the function of the program’s director and that of the director of the various networked programs we observed.

The Inwood House program in New York City is the least like the networked programs, since it operates only one large facility. 4 In recent years, the organization has been serving 20 to 25 pregnant teens in its one maternity residence in New York. Inwood House employs a director of congregate care, who oversees the daily operations of the home. Financial and business issues for the home are handled by the organization’s assistant executive director, who works out of the same facility.

How Are Large Maternity Group Home Programs Funded?

Funding is a central issue for any social service program. Therefore, when examining the operations of maternity group home programs, it is important to consider carefully where their funding comes from and the amount of funding they require to deliver their services. In this section, we examine the funding sources for the programs in our study. In Chapter IV , we discuss the funding levels of each of these programs.

Government Funding. The maternity group home programs included in this study rely primarily on government funding to cover their operating expenses. They typically depend on one major government funding source, that covers most (two-thirds or more) of the cost of the program. This primary funding source is then supplemented by funding from other sources (Table II.2).

The main source of funding varies substantially across the programs in the study. The Georgia and New York programs rely primarily on federal child welfare funds — funding that is received as set monthly payments from the local child welfare agency for providing housing and services to pregnant and parenting teens in the foster care system. The New York program serves exclusively teens in foster care and relies almost exclusively on these payments for funding. The Georgia program serves primarily teens in foster care, although the program also serves teen parents not in state custody. The program uses federal TANF funds to cover other residents and to provide additional services to all residents that are not covered by child welfare funds. 5

The main funding source for both the Michigan and Washington programs are HUD grants offered as part of the federal Supportive Housing Program. One of the homes in the Michigan program also receives additional HUD funding through the Emergency Shelter Grants Program. Because these programs rely on HUD funding, their residents must meet the HUD definition of homelessness as a condition for eligibility.

The state of Maine relies on a distinctive approach to funding the maternity group home services offered by the St. Andre program. The state uses federal Medicaid funds that cover assisted living programs to pay for the professional services received by maternity group home residents (such as counseling, case management, and medical treatment). This funding source covers about 70 percent of the costs of the St. Andre program. Other program expenses–in particular, food and housing–are covered by specially allocated state funds provided to the program through a contract the agency has with the state to provide residential services to young mothers and their babies.

The Massachusetts and New Mexico programs are funded primarily with state funds ( Table II.2 ). The Massachusetts Teen Living Program was established in 1995 as part of a state welfare reform initiative that, among other changes to the welfare program, required teen mothers to live in an adult-supervised setting as a condition of receiving cash assistance. This legislation established a line item in the state budget to fund the program as an option for those who did not have an appropriate relative or guardian with whom they could live. In the New Mexico program, the primary funding source for most homes is state funding that was specially allocated for the program when it began in 1990. Three of the five homes in the New Mexico network receive the bulk of their funding from these state funds. One of the other two New Mexico homes receives about half its funding from a HUD grant to house homeless teens. Another home serves a large number of child welfare cases and receives substantial child welfare funding.

Other Funding Sources. All the study programs rely primarily on state and federal government funding to cover the costs of housing and providing services to their residents. However, they typically supplement their government funding in two ways: (1) through small monthly payments required of residents and (2) through private donations. Most programs require monthly contributions from their residents, usually set at 25 to 33 percent of residents’ monthly income. Often residents’ only income source is a TANF check. 6 In these cases, residents pay a quarter to a third of their TANF grant — typically amounting to about $100 to $150 — to the program each month. The primary purpose of these monthly payments is not to provide a substantial funding source for these programs. Instead, as discussed in Chapter III , programs usually view these payments as a good way to teach budgeting skills to their residents and to prepare them for life outside the home, when they will be expected to make monthly rent payments. These payments typically cover five percent or less of the cost of operating these programs.

Most maternity group home programs receive donations from private charities and individuals to cover some of their expenses. These private donations typically cover a relatively small portion of the program’s overall budget. None of the study programs receive more than 20 percent of their funding from private sources, and usually private funding sources cover substantially less of their expenses than that. A few programs receive small amounts of funding from private foundations for specific program activities. For example, one home in Massachusetts receives a $3,000 grant each year to pay for a special nutrition program it offers to its residents. In addition, many maternity homes are operated by social service organizations that run a variety of programs. These parent organizations often receive contributions from individuals and the United Way toward all the programs they operate, including their maternity group home. Both the St. Andre program in Maine and Casa San Jose in New Mexico (one of the five homes that are part of the New Mexico state network) are operated by Catholic organizations and receive some funding from Catholic charities to cover program expenses. Funding from these religious charities covers about 5 percent of ongoing program costs for the St. Andre program and about 15 percent of costs for Casa San Jose.

In addition, most study programs receive in-kind contributions from local businesses, civic organizations, churches, and individuals. These in-kind contributions are often new or used baby items (such as high chairs, car seats, strollers, or toys) or furniture for the home. In addition, in some programs, local civic organizations or church groups provide volunteers who serve as mentors for residents or perform general upkeep and repairs to the building.

Where Do Maternity Group Home Programs Get Referrals?

An important issue to consider when examining maternity group home programs is how these programs get their referrals. In this section, we describe the sources of referrals used by these homes. We then discuss briefly how the application and referral process works in the programs visited.

Referral Sources. Although most programs accept referrals from multiple sources, they often have a primary source from which they receive the bulk of their referrals ( Table II.3 ). For example, the Georgia and Maine programs receive most of their referrals from local child welfare agencies, while the New York program receives all its referrals from this source. In the Georgia program (which receives two-thirds of its referrals from child welfare), those referred to the program are typically minors in state custody through the foster care system. 7 In many cases, the homes represent the only setting available where these young mothers can be placed together with their babies. The New York program has a contract with the city child welfare agency to serve pregnant teens from the foster care system and is contractually obligated to receive all its referrals from this agency. In some cases, these primary referral sources tie closely with primary funding sources. Both the Georgia and New York programs receive the bulk of their funding from monthly payments that come from the referring child welfare agencies to cover the cost of housing and support services for these teens in state custody.

Although the Maine program also relies primarily on child welfare referrals, most young mothers in the program are older than age 18 and are thus not themselves active child welfare cases (although some were in foster care as children). Instead, child welfare referrals are typically situations in which the baby — and not the mother — is a child welfare case. In many instances, the young mother and baby have been separated because of a child welfare issue, and the mother must now live in the home as a condition for reuniting with her child. Child welfare authorities view placement in these homes as an opportunity to reunite the young mother with her child on a (closely monitored) trial basis. The Massachusetts program also receives reunification referrals of this type from local child welfare agencies; however, these cases make up a fairly small fraction of referrals to the Massachusetts program.

The Massachusetts and Michigan programs both receive most of their referrals from the TANF agency. These programs were started in conjunction with state welfare reform initiatives that imposed the requirement that minor parents must live in an adult-supervised setting as a condition for receiving cash assistance. In these states, funding for maternity group homes was secured in response to this new requirement. When these programs were created, the homes were viewed as a means of providing an appropriate, supervised living situation for young mothers on TANF who could not live with their own families. Because of this tie to TANF and welfare reform, these programs receive the bulk of their referrals from TANF agencies. In addition, referrals to the Massachusetts program are closely tied to funding. The program receives state funding through two sources: the state TANF agency and the state child welfare agency. All referrals to the Massachusetts program must come from one of these two funding agencies.

The New Mexico and Seattle programs have no primary referral source. Instead, these programs rely on a mix of referral sources that include schools, child welfare agencies, the juvenile justice system, homeless shelters, hospitals, and public health clinics. The Georgia, Maine, and Michigan programs rely on a similar mix of referral sources to fill some of their beds. In addition, these programs sometimes receive referrals through more informal channels, such as friends, relatives, or churches. In other cases, the young mothers themselves request assistance from the program. In contrast to the other study programs, the Massachusetts and New York programs do not rely on a wide mix of referral sources. The Massachusetts program can only receive referrals from a small set of approved sources (the state TANF agency and local child welfare agencies), while the New York program receives all its referrals from the city child welfare agency.

The Referral and Application Process. Although most homes in the study are part of larger programs, the referral and application process is usually handled directly by the homes themselves. If a home receives a referral and has a vacancy, potential residents typically complete a detailed application form. 8 The information gathered on these forms helps the program assess the needs of new applicants and helps the program detect issues that may create problems after the applicant is admitted. In addition, programs usually conduct background checks as part of the application process. These checks help programs detect serious emotional or behavioral issues. Applicants with especially serious problems are not allowed to enroll in the program. In some cases, programs perform psychological assessments as an additional means of detecting potential problems and determining service needs.

In many cases, homes require face-to-face meetings with applicants before they can be admitted to the program. During these meetings, home staff conduct detailed interviews with applicants and carefully review the rules and expectations of the program. In some cases, would-be residents decide not to pursue their applications further once they gain a better understanding of the structure and requirements that the home imposes. Some homes interview multiple applicants for a single vacant slot. 9 When using this method to choose among applicants, staff consider multiple factors, including their level of need and whether they would fit in well with other residents and with life at the home generally. In homes where multiple applicants are interviewed to fill a single vacancy, staff indicated that this process enabled them to create and maintain a more harmonious environment in the home. In other programs, homes accept the first applicant who meets their eligibility and screening criteria.

Although most study programs follow referral and application procedures similar to those described above, two of the programs have very different, more centralized, procedures. In the Massachusetts program, most referrals are handled by the state child welfare agency (the network agency for the program) and not by the homes. The network-level program coordinator decides where to place new referrals, and homes generally must accept the referrals they receive. Similarly, in the New York program, all referrals come from the city child welfare agency and the program is generally expected to accept all referrals.

What Are The Eligibility Rules for Maternity Group Homes?

Most maternity group home programs share a basic set of eligibility requirements. In general, residents must be young single women who are in need of housing and are either pregnant or parenting. This study focuses on programs that serve primarily teenage mothers. However, in many cases, study programs also serve slightly older mothers, often up to age 21 ( Table II.4 ). The Maine program has the highest age cutoff, serving young mothers up to age 24 in all of its homes and mothers up to age 29 in one home.

Most programs accept both pregnant and parenting young women, although residents more commonly arrive in the homes after their babies are born. An exception is the New York program, which serves exclusively pregnant teens in the foster care system. New York state law prohibits residential programs for minors in state custody from serving both pregnant and parenting young women in the same facility. Consistent with this regulation, once residents of the New York program have had their babies, they must be placed in another facility that is licensed to accept young mothers with children. The Georgia program also serves mainly a foster care population and is therefore subject to state regulations regarding minors in state custody. When the Georgia program was first being developed, state regulators initially said that the program could not serve both pregnant and parenting teens. However, program planners persuaded state regulators to allow pregnant teens into the program on a limited basis. Under current state guidelines, each home in the Georgia network is allowed to serve one pregnant teen every six months. This rule keeps the number of pregnant teens in the Georgia program quite low. Most residents enter the program after they have had their babies.

Programs typically serve young mothers with one or two children. Space limitations lead most homes to accept primarily mothers with only one child. However, most programs have a small number of slots reserved for mothers with two children. Most programs do not have specific limits on the ages of the children allowed to reside in the homes. In general, the age limits for mothers make it unlikely that residents would have children older than three or four years old. A few programs, typically those with higher age cutoffs for mothers, have specific age limits for children that reside in the home. For example, the Maine program allows only mothers with children under age three, while the Washington program restricts eligibility to mothers with children who are under age five.

Most programs screen out young women with severe mental health and behavior problems. Program staff indicated that they would not admit an applicant who had a history of extreme violence or serious mental illness or who was an active drug user. Home staff indicated that, because home residents share living space, it is particularly important to screen applicants carefully and not admit those who appear to pose a safety risk to other residents.

In many cases, additional eligibility rules for maternity group home programs are tied to their funding sources. For example, programs that receive HUD funding, such as those in Washington and Michigan, require residents to meet the HUD definition of homelessness as a condition of program eligibility. 10 Similarly, in the Maine program, which relies primarily on Medicaid funding, residents must be Medicaid-eligible to participate. In the New York program, which is funded through set monthly payments for serving pregnant teens in foster care, residents must be in the foster care system to be eligible. The Massachusetts program has specific slots with different eligibility requirements, depending on how the slot is funded. Slots that are paid for through the state TANF agency must be filled by young mothers who are receiving TANF, while those that are paid for through the state child welfare agency must be filled with young mothers with an active child welfare case.

What Kinds of Residents Do These Programs Typically Serve?

Maternity group home programs serve a very disadvantaged population with many special needs. Many were abused as children. Program staff consistently reported that histories of physical, emotional, and sexual abuse were common among residents of their homes. Residents have frequently had their first sexual experience at a very early age, often as a result of sexual abuse. In addition, residents often come from chaotic family backgrounds that put them at high risk for abuse and other adverse outcomes. Many were raised in unstable family situations, often involving frequent moves and a lack of structure.

In other cases, residents have spent many years in the foster care system with little or no contact with their families. Most residents have little support from family members. Program staff frequently indicated that their residents had extremely poor models of parenting as young children. They, therefore, now find it extremely challenging to be good parents themselves.

Consistent with their disadvantaged backgrounds, many residents have histories of psychological and behavior problems. Although programs strive to screen out residents with the most serious problems, depression, substance abuse, and involvement with the juvenile justice system are fairly common. Program staff indicated that most of their residents have been exposed to abuse and trauma as young children which has, in many cases, led to serious mental health problems. Residents are often on psychiatric medication and the need for mental health services among this population is high. For some residents, substance abuse is also a concern. Some homes use ongoing random drug tests as a strategy for preventing drug abuse among residents. In some cases, residents have histories of criminal activity and have been involved with the juvenile justice system. In addition, residents have frequently dropped out of school prior to entering the home. Many have spent a year or more out of school before enrolling in the program.

The information on resident characteristics provided by program staff underscores the complex challenges facing many maternity group home residents as they struggle to become successful parents and prepare to live independently. Many face serious obstacles, including mental health and substance abuse issues, poor school performance, and limited or no familial support. As described in the next chapter, maternity group home programs provide an intensive array of support services designed to help these young mothers meet these challenges and make a successful transition to parenthood and independent living.

1 In the Michigan program, although the network agency (Wayne County Family Independence Agency, which oversees the TANF program) does not oversee the referral process, TANF case workers from the agency participate in the interview and application process for all potential new residents of the homes.

2 GCAPP (the Georgia network agency) contracts with an independent research consultant who produces these reports for the program.

3 Both the Michigan and New Mexico programs had had recent turnover in key network-level staff members at the time of our visits, which may have diminished their ability to provide this kind of support to homes. Moreover, in the New Mexico program, this lower level of involvement and support is intentional. The initial vision for the New Mexico program was that it would be fairly decentralized, with homes operating independently and the network agency playing a relatively small role.

4 Inwood House also operates a small group home in the city that serves teen parents rather than pregnant teens. This home has the capacity to serve three teen parents and their babies.

5 These funds are provided to GCAPP (the network agency in Georgia) through a contract they have with the Georgia Department of Human Resources, the state agency in charge of both welfare and child welfare issues. These funds cover group home beds for teens who are not in state custody and mental health counseling for all residents. They also cover the support and assistance provided to the homes by GCAPP.

6 Since these payments typically come from residents’ TANF grants, they are actually another form of government funding for these programs. Some homes require residents to apply for TANF as a means of ensuring that they will have income to make these monthly payments to the program.

7 An additional 10 percent of the Georgia program’s referrals are teens in state custody through the juvenile justice system. These referrals come from juvenile justice authorities.

8 If a home has no vacancies, staff usually refer the case to another home in the area. Some homes maintain waiting lists. In these homes, staff use names from the waiting lists to fill vacancies when they arise.

9 This method is used only if the program has multiple applicants to choose from when a vacancy arises.

10 According to the HUD definition, individuals are considered to be homeless when they: (1) reside in a place that is not meant for human habitation (such as a car, park, sidewalk, or abandoned building); (2) reside in an emergency shelter or in transitional housing for the homeless; (3) are being evicted from a private dwelling or discharged from an institution, have no other placement available to them, and lack the resources needed to obtain housing; or (4) are fleeing domestic violence, have no other appropriate place to live, and lack the resources needed to obtain housing.

Chapter 3. Services Provided By Maternity Group Homes

The potential of maternity group home programs to address the numerous problems facing pregnant and parenting teens rests in the range of services they provide to their residents. Pregnant and parenting teens and their children have a wide variety of needs. One of the most basic needs that maternity group homes can address is that of secure housing. Homes can go well beyond that, however, to offer a substantial amount of adult supervision and provide a structured environment for their residents with a set of rules all must follow. Maternity group home programs also can provide a comprehensive array of support services to their residents, both to address their immediate needs and to prepare them for independent living and self-sufficiency in the longer term.

In this chapter, we describe what life is like at the maternity group homes in our study and what these homes offer their residents. In particular, we discuss the types of services provided by maternity group homes and how these services are delivered to residents. We address the following research questions:

What sorts of facilities house maternity group home programs? How large are these homes? What is life like for those living there?
How structured is life in a maternity group home? How much supervision do the homes provide to their residents? What kinds of rules must residents follow, and how are these rules enforced?
What other types of services do maternity group home programs provide to their residents?

How Are Maternity Group Home Resodemts Housed?

Probably the most fundamental need filled by maternity group homes is that of housing. Even if the other benefits of living in a maternity group home were found to have no longer-term effects on residents, the homes still succeed in the goal of providing a temporary place for pregnant and parenting teens to live. Maternity group home programs use a variety of different types of facilities and typically teach residents to take responsibility for maintaining the space, so that they will be better prepared to live on their own some day.

Types of Facilities. Maternity group home programs use two basic housing structures:

Congregate Homes. In congregate living facilities, all residents share common areas, such as living rooms, dining rooms, and kitchens. Each resident of a congregate home may have her own bedroom (typically shared with her child), or she may share this space with another resident family. Some congregate homes have only basic common areas — a living room and an eat-in kitchen — while others have additional common spaces, such as playrooms, meeting rooms, computer rooms, laundry rooms, and yards available to residents. In addition, congregate facilities typically include some office space for maternity group home staff.
Clustered Apartments. In clustered apartment facilities, residents live in a number of separate apartments, each with its own living area, kitchen, and one or more bedrooms. In some apartment facilities, each resident family has its own apartment; in others, each apartment is shared by two or three families. Staff offices typically are housed in a separate apartment unit in the building.

The majority of the maternity homes visited are congregate facilities, although many networks include some facilities in which residents live in individual or shared apartments. Table III.1 shows the number of congregate and apartment-model facilities in the sites in this study. Approximately 80 percent of the 43 homes in these sites are congregate facilities.

Because of the expense associated with new construction, few programs are fortunate enough to have facilities built specifically to serve as a maternity group home. Programs take advantage of a wide variety of types of preexisting facilities, including former single-family homes, apartment buildings, motels, rectories, convents, and nursing homes. By far the most common settings, especially for congregate homes, are buildings that were originally large single-family houses. Almost half of the homes visited for this study are in buildings that were once single-family homes. Apartment-model programs are sometimes in such settings as well but more often are housed in former apartment buildings. These programs typically fill an entire (small) apartment building; but in some cases, they have only a few units in a larger building. For example, one program in Massachusetts shares an apartment building with other residential programs operated by the same parent organization. One program in New Mexico is housed in eight units of a much larger regular apartment complex.

Apartment-model homes tend to be somewhat larger than congregate homes, but most maternity group home programs are quite small. Half of the homes we visited have the capacity to serve no more than six resident families each, and only two of the homes we visited can serve as many as a dozen at one time. In addition, since this study focused on larger maternity group home programs, it is possible that the homes in these programs tend to have greater capacity than those in programs not visited.

Different populations of pregnant and parenting teens may benefit from different types of facilities. Congregate homes, which tend to be smaller and more communal, may be the best arrangement for less mature teens who need more attention and supervision. Larger, apartment-model homes may be more appropriate for older, more independent residents. Some programs deliberately vary their structures (or take advantage of the natural variation in the available facilities) to provide different types of arrangements for different types of residents or to help young mothers gradually make the transition to independence. For example, the network in Massachusetts includes both congregate homes and some apartment model homes, and network staff place residents in the type of home that will best meet their needs.

Resident Responsibilities. Regardless of the type of facility, maternity group home programs take steps to encourage residents to take responsibility for the facilities in which they live. Such policies serve dual purposes: (1) to keep the facilities clean and well maintained, and (2) to help prepare residents to one day live independently in their own homes. Programs use two methods to accomplish this, requiring residents to pay rent and to assist in the upkeep of the facilities by performing household chores.

Most maternity group homes require residents to make some financial contributions to the home (discussed in Chapter II ). One goal of such policies is to give residents experience in paying monthly rent, which they will have to do when they leave the home and live independently. Staff also mentioned that charging residents rent during their stay in the maternity home allows staff to serve as a credit reference when residents apply for their own apartment.

Residents of maternity group homes are also required to perform standard household chores, typically including cooking and keeping their own rooms or apartments clean. Practicing such tasks helps prepare teens for living on their own, when they will be responsible for keeping their own homes and feeding themselves and their children on their own. For example, staff at one St. Andre home in Maine said that having residents take turns planning meals and going grocery shopping with staff — in addition to cooking — provide valuable opportunities for staff to teach hands-on lessons about nutrition and price comparisons. Although programs often have staff to maintain the facility and may assist the residents in preparing healthy meals, putting some of the responsibility for such everyday tasks on residents also saves money on housekeeping and kitchen staff.

Specific chore assignments vary, depending on the type of facility. Residents of congregate-model maternity group homes are typically responsible for cleaning their own bedrooms individually but share responsibility for preparing group meals (sometimes including shopping for food) and cleaning common areas. Shared duties typically rotate among the residents in most congregate homes — for example, a particular resident might be responsible for cooking one week, washing dishes the next week, tidying the living room the following week, and taking out the garbage the next week. Teens living in clustered apartments usually are responsible for preparing meals for themselves and their children and are required to keep their own apartments clean. Residents of both types of homes — congregate homes and clustered apartments — must typically do their own laundry, and homes often have schedules for the use of laundry facilities. Some programs have set specific times when assigned chores must be completed.

How Much Supervision and Structure Do Homes Provide?

Many pregnant and parenting teens have had little structure in their lives prior to entering a maternity group home. One of the functions group homes can fill is to provide such structure. To this end, maternity group home programs provide adult supervision and establish a set of rules by which residents must live. Adult staff are on hand to provide general supervision, informal counseling, emotional support, and nurturing to residents, as well as to enforce program rules and offer other support services.

Level of Supervision. In response to the great need of teen parents for support and supervision, maternity group homes typically are staffed round the clock. 1 Most of the homes included in our study have staff on site 24 hours a day, 7 days a week, to provide general supervision and other services to their residents. One exception is one apartment-model home in New Mexico, which provides almost constant staffing but does not guarantee that a staff person will be present at all times. The home has only four staff members and attempts to schedule them so that someone is available during the hours that residents are home. However, there may not be any staff on site during school hours, when residents are generally away from the home. The Friends of Youth homes in Washington each have a resident manager who lives on site and is on call during the night, but these staff are allowed to leave the home while on call as long as they go no farther than 20 minutes away.

Nevertheless, there is some variation in the level of supervision provided even among homes with 24-hour staffing. Some programs require overnight staff to remain awake at all times, while others do not, instead having staff who sleep in the group home. For example, both Friends of Youth homes in Washingtonhave resident staff who live — and sleep — in their own apartments on site. Some other homes, such as the St. Andre homes in Maine, have shift staff who do not live on site but who can sleep on sofa beds in the group homes during their overnight shifts. In contrast, most of the homes we visited in Georgia, Massachusetts, Michigan, and New York specify that staff remain awake at all times while on duty. Some homes go a step further, such as one in Michigan that has a minimum of two awake staff on duty at all times.

Some networks have a continuum of staffing intensity, to meet the needs of different types of teens. These networks include some homes with full staffing and others with lower levels of supervision for residents transitioning to independence. Massachusetts’ network includes two types of maternity group homes — congregate homes with 24-hour-awake staffing and apartment model homes that are not required to have awake staff overnight. Massachusetts network staff place residents in the type of home that will best meet their needs. The network in Detroit, Michigan also offers different levels of supervision, requiring most homes to provide 24-hour-awake staff but including one home — targeted to serve slightly older and more mature residents — that does not have awake staff at night.

House Rules. One of the purposes of adult supervision is to provide structure by establishing and enforcing rules under which maternity group home residents must live. Homes often impose numerous restrictions and obligations on residents, both to provide needed structure to the lives of those living there and to teach them responsibility and skills they will need to be self-sufficient once they leave the home. Rules are typically documented in handbooks given to all residents when they move into the home; some homes also require residents to sign a “contract” promising to follow the rules. Although some homes are stricter than others, typical rules include restrictions on the comings and goings of residents and visitors, mandatory activities and schedules, and prohibitions on certain behaviors. 2

Maternity group home programs generally monitor the comings and goings of their residents and guests and often place limits on their movements. Most homes have curfews, but the specific times vary. Weekday curfews ranged from as early at 7:00 p.m. to as late as 10:00 p.m. in the homes in our study. Curfews often are an hour or two later on weekends than on weekdays, and some homes offer their residents weekend passes under certain circumstances. In most cases, a curfew simply means that all residents must be in the home by the specified time, but a few homes impose a mandatory bedtime. In one New Mexico home, for example, residents had to be in their own bedrooms with the doors closed by 9:00 p.m. Some homes have both a building curfew and a set bedtime — for example, one home in Maine requires residents to be in the home by 8:00 p.m. and in their rooms and quiet by 10:00 p.m. Some other homes have earlier bedtimes for residents’ children.

In addition to curfews at night, some homes require residents to let staff know where they are when they leave the homes during the day. Some homes use sign-in sheets to keep track of where each resident is at all times. In one New Mexico home, residents must give an address or phone number of their destination each time they leave the home.

Some homes place additional restrictions on residents’ movement. For example, due to state rules concerning minors in custody, residents of maternity group homes in the network in Georgia cannot typically leave the facility without being accompanied by a staff member. Residents of one home in New Mexico are not generally allowed to leave the premises by themselves, due in part to the home’s remote location and in part to the fact that many of the residents are in the child welfare system.

In addition to restrictions on leaving the home, some programs maintain schedules that residents must follow while they are there. Fixed meal times are common, and some homes have requirements that residents be engaged in some sort of productive activity at certain times. Some homes give their residents wake-up calls or require them to be dressed and downstairs for breakfast at a certain time. Residents of one home in Michigan, for example, typically receivewake-up calls at 7:30 a.m., are expected to dress and get ready before they go to the kitchen, must talk to their assigned case worker before 9:00 a.m., and spend the next three hours in designated “constructive time” (often devoted to attending school or employment outside the home).

Most maternity group homes require residents to attend at least some program activities, which range in frequency from a few times a month to as often as several sessions per week. The most common type of required program activity is attendance at classes on parenting and life-skills topics (discussed in detail below). In addition, some homes hold mandatory house meetings or other group activities. One of the most intensive schedules found in our study is a home in New York whose residents must attend seven mandatory group activities per week — including classes on independent living skills, childbirth, caring for an infant, health, and substance abuse prevention; a special workshop, and a house meeting. Besides group activities, many homes require residents to attend individual case management meetings or therapy, most often weekly. Some homes in Maine also require all residents to participate in some type of support group not affiliated with the home (a requirement intended to help them learn to access outside services and connect with some kind of group that they will be able to continue after they leave the home).

In addition to these requirements, homes often prohibit their residents from engaging in behaviors considered undesirable or dangerous. It is common for homes to have rules against fighting and being disrespectful of other residents or staff; also, homes often have rules governing child safety. They commonly prohibit the use of alcohol and drugs, and many ban smoking, at least indoors. Residents typically are forbidden to engage in sexual activity on the premises and are discouraged from doing so away from the home as well. 3 One home in New Mexico even has rules against dating. In a few other homes, residents who become pregnant again would have to leave, typically due to limits on the number of children.

In part to enforce their prohibitions against sexual activity, maternity group homes typically place some restrictions on visitors, especially overnight guests. Many homes have set visiting hours. These may be narrow ranges — such as allowing guests in the home only for a few hours each evening or on weekends — or they may simply be intended to prohibit guests from staying overnight. In addition to restrictions on time, there are often restrictions on where visitors can go in the homes — many congregate homes allow visitors only in common areas. Some homes limit the number of guests a resident may have, and some restrict who can visit. For example, in some homes in the network in Georgia, visitors of teens in state custody must be approved by their child welfare worker, and visitors of other teens must be approved by their parent or guardian. A few homes do not allow male visitors on the property at all. One home in Michigan does not allow any visitors inside the house, for safety and confidentiality reasons, and does not allow any males to enter even the yard. Some homes also have restrictions on telephone usage.

Enforcement of Rules. Effective enforcement of these rules requires both determining when a rule is broken and administering the appropriate consequences for any violations. Homes have developed a variety of methods for monitoring compliance with different program rules. In addition, maternity group homes often define positive incentives to encourage residents to follow the established rules, as well as negative consequences for violating them. To ensure consistency and so that residents know what to expect, these incentives and consequences typically are set forth in the handbook given to all residents.

The primary means of monitoring adherence to program rules is observation by staff. For example, staff on duty pay attention to whether residents engage in prohibited behaviors and whether they are following any set schedule. Staff also monitor attendance at mandatory program activities and may make calls to find out if residents missed a scheduled appointment off-site. Staff conduct regularly scheduled or random checks to ensure that assigned chores were completed.

To detect any violations of curfews and restrictions on visitors (and, in some cases, to supervise residents’ interactions with their children), homes employ various methods to monitor their residents — especially overnight. Most of the homes we visited have staff on duty 24 hours a day. In some homes, night staff check on each resident during the night — visual checks are made hourly in at least one home in Massachusetts; but in other homes, checks may be conducted only once or twice during the night. Some programs rely on electronic sound monitors to alert them to any problems in resident areas. One home in

Georgia — housed in a facility specifically designed as a maternity group home — sets alarms on residents’ bedroom doors and windows to warn staff if they are opened at night. Some homes have video cameras at each entrance so that staff can monitor all comings and goings of residents and their visitors; this can catch anyone attempting to sneak out after curfew or attempting to sneak in an overnight guest. In some cases, such high-tech methods are used instead of requiring overnight staff to remain awake at all times.

Homes tend to be patient with most violations of program rules. Staff believe in giving residents second — and often third, and fourth — chances, and they recognize that teens will violate minor rules (by missing curfew, for example) every once in a while. The consequences for most offenses typically are short-term loss of privileges — such as suspension of telephone privileges, loss of weekend time off, or the imposition of an earlier curfew — or, possibly, a fine (one home in Michigan charges residents 25 cents for using curse words, for example, while curfew-breaking residents in one home in Washington have to pay a $10 fine or lose a weekend). Some homes have specific penalties for specific rule violations, while others use a points system that determines the level of restriction for each resident based on an overall measure of her behavior over a period of time. Sometime specific consequences are developed appropriate for certain violations — for example, at the Friends of Youth homes in Washington, guests who violate rules covering visiting hours can be banned from entering the home again. Some homes issue written warnings to rule-breakers, and residents may be required to attend a meeting with staff to discuss any violation. Termination from the programs only results in the relatively rare cases of chronic rule-breaking or if a resident poses a danger to herself or others. 4

Besides the fear of negative consequences for violating rules, some homes use positive incentives to encourage residents to obey. For example, one home pays residents $10 or $15 to attend program classes and meetings, including those that are mandatory. Another home in the same state has a mini-store where residents can spend credits they earn from doing assigned chores, attending scheduled meetings, school/work attendance, and so on. (The home also imposes fines against these credits for violations of some rules.) Staff at another home can adjust residents’ curfews by an hour in either direction in response to their behavior. Some homes have established various levels of rules that allow residents to attain more independence within the program as they demonstrate increasing levels of responsibility. For example, some homes in one state have “phase systems” with different levels of rules for different residents, depending on how well they are doing in the program. Residents of a few homes can qualify for a situation with more independent living — either their own individual apartment within the same facility or a space in a different, less restrictive, facility within the larger network.

What Case Management Services Do Homes Provide?

All the maternity group homes we visited provide case management services for their residents. While some case management may take place on an ad hoc basis, many homes require residents to attend regular individual meetings with their case manager. Such sessions are commonly scheduled once a week.

Case management sessions often involve setting personal goals and discussing progress on achieving them. At some homes, case managers develop an individual service plan for each resident that includes goals related to parenting, education, health, and family interaction. In addition, case management sessions often involve counseling (although the staff involved may not be licensed therapists) — for example, talking over residents’ issues and challenges.

Referrals are another important part of case management. In addition to the array of services home staff can provide directly to their residents, case managers work to connect residents with providers of other services that the homes themselves cannot provide. Although some homes are themselves able to offer direct services to meet almost all of their residents’ needs, all homes must refer their residents to outside providers for at least some services. In addition to the types of services discussed elsewhere in this chapter, home staff provide referrals to a number of other services — for example, medical and substance abuse treatment and education or training programs. Often, when a teen first enters a maternity group home, case management staff will work to get her connected with various resources and programs, including TANF, food stamps, and Medicaid benefits, school, and day care for their children.

At some homes, residents’ meetings with case management staff may become shorter or less frequent over time. Just before a resident leaves the home (possibly moving into a housing situation her case manager helped her find or apply for), the case manager will often work with her to plan her transition to independent living and arrange for any follow-up services the home may provide. Many homes also offer continued case management services to their former residents. 5

How Do The Homes Teach Parenting and Life Skills?

The constant presence of home staff offers residents many opportunities for informal lessons on the skills needed to parent and live independently. In addition, some of the required chores are specifically designed to give residents a chance to practice these skills. Still, most maternity group homes — and all of those visited for this study — also offer formal instruction in these areas. Classes covering parenting and life-skills topics are one of the most common support services that homes provide, and attendance at these classes is typically mandatory for all residents.

Such classes can look very different in different homes, however. For one thing, the frequency at which life skills and parenting classes are held varies considerably across homes. Some homes require residents to attend several group sessions each week, while others offer such classes only a few times a month. Programs also differ in the specific topics covered, theuse of standard curriculum across a number of networked homes, and the types of staff involved in leading these classes.

Classes cover a wide range of topics, including nutrition, child development, health, money management, resumes, housing search, self-esteem, anger management, domestic violence, family planning, and sexually transmitted diseases. Some homes organize their classes in a single series that combines all parenting and life skills, covering a different specific topic at each session. Other homes offer a few separate series, each covering a different broad topic area (such as one on parenting and another on life skills), so that residents attend a number of different classes each week or month. For example, a common pattern is to hold a parenting class one night a week and a life-skills class another night. Also, some homes have regular house meetings that may include discussion of parenting and life skills topics.

Some networks have selected a single curriculum for parenting or life-skills classes to be used in all their homes. For example, all homes in Georgia’s network use the Minnesota Early Design (MELD) curriculum, specially designed to teach parenting skills to at-risk adolescent parents. The main objective of the MELD curriculum is to reduce incidents of physical and emotional abuse of children. Homes in Massachusetts’s statewide network use the Preparing Adolescents for Young Adulthood (PAYA) curriculum — developed by the Massachusetts Department of Social Services (MDSS), which includes sections specifically for teen parents and is used across the state to teach life skills to adolescents in MDSS care — supplemented by more hands-on lessons and sometimes external speakers. Other homes decide on their own which specific life skills and parenting topics to cover, and in what format.

Some homes rely on their own staff to teach parenting and life-skills classes, while others bring in partners to fill these roles. Homes may have a single partner teach an entire series of classes, or they may use a different partner to lead each session, thus providing residents with access to an expert on each specific topic (and avoiding burdening any one partner too much). A few homes pay partners, but most are volunteers — often employees of other organizations with missions to provide such services. (Types and roles of partners are discussed in greater detail in Chapter IV .)

What Logistical Supports Do Homes Provide?

In order to attend school, work, keep appointments, and engage in other activities, young parents need logistical supports such as child care and transportation assistance. While some programs make referrals to connect their residents with outside providers for such supports, others provide logistical supports directly.

Child Care. Maternity group home staff typically assist their residents in obtaining quality child care for their children. Some staff have ongoing relationships with off-site child care providers. Many homes go a step further and directly provide some limited or short-term babysitting. At some homes, staff will watch residents’ children for a short time when residents need a break. (Most try to keep this to a minimum, since the primary responsibility for caring for their children rests with the parents, not home staff.) Other homes provide babysitting services only at specific times, such as during mandatory program activities. A few homes even provide ongoing regular child care while mothers are attending school or work. For example, one home in Michigan and another in Washington are affiliated with organizations that operate day care centers that are free to residents of the home.

Homes in the Georgia network do not provide child care directly, but, because most residents of the Georgia homes are in state custody, the homes do pay for the use of regular day care centers while teens are attending school. In some other states, maternity group homes rely on the fact that teen mothers receiving TANF can get vouchers to pay for child care while they are engaged in certain activities such as school.

Transportation. Some maternity group homes provide transportation for their residents, and typically have vans for this purpose. Homes often limit rides to types of destinations they consider necessary — for example, school, medical appointments, grocery stores, and group outings. Some go beyond this, also driving residents to and from such destinations as parks and malls. Homes in remote locations, such as one in rural New Mexico, may have no choice but to drive residents everywhere they need to go. Homes in the Georgia network must typically do the same, in part because the high level of supervision required by state law generally requires staff to accompany the residents when they leave the home.

Homes without these restrictions often encourage residents to learn to navigate and use the public transportation system in the area, so they will be experienced at doing so when they move out on their own. Such encouragement is especially common at homes in locations where the public transportation system is good, such as in large cities. These homes often assist their residents with transportation costs. Some provide bus tickets or subway passes for residents. A few homes will pay for occasional cab rides home late at night or in case of emergency. Two Washington homes operated by Friend of Youth help pay for gas for those residents who own cars.

What Other Services Do Some Homes Provide?

The services described above are provided — in one way or another — by most of the homes in this study. Besides these common program features, some maternity group homes provide additional support services. These include mental health and educational assistance to current residents, follow-up services to former residents, and outreach to the fathers of residents’ children.

Mental Health. Some maternity group homes offer mental health services to their residents. A few homes have contracted with psychiatrists to provide therapy for residents; others have licensed therapists or masters-level social workers on staff. The homes we visited in Georgia and Maine tend to place the greatest emphasis on providing mental health services to their residents. Residents of the St. Andre homes in Maine are required to meet with their home’s social worker for at least an hour each week. The social workers at the St. Andre homes also assess the need for mental health services among new residents, and the homes contract with psychiatrists to make house calls for individual appointments. The homes in the Georgia network also make individual therapy available to residents on a weekly or biweekly basis. Some Georgia homes have licensed therapists on staff or use staff of their parent organization, while others contract with a therapist to provide these services, which are paid for out of the group home budget. In Michigan, an organization that formerly operated a maternity group home now provides mental health services — including clinical therapy, infant mental health, and psychological evaluations — to the remaining homes in the network. One home in New York has a clinical psychologist on staff half-time, but staff there noted that many residents were reluctant to see the psychologist.

Residents of other homes are referred to external providers for mental health services. For example, none of the homes in the New Mexico network have staff members trained to provide mental health counseling. Residents of maternity homes in the Massachusetts network are referred to therapists covered by Medicaid. However, staff in some sites noted that mental health services — while important and greatly needed by residents — are expensive and not always available to low-income families outside the homes.

Education Assistance. A few homes provide some type of direct assistance with residents’ education. One large home in New York offers GED classes in a large classroom on-site for residents who are unable to enroll in regular schools in the area. It is somewhat more common for homes to offer tutoring services to their residents, sometimes provided by home staff and sometimes by partners. In one home in New Mexico, for example, tutoring is available to residents seven days a week, and tutoring abilities and subject area coverage are considered when hiring staff. One Michigan home contracts with an external social service organization to provide on-site tutoring to residents twice a week. Some homes in Georgia’s network offer a fixed guided study period on weeknights and will check residents’ homework, and one Georgia home has a special education teacher provide weekly tutoring services on site. Some homes also have computers that residents can use for their schoolwork.

More common than these forms of direct assistance are educational requirements for maternity group home residents. Many homes require residents to actively pursue formal education while residing in the group home. These requirements may be for full-time or part-time activity, and educational requirements can typically be satisfied in a variety of ways, including attending regular or alternative high schools, GED programs, and community colleges. In some cases, the goal of such requirements is to encourage residents to complete high school, while in others it is simply to engage in some type of productive activity. Some homes allow residents — particularly those who have graduated from high school or earned their GED — to pursue employment rather than attending school. 6 However, other homes even require continued education of those who have completed high school.

Follow-Up Services. Many maternity group homes provide some type of follow-up or “aftercare” services to young mothers for some period of time after they leave the residence. Most often these services consist of ongoing case management for about six months after their departure, typically provided by the same staff who did so during their time in the home. Some homes attempt to contact former residents at specific intervals (such as at six months, and then one year, after their departure) to check on them.

A few homes offer some material assistance for young mothers now living on their own. For example, one home in Michigan pays the security deposit and first month’s rent for residents after they leave the home, in addition to helping with grocery shopping and checking in periodically for six months. Some maternity homes in Washington have relationships with a partner organization that provides free furniture and household items for former residents setting up their own households, and one Washington home presents its residents with $1,000 upon completion of the maternity group home program.

Services for Fathers. Some homes provide support services to family members of current residents, particularly the fathers of their residents’ babies. The Massachusetts’ statewide network has a father outreach program that not only encourages fathers to participate in their children’s lives, but assists the fathers in finding employment and other services. Each home in the network has a designated father outreach worker (paid through a special federal grant from ASPE that has recently ended) to contact fathers and provide case management services to them. One maternity group home in New York also offers case management and other services to fathers.

Summary of Services

Maternity group homes are intensive, comprehensive support programs for pregnant and parenting young women and their children. The homes visited for this study provide an extensive array of services to the families living there. At the most basic level, all the homes provide secure housing and extensive adult supervision and structure to their residents. They also offer a core set of other support services, including parenting and life-skills lessons and case management. The homes commonly assist their residents in connecting with a variety of outside services and provide logistical supports — such as child care and transportation assistance — to enable them to access additional services outside the home and to attend school, work, and other activities. In addition to these common services, some maternity group homes strive to offer additional services on site, such as mental health services, educational assistance, follow-up services for former residents, and services to the fathers of residents’ children.

Through these intensive programs of comprehensive services, maternity group homes have the potential to benefit disadvantaged young mothers and their children in both the short and long term. As will be seen in the next chapter, however, the cost of providing these services, particularly intensive supervision, can be high.

1 The high level of supervision in the homes in this study is, in part, by design, since, as discussed in Chapter I, our definition of maternity group homes excluded programs that did not provide substantial supervision to their residents.

2 In some cases, the strictness of program rules may be related to the specific population served.For example, homes that serve younger teens may have stricter rules than those serving older residents.In addition, some homes serve primarily residents who are in state custody or on probation, or who are required to live in the home as a condition of retaining custody of their child.Because these populations may be considered to need more supervision, the homes that specialize in serving them may have stricter rules.

3 However, many staff recognize that some residents will be sexually active regardless of any rules against such activity.Homes often include lessons on pregnancy prevention in their life-skills curricula.

4 Even when a resident is evicted from one home, she is not necessarily barred from other homes in the same network.In Massachusetts, for example, where the state is obligated to place every eligible teen parent, residents who violate program rules can be moved from one home to another until they find a situation that works.

5 In addition, a few homes provide outreach case management services to other nonresidents, typically pregnant and parenting teens living in other settings who are (a) eligible for, but not interested in, the residential component of the program, or (b) unable to live in the home due to capacity limitations or eligibility requirements.Most of the maternity group homes in New Mexico’s state network provide case management services to nonresident pregnant and parenting teens.In some other sites, the homes themselves do not offer services to nonresidents, but their parent organization does.

6 Some homes encourage volunteer work for those who are not ready for a regular job.One home even hires residents who have completed high school as interns and pays them minimum wage to perform clerical duties.

Chapter 4. The Staffing and Costs of Maternity Group Home Programs

For maternity group home programs to provide the extensive set of services, structure, and supervision described in Chapter III, they must have adequate staffing and funding. The issues of staffing and funding are closely related, since staffing is by far the greatest expense for these programs. In general, the intensive services offered by these homes require fairly large staffs, even for a small facility. In turn, these high staffing levels lead to relatively high costs for these programs.

In this chapter we examine carefully the staffing patterns and costs of operating maternity group home programs, particularly the following research questions:

How are maternity group home programs staffed?How many staff are needed to provide supervision and services to their residents?What types of staff perform each function?
How much do maternity group home programs cost to operate? What implications do staffing levels, specific services provided, and the length of time residents stay in the homes have on program costs?

How Are Maternity Group Homes Staffed?

Although maternity group homes tend to offer many of the same types of services to pregnant and parenting teens, they use a variety of different staffing strategies to serve their residents. Each maternity group home program must decide how many and what types of staff to use to supervise its residents and to provide each service the home offers. This section describes the staffing patterns these homes use to deliver the array of services discussed in Chapter III .

Number of Staff Members. Operating a residential program for pregnant and parenting teens and their children can require a large staff. On average, the homes we visited had 11 staff members (including both full-time and part-time staff), and about 8 full-time equivalent (FTE) staff ( Table IV.1 ). The number of staff members varies considerably across the homes we visited, however, ranging from 4 to 28 FTE staff (4 to 39 total staff).

The number of staff members needed at a home depends on the number of its residents; however, resident-to-staff ratios vary considerably across the homes we visited. Some had fewer than one FTE staff member for every three resident families, while others had more than two FTE staff members for each resident family. About half of the homes we visited had more FTE staff than residents, while the other half had more residents than staff. Several program features seem to be correlated with staffing levels:

Number of Residents. Smaller homes tend to have more staff per resident — perhaps because larger homes benefit from economies of scale. The average capacity of homes with more than one FTE staff member per resident family is about 8, while the average capacity among homes with fewer staff members than residents is about 10. The existence of economies of scale in staffing is not surprising, since some program services can be provided to several residents at once. For example, providing overnight supervision typically requires only one staff person, regardless of whether there are 3 resident families or 16. Similarly, life skills classes can be held with a larger number of young mothers without increasing staffing needs.
Type of Home. Apartment-model group homes tend to need fewer staff members than congregate-model homes. More than two-thirds of all congregate-model homes in our study had a staff-to-resident family ratio greater than 1:1. In contrast, only one of the apartment-model homes we visited had such a high staff ratio. This may be due, at least in part, to the fact that apartment-model homes tend to provide less supervision to their residents. All but one of the homes visited with 24-hour-awake staff are congregate-model homes.
Specific Population Served. Certain populations — such as younger teens or those placed in the homes by child welfare agencies — may require more supervision than others. For example, because the maternity group home network in Georgia serves primarily teen mothers in state custody, the network had to negotiate with the state to develop a specific set of rules for regulating these homes. State licensing requirements determine the staffing ratios during waking and sleeping hours and require homes in the Georgia programto have 24-hour-awake staff. Massachusetts, as mentioned above, has a continuum of homes with different levels of supervision, so that they can place younger or less mature teens in more heavily supervised settings. Staff at some homes that do not serve young teens or those in state custody noted that they cannot do so because the staffing and other licensing requirements would result in prohibitively high program costs.

Group Home Staff and Their Roles. Most homes employ a mix of full-time and part-time staff members, as well as a mix of degreed professionals and relatively unskilled staff. On average, the homes in our study employ about five full-time and six part-time staff members ( Table IV.1 ). 1

The number of staff members varies considerably across homes, however. Among the homes we visited, the number of full-time staff ranges from 1 to 17, and the number of part-time staff ranges from 1 to 22.

The staff members employed by maternity group homes tend to fall into four categories:

Director. A typical home has a director who is responsible for the overall management of the home. Some homes also have an assistant director to support the director in these duties. The director usually has final authority to make decisions about service delivery, staffing, and often admissions — within any guidelines set by the home’s network or managing organization. Some directors spend part of their time working directly with residents, while others perform purely management functions. In some homes, the director is responsible for the home’s budget and funding, while in other cases financial tasks are handled by staff at the managing organization. Directors tend to work regular business hours. They are most often full-time, although some split their time among multiple homes or between a maternity home and another program operated by the same organization. For example, the two maternity group homes run by Friends of Youth in Washington share both a program director and an assistant program director with three other residential programs.

A SAMPLE STAFFING PATTERN FOR A MATERNITY GROUP HOME

The Families First Second Chance Home in College Park, Georgia has five full-time and four part-time staff members serving eight resident families. The home’s director spends half her time administering the home and the rest of her time on other Families First programs. The full-time group home supervisor, a masters-level social worker and licensed counselor, oversees the daily functioning of the home and also provides weekly individual therapy and case management services to each resident. The other full-time staff members are an activities coordinator — who teaches the parenting classes and handles referrals, assessments, and follow-up services — and three full-time house parents (two of whom are a married couple) who live in private apartments within the group home facility. The home also has three part-time staff members to provide supervision during weekend hours when the house parents have time off.

Case Manager . Case management staff typically work with residents individually, to help them set and pursue personal goals and to discuss their progress and challenges. Case managers also make referrals to ensure that residents get necessary services the homes cannot provide directly. In homes with multiple case managers, each resident is typically assigned to a specific case manager. Some homes have additional, specialized case managers who focus on a particular task, such as outreach, referrals, or serving a special population, for example, former residents or fathers. (2) In some homes, licensed social workers perform case management duties, while in others staff members with less training fill this role.
Youth Supervisor . The bulk of maternity group home staff members are youth supervisors, who provide general supervision and have the most day-to-day contact with residents. These staff members tend to have lower levels of education than program directors and case managers. They provide a wide variety of services, ranging from enforcing house rules to helping with cooking and shopping to simply spending time with residents. Youth supervisors often teach informal or ad hoc lessons about child rearing and life skills. In some homes, they also lead formal parenting and life-skills classes. In homes that offer transportation or child care assistance to their residents, youth supervisors provide these services. These staff members are responsible for the around-the-clock supervision the homes offer. Therefore, they often work flexible schedules to cover all shifts. Some youth supervisors are full-time, while others are part-time. Many homes have a mixture of both. Some homes have a few regularly scheduled youth supervisors, plus a pool of part-time “on-call” or “relief” staff who fill in as needed — on weekends, for example, or when other staff are on vacation — and who may work only a few hours a week. At the other extreme, some youth supervisors are “house parents,” who live in apartments within the group home and are on-call 24 hours a day when they are on duty.
Other Support Staff . Some larger homes have additional staff members who fill necessary roles in the home but who may not work directly with the residents — for instance, maintenance staff to perform repairs or a cook to prepare meals. Similarly, some homes have administrative support staff to perform clerical, accounting, and research tasks. However, most of the homes we visited rely on their directors to fill these functions.

External Staff Who Provide Support Services . In addition to their own staff members, maternity group homes often rely on external providers to perform certain services, such as teaching classes or providing therapy to residents. These staff members typically come to the home only on a regularly scheduled day (often weekly or monthly) to provide a specific service. The homes we visited relied on three types of external staff:

Unpaid Partners . These external staff members are either employed by other organizations (and therefore not paid by the maternity group home program) or are unpaid volunteers from the community. For example, the Washington program has staff members from the Program for Early Parent Support come to the homes monthly to teach the program’s parenting classes. A group called Horizons for Homeless Children furnished on-site play areas at two maternity homes in Massachusetts, in addition to providing staff to play with residents’ children at the home for two hours each week. A teacher employed by the New York City school system comes to the Inwood House maternity home in New York and provides daily GED instruction to some of the residents. Using staff from partner organizations to fill these roles can save programs money, as well as build connections between the homes and other service provider organizations in their communities. New Mexico’s maternity group homes are expected to rely heavily on other providers in the community for services. State officials point to the ability of their homes to access community resources as one of the strengths of its network.
Paid Contractors/Consultants . Contractors and consultants play a similar role but are paid by the maternity group homes. Homes may contract with organizations or with individual professionals. For example, the St. Andre program in Maine contracts with psychiatrists to provide mental health services to residents of their homes and with the YWCA for masters-level parent educators. The New York program relies on several outside consultants to provide residents with specialized training in parenting skills, substance abuse counseling, and other areas. Relying on paid consultants can result in more expensive programs. However, when services are not readily available for free through partner organizations or unpaid volunteers, using paid consultants or contractors may be the only means of providing certain supports for residents.
Parent Organization Staff . Most maternity group homes are managed by larger parent organizations that run multiple programs for at-risk populations. These organizations often have staff members who provide special services (such as mental health services) to all clients the organization serves. These staff members are paid by the parent organization and may not be paid out of the budget for the maternity group home. Like unpaid partners and paid contractors, these staff members typically visit the homes at regularly scheduled intervals. For example, residents of one home in Georgia are served by a team of mental health professionals who are employed by the parent organization. This team meets regularly to discuss the plan for addressing the mental health needs of each resident of the home.

How Much Do Maternity Group Homes Cost to Operate?

An important issue to consider when examining maternity group home programs is the typical cost of serving young mothers in this setting. To fully explore this issue, it is necessary to have information both on the cost of operating the programs and on the typical amount of time residents stay in these homes. For this reason, we asked staff members to provide information on the cost of operating their programs, as well as the amount of time their residents typically remain in the homes.

Getting complete and precise information on program costs proved difficult in some instances. Program staff were sometimes reluctant to share information on costs. In addition, some of the staff we spoke with were not knowledgeable about budget issues or did not have this information readily available. In other cases, it was difficult to separate the cost of the maternity group home program from the cost of other programs the parent organization operated. In spite of these challenges, we were able to collect fairly complete information on per-resident costs from most programs. However, given the difficulties encountered, the costs reported here should be considered only as estimates of the actual per-resident costs.

Getting detailed information on residents’ typical length of stay proved to be even more challenging. Homes often did not keep detailed records on length of stay or did not have this information in a form that could be readily compiled and tabulated. In addition, when information on average length of stay was available from programs, it was not always clear how the information had been calculated and how, for example, the ongoing stays of current residents were factored in to any averages reported. Finally, it appeared that when staff members did not have specific information on this topic and instead gave their general sense of the typical length of stay, they tended to overestimate how long residents remained in the homes. They generally reported much longer stays than were indicated from reports based on specific data on all program participants. 3

To address the limitations of the cost information, we report figures in terms of average monthly costs per resident family, rather than average total costs per resident family served (which would require precise information on average length of stay). 4 We then describe the available information on typical length of stay and discuss what this suggests about the typical total cost for serving young mothers and their children in this setting. However, since the length of stay information is less complete, we do not calculate specific total cost estimates per resident family served for each of the study programs.

Typical Monthly Costs . Operating a maternity group home can be expensive. Many programs reported average costs per resident family of more than $4,000 a month ( Table IV.2 ). By far the largest expense in operating these programs is staffing cost. Salaries and benefits can make up 70 percent or more of their overall operating expenses. As discussed in Chapter III , maternity group home programs typically offer 24-hour supervision, as well as intensive support to residents. This high level of supervision and support requires a large number of staff members per resident family. These high per-resident staffing levels lead to high per-resident costs.

The cost of providing housing is another important component of program costs. Program staff indicated that housing costs represented anywhere from 10 to 30 percent of their operating expenses. There are several reasons why the proportion of program costs devoted to housing may vary. In many cases, the parent organizations that operate maternity group home programs own the buildings where the homes are located, which help keep their ongoing housing costs down. Other programs rent space for their maternity group homes. In these cases, housing costs typically are higher and represent a larger fraction of overall operating expenses. In addition, costs vary substantially by location. In general, homes located in urban areas face much higher housing costs than those in small-town or rural settings. 5

Funding levels per resident vary greatly across maternity group homes. Several homes reported average costs per resident family of less than $1,500 per month, while others reported average monthly costs of more than $8,000 per family ( Table IV.2 ). Not surprisingly, costs are closely tied to the number of staff members the home employs. Programs with average or above average costs tend to have the highest number of staff per resident ( Table IV.2 ). For example, the Maine program had the highest costs per resident family of the programs we visited, as well as the highest staff-to-resident ratio, with 1.6 full-time equivalent staff members per resident family. Conversely, the programs with the lowest per-resident family costs (those in Michigan, New Mexico, and Washington) had the lowest number of staff per resident. These programs all averaged fewer than one staff member per resident family. 6

In addition, programs that operate smaller homes tend to have higher per-resident costs. 7 The Maine and Georgia programs, which have above-average costs, operate homes that average fewer than six resident families per home ( Table IV.2 ). In contrast, the average size of homes in the Michigan and Washington programs, which have relatively low costs per resident, is 10 or more. This connection between home size and per-resident costs may be tied to staffing levels. For example, it generally takes more staff per resident to offer 24-hour supervision in a home with 5 resident families than it does in a home with 10 resident families. In addition, there may be other ways in which larger homes enjoy “economies of scale” and are able to offer the same level of service with fewer staff members.

THE RELATIONSHIP BETWEEN STAFFING LEVELS AND COSTS

Two examples illustrate the considerable variation in staffing levels at different maternity group homes, as well as how these staffing levels affect both program services and program costs. One of the highest staff-to-resident ratios we observed was in the St. Andre program in Maine, which operates four small congregate-model homes. These homes typically have one part-time and six full-time staff members to serve four resident families — about 1.6 FTE staff members per family. This high staffing level allows the home to provide a high level of service for its residents, including 24-hour supervision, parenting and life-skills classes three or four times a week, and intensive mental health treatment. It also leads to fairly high costs, about $8,600 per month per resident family served.

In contrast, one large apartment-model home operated by Friends of Youth in Washington had one of the lowest staff-to-resident ratios we observed. This facility has one full-time and seven part-time staff members to serve 14 resident families — about 0.3 FTE staff members per family. Because of the lower staffing levels, the home offers a less intensive set of services to its residents. For example, unlike the Maine home, the Washington home does not offer intensive mental health services and conducts parenting and life skills classes only about twice a month. The lower staffing level at this home keeps their costs relative low, only about $1,300 per month per resident family served.

Finally, programs with higher per-resident costs generally provide a more intensive set of services. The Maine and Georgia programs, for example, place strong emphasis on mental health treatment. In both programs, residents see a trained therapist weekly. These sessions are usually conducted by a specially trained, licensed social worker who is a member of the group home staff. In addition, many residents in the Maine and Georgia programs see a psychiatrist regularly. For both these programs, the cost of this intensive mental health treatment is included in their overall program budgets. Other programs place substantially less emphasis on mental health treatment, and most residents in these other programs do not receive regular mental health therapy. In addition, the mental health treatment that is provided for residents in these other programs usually is provided by other organizations and is not part of the budget of the homes. Similarly, the New York program, which has above average costs, also offers a particularly intensive set of services. Residents in the New York program are required to participate in six weekly one-hour classes on independent living skills, childbirth, infant care, health, substance abuse prevention, and other special topics. No other program we observed included as many hours of formal instruction.

Typical Length of Stay. Residents of maternity group homesare generally free to remain in these programs a relatively long time. Several programs have official limits on stays of 18 to 24 months. In other programs, residents may remain in the home as long as they are below the program’s age limit (often 21). Home staff often reported that they were flexible about these limits and, in some cases, allowed residents to stay beyond them if it appeared that the family would benefit from remaining in the program.

In spite of the potential for fairly long stays in these homes, it appears that the typical stay is relatively short. As mentioned, the data available on length of stay are limited and incomplete. However, in programs and homes for which this information is available, the average length of stay is about four to six months. For example, staff in the Georgia program reported that the average stay for its residents was just over four months, while staff from the Massachusetts program reported an average of about six months. Similarly, in the one Michigan home that was able to provide this information, the average length of stay was just over six months. Staff at the New York program indicated that the average stay for its residents was about five months. 8

In some cases, residents remain in the program only a short time. In programs that had this information available, anywhere from 10 to 25 percent of residents remained in the program for a month or less. In other programs, staff reported anecdotally that residents sometimes left the program after only a few days, once it became clear to them what life in the home would be like. In other cases, residents remained in the program for a year or more. Programs that had this information indicated that 10 to 15 percent of residents remained in the program for at least a year. Staff at many homes mentioned several of their recent residents who had remained in the home for more than a year.

Typical Total Costs . We end this chapter by considering the typical total cost of serving a family in a maternity group home. To estimate this figure, we must combine information on the typical length of stay with information on typical monthly costs. Based on the information gathered in this study, it appears that a stay of five to six months is fairly typical for a family residing in one of these homes. In addition, although costs vary substantially across homes, several programs had homes with monthly costs in the $4,000 to $5,000 per-family range, which falls in the middle of the full range of costs we observed. Combining these figures suggests that a reasonable estimate of the typical cost of serving a family in a maternity group home is $20,000 to $30,000 for a five- or six-month stay. Of course, families often remain in these homes for more or less time than that. Therefore, the actual cost of serving a family in one of these homes would often be higher or lower than this range.

1 Some individuals categorized here as part-time staff are actually full-time employees of the home's managing organization but spend only part of their time working for the maternity group home itself.

2 For example, homes in the Massachusetts program have father outreach workers who provide case management and other services to the fathers of the children of maternity group home residents. These staff typically work part-time or are shared by multiple homes.

3 In many cases, it appeared that staff members based their more informal estimates on the typical length of stay primarily on those residents who remained in the home long enough for them to be easily remembered. This phenomenon may have caused some staff members to inadvertently exclude residents with short stays when providing an estimate of the typical length of stay. In other cases, staff members may have deliberately omitted residents with very short stays, since they considered these residents to have never fully engaged and participated in the program.

4 A “resident family” includes the young mother and her child or children. If the young woman is pregnant and has no other children in the program, the "resident family" includes only her.

5 Of course, programs with relatively low staffing levels, and thus low staffing costs, are more likely to have smaller budgets and to devote a higher fraction of their budgets to housing.

6 This pattern could also be seen among homes within a program. Among the homes in the Michigan, New Mexico, and Washington programs, those with the highest per-resident costs also had the highest number of staff per resident.

7 There is one notable exception to this pattern. Inwood House, in New York City, was the largest single facility we visited (typically serving about 24 pregnant teens) but did not have below average costs. This is most likely due to the program's relatively high staff-to-resident ratio, which was higher than other large homes we observed. Inwood House offers an especially intensive set of services for its residents, which likely requires it to have higher staffing levels (and, therefore, higher costs) than other large maternity group homes.

8 The maximum stay in the New York program is limited by the fact that residents can remain in the program only while they are pregnant. Even so, the average length of stay in the program is similar to that of other programs in which residents are allowed to remain after their babies are born.

Chapter 5. Implementation Lessons

Maternity group homes are intensive, comprehensive support programs for pregnant and parenting young women and their children. In addition to stable housing, these homes provide a wide array of services to meet the needs of the families they serve. Supervision and rules help provide the structure teens and their children need as they develop a foundation on which to build their lives. Classes on parenting and life skills aim to provide residents with skills they will need to care for themselves and their children after they leave the home. Case management services and referrals strive to ensure that residents have access to additional services homes cannot provide directly, and logistical supports — such as child care and transportation assistance — enable them to access services outside the home and to attend school, work, and other activities. In addition to this common set of services, some maternity group homes directly provide mental health services, educational assistance, follow-up services for former residents, and services to the fathers of residents' children. Through these intensive programs of comprehensive services, maternity group homes have the potential to benefit disadvantaged young mothers and their children in both the short and long term.

The preceding chapters describe the implementation of maternity group home programs in detail. This chapter summarizes some of the key findings and implementation lessons for practitioners and policymakers who are operating programs of this type or considering creating them. This information can help in designing new maternity group home programs and improving existing ones.

Networks and Parent Organizations Can Provide Extensive Support to Their Homes

Most of the homes in this study are part of state- or county-wide networks of similar homes. In addition, many of the homes are operated by larger social service organizations, which may also operate other maternity group homes and typically have broader missions as well. Network managing agencies and parent organizations can assist maternity group homes in several different ways. Providing such assistance, however, uses financial resources and may limit homes' flexibility to tailor their programs to meet local needs. Agencies and organizations should take these tradeoffs into account when considering opening a maternity group home program or creating a network.

Networks. State policymakers who are concerned about the needs of teenage parents and their children may want to consider establishing a state network of maternity group homes. Where such networks are established, local social service providers will need to decide whether to operate homes within a network. Networked maternity group home programs can offer several advantages to participating homes. One of the most important ways in which many networks support their member homes is by providing funding. In addition, network agencies typically have network-level staff devoted (at least part-time) to providing technical assistance, support, and advocacy for the homes. These types of assistance may be particularly important for creating and fostering new programs. However, even staff of established homes in some networks cited the ongoing support of the network-level agency as central to their operations.

Besides providing top-down assistance to their individual homes, networks facilitate cooperation between the homes within the network. Being part of a network can also offer homes the opportunity to learn from each other, typically through regular meetings of home directors sponsored by the network agency. These connections between homes can also inform those operating at capacity about other locations with openings, so they can refer new applicants. Networked programs often have formal or informal mechanisms for transferring residents from one home to another within the network, to find the best match between residents' needs and homes' specific service offerings.

Creating networks also enables state and local government agencies to ensure that all homes within their purview conform to certain rules. In return for providing various types of assistance, networks typically require their homes to follow at least some, often broad, rules concerning program features. For example, homes may be constrained to accept only residents who are eligible to receive other services from the network agency, such as TANF or child welfare. In some cases, network agencies are involved in the referral process, and homes are even required to accept every resident referred by the network agency. Networks may also dictate certain services that all homes must provide, as well as particular levels or types of staffing. While agencies that manage networks may consider it important to be able to focus services in certain directions and/or standardize key program elements across all of their different homes, some individual homes (and some networks) may consider the resulting loss of flexibility a disadvantage. For instance, a network that is overly centralized might limit the ability of individual homes to respond to local needs and work with the community. Specifically to avoid this type of situation, the maternity group home network agency in New Mexico designed a decentralized network that gives local organizations considerable independence in operating their homes.

On the other hand, working with a number of different homes can make it possible for networks to create deliberate variety among the homes within its service area. Some networks include different types of homes that offer a continuum of care for different types of residents. In addition to the two types of maternity group homes discussed earlier in this report — congregate and apartment model homes — the Massachusetts network includes a few transitional facilities that provide considerably lower levels of supervision than the network's other homes. These homes provide only limited adult supervision and are targeted to older, more mature teens program staff have deemed ready to move from a maternity group home into a more independent setting. Another example of this model is Rhode Island's small statewide network (not included in this study), which also provides a continuum to help residents move toward independence. Young teen residents enter the program at the first level — living in a congregate home with 24-hour-awake supervision — and move to apartment model homes with less supervision over time.

The many benefits of network support come at the price of higher program costs, however, since adding a layer of network-level staff to perform these functions increases the cost of the program. Not surprisingly, the networks that provided the greatest amount of technical support and assistance to their member homes also dedicated the most network-level staff time to overseeing the network.

Parent Organizations. Policymakers interested in funding maternity group homes or establishing networks must consider who will be responsible for actually operating the homes, and social service organizations interested in this role must consider whether they are up to the task. Active parent organizations serve many of the same functions as network agencies: providing their homes with funding and technical assistance, facilitating interactions between different homes, and encouraging standardization or deliberate variety among their homes.

In addition to the types of assistance that network agencies provide, homes can benefit from having access to the management, administration, and other staff of established parent organizations. Parent organizations often take responsibility for all financial matters — including fundraising, budgeting, and accounting — and have direct authority over all expenditures. In some cases, parent organizations own the buildings in which maternity group homes operate. Parent organizations also are often involved in hiring at least some of the staff — such as the home's director and other key professional staff — who work at the homes. In some cases, staff from the parent organization come to the homes to provide specific direct services to residents. Such arrangements can help homes access specialized staff — such as mental health professionals — that a single home may not be able to support on its own. In addition, two or more homes with the same parent organization may share a program manager, a pool of on-call relief staff, or a set of partners.

These roles are especially important for homes that do not belong to a network, although many homes benefit from the assistance of both parent organizations and networks. Parent organizations experienced in offering services to pregnant and parenting teens or operating other residential programs for adolescents in need may be better prepared for many of the challenges of operating a maternity group home, and thus have less need of the kinds of support a network can offer. Policymakers should seek out such providers to operate maternity group homes, particularly in the absence of networks. Social service organizations with less comprehensive experience in this area may want to join a larger network of homes, if this is an option in their area.

Maternity Homes Can Face Challenges Retaining Residents

Providers of maternity group home programs often struggle with high turnover rates among residents. Although maternity group home programs typically allow residents to remain in the homes two years or longer, or until they reach an eligibility age limit, residents often leave much sooner. In many homes, staff reported that although many residents stay in the program for a year or more, just as many leave within a month or so of their initial entry into the home

High rates of turnover are a concern to practitioners and policymakers, for two reasons. First, maternity group home program staff expressed concern that many residents leave too soon to get the full benefit of the program. The homes are not designed as temporary shelters but as longer-term programs in which residents must spend considerable time if they are to take full advantage of the rich set of services the homes provide. Second, high rates of turnover can result in a large number of empty beds in some places. Although it may be useful for homes to have a few empty beds available for new residents, programs are able to use their space and staff most efficiently when operating at or close to capacity. Too much excess capacity can also affect program funding.

How to address high turnover depends on the reasons for it. Anecdotal evidence suggests several factors that may be related to turnover rates and excess capacity:

Lack of Commitment to the Program. Staff suggested that some residents simply want housing and are not committed to the maternity group home program. These teens often do not follow program rules and do not stay at the home very long. Careful screening of applicants may help minimize the number of uncommitted residents. For example, one home implemented new, particularly challenging application procedures, designed to screen out applicants who are not fully committed to the program. This strategy may be appropriate only for programs where there is high demand, however, since programs that usually have empty beds may not want to turn away any applicants, even those who are less committed and may not stay as long.
Strictness of Rules. There may be a relationship between the strictness of program rules and the length of stay in the home. Dislike of program rules was the most common reason staff mentioned for residents leaving the home after only a short stay. High turnover rates among residents of maternity group homes reflect, in part, teens' dissatisfaction with program rules that limit their freedom too much. Staff reported that it could be challenging to strike the right balance between imposing necessary structure on residents' lives and allowing them some degree of freedom. Some homes have deliberately relaxed at least some rules to increase resident satisfaction and encourage them to stay with the program. Some programs offer a range of homes with varying degrees of structure to meet the needs of different types of residents, thus allowing more independence for more mature residents, which, in turn, may increase their length of stay. In addition, transitional slots can be a good incentive for regular home residents to work toward. 1
Location. Anecdotal evidence suggests higher demand for maternity group home slots in urban locations. This may be due to the fact that there are more pregnant teens in these areas, and teens entering maternity group homes typically wish to remain in the area they know. In addition, some staff noted that if there is no maternity group home in a teen's hometown, she typically prefers to move to a home in a larger city (where she may have a relative). Perhaps the only solution to the location issue is to conduct a needs assessment before opening a new home, and this way ensure an adequate demand for services in the area.

Policymakers and practitioners might consider these issues both when designing new programs and when making changes to existing programs.

Costs Depend on Service Intensity and Comprehensiveness

Providing the level of support and comprehensive array of services that maternity homes offer can be expensive, but some programs have considerably lower per-family costs than others. As discussed in Chapter IV, the monthly operating costs of the homes in this study ranged from as little as $1,200 to as much as $8,600 per resident family. Those designing new maternity group home programs should consider the reasons for this considerable variation, as well as the interaction between specific program features and program costs.

This study found a generally positive relationship between program costs and the intensity of supervision and other services provided directly by home staff. Since staffing is the single largest component of program expenses at most homes, any program feature that has strong implications for staffing will have similar implications for costs. Thus, financial considerations should be taken into account when making decisions about which services to provide directly, which specific populations to serve, and what size facilities to use. Policymakers and social service organizations should consider these factors when determining the likely costs of operating maternity group home programs.

Direct Provision of More Intensive Services. Offering more direct services — such as mental health services, more frequent life-skills and parenting classes, and more intensive supervision — will require more staff, resulting in higher program costs. Some types of services may increase costs more than others. For example, providing intensive mental health services requires more highly trained staff who will likely require higher salaries.

To reduce costs, programs may be able to rely more heavily on other social service agencies and organizations in the community to provide some services to home residents. Relying on external service providers — whether on site as partners or off site through referrals — can reduce the number of paid staff needed by a home. Thus, forging close relationships in the community can enable homes to expand the services available to their residents, while at the same time holding down the homes' operating costs. For example, among the homes in our study, those that rely on existing services in the community for mental health services have lower costs than those that provide these services directly to their residents. In New Mexico's maternity group home network — which is among the least expensive programs in our study — home staff are expected to serve largely as case managers, connecting residents with other providers in the community for most services. State officials who oversee the network cited as a strength of their program the ability of their homes to access community resources. Community organizations also provide small amounts of funding and in-kind donations to homes.

Nevertheless, the ability of programs to shift some responsibilities away from home staff and onto external service providers depends on the actual availability of services in the community. In some cases, certain services will simply not be available if the group home does not offer them directly. For example, in both Georgia and Maine — where the maternity group home programs pay for mental health services for their residents — staff noted that such services were not readily available to low-income families outside the home. Staff in another state mentioned long waiting lists for mental health and drug treatment services in the area. Staff of the network agency in New Mexico — which uses a model that relies heavily on local community involvement — cautioned that not all communities can support a home based on this model.

Choice of Target Population. Specific populations may require more intensive supervision and higher staff-to-resident ratios, resulting in more staff and thus higher program costs. For example, 24-hour-awake staff typically are required to supervise teens in state custody, and some states have licensing rules that require similarly high levels of supervision for all group homes that house minors. Besides supervision, there may be other state licensing requirements and regulations relating to these populations that add expense. Thus, serving younger teens and those in state custody may lead to higher program costs. Homes that are not subject to such requirements, such as some homes that serve older or more mature teens, may provide less intensive supervision, and thus tend to have lower costs. Those designing new maternity group home programs will need to consider the implications for program costs of the population served.

Policymakers designing networks might consider creating a continuum of different types of homes within a single program, in order to meet the needs of different types of residents at the lowest cost. The homes visited for this study represent a continuum of levels of program intensity and cost. In some sites, multiple levels of intensity exist within a given program, sometimes intentionally. The programs visited in Massachusetts, Michigan, and Washington each have some homes with higher operating costs and higher levels of supervision/service intensity and other homes with lower costs and intensity, which they target to a somewhat older or more mature population. For example, Massachusetts' STEP facilities, which provide considerably lower levels of supervision than the network's other homes, operate at about half the cost of the other homes. Staff in some sites that do not have such transitional programs mentioned a need for semi-independent facilities to bridge the gap between highly structured maternity group home programs and fully independent living.

Home Size. Policymakers may want to consider operating slightly larger homes as a strategy to reduce per-resident costs. This study found that larger homes tend to be less expensive to operate, due to economies of scale. A certain minimum number of staff is needed to provide supervision and services to a few residents, but homes with adequate physical capacity often can serve additional residents without increasing their staffing levels proportionately. In locations where the need for maternity group home programs is high enough to support larger homes, and where appropriate facilities with adequate capacity are available, operating a few large homes may be more cost efficient than operating a larger number of smaller homes.

There is a tradeoff involved in operating larger facilities, however. The resulting lower staff-to-resident ratios may likely result in less personal attention given to each resident, which may be inappropriate for some populations. In particular, the same state regulations that mandate 24-hour-awake staff in homes that serve minors or teens in state custody may also specify a low staff-to-resident ratio, making it impossible for these homes to expand capacity without a proportional increase in staff. In addition, larger facilities are likely to be more institutional and less like a family, which may not provide the same kind of supportive environment a small home can.

Thus, policymakers and organizations establishing maternity group home programs may need to decide whether to offer a high-intensity, high-cost program model or a more streamlined, lower-cost model. Those that wish to serve younger teens and/or provide constant adult supervision and a richer set of direct services must anticipate the higher costs that come with that model. Homes with lower levels of funding may have to rely more heavily on partners and referrals, and/or serve a more independent population that requires less intensive supervision.

However, some of the programs with the strictest rules may also be those that serve populations who may not be free to leave the home without consequences. For example, some homes serve primarily residents who are required to live in the home because they are in state custody or on probation, or as a condition of receiving TANF or retaining custody of their child. Because these populations may be considered to need more supervision, the homes that specialize in serving them may be required to have stricter rules.

Child Welfare League of America. http://www.cwla.org/programs/pregprev/flocritt.htm Accessed February 2005.

Cooper, Edith Fairman. Second Chance Homes: Federal Funding, Programs, and Services. Washington, DC: Congressional Research Service Report for Congress, November 9, 2004.

Henshaw, Stanley K. U.S. Teenage Pregnancy Statistics With Comparative Statistics For Women Aged 20-24. New York: Alan Guttmacher Institute, 2004.

Hulsey, Lara K. Maternity Group Homes Classification and Literature Review. Princeton, NJ: Mathematica Policy Research, 2004.

Maynard, Rebecca A. Kids Having Kids : Economic Costs and Social Consequences of Teen Pregnancy. Washington, DC: Urban Institute Press, 1996.

National Campaign to Prevent Teen Pregnancy. Factsheet: How Is the 34% Statistic Calculated? Washington, DC: National Campaign to Prevent Teen Pregnancy, 2004.

Reich, Kathleen. Improving Outcomes for Mother and Child: A Review of the Massachusetts Teen Living Program. Cambridge, MA: Harvard University, John F. Kennedy School of Government, April 1996.

Reich, Kathy, and Lisa M. Kelly. A Place to Call Home: Second Chance Homes in Georgia. Washington, DC: Social Policy Action Network, March 2000.

Social Policy Action Network. Second Chance Homes National Directory. Washington, DC: SPAN, November 2001.

U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation . Second Chance Homes: Providing Services for Teenage Parents and Their Children. Washington, DC: ASPE, October 2000.

Appendix A: Summary of the Seven Study Programs

This appendix provides a summary of the seven maternity group home programs included in this study. For each program, we describe its basic structure, funding sources and levels, eligibility rules and referral sources, setting and structure of its facilities, staffing patterns, and core program services. Table A.1 presents the general characteristics of each of the seven study programs.

GCAPP Second Chance Homes (Georgia)

Basic Program Structure. The Georgia Campaign for Adolescent Pregnancy Prevention (GCAPP) operates a statewide network of eight maternity group homes, serving 44 teenage mothers and their babies. The GCAPP program began serving teens in 2001 and is funded primarily by the Georgia Department of Human Resources (DHR). The eight GCAPP homes have flexibility in determining their daily operations and procedures. However, the homes all offer a similar set of services and serve similar populations. GCAPP provides technical assistance and support to the homes in its network, helping them troubleshoot when challenges arise, such as issues involving resident behavior or government regulations. GCAPP also convenes regular meetings with program managers to provide training and discuss issues relevant to all the homes.

Funding Sources and Levels. GCAPP receives $1.4 million annually from DHR to fund the homes and provide them with assistance and support. Grants from GCAPP to individual homes currently range from about $100,000 to $150,000 per year and make up about a third of the operating budgets of these homes. Most of the rest of their funding comes directly from DHR as payments for providing shelter and services to children in state custody. Some homes also receive funding from charitable organizations and individual donations. The average monthly cost per resident family served ranges across the eight GCAPP homes from about $4,300 to as much as $6,700. In general, smaller facilities, as well as those offering more intensive support services and serving higher risk teens, have higher costs.

Eligibility Rules and Referral Sources. To participate in the GCAPP program, teenage mothers must be between the ages of 13 and 20, have no history of serious drug use or violent criminal behavior, and have a current living situation that is considered unsafe or inappropriate. The program serves both pregnant and parenting teens. However, state regulations seriously limit the number of pregnant teens the homes can serve. For this reason, most teens have already had their babies before they enter the program. Teens may voluntarily enter the homes with the permission of their parents or guardians. However, it is more common for teens who enter the homes to be in state custody through either the foster care or juvenile justice systems. Referrals are generally handled by individual homes; GCAPP is not involved. About two-thirds of referrals are from local child welfare agencies, while about 10 percent are from juvenile justice. Other referrals come from a mix of sources, including schools, churches, hospitals, health clinics, community organizations, and family members.

Setting and Structure of the Homes. The eight GCAPP homes are located throughout Georgia: two in the metropolitan Atlanta area, one in the mid-size city of Columbus and the rest in small towns. All homes involve congregate living, in which the teens share living, dining, and kitchen areas. In all the homes, teens have their own bedrooms that they share with their babies. Most are in converted single-family homes in quiet residential areas and can serve five or six teens and their children. One home near Atlanta is in a newly constructed facility that can serve eight teen families and includes two separate apartments for house parents. Another home in southern Georgia is part of a campus of residential and educational facilities for disadvantaged and troubled youth. The latter home is operated by a social service organization that has been providing residential services to children in this location for almost 100 years.

Staffing Patterns. Although there is some variation, the basic staffing pattern at each of the GCAPP homes is fairly similar. All provide a very high level of supervision for their residents, including staff on site 24 hours a day and low resident-to-staff ratios. These staffing patterns are required by state law for facilities that house minors in state custody, as these homes do. State regulation requires a 6-to-1 resident-to-staff ratio (counting both the teen mothers and their children) during waking hours and a 10-to-1 ratio at night. In accordance with state regulations for children in foster care, teens are generally not allowed to leave the home unless they are accompanied by a group home staff member. Homes typically have two or three full-time staff members with advanced degrees: a program director, who manages the daily operations of the home and its staff, and one or two case managers. The homes also have a number of “advocates” who provide general supervision for residents. These staff may be part-time and typically do not have advanced degrees.

Core Program Services. The eight homes all offer a similar set of services, including weekly parenting and life-skills classes taught by the group home staff. These classes use the Minnesota Early Design (MELD) curriculum, which was specially designed to teach parenting skills to at-risk adolescent parents and to reduce the risk of child abuse and neglect. Classes cover a variety of topics, including child development and health, family management, and other parenting issues. The GCAPP program places strong emphasis on mental health services, and all teen residents receive regular individual therapy sessions. Some homes have licensed therapists on staff, while others contract with an outside therapist to provide this service. Residents also meet weekly with their case manager to review progress toward meeting their personal goals concerning parenting, education, and health. Homes also offer guided study and tutoring services, as well as transportation to medical appointments, educational events, and group outings.

St. Andre Home, Inc. (Maine)

Basic Program Structure. St. Andre Home, Inc. operates four maternity group homes in Maine, which can serve a total of 16 pregnant and parenting young women and their children. The organization was founded in 1940 by a local order of nuns, the Good Shepherd Sisters, which owns the buildings out of which the four group homes operate. Three of the homes opened in the mid-1970s; the fourth opened in 1998. The four homes are quite similar to each other, providing similar services and serving similar populations. The central St. Andre office handles all financial issues and provides general oversight of the homes. However, treatment planning, as well as the day-to-day functioning of the homes, is handled by staff at each home. Central office staff and staff from the four group homes work closely together and have regular and frequent contact with each other.

Funding Sources and Levels. The St. Andre group homes are funded primarily by Medicaid funds (covering about two-thirds of operating expenses) and by a state contract to provide residential services to young mothers (covering just over one-fourth of the operating expenses). Other funding comes from a mix of sources. In some cases, the children of the young mothers who reside in these homes are in state custody. In these situations, the program receives monthly payments from the Maine Department of Human Services (DHS), which are provided to organizations that house children in the foster care system. These payments cover less than 5 percent of the operating expenses of the homes. The program also receives small amounts of funding from religious organizations, the United Way, and private donations. In addition, residents with income are required to pay program fees, representing either one-fourth or one-third of their income, depending on their circumstances. Each home has an annual budget of between $364,000 and $448,000 and the average monthly cost per family served is about $8,600. Costs vary somewhat across the four homes, with one home specifically designed to accommodate young mothers with more than one child having the highest per-family costs. Unlike most other group homes visited as part of this study, the budget for the St. Andre group homes includes Medicaid-funded mental health, drug treatment, and other medical services residents receive, all of which contribute to the high per-family cost of the program.

Eligibility Rules and Referral Sources. To reside in a St. Andre group home, young women must be Medicaid-eligible and be either pregnant or parenting a child younger than age three. All homes serve young mothers ages 15 to 24, while one home serves women up to the age of 30. Most homes can accommodate only mothers with one child; however, one can accept mothers with two children. Residents cannot be a danger to themselves or others, must not be active drug users, and must be willing to follow program rules. Applications and admissions are handled by individual homes. Most referrals to the program are from DHS. Many of these referrals are situations in which the children are in state custody and are being reunited with their mothers on a trial (and closely supervised) basis. Other DHS referrals may involve young women who must live in the homes as a condition of retaining custody of their child. Other referrals come from a variety of sources, including hospitals, counselors, churches, shelters, family, and friends.

Setting and Structure of the Homes. The four St. Andre homes are located in southern and central Maine: two in Lewiston, one in Biddeford, and one in Bangor. All the homes follow the congregate model, in which the residents share living, dining, kitchen, playroom, and other common areas. Residents have their own bedrooms that they share with their children. In one home each mother has her own suite with bedroom, small living room, and bath. This home is a large four-story former rectory, while two of the other facilities are converted single-family homes in residential neighborhoods. The fourth home is a new facility specifically built as a maternity group home. Each home can serve three to five families.

Staffing Patterns. Although there is some variation, the basic staffing pattern at each of the St. Andre homes is very similar. All homes have staff on site 24 hours a day; however, overnight staff are not required to remain awake. The homes all have low resident-to-staff ratios, with each employing six full-time and one part-time staff member. Staff typically include a supervisor, a masters-level clinical social worker, and four “group life workers” who provide general supervision for residents. In addition to the staff who work directly for the homes, the program contracts with a number of consultants, including psychiatrists, medical doctors, and public health nurses.

Core Program Services. In addition to housing and supervision, each home provides a number of individual and group services to its residents. Homes convene group sessions three or four times each week. These sessions include parenting and life-skills classes, as well as house meetings. In some cases, sessions are conducted by group home staff; in other cases, outside experts are brought in to teach the classes. In addition to the group sessions, residents must meet weekly with the home's social worker. Some residents also meet regularly with psychiatrists who come to the home to provide therapy. Finally, homes occasionally provide child care and transportation for their residents.

The Teen Living Program (Massachusetts)

Basic Program Structure. The Massachusetts Teen Living Program (TLP) includes 20 regular TLP group homes and 3 transitional Supportive Teen Parent Education and Employment Program (STEP) facilities for pregnant and parenting teens throughout the state. The TLP homes and STEP facilities can house 177 teens and their children, making the program the largest maternity group home network in the country. The network is managed by the Massachusetts Department of Social Services (DSS), which oversees child welfare issues for the state, in partnership with the Massachusetts Department of Transitional Assistance (DTA), which manages the state's Temporary Assistance for Needy Families (TANF) program. The program began in 1995 as part of state welfare reform legislation that, among other changes to the state welfare program, required teen mothers to live in an adult-supervised setting as a condition of receiving cash assistance. The state funded TLPs as an option for those who did not have an appropriate relative or guardian with whom they could live. The first homes opened in 1996. The network is fairly centralized, with DSS guidelines governing the services the homes must offer and the population they must serve. However, the homes have flexibility in making decisions about their specific structure and rules. In addition to regular meetings, the network director has frequent — sometimes daily — informal contacts with home directors.

Funding Sources and Levels. The program operates on an annual budget of about $8.2 million, of which $2.4 million is from DSS and the remainder from DTA. In addition, the program is in the last year of a three-year grant from ASPE to provide outreach services to the fathers of TLP residents' children. The amount of funding the network provides to each home varies by program size and location. The average monthly cost per TLP resident ranges from around $3,500 to $4,800, depending on the cost of living in the area. STEP program costs are considerably lower, about $2,300 per bed each month, because of the lower level of supervision and services. The homes rely almost exclusively on the network funding to operate; however, some receive small donations and in-kind contributions from local organizations in their communities. Homes also require residents to contribute 30 percent of their monthly income — typically TANF benefits — to the program.

Eligibility Rules and Referral Sources. All homes require that residents be: (1) between the ages of 13 and 20; (2) Massachusetts residents; and (3) pregnant or parenting. In addition, residents must have no other appropriate adult-supervised place to live and must be willing to abide by the rules of living in a TLP home. Each bed within the network is designated either “DTA” or “DSS,” which indicates the referral source and eligibility requirements for that bed. All DTA-bed residents must receive TANF, while all DSS-bed residents must have an open DSS case for their children or themselves. There is considerable overlap between these two groups, however, as most residents in DSS beds also receive TANF, and some residents in DTA beds also have DSS cases. The source of referrals also depends on the type of slot. All placements to the 102 DTA beds are made by the network coordinator, who is a state-level DSS staff member. Referrals to the 64 DSS beds are made by regional DSS staff. Placements in the network's 11 emergency beds are made by DTA staff directly. These beds are available for immediate use for teens in crisis situations or while they wait for an opening in a regular TLP bed.

Setting and Structure of the Homes. The TLP network covers the entire state of Massachusetts, although homes are more prevalent in population centers. Each TLP home follows one of two structural models: (1) congregate programs for most teens, or (2) apartment-model programs for older teens who are better able to take care of themselves and their children. Congregate-model programs have 24-hour-awake staff. Staff members have frequent contact with residents and provide them guidance on parenting and life skills through role modeling and informal instruction. Teens have their own bedrooms, which they share with their children; however, bathrooms, kitchens, living rooms, and eating areas are shared by all group home residents. Residents of congregate homes typically pool their food stamps and rotate cooking duties. In apartment-model programs, two or three teens and their children share an apartment, with each teen responsible for preparing her family's meals. Staff in these homes may provide somewhat less supervision than those in congregate homes, although apartment-model homes all have staff on site 24 hours a day. Most of the homes in the network are congregate-model programs; only five use the apartment model. In addition to these two types of TLPs, the network includes three STEP programs — apartment-model facilities for TLP “graduates” who are transitioning to independent living. Residents of STEP homes still receive some supervision and case management and attend group sessions and classes, but less frequently than other TLP residents.

Staffing Patterns. All TLP group homes have staff on site 24 hours a day. However, congregate homes must have awake staff at all times, while some apartment-model homes have live-in house parents instead. Staff-to-teen ratios are established for each home individually by the state's Office of Child Care Services (OCCS), which licenses all TLP group homes. TLP network staff reported that OCCS typically requires ratios of one staff person per five teens, with more staff during peak times and fewer staff at other times. At the TLP group homes we visited, the number of staff ranged from about 4 to 11 full-time-equivalent staff, with larger homes typically having more staff. Each home uses a mix of full-time and part-time staff. STEP programs have much lower staff-to-teen ratios than the congregate and apartment-model TLPs, since they serve more mature teens who are transitioning to independent living. STEP programs are staffed by a case manager 20 hours per week, and they often share staff with nearby TLPs.

Core Program Services. All homes provide a number of regularly scheduled group and individual sessions to their residents. Homes typically have three or four group sessions a week, including life skills/parenting groups and weekly house meetings. All homes use the Preparing Adolescents for Young Adulthood (PAYA) curriculum, which was developed by DSS for adolescents and includes some sections specifically for teen parents. Residents also meet weekly with their case manager, who develops and updates a service plan for each teen. Some homes have masters-level social workers on staff to provide counseling; others will connect residents with therapy providers covered by Medicaid. Residents' children are screened by Early Intervention Services and are often assigned to Early Head Start. Homes will also assist residents in finding child care and many will provide transportation in some situations. Besides services to current residents, TLPs offer follow-up assistance to former residents. The programs also provide outreach and case management services to the fathers of current residents' children.

Teen Parent Supportive Housing Services Collaborative (Michigan)

Basic Program Structure. The Family Independence Agency (FIA) of Wayne County, the agency responsible for serving TANF families, oversees a small county-based network the capacity to serve pregnant and parenting teens in the Detroit area. The network currently includes three maternity group homes, an agency that provides mental health and outreach services to support the homes, and a parenting program (operated by an organization that also runs a non-network maternity home not directly supported by FIA). The agency that currently provides mental health and outreach services operated a home until recently when funding cuts from United Way necessitated the closing of this home. The three network homes offer similar services and serve similar populations; however, the network's management is fairly decentralized. FIA leads monthly meetings of the five network members and is the fiduciary agent for the network's primary funding source; however, decisions about the daily operations of the residential facilities are left to the homes themselves.

Funding Sources and Levels. The network receives Supportive Housing Program funding from the U.S. Department of Housing and Urban Development (HUD) of about $1 million annually. Each of the homes receives a HUD grant of between $135,000 and $400,000 per year, and these grants make up a substantial fraction of the operating budget of these homes. While the federal grant is the primary source of funding for all the homes in the network, none relies exclusively on this funding source. Homes also receive funding from HUD Emergency Shelter Grants, the United Way, and private donations. Each home also requires residents to contribute a quarter of their monthly income as rent. The average monthly cost per teen family served ranges substantially across the three homes, from as low as $1,200 to as much as $4,200. 1

Eligibility Rules and Referral Sources. The three network homes serve broadly similar populations. All homes serve both pregnant and parenting teens, and each home can accommodate a small number of parents with two children. None of the homes accept teens younger than 15 or older than 18, but some individual homes have narrower age ranges. Residents must be from Wayne County, and all homes require parental consent for minors. The homes also require residents to be on TANF, and all admissions decisions are made with the approval of FIA caseworkers. FIA is the primary source of referrals for all three homes, although homes also get referrals from a number of other sources including emergency hotlines, churches, teachers, friends, and family members. The homes are not licensed to care for teens in state custody.

Setting and Structure of the Homes. All network homes are located in Detroit. Two of the homes are congregate living facilities, in which all residents share living, dining, and kitchen areas, and bathrooms. In one of the congregate homes, residents share bedrooms, with two teen mothers and their children sharing a room. Both of the congregate facilities are converted, large single-family homes in residential areas. The third facility is an old apartment building in which each teen parent has her own one-bedroom apartment. This facility targets slightly older teens than the other network homes do and is designed for young mothers who are mature enough to care for themselves and their children in their own apartment.

Staffing Patterns. All three homes have staff on site 24 hours a day, although there is considerable variation in staffing patterns and resident-to-staff ratios across the homes. The two congregate homes have 24 hour awake staff (and, in fact, one of these homes has two awake staff members on site at all times.) The apartment model facility has fewer staff than the congregate homes, despite serving more residents, and the home does not always have awake staff. Each home has at least four full-time staff and a number of part-time staff. Homes typically have a program manager, a social worker and/or a case manager, and several “specialists” who provide general supervision for residents. In addition to staff who work directly for the homes, some staff from partner organizations come in to the homes to provide services, such as teaching parenting classes.

Core Program Services. Besides housing and supervision, all the homes provide case management and a number of scheduled classes and individual meetings. The homes typically offer classes for the residents most weekday evenings, and the topics include classes related to parenting and life-skills (including such topics as budgeting, nutrition, and anger management). The residents typically are required to attend the classes, and at least one home offers them incentives to attend. Group and individual counseling are also commonly provided. Some homes provide child care and transportation to enable residents to attend school or work, while others help residents access external providers for these supports. Some homes also take the residents on outings in the Detroit area, as well as offer annual trips to other parts of the country. In addition to services provided to residents, each home offers some continued assistance to former residents after they leave the home.

The Teen Parent Program (New Mexico)

Basic Program Structure. The New Mexico Teen Parent Program (TPP), which is managed by the state's Children, Youth, and Family Department (CYFD), funds five group homes and three non-residential programs for pregnant and parenting teens throughout the state. The five homes have the capacity to serve 38 pregnant and parenting teens and their children. The program began operating in 1990 and is the oldest statewide network of maternity group homes in the country. The state program imposes broad guidelines on the services the homes it funds should offer. However, by design, program operations are highly decentralized, and individual homes have considerable flexibility in determining the specific services they offer and population they serve. State officials consider it very important for the local organizations that run these homes to have the flexibility to design programs that are appropriate for the needs of their community. The five TPP homes operate fairly independently of each other. However, the homes' directors meet a few times a year to discuss funding, services, referrals, and other issues.

Funding Sources and Levels. TPP provides $500,000 annually toward the operating expenses at the five homes. TPP grants to the individual homes range from $55,000 to $165,000 per year. For three of the five homes, TPP funding covers most (80 percent or more) of their operating budget. For these homes, most additional funding comes from regular payments required of residents, typically $150 per month paid out of their TANF checks. The other two homes receive substantial funding from other sources to cover their operating expenses. One of these homes receives only about half its funding from its TPP grant; the rest comes from a HUD grant to house homeless teens, as well as a government grant to fund housing for teens transitioning out of the foster care system. The other TPP home (which, unlike the other homes in the network, serves primarily teens referred from child protective services) receives just over half its funding from government grants to cover services for teens in the child welfare system. This home also receives about 15 percent of its funding from Catholic charities, so that its TPP grant covers less than a third of its operating budget. Monthly operating costs vary substantially across the five homes and range from about $1,300 to $3,300 per bed per year. Homes with higher per-resident costs tend to be smaller, have more staff, and provide a somewhat more intensive set of services for residents.

Eligibility Rules and Referral Sources. The homes serve pregnant or parenting young women who must enter the program before their 20th birthday and can remain until they turn 21. Residents must be eligible for Medicaid. In addition, they must be willing to follow program rules and attend school to remain in the program. Some homes have additional eligibility requirements, such as meeting the HUD definition of homelessness, a requirement for homes that receive HUD funding. The five TPP homes all handle their own referrals and applications. Homes will refer teens to another TPP home if their home is full. However, because the homes are located far apart geographically, teens are often unwilling to consider placement in one of the other homes. Referrals for the five TPP homes come from a variety of sources, including schools, hospitals, the juvenile justice system, and child welfare agencies.

Setting and Structure of the Homes. The setting and physical structures of the five TPP homes vary substantially. One home is in Albuquerque (the state's largest city); others are in small towns several hours from Albuquerque. Two are in converted single-family homes, where the residents have separate bedrooms but share living, kitchen, and dining areas. Another program is located in a set of three attached two-bedroom apartments, each of which can house two teenage parents and their children. One program operates out of a set of eight, clustered one- and two-bedroom apartment units in a large privately owned apartment complex in an urban area. Another is in a converted motel in a remote location off of old Route 66. The level of supervision and strictness of the rules imposed on residents concerning curfews, visitors, and other issues varies across the five homes.

Staffing Patterns. Each home uses a mix of full-time and part-time staff, although specific staffing patterns vary considerably across the homes. The number of full-time staff at each home ranges from two to five; however, those with fewer full-time staff typically employ more part-time staff. Full-time staff at each home include the home director and sometimes a residential coordinator, a case manager, or a counselor. Staff generally provide 24-hour supervision, including overnight and weekend shifts. Overnight staff are not required to remain awake. In addition to paid staff, most homes rely on volunteers from partner organizations to provide some services to home residents.

Core Program Services. All homes offer regular parenting and life-skills classes to residents. These classes typically meet once or twice a week and are led by home staff, although they sometimes rely on outside speakers. In addition, homes typically offer case management services to teens, regularly reviewing their progress toward meeting their program goals and offering them referrals if needed. Other services vary across the five homes. Some offer regular tutoring sessions for residents. Others provide respite child care on a limited basis and provide transportation to school, appointments, and shopping.

Inwood House Maternity Residence (New York)

Basic Program Structure. With a capacity to serve up to 36 teens, Inwood House Maternity Residence is the largest of three New York City maternity homes for pregnant teens in the foster care system. 2 The Administration for Children Services (ACS), the city's child welfare agency, contracts with Inwood House to operate the program, which serves pregnant young women under the age of 21 until the birth of their child. After their babies are born, residents and their babies must be placed with a foster family or in a group home for teen parents. Inwood House was founded in 1830 and opened its first maternity residence in 1847. It has been serving pregnant teens from the city's foster care system since the 1930s. In addition to its maternity residence, Inwood House operates several other programs to serve pregnant and parenting teens, as well as programs designed to reduce teen pregnancy.

Funding Sources and Levels. The Inwood House maternity home has an annual budget of about $1.7 million. These funds come primarily (91 percent) from ACS, which provides Inwood House with set monthly payments to cover the costs of their housing and support services. Most other funding for the program comes from Medicaid. In addition, the state provides Inwood House some TANF funding to cover case management services for the fathers of residents' babies. These government funds are supplemented with funding from private foundations. The average monthly costs per teen served by the program is about $6,000.

Eligibility Rules and Referral Sources. To be eligible, residents must be pregnant and in the foster care system. In addition, since ACS regulations prohibit babies from residing in facilities for pregnant teens in foster care, residents must not have custody of any other children. All referrals to the program come from ACS, and Inwood House is generally required to accept the referrals it receives. ACS requires all teens living in group homes (the most common setting for these teens) to transfer to a maternity residence if they become pregnant. In addition, many foster families hosting teens request that the teen be moved if she becomes pregnant. For this reason, most pregnant teens in the city's foster care system live either at Inwood House or one of the other two city maternity homes that serve foster care teens.

Setting and Structure of the Homes. Inwood House is located in a quiet residential neighborhood on New York's Upper East Side. The organization owns the six-story building and operates several programs out of the facility. Three of the floors are devoted to the maternity home and each of these floors has 12 rooms, one large bathroom, and a lounge. Because of low enrollment in the maternity residence in recent years, one of the residential floors is now used by other Inwood House programs. Residents all have their own bedrooms and share living rooms and dining areas.

Staffing Patterns. The Inwood House program serves a large number of teens, typically about 24 at a given time in recent years. Moreover, ACS regulations require 24-hour-awake staff, as well as a low resident-to-staff ratio. For these reasons, the program has a large staff of social workers, paraprofessionals, administrators, and support staff. The maternity residence is overseen by a director of residential services, assisted by a director of youth care who oversees the large staff (7 full-time and 12 part-time) of paraprofessionals who provide basic supervision and other services to residents. The home also employs two full-time social workers who provide case management services; a full-time independent living coordinator who provides life-skills training; a full-time registered nurse who coordinates residents' medical care and teaches child birth, child health, and nutrition classes; and a part-time clinical psychologist who provides group and individual therapy, as well as psychological testing, to residents. Inwood House also employs a job developer who provides career readiness training to residents and a housing specialist who assists young women aging out of foster care find appropriate housing. In addition, the program employs a full-time cook, three maintenance workers, and several other administrative and clerical staff.

Core Program Services. The Inwood House maternity home offers a wide array of support services. Residents are required to participate in six weekly one-hour classes on independent living skills, childbirth, infant care, health, substance abuse prevention, and other special topics. Residents are offered incentives for attending these sessions, including vouchers that can be used to purchase items for their baby at the program's “baby boutique.” Residents also have weekly meetings with their case managers to review their behavior, school performance, and other personal issues. Inwood House requires all residents to attend school full time if their health permits. The program offers an on-site school for teens who are unable to find an appropriate educational program in the community. This school, which is used by about one in four residents, provides daily class instruction and is taught by a certified New York City school teacher. Inwood House also operates the “Fathers Count” program for the fathers of the residents' babies. The program offers case management services to these young men, including referrals to job and education services, parenting classes, anger management groups, and legal assistance. Fathers are also encouraged to attend the childbirth and other classes Inwood House offers for its residents.

Friends of Youth Transitional Living Program (Washington)

Basic Program Structure. Friends of Youth (FOY) operates the Transitional Living Program, which includes two maternity group homes and three residential programs for other youth populations in the Seattle area. 3 The two maternity homes serve 20 pregnant and parenting young women and their children. FOY has operated other residential programs for youth since 1951 and opened their first maternity home exclusively for pregnant and parenting young women in 1991. The program's management is fairly centralized — one FOY staff member is the program manager for both maternity homes. The two homes offer a similar set of services and serve fairly similar populations; however, one home (Harmony House) is a congregate living facility while the other (Arbor House) is an apartment-model facility.

Funding Sources and Levels. The combined annual funding for the two maternity homes is about $452,000. HUD provides over $300,000 of this funding — around $200,000 to Harmony House and over $100,000 to Arbor House. The homes receive smaller amounts of funding from the state, county, and city governments; the United Way; and private donors. In addition, residents at both homes are required to contribute about a third of their incomes to the program. The two homes receive roughly similar levels of overall funding, despite their different capacities (Arbor House serves 14, while Harmony House serves 6). Thus, the average monthly cost per resident family served differs substantially, from about $1,300 at Arbor House to $3,200 at Harmony House.

Eligibility Rules and Referral Sources. The eligibility requirements are the same at both FOY maternity homes. Residents must be pregnant or parenting young women between the ages of 18 and 21 at time of entry into the home. They can have only one child, and their children must be no older than four when they enter the home. The homes must verify and document that applicants are homeless according to HUD's definition. The homes also screen applicants for severe mental or physical health problems, current drug addiction or domestic violence, and any evidence that they might be dangerous. The homes take referrals from numerous sources, including public health workers, social service providers, shelters, foster care, FOY outreach staff, a community information hotline, and former residents.

Setting and Structure of the Homes. Both homes are located in the Seattle area: one in a residential neighborhood in a northern suburb and the other in a complex with other group living facilities on a former military base on the east side of Seattle. Arbor House is an apartment model facility, while Harmony House is a congregate home. Some of the families in Arbor House share two-bedroom units while others live in individual one-bedroom units. This facility also contains a number of common areas shared by all residents and an apartment for the live-in resident manager. All families at Harmony House share living, dining, and kitchen areas, but each family has its own bedroom.

Staffing Patterns. The basic staffing pattern at the two homes is similar, and they even share some staff. Each of the homes has a resident manager who lives on site, so someone is available to residents day and night, although neither home has 24-hour-awake staff. Each home also has its own full-time case manager. The two maternity homes share a program manager and an assistant program manager with the three other residential facilities that are part of the FOY Transitional Living Program. The homes also share a pool of relief staff who provide supervision on weekends, holidays, and when a resident manager is on vacation. Since the two homes have similar numbers of staff despite widely different capacities, Arbor House has a much higher resident-to-staff ratio than Harmony House.

Core Program Services. The two homes offer a fairly similar set of services. Arbor House provides twice-monthly house meetings led by group home staff, as well as a monthly parenting class and a monthly nutrition class, both of which are taught by outside staff from partner organizations. Harmony House has weekly group meetings. In addition to group activities, residents in both homes are required to meet weekly with their case manager to review progress toward meeting their individual goals. Harmony House also contracts with external providers for mental health services. Harmony House provides child care for its residents, while Arbor House home has only limited funding for occasional child care. Both homes provide bus passes to their residents.

1 We have had a challenging time obtaining good funding information from some of the homes in this program. Therefore, these per-resident-family costs should be viewed only as approximate.

2 Inwood House officially has a capacity to serve 36 residents. However, the home has been operating below this capacity for some time, due primarily to a large drop in the city's foster care population in recent years.

3 Until shortly before our site visit in November 2004, one of the other three residential programs was also a maternity group home. However, FOY staff had recently decided to transition this home into a home for young women (ages 18 to 22) without children, because they felt this population was more in need of residential services in their area than was the young parent population.

4 Despite similar eligibility requirements, Harmony House tends to serve younger mothers who may need more supervision, while Arbor House tends to serve older mothers who are more ready for independent living.

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The Ultimate Guide to Starting a Maternity Clothes Business

Hey there, future maternity business tycoon! If you have ever dreamed of making your own beautiful and stylish maternity dresses, and pregnancy Activewear then you are in the right place. We’re about to take you on a fun and informative journey into the world of starting a maternity wear business. Whether you’re a mom-to-be finding a gap in the market or a fashion enthusiast, this guide is your ticket to getting your maternity business off the ground. No fancy suits or business language here – just real-world tips, inspiration, and roadmaps to help you bring your maternity wear dreams to life. So, let’s dive in and explore the fun realm of the maternity fashion industry!

Why Start a Maternity Clothes Business?

Starting a maternity wear or pregnancy Athleisure business is a brilliant idea, as there is a huge demand for stylish and comfortable maternity wear. Many expectant mothers strive for clothing that is fashionable and fits well, creating a unique market opportunity. In addition, if you have experienced this yourself or know someone who has, you can relate to the frustration of having limited options during pregnancy.

So, starting a maternity business is not just a benefit; it’s about helping moms-to-be feel fabulous and confident during this special time. It’s a win-win – fulfilling a need in the marketplace and making maternity fitness clothes appealing for expectant mothers.

Steps to Start a Profitable Maternity Clothes Business

Market research and target audience.

Market research is like a compass for your maternity business . It helps you understand what expectant moms really want and how your business can meet those needs. To do this, you need to think about who your target audience is – these are the people you want to sell to. What are their interests? What are their needs during pregnancy? Market research and understanding your audience is like magic; that points your business in the right direction.

Creating a Business Plan

A business plan is like a treasure map for your maternity business . It outlines all the essential elements, such as what your business is about (the mission statement), where you want to go (your goals and objectives), and how you plan to get there. It sounds like you’re planning an exciting trip for your career.

Legal Requirements and Registration

Starting a maternity activewear business requires following the rules and playing by the book. Depending on where you are located, you may need to register your business and obtain a specific license or permit. It’s like getting an official ID card for your business – it means you’re ready to work.

Consider registering your business with the local and federal governments. There are four different models to choose from.

Sole Proprietorship

The simplest type of business to set up
Offers no personal liability protection

Corporate Organization

Shareholders elect board members to run things
Requires an annual meeting with stockholders’ meetings every three months

Limited Liability Company

Provides extra protection for investors by limiting their liability exposure
Allows flexibility in operating their businesses

Partnership

Business owner plus partners
Can offer personal liability protection

Sourcing Materials and Suppliers

Good maternity gym clothes require suitable materials that are flexible and moisture-wicking and you will need the right suppliers for them. Look for quality products and consider being environmentally friendly and ethical in your choices. It’s like choosing the best ingredients to make a delicious meal.

Designing Maternity Clothes

Design is all about making your maternity active dress not only easy to wear and comfy but also unique and beautiful. Your designs should work for the mom-to-be so that it feels incredible when pregnant. If you’re not a designer yourself, you might meet someone who is – think of them as your fashion partner.

Manufacturing and Quality Control

Decide whether you’ll make the clothes in-house or have them made by custom clothing manufacturers . Either way, quality control is super important. You want your maternity clothes to be high quality and comfortable so moms-to-be will love wearing them.

Whether you choose to manufacture products in-house or collaborate with manufacturers, it is crucial to ensure the highest quality to meet the expectations of expectant mothers.

Branding and Marketing

Branding is like giving your business its personality. It’s how you stand out from the crowd. You can’t hide your best maternity athleisure ; you will need to show them off and promote them. That’s where marketing comes in – it’s like telling the world about your business.

Online Presence and E-Commerce

In the online world, your business needs a home – a website where people can learn about and buy your products. Plus, social media is your friend for expanding your maternity business . Think of them as your digital stores.

Pricing and Sales Strategies

Pricing means determining how much you will charge for your maternity fitness wear . You want it to be convenient for you and your customers. Sales tactics include things like discounts and promotions to make your products more attractive.

Financial Management and Funding Options

Money matters! It would be best if you managed the finances of your business, such as setting budgets and tracking expenses. It’s like balancing your company checkbook. You may need some money to start a business. You can finance it yourself (self-financing), take out a loan, or find investors who believe in your maternity business and want to help it grow.

Customer Service and Feedback

Treat customers like royalty! Good customer service means meeting their needs and listening to their concerns. Feedback helps you improve your products and make your customers even happier.

Tips To Consider Before Launching the Maternity Wear Collection

Not All Women Wish To Conceal Their Pregnancy Bump

Contrary to common opinion, expectant women do not want to conceal their growing tummies. Pregnancy is the most beautiful moment of a woman’s life, and most women are proud to show off the wonder that is growing inside of them.

Designers need to keep in mind that maternity attire doesn’t have to be boxy or evocative of a sack. Form-fitting clothing is often more comfortable for expecting moms during their pregnancies.

Only A Few Moms-To-Be Are Willing To Abandon Their Favorite Dress Trends

The majority of women have a go-to wardrobe that they wouldn’t want to part with even for nine months. Some people prefer wearing dresses rather than uncomfortable clothing, such as oversized tees and baggy slacks. Some expectant women prefer to keep going to work in fitted suits. Designers should provide maternity wear that includes a variety of garments to satisfy pregnant women’s desires for both comfort and style.

Pregnant Women Prefer Not To Spend a Fortune on Updating Their Wardrobe

Not every expectant mother intends to spend lots of money on new clothes. Every pregnant woman is aware that her physique will alter every two months. They are also mindful that their pre-baby bodies will return a few months after the baby is born.

With their present T-shirts and shorts, some ladies might want to buy a few skirts. Some people would instead buy a single blazer to wear with the majority of their existing dresses. Maternity activewear dress designers should create items that can be used with clothing in a variety of colors, cuts, and materials.

Total Startup Expenses for Maternity Clothes Business

Store location and lease agreement: The location, size, and condition of the property determine the cost of leasing a physical store location. It can cost between $3,000 and $10,000 per month.
Interior design and store fixtures: Athleisure maternity stores need to create an attractive and comfortable shopping environment. A store’s interior design and fixtures, like lighting, flooring, and displays, can cost anywhere from $25,000 to $50,000.
Merchandise inventory: A startup maternity clothing store must hold a substantial inventory of clothing and accessories in order to offer a variety of sizes, styles, and colors. An initial inventory can cost between $50,000 and $100,000.
Point-of-sale system: In order to process transactions, track inventory, and manage customer information, a point-of-sale system is essential. Depending on the features and quality of the system, the price can range from $3,000 to $10,000.
E-commerce website development: The reach and revenue potential of a maternity clothing store can be significantly increased by an e-commerce website. It is estimated that the cost of developing and maintaining a website can range from $10,000 to $50,000.
Marketing and advertising: The success of a maternity clothing store depends on its ability to attract and retain customers. Depending on the type of campaign and how many people are involved, marketing and advertising can cost $5,000 to $10,000 a month, including social media, email campaigns, and local events.
Hiring and training employees: It is essential to hire knowledgeable, experienced, and personable employees for a maternity clothing store. It can cost between $10,000 and $20,000 to hire and train three to four employees.
Legal and accounting fees: Incorporation, payroll setup, and tax filing are all legal and accounting tasks necessary when starting a business. It costs between $5,000 and $10,000 to hire legal and accounting professionals.
Initial working capital for expenses such as rent, utilities, and insurance: Working money is necessary for a startup maternity clothing store to cover expenses like rent, utilities, insurance, and other overhead costs. Working capital requirements can range from $50,000 to $75,000.

Key Takeaways

On the exciting journey of starting your own maternity wear business, you’ve learned that it’s not just about fashion; it’s about meeting the needs and desires of expectant moms. Elegant, comfortable, and functional maternity wear is in high demand, and this guide shows you the steps to make your maternity business a reality.

Your maternity wear factory is a gateway to help expecting mothers feel special during pregnancy and add your unique touch to the fashion world. Now is the time to turn your dreams into a beautiful reality, giving birth to one beautiful object at a time, filled with knowledge and inspiration. Good luck with your maternity business !

Ready to make your mark in the maternity fashion world? Start branding your clothing line today!

Explaining Fair Trade Fashions: 10 Essential Principles and Regulations

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What is a Fashion Incubator? Services and Joining Process!

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Calculating Your Investment: How Much Does It Cost to Start a Clothing Line?

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How To Write a Business Plan for Maternity Boutique in 9 Steps: Checklist

By alex ryzhkov, resources on maternity boutique.

Financial Model
Business Plan
Value Proposition
One-Page Business Plan

Welcome to our blog post on how to write a business plan for a maternity boutique in 9 simple steps. If you've been thinking about starting your own maternity boutique, now is the perfect time to turn your passion into a profitable business. The maternity wear industry in the US is experiencing significant growth , with a projected market value of $877.5 million by 2026.

So, how can you capitalize on this growing market and create a successful maternity boutique? We've broken down the process into nine essential steps, taking you from identifying your target market to outlining your organizational and staffing structure.

Step 1: Identify your target market and conduct thorough market research. Understanding your customers and their needs is crucial for tailoring your products and services to their preferences.
Step 2: Determine the perfect location for your maternity boutique. Consider factors such as foot traffic, accessibility, and proximity to other complementary businesses.
Step 3: Define the range of products and services you wish to offer. Consider specializing in high-end, stylish items that are comfortable and fit well during pregnancy.
Step 4: Develop a pricing strategy that reflects the value of your products and services while remaining competitive in the market.
Step 5: Create a competitive analysis to identify your direct and indirect competitors, understand their strengths and weaknesses, and find ways to differentiate yourself.
Step 6: Determine the startup costs required to establish your maternity boutique and explore funding options, such as loans, grants, or partnerships.
Step 7: Identify potential suppliers and establish strong relationships to ensure a steady supply of high-quality products.
Step 8: Create a comprehensive marketing and advertising plan to effectively reach your target market and build brand awareness.
Step 9: Outline the organizational and staffing structure of your maternity boutique, including roles and responsibilities, to ensure smooth operations.

By following these nine steps, you will be well on your way to creating a business plan that sets the foundation for a successful maternity boutique. Stay tuned for our upcoming blog posts, where we'll dive deeper into each step, providing you with invaluable insights and tips.

Identify Target Market and Conduct Market Research

Identifying the target market is a crucial step in creating a successful business plan for your maternity boutique. Understanding your target audience will help you tailor your products and services to meet their specific needs and preferences.

To begin, consider who your ideal customer is. Are you targeting expecting mothers from a specific age group, income level, or geographic location? Are you focusing on a particular style or aesthetic? Defining your target market will allow you to create a more focused and effective marketing strategy.

Once you have identified your target market, it is important to conduct thorough market research. This will help you gain insights into the preferences, buying behaviors, and trends within the maternity retail industry. By gathering data on your target audience, you can make informed decisions about the products and services you offer.

Survey Expecting Mothers: Conduct surveys or interviews with expecting mothers to gather their opinions and insights. Ask about their shopping habits, preferences, and any unmet needs they have in the maternity retail market.
Research Competitors: Analyze your competition to gain a better understanding of what they offer and how you can differentiate your boutique from theirs. Look at their pricing strategies, product range, and target audience.
Utilize Online Resources: Explore online forums, social media groups, and mommy blogs to gain insights into the maternity industry. Keep an eye out for trends, popular brands, and any challenges or pain points that expecting mothers may face during their pregnancy.

Tips for conducting effective market research:

Use a combination of qualitative and quantitative research methods to gather a comprehensive understanding of your target market.
Consider hiring a market research firm or consultant to assist you in gathering and analyzing data.
Stay up-to-date with industry publications and trade shows to keep abreast of the latest trends and developments.
Regularly revisit and update your market research as your boutique grows and evolves.

By identifying your target market and conducting thorough market research, you will be better equipped to make informed business decisions and create a successful business plan for your maternity boutique.

Determine The Location For The Maternity Boutique

Choosing the right location for your maternity boutique is essential to the success of your business. The location you select should be easily accessible to your target market and have a high potential for foot traffic. Here are some important factors to consider when determining the perfect location for your boutique:

Target Market: Identify where your target market resides and frequents. Consider areas with a high concentration of expectant mothers or neighborhoods with young families.
Demographics: Research the demographic profile of the area, such as average income, age group, and family size. This will help you understand if the local population has the purchasing power and demand for your products.
Competitor Analysis: Evaluate the presence of existing maternity boutiques in the area. While competition can be a good sign that there is demand, too much competition might saturate the market.
Accessibility: Choose a location that is easily accessible by both car and public transportation. This will ensure convenience for your customers, especially during the late stages of pregnancy.
Foot Traffic: Look for areas with a high volume of foot traffic, such as shopping malls, downtown areas, or busy streets. Additionally, consider proximity to complementary businesses, such as prenatal clinics or baby stores, which can attract potential customers.
Rental Costs: Evaluate the rental costs associated with different locations. While prime locations may have higher rents, they can also provide greater visibility and customer traffic.
Consider leasing a space in a shopping center or mall, as these locations often provide a built-in customer base and marketing support.
Negotiate the lease terms to ensure flexibility in case your business needs to expand or relocate in the future.
Visit the potential locations during different times of the day to observe the foot traffic and the overall atmosphere of the area.

Determining the location for your maternity boutique requires careful consideration of various factors to maximize customer reach and sales potential. By strategically selecting the right location, you can position your business for success in the competitive maternity market.

Define The Range Of Products And Services To Be Offered

One of the crucial steps in writing a business plan for a maternity boutique is defining the range of products and services that will be offered. This step requires careful consideration to ensure that the boutique meets the unique needs and preferences of its target market.

When it comes to products, it is important to curate a selection of clothing and accessories that align with the target market's style preferences and fit well during pregnancy. High-quality, stylish items that offer both comfort and functionality should be prioritized. Consider offering a variety of options, including casual wear, formal attire, lingerie, and activewear, to cater to different occasions and customer preferences. Additionally, accessories such as maternity belts, nursing bras, and belly bands can be included to enhance the shopping experience and meet the specific needs of expectant mothers.

Moreover, services can be an excellent way to differentiate the maternity boutique and provide added value to customers. Consider offering personal styling consultations to help expectant mothers find the perfect outfits that suit their body shape and personal style. You can also explore offering maternity photography services to capture precious moments during pregnancy or collaborate with local photographers to provide special packages for customers. Furthermore, creating a baby registry service can be an attractive option to help expectant mothers and their loved ones prepare for the arrival of the baby.

Tips for Defining Your Product and Service Range:

Conduct thorough market research to understand the preferences and needs of your target market.
Stay updated with the latest fashion trends in maternity wear and accessories.
Consider the comfort and functionality of the products to ensure customer satisfaction.
Explore partnerships with local designers or brands to offer exclusive and unique items.
Regularly assess and update your product and service offerings based on customer feedback and market demand.

Taking the time to define a comprehensive range of products and services will enable the maternity boutique to position itself as a trusted source for stylish and functional maternity wear. Offering personalized services and unique experiences will help attract and retain customers, setting the boutique apart from competitors in the market.

Develop A Pricing Strategy

Developing a pricing strategy for your maternity boutique is crucial to ensure profitability while also attracting customers. Here are some important factors to consider:

Determine your costs: Calculate the costs associated with sourcing products, overhead expenses, and any additional services you plan to offer. This will help you establish a baseline for setting your prices.
Research the market: Conduct thorough market research to understand the pricing trends in the maternity boutique industry. This will give you insights into what your competitors are charging for similar products and services.
Consider your target market: Understand the demographics and purchasing power of your target market. If you are catering to high-end customers, you may be able to command higher prices. Alternatively, if you are targeting budget-conscious expectant mothers, your pricing should be competitive.
Value-based pricing: Determine the unique value proposition of your maternity boutique and use it to justify your pricing. If you offer personalized styling or exclusive designer collections, your prices can reflect the added value.
Markup or commission: Decide whether you will sell products at a markup or establish a commission-based partnership with designers. Both approaches have their own advantages and disadvantages, so evaluate which option aligns better with your business goals.
Discounts and promotions: Consider implementing limited-time discounts or promotional offers to attract customers. However, ensure that these discounts do not compromise your profit margins.

Tips for developing an effective pricing strategy:

Regularly review and adjust your prices based on changes in costs, market trends, and customer feedback.
Consider offering bundle deals or loyalty programs to incentivize repeat customers.
Monitor your competitors' pricing strategies to stay competitive in the market.
Offer a range of price points to cater to different customers' budgets and preferences.

Create A Competitive Analysis

When starting a maternity boutique, it is crucial to understand the competitive landscape in order to position your business effectively and differentiate yourself from competitors. Conducting a comprehensive competitive analysis will provide valuable insights into the existing market and help you identify opportunities for growth and improvement.

Identify Competitors: Begin by identifying the key competitors in your target market. Research brick-and-mortar maternity boutiques, online retailers, and department stores that offer maternity clothing and accessories. Look for businesses that cater to a similar target market and offer similar products or services.

Analyze Product Offerings: Evaluate the range of products and services offered by your competitors. Take note of any unique or specialized offerings they provide, as well as the quality and pricing of their products. This analysis will help you determine how to differentiate your maternity boutique and develop a competitive advantage.

Assess Pricing Strategies: Analyze the pricing strategies of your competitors to understand how they position themselves in the market. Determine whether they offer premium, mid-range, or budget options, and consider how your pricing strategy will compare. It is important to find a balance between affordability and value to attract customers.

Study Marketing and Advertising: Observe the marketing and advertising tactics used by your competitors to promote their businesses. Pay attention to their messaging, branding, and channels of communication. This will help you identify opportunities to stand out and reach your target market effectively.

Look for gaps in the market that your maternity boutique can fill with unique offerings.
Incorporate customer feedback and reviews into your analysis to understand the strengths and weaknesses of your competitors.
Consider visiting competitor locations and researching online to gain firsthand knowledge of their customer experience.

By thoroughly analyzing your competitors, you can gain valuable insights that will inform your business strategy and set your maternity boutique apart in the market. Use this analysis to refine your product offerings, pricing, marketing, and overall positioning to create a unique and compelling business that appeals to your target audience.

Determine The Required Startup Costs And Secure Funding

Determining the required startup costs is crucial when starting a maternity boutique. It involves estimating the expenses you will incur to launch and operate your business successfully. To ensure your boutique has the necessary funding, it is important to secure proper financing options. Here are some steps to guide you through this process:

1. Calculate your initial expenses: Start by making a comprehensive list of all the costs you will incur in starting your maternity boutique. This may include expenses such as store setup, inventory, equipment, licenses, permits, marketing materials, and initial employee salaries. Be as detailed as possible to get an accurate estimate of the initial investment you will need.

2. Research funding options: Once you have determined your startup costs, you can explore various funding options. These could include personal savings, loans from financial institutions, venture capital, crowdfunding, or seeking investors. Research each option thoroughly to understand their terms, interest rates, repayment periods, and any additional requirements.

3. Create a solid business plan: A well-crafted business plan is essential when seeking funding. It should include a detailed description of your maternity boutique, market analysis, marketing strategies, financial projections, and how the funding will be utilized. A strong business plan demonstrates your understanding of the industry and increases your chances of securing the necessary funding.

4. Approach potential lenders or investors: Once you have a solid business plan in hand, reach out to financial institutions, angel investors, or venture capitalists who may be interested in funding your maternity boutique. Pitch your business idea confidently, highlighting its unique selling points and potential for growth. Prepare to answer any questions they may have, and be prepared for negotiations.

5. Consider alternative funding options: If traditional funding sources are not readily available, consider alternative options such as crowdfunding platforms or seeking support from friends and family. These routes may require creative marketing strategies or personal connections, but they can be viable options if traditional funding channels are not feasible.

Be realistic in estimating your startup costs. Underestimating can lead to financial difficulties down the road.
Research and compare different financing options to find the one that best suits your business needs.
Prepare a professional and persuasive business plan to enhance your chances of securing funding.
Network and build relationships with potential investors or lenders to increase your chances of success.

Identify Potential Suppliers and Establish Relationships

One crucial step in setting up a successful maternity boutique is identifying potential suppliers and establishing strong relationships with them. This will ensure that you have a reliable and consistent source of high-quality products to meet the demands of your target market.

When searching for suppliers, consider factors such as product quality, pricing, delivery times, and their ability to meet your specific needs. Look for suppliers who specialize in maternity clothing and accessories, as they will have a better understanding of the unique requirements of expectant mothers.

Research and compare: Take the time to research and compare different suppliers to find the best fit for your boutique. Look for online directories, trade shows, and industry publications to identify potential suppliers. Compare their offerings, pricing, and terms to make an informed decision.
Attend trade shows: Trade shows are a great way to connect with suppliers and see their products firsthand. It allows you to establish face-to-face relationships and negotiate better deals.
Ask for samples: Before committing to a supplier, request samples of their products to ensure their quality meets your standards. This will help you make an informed decision and avoid any surprises later on.
Negotiate terms: Once you've identified potential suppliers, don't be afraid to negotiate terms that work in your favor. These may include pricing, minimum order quantities, and delivery schedules. Building a mutually beneficial relationship from the start will set the stage for successful partnerships in the long run.
Establish open communication: Communication is key when working with suppliers. Establish open lines of communication and maintain regular contact to address any concerns, provide feedback, or make any necessary adjustments to your product offerings.

By identifying potential suppliers and establishing strong relationships with them, you will ensure a steady supply of high-quality products for your maternity boutique. This will contribute to customer satisfaction and help differentiate your boutique from competitors in the market.

Create A Marketing And Advertising Plan

Once you have determined all the essential details of your maternity boutique, including your target market, range of products and services, and pricing strategy, it is time to create a comprehensive marketing and advertising plan that will effectively promote and attract customers to your business.

Start by identifying the various marketing channels that will best reach your target market. This may include a combination of online advertising, social media marketing, print advertisements, and partnerships with local businesses or influencers. Consider what platforms your target market is most likely to use and tailor your marketing efforts accordingly.

Utilize social media platforms such as Facebook and Instagram to showcase your products, share styling tips, and connect with your audience. Leverage targeted ads to reach expectant mothers within your area.
Consider creating a blog or newsletter that provides valuable information about pregnancy and motherhood. This can help establish your boutique as a trusted resource and build loyalty.
Partner with local influencers or mommy bloggers who have a strong online presence in your target market. Collaborate with them to promote your boutique and offer exclusive discounts or giveaways to their followers.

Next, develop a content strategy that aligns with your brand and resonates with your target market. This can include creating visually appealing and informative blog posts, videos, or photo shoots that showcase your products and highlight their unique features.

Additionally, consider hosting events or workshops that cater to expectant mothers. This can be an opportunity for them to experience your boutique firsthand, engage with your staff, and learn valuable tips and tricks for maternity fashion or parenting. Events like trunk shows or party rentals can also generate buzz and attract potential customers.

Measure the effectiveness of your marketing efforts by tracking key performance indicators such as website traffic, social media engagement, and sales conversions. This will enable you to adjust your strategies accordingly and optimize your marketing and advertising plan.

Remember, building brand awareness and creating a strong customer base takes time and consistency. Stay proactive in monitoring industry trends and continuously refining your marketing strategies to ensure your maternity boutique stands out and remains successful in a competitive market.

Outline the Organizational and Staffing Structure

Creating a clear organizational and staffing structure is essential for the smooth operation of your maternity boutique. By outlining roles and responsibilities, you can ensure that tasks are delegated effectively and that your team is well-prepared to handle the demands of your business.

Organizational Structure: Start by defining the different departments or functions within your boutique. This may include areas such as sales, marketing, inventory management, and customer service. Determine how these departments will interact and collaborate to create a cohesive and efficient operation.

Staffing Structure: In this section, identify the key positions and roles required to run your maternity boutique. Consider the number of employees needed in each area and their specific responsibilities. This could include roles such as boutique manager, sales associates, visual merchandiser, and customer support staff.

Tips for outlining your organizational and staffing structure:

Identify core responsibilities: Clearly define the main tasks and responsibilities associated with each role to avoid confusion and ensure accountability.
Consider future growth: Anticipate the needs of your boutique as it grows and include positions that may be needed in the future. This will help you plan for future recruitment and expansion.
Promote teamwork: Encourage collaboration and teamwork by clearly outlining how different roles and departments should interact and communicate with one another.
Invest in training and development: Plan for ongoing training and professional development to ensure your team stays updated on the latest trends, products, and customer service techniques.

Writing a comprehensive business plan is crucial for the success of a maternity boutique. By following these nine steps in the checklist, entrepreneurs can ensure that they have a solid foundation to start and grow their business. Identifying the target market, conducting thorough market research, and selecting the right location are essential for attracting customers.

Defining the range of products and services, developing a pricing strategy, and creating a competitive analysis will help the boutique stand out in the market. Determining the required startup costs, securing funding, and establishing relationships with potential suppliers are necessary for smooth operations.

Furthermore, a marketing and advertising plan will ensure that the boutique reaches its target audience effectively. Finally, outlining the organizational and staffing structure will help create a strong business structure.

By following these steps and having a clear understanding of the business idea, entrepreneurs can create a successful business plan for a maternity boutique that offers expectant mothers a convenient, stylish, and comfortable shopping experience during this special time in their lives.

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How to Start a Profitable Maternity Clothes Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a maternity clothes business plan., 3. develop a maternity clothes brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for maternity clothes., 6. open a business bank account and secure funding as needed., 7. set pricing for maternity clothes services., 8. acquire maternity clothes equipment and supplies., 9. obtain business insurance for maternity clothes, if required., 10. begin marketing your maternity clothes services., 11. expand your maternity clothes business..

Before launching a maternity clothes business, conducting a thorough market analysis is crucial. This step will help you understand your target audience, identify trends, and position your business for success. Here's how to approach the market analysis:

Research the current maternity clothes market size, growth trends, and projections to understand the potential for your business.
Analyze the competition by looking at their product range, pricing strategies, marketing efforts, and customer reviews to identify gaps and opportunities.
Understand your target demographic by profiling future mothers' age, income level, lifestyle, and fashion preferences to tailor your product offerings.
Investigate the supply chain for maternity clothing, including manufacturers and wholesalers, to ensure you can source high-quality materials and products.
Explore different sales channels, such as online, boutiques, and department stores, to determine the most effective way to reach your customers.
Keep an eye on emerging trends in the maternity wear industry, like eco-friendly fabrics or innovative designs, to stay ahead of the curve.
Gather feedback from expectant mothers through surveys or focus groups to refine your product line and services.

Are Maternity Clothes businesses profitable?

Yes, maternity clothes businesses can be profitable. With the growing demand for maternity clothing, maternity clothes businesses have the potential to become profitable if they have a well-defined target market, good quality products, and an effective marketing strategy. Additionally, businesses can increase profitability by offering discounts, promotions, and loyalty programs.

Starting a maternity clothes business requires careful planning to ensure success. A well-thought-out business plan is your roadmap, outlining your business goals, strategies, and how you plan to achieve them. Here's a guide to help you draft an effective business plan for your maternity clothing venture:

Begin with an executive summary that encapsulates your business concept, target market, and financial projections.
Define your business objectives, mission statement, and vision to give your business a clear purpose and direction.
Conduct market research to understand your competition and the needs of your target demographic.
Outline your product range, including the types of maternity clothes you will offer and any unique features or benefits.
Develop a marketing and sales strategy that details how you will reach and attract your target audience.
Establish an operational plan that covers your production process, suppliers, and logistics.
Create a financial plan with projections for revenue, costs, profit margins, and break-even analysis.
Detail any funding requirements and sources, such as loans or investors, if applicable.

How does a Maternity Clothes business make money?

A maternity clothes business can make money by selling maternity clothing items, such as tops, bottoms, dresses, and lingerie, to expecting mothers. They can also offer services such as tailoring, customization, and styling advice. Additionally, they may be able to offer accessories and other items related to pregnancy and new motherhood, such as nursing bras, maternity pillows, and more.

Creating a maternity clothes brand requires a deep understanding of your target market and a clear brand identity that resonates with expecting mothers. Here's a step-by-step guide to help you develop a brand that stands out and connects with your audience.

Identify Your Niche: Decide on the unique angle of your maternity brand, whether it's eco-friendly materials, multipurpose wear, or high fashion for pregnant women.
Research Your Audience: Understand the needs, preferences, and shopping habits of expecting mothers to tailor your brand's offerings accordingly.
Create a Brand Story: Develop a compelling narrative that reflects your brand values and mission, making it relatable to your target customers.
Design a Memorable Logo: Your logo should be distinctive and representative of your brand's ethos, making it easily recognizable.
Select a Color Palette: Choose colors for your brand that evoke the desired emotions and align with the personality of your brand.
Develop a Marketing Strategy: Plan how you will communicate your brand to the world, using social media, influencer partnerships, and other marketing tactics.
Ensure Product Quality: High-quality garments will not only satisfy customers but also build the credibility and reputation of your brand.
Seek Feedback: Regularly collect customer feedback to refine your products and brand experience.

How to come up with a name for your Maternity Clothes business?

Brainstorm ideas by considering words that evoke feelings of comfort, femininity, and joy. Think of alliterative phrases that are catchy and easy to remember. Check to make sure the name you like is not already in use, and make sure it is available as a domain name. Finally, consult friends and family for feedback to make sure the name resonates with others.

Once you've laid the groundwork for your maternity clothes business, it's crucial to formalize your venture. This step legitimizes your business in the eyes of the law and is essential for various functions such as taxation, liability protection, and credibility with customers. Below are key actions to take when registering your business:

Choose a business structure (like sole proprietorship, partnership, LLC, or corporation) that best suits your needs by considering factors like liability, taxes, and administrative requirements.
Register your business name with the appropriate state authority, ensuring it's unique and not already in use.
Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, even if you don't plan to hire employees immediately.
Apply for any required local and state licenses or permits, which can vary depending on location and the type of products you're selling.
Understand and comply with the specific requirements for a maternity clothes business, such as consumer safety regulations and labeling laws.
Consider registering for state sales tax permits if you're selling products directly to customers within your state.

Resources to help get you started:

Explore valuable resources designed for maternity clothes entrepreneurs aiming to understand market trends, operational excellence, and strategic growth:

Fashion United: Offers comprehensive market reports and trend analyses specific to the maternity wear industry. Visit Fashion United .
Maternity Wear Market Report by Mordor Intelligence: Provides detailed insights into the global maternity wear market, covering growth trends, forecasts, and the impact of COVID-19. Access Mordor Intelligence .
Business of Fashion: Offers newsletters and articles with strategic advice for fashion entrepreneurs, including those in the maternity clothes sector. Explore Business of Fashion .
WGSN: A leading trend forecasting resource providing future trends in maternity wear and consumer insights. Discover WGSN .
Entrepreneur Magazine: Features practical tips on starting and growing a business, with applicable strategies for maternity clothes startups. Read Entrepreneur Magazine .

Starting a maternity clothes business requires not only a flair for fashion and understanding of your market but also ensuring that you comply with various legal requirements. Acquiring the necessary licenses and permits is a critical step in legitimizing your business and avoiding any legal issues down the line. Here are some key actions to take:

Business License: Register for a general business license with your city or county clerk's office. This is the primary permit that allows you to operate legally.
Seller's Permit: If you plan to sell maternity clothes directly to customers within your state, a seller's permit (or a sales tax permit) is usually required to collect sales tax.
Employer Identification Number (EIN): Obtain an EIN from the IRS for tax purposes, especially if you plan on hiring employees.
DBA Filing: If operating under a trade name, file a 'Doing Business As' (DBA) with the appropriate state agency to register your business name.
Zoning Permits: Check with local zoning laws to ensure that your business location is zoned for retail, if you are operating a physical store.
Health and Safety Compliance: If you are manufacturing clothes, ensure compliance with health and safety regulations, which may require additional permits.

What licenses and permits are needed to run a maternity clothes business?

Depending on the type of business you are planning to operate, and your location, you may need to obtain a variety of licenses and permits. Examples include a business license, sales tax permit, a zoning permit for operating in a residential area, health department permits (if you will operate a physical store), fire safety permits, and any other specialized permits that might be required in your state or local jurisdiction.

Securing your financial foundation is crucial when starting a maternity clothes business. Opening a business bank account separates your personal finances from your business transactions, providing clarity and protection. Additionally, finding the right funding can fuel your growth and inventory needs. Below are steps to guide you through this process:

Choose the right bank: Research banks that offer business accounts with low fees, easy access, and good customer service. Consider also if they provide additional support to small businesses.
Gather required documents: Prepare necessary paperwork, which may include your business license, EIN, incorporation documents, and ownership agreements.
Apply for the account: Visit the bank with your documents or apply online, if available, to set up your business bank account.
Explore funding options: Look into small business loans, investors, crowdfunding, or grants designed for new businesses or fashion industry entrepreneurs.
Develop a funding pitch: If seeking investors, create a compelling pitch that outlines your business plan, market research, and financial projections.
Consider credit options: Apply for a business credit card to manage cash flow and track expenses efficiently.

Establishing the right pricing strategy is crucial for the success of your maternity clothes business. It's important to find a balance between affordability for expectant mothers and profitability for your company. Consider the following guidelines when setting your prices:

Analyze the market: Research competitors' prices to ensure your rates are competitive and in line with industry standards.
Understand your costs: Calculate the cost of goods sold, including materials, labor, and overhead expenses, to determine the minimum price point for sustainability.
Perceived value: Price your items based on the quality, uniqueness, and benefits they offer to pregnant women, potentially allowing for a premium on exclusive designs.
Demand and demographics: Consider the purchasing power of your target demographic and adjust prices to match their willingness to pay.
Pricing strategy: Decide whether you'll use a cost-plus, value-based, or penetration pricing strategy and how often you'll reassess your prices.
Discounts and promotions: Plan for seasonal sales, loyalty programs, and discounts for multiple purchases to incentivize customers and move inventory.
Legal compliance: Ensure your pricing strategy adheres to all applicable laws and regulations, including tax considerations and price labeling requirements.

What does it cost to start a Maternity Clothes business?

Initiating a maternity clothes business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $24000 for launching such an business. Please note, not all of these costs may be necessary to start up your maternity clothes business.

When starting a maternity clothes business, it's essential to carefully select the range of clothing, equipment, and supplies that will meet the needs of expectant mothers. Here are some key considerations to help you acquire the right inventory for your business:

Inventory Selection: Choose a variety of styles, sizes, and fabrics to cater to different preferences and trimesters. Include staples like maternity jeans, dresses, and supportive undergarments.
Quality Suppliers: Partner with reputable manufacturers and wholesalers who can provide high-quality, durable maternity wear that will appeal to your target market.
Fit and Comfort: Ensure the clothes offer comfort and functionality, with features like adjustable waistbands and soft, stretchy materials.
Seasonal Options: Stock seasonal attire such as maternity coats for winter and light dresses for summer to accommodate year-round needs.
Accessories and Necessities: Don't forget to include essential accessories like belly bands, nursing bras, and postpartum support garments.
Display and Store Supplies: Invest in mannequins, hangers, and shelving that accommodate maternity sizes and highlight the clothing's features.
Online Sales Platform: If you plan to sell online, secure a reliable e-commerce platform and consider drop-shipping services for a wider product range.

List of Software, Tools and Supplies Needed to Start a Maternity Clothes Business:

Accounting Software
Business Plan Software
Inventory Management Software
Point of Sale (POS) System
Shopping Cart System
Website Design and Development Software
Social Media Management Software
Office Supplies (e.g. pens, paper, etc.)
Computer and Printer
Sewing Machine
Fabric and Thread
Shipping Supplies (e.g. boxes, labels, etc.)
Store Displays (e.g. mannequins, racks, etc.)

Ensuring that your maternity clothes business is protected with the right insurance is a critical step in establishing a secure foundation for your enterprise. Here's a guide to help you understand and obtain the necessary business insurance:

Research local and national regulations to determine the types of insurance required for a retail clothing business, including those specific to maternity wear.
Contact insurance agents or brokers to discuss your specific business needs. They can provide personalized advice on the types and levels of insurance that would best suit your business.
Consider the following types of insurance:
General Liability Insurance: Protects against financial loss from claims of injury or damage caused by your business operations.
Product Liability Insurance: Offers protection in case the maternity clothes you sell cause harm or injury.
Property Insurance: Covers damage to your store or inventory from events like fire, theft, or natural disasters.
Business Interruption Insurance: Provides compensation for lost income if your business operations are disrupted due to an insured event.
Workers’ Compensation: If you have employees, this insurance covers medical expenses and lost wages if they are injured on the job.
Compare quotes from several insurance providers to find the best coverage at a competitive rate.
Regularly review and update your insurance policies to reflect any changes in your business, ensuring continuous protection.

Now that you have laid the groundwork for your maternity clothes business, it's time to attract customers and grow your brand. Effective marketing is essential in creating awareness and driving sales. Here are some strategies to get the word out about your services:

Develop a Strong Online Presence: Create a user-friendly website and establish your brand on social media platforms where expectant mothers are likely to engage, such as Instagram and Pinterest.
Utilize Influencer Partnerships: Collaborate with influencers and mommy bloggers who can showcase your clothing and reach a broader audience.
Leverage Email Marketing: Build an email list and keep potential customers informed with newsletters, exclusive deals, and new arrivals.
Offer Promotions: Encourage first-time purchases by offering discounts or special promotions to new customers.
Engage in Local Community Events: Participate in baby fairs, maternity expos, and other local events where you can showcase your products directly to expecting mothers.
Invest in Targeted Ads: Use online advertising platforms like Google AdWords or Facebook Ads to target expectant mothers with your marketing messages.

After establishing a solid foundation for your maternity clothes business, it's time to take it to the next level. Expanding your business requires strategic planning and a focus on customer satisfaction. Here are some key steps to consider for growth:

Introduce a wider range of products to cater to diverse tastes and needs, including plus sizes and petite options.
Partner with maternity and baby stores to offer your clothing line in more locations.
Implement an online marketing strategy that includes social media outreach, influencer collaborations, and email marketing campaigns.
Explore opportunities for international shipping to serve customers around the globe.
Collect customer feedback regularly and use it to improve product quality and service.
Offer loyalty programs and promotions to encourage repeat business and attract new customers.
Invest in search engine optimization (SEO) to increase visibility and attract more traffic to your online store.
Attend trade shows and maternity expos to network with industry professionals and gain exposure for your brand.
Consider environmental sustainability in your production processes to appeal to eco-conscious consumers.

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Maternity Clothing Business Plan

Start your own maternity clothing business plan

Malone's Maternity

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Malone’s Maternity, a start-up company, is a boutique style retailer of maternity and child clothing and accessories. Malone’s Maternity will offer its customers a wide range of upscale products to choose from. The business has been formed as an Ohio corporation by Sandy Malone. By offering a nice selection of upper-end merchandise with benchmarked customer service, Malone’s Maternity will quickly gain market share.

The Market Malone’s Maternity has identified two distinct market segments to target. The first segment is the actual parents, those that are buying the products for themselves or for their spouses. This segment is growing at an impressive 9% annual rate and contains 135,457 potential customers. The second group are friends and other people buying gifts. This market segment has a 8% annual growth rate with 299,454 potential customers.

The Concept Imagine this. You walk into a new retail space and it is an upscale boutique, as if you were on Fifth Avenue or Beverly Hills Drive. But wait, the clothes are not for upscale models, but for expecting moms and their infants/kids. While this may seem a bit unusual, it is truly needed. Fashion conscious women have been looking for an upscale boutique where they can get good looking, chic clothing for themselves as well as fashionable clothes for the toddlers and a wide range of gifts and accessories. While there is one other store in the Cleveland Metropolitan area that sells clothes at a similar price point, the store itself does not communicate the feeling of an exclusive boutique. Malone’s Maternity will thrive by offering upscale products to upscale clients.

Management Malone’s Maternity will be led by its founder Sandy Malone. Sandy has an undergraduate degree in Sociology. Upon graduation Sandy went to work for Saks Fifth Avenue, an upscale retail chain. Within four years Sandy was one of the main buyers for the entire chain, a job that provided her with unique insight into the retail industry. Sandy spent several years in this position, collecting a wealth of knowledge and developing important skills. Then Sandy underwent the necessary practical experience for this venture, she had three children. Sandy became keenly aware of the lack of high end offerings available in the Cleveland area for expecting mothers and their small children. With this insight, industry experience, and important skill sets, Sandy will lead Malone’s Maternity to become the premier boutique in the area. Malone’s Maternity will achieve strong sales for years two and three while earning moderate net profit for those years.

Maternity clothing business plan, executive summary chart image

1.1 Objectives

To create a maternity clothes and accessory boutique.
Quickly gain market share by addressing the upper-end price point of maternity and infant clothing.
To become profitable within two years.

1.2 Mission

It is Malone’s Maternity’s mission to become the premier maternity boutique for the upscale expectant mother and her child. This will be accomplished by offering the newest fashions and the highest level of customer attention.

1.3 Keys to Success

Offer the finest maternity clothing and accessories for the mothers and children.
Pamper the customers.
Develop a strict financial control regime for the business.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Malone’s Maternity was formed by Sandy Malone as an Ohio registered corporation.

2.1 Company Ownership

Sandy Malone is the primary shareholder in Malone’s Maternity.

2.2 Start-up Summary

Malone’s Maternity will incur the following start-up expenses:

Point of purchase computer with back-end server.
Additional computer for the office with an Internet connection and laser printer. Required software is Business Plan Pro, Microsoft Office, QuickBooks Pro.
Three extension phone system.
Copier and fax machine.
Two office desk setups.
Various shelving on the walls
Build-out expenses including the shelving units, store fixtures, changing rooms, various chairs and couches, etc.

Maternity clothing business plan, company summary chart image

Malone’s Maternity is a new boutique that offers a wide range of fancy maternity clothes and accessories as well as baby clothing. The concept is to offer high-end products for both the mother and child in one store. This level of convenience is not offered by anyone else. While there is one other store that offers upscale maternity clothing, no one offers products for both mother and child in the same store. Some of Malone’s Maternity’s product offerings include:

Maternity clothes.
Baby clothes.
New mother gift baskets.
Gift registries.
Fancy photo albums.
New baby pamper kits (a nice assortment of oils, soaps, and other luxuries).
Assorted fancy containers for diapers and wet wipes.

Market Analysis Summary how to do a market analysis for your business plan.">

Malone’s Maternity has identified two distinct attractive market segments. The first segment includes expecting and just delivered mothers. The second segment encompasses family, friends, coworkers, and others purchasing gifts. Malone’s Maternity operates within the large maternity industry, which offers a wide range of products for mothers and children. Malone’s Maternity will compete within the upper echelon of this market.

4.1 Market Segmentation

Malone’s Maternity has identified two particularly attractive market segments.

Parents – This segment is primarily the expecting mother, and also includes the father.

Ages 24-34, median age 32.
Household income above $80,000.
Go out to eat 2.3 times a week.
89% have an undergraduate degree.
39% have a graduate degree.
Spend $350 a month on clothing for themselves.

Family & Friends – This segment is buying gifts for the new parents and child. They are looking for something upscale, something that would be really enjoyed.

Ages 32-57.
Household income greater than $83,000.
Go out to eat 2.1 times a week.
83% have an undergraduate degree.
23% have a graduate degree.

Maternity clothing business plan, market analysis summary chart image

4.2 Target Market Segment Strategy

Malone’s Maternity has chosen parents, and family and friends, as the two most attractive segments to target. These segments are the most desirable because they have high levels of disposable income, and they spend it. The parents are used to having fashionable clothes and accessories and it is totally consistent with their purchasing patterns that this preference would remain unchanged once they get pregnant. Many expecting parents like to reward or pamper themselves with nice gifts when they’re pregnant.

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4.3 Industry Analysis

The retail maternity and child industry is made up very specific retailers that generally do not have much crossover. This means that a retailer will concentrate on either maternity or children; it is rare for a retailer to offer products for both mother and child in the same store. While this is somewhat intuitive because it allows the retailer to remain focused on one thing, Malone’s Maternity believes that there are many lost opportunities in that case since maternity and children go hand in hand. Malone’s Maternity will capitalize on these missed opportunities and allow one-stop shopping for both mother and child.

Industry Trends

There is a shift in the new millennium toward a younger mom, beginning at age 20.
82% of 20-24 year olds think motherhood is the most important job in the world compared with 72% of women age 24-34.
Molded cup nursing bras are the fastest growing product. They tend to give mothers a fresh, young look while keeping them pretty and confident.
There is an increase in active wear as a result of two factors:
New research indicates it is beneficial for women to exercise during and after pregnancy.
Women are becoming more athletic.
Cotton/Lycra blend has become the fabric of choice for comfort.
Cotton- for superior breathability.
Lycra- its body sculpting properties offer youthful, natural looking support, forgiving fit and easy-care properties.

4.3.1 Competition and Buying Patterns

Malone’s Maternity faces competition from several sources.

Mail order/Internet – Many retailers sell their products from remote locations that are accessible either by catalog or a Website. This provides the consumer with a wide selection. While this works for certain general items, it causes problems for clothing that must be tried on first. Especially for the expecting mother whose size is changing rapidly. Some mothers do not know what their size is due to fluctuation.
Local retailers – There are six different retailers within a 20 mile radius of Malone’s Maternity. Five of them cater to the mid-price point. The sixth is a higher end store carrying some of the same merchandise for the mother Malone’s Maternity will carry. While this store has similar stock, the store itself does not feel like a boutique. They have high-end merchandise but the store experience does not translate into high-end boutique. The store is somewhat drab. All of the local competing stores sell only maternity items. They do not offer anything for children.

Strategy and Implementation Summary

Malone’s Maternity will leverage their competitive edge of product selection for both women and children to gain market share. Malone’s Maternity is the only store offering clothing and accessories for expectant and new mothers, as well as for infants and children. This will create unmatched convenience and lead to higher customer tickets.

The marketing strategy will be two-pronged in its attempt to increase the target customer’s awareness of Malone’s Maternity; a focused advertising campaign and the location of the retail space.

The sales strategy will be to offer the highest level of customer service. The ideal customer is accustomed to excellent service and Malone’s Maternity has the goal of impressing every customer with their benchmarked level of customer attention.

5.1 Competitive Edge

Malone’s Maternity’s competitive edge of product offerings for both mother and child offers two distinct advantages:

Convenience – Having items for both mother and child makes a trip to Malone’s Maternity convenient. Gifts for both groups can be purchased at once.
Higher tickets per customer – Because there are products for mothers and children, the ticket prices per customer will be higher as customers buy gifts for both as instead of only one. These customers typically buy gifts for both, but ordinarily have to travel to different stores to satisfy both needs.

5.2 Marketing Strategy

The marketing strategy has several approaches to develop awareness of this new boutique.

Advertising – Ads will be placed in several different media, but primarily in the fashion section of Cleveland’s The Plain Dealer , the region’s largest newspaper. The Plain Dealer also has a child birth/care section each week and advertisements will be placed there as well.
Location – Malone’s Maternity is located the store in an upscale mall that attracts a large amount of foot traffic. The additional money spent on rent will assist the marketing effort. By strategically locating the store in a posh, busy center Malone’s Maternity will increase awareness and traffic within the store.

5.3 Sales Strategy

The sales strategy will rely on customer service. All employees will receive training on customer attention. The overriding maxim is that all customers be given as much attention as they need, and, no customers should leave the store unsatisfied, even if they do not make a purchase. Employees will be taught how to handle any type of problem that may arise. All employees are empowered to remedy most problems. If something occurs that the employee is unable to fix, they will pass the issue on to the manager. The net effect of this approach is that customers are immediately greeted upon entering the store and in a subtle but helpful way their needs are met. Ensuring all customers are both satisfied and impressed with the service that they received, will ensure a steady increase in sales.

5.3.1 Sales Forecast

Malone’s Maternity has developed a sales forecast that is fairly conservative in its projections. This approach was chosen to increase the likelihood of achieving the sales goals. The following chart indicates that sales are expected to increase slowly. These forecasts will be monitored monthly to verify that the sales are rising as expected. The personnel needs, specifically for employees to help customers on the sales floor will be monitored to ensure that there are sufficient numbers of employees to serve the customers.

Maternity clothing business plan, strategy and implementation summary chart image

5.4 Milestones

Malone’s Maternity has identified four quantifiable milestones for the organization. By identifying four performance goals and setting the goals to be ambitious but obtainable, Malone’s Maternity will have developed a target for everyone to shoot for. The following table details the milestones.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

After three years in this position Sandy had the first of three children. What struck Sandy as being odd was how difficult is was to get nice maternity clothes and the fact that although the mother and child are intertwined, she was forced to go to two different stores when she wanted to get something for herself and for the upcoming child. This phenomenon was something that she was aware of throughout the pregnancy of all three children. While she saw a business opportunity after her first child, she was unable to act upon it since she was dedicating her time to raising the children. After the second child Sandy began taking several management courses thinking that once her children were older, she wanted to operate her own business, capitalizing on this market opportunity. By the time that the third child was two years old Sandy was seriously considering opening her own business. She recognized that it would occupy significant amount of her time initially, but that over time she would be able to build it into a thriving business.

6.1 Personnel Plan

Malone’s Maternity has identified the following people or positions that will be needed to smoothly operate the business:

Sandy – As the owner, she will have a wide range of responsibilities including: purchasing, training and hiring, customer service, some accounting, and whatever else may come up.
Sales staff – Malone’s Maternity will employ several sales staff to help assist customers.
Manager – By year two Malone’s Maternity will hire a part-time manager to assist Sandy with operational responsibilities.
Bookkeeper – This person will perform accounts payable and receivable functions.

Financial Plan investor-ready personnel plan .">

The following sections outline important financial information.

7.1 Important Assumptions

The following table details important Financial Assumptions.

7.2 Projected Cash Flow

The following chart and table show the Projected Cash Flow.

Maternity clothing business plan, financial plan chart image

7.3 Break-even Analysis

The Break-even Analysis indicates what will be needed in monthly revenue to achieve the break-even point.

7.4 Projected Profit and Loss

The following table and charts illustrate the Projected Profit and Loss.

7.5 Projected Balance Sheet

The following table presents the Projected Balance Sheet.

7.6 Business Ratios

The following table indicates Business Ratios specific to Malone’s Maternity and to the industry. Their NAICS industry class is currently Woman’s clothing including, Maternity clothing 448120. Please note that the variance in gross margin between Malone’s Maternity and the industry as a whole can be explained by the fact that Malone’s Maternity is a high-end boutique that enjoys above industry margins.

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If you feel that your home environment is just not the right place to focus on a healthy pregnancy, a maternity home might be a good choice for you.

Unplanned Pregnancy: First Steps
Unplanned Pregnancy Help
Your Pregnancy Options

What are Maternity Homes and Where Can I Find Them?

When considering your unplanned pregnancy options , you may feel that your home environment is just not the right place to focus on a healthy pregnancy. So what can you do?

You may consider your options for housing for pregnant women — like maternity homes.

Maternity homes provide housing and other services to women facing crisis situations. In addition to serving as a home for unwed mothers and housing for pregnant single women, these programs also provide safe places where new mothers can live until they can find a better situation in which to raise their child.

This form of alternate housing assistance for pregnant mothers might be a good fit for you if you:

are a minor who, for a variety of reasons, is unable to live with your parents
are fearful of the child’s father
do not have a safe place to live during your pregnancy
do not mind a supervised environment

While the number of maternity homes across the country has declined over the years, you can still find the right living arrangements if you need to leave your current home through a safe housing program for pregnant women.

History of Maternity Group Homes

Formerly known as “homes for unwed mothers” , maternity homes were more widely available in the past to protect expecting mothers from the stigma of unplanned pregnancy or adoption. They were primarily a safe place for women to carry their pregnancies and place their babies for adoption in secret.

As time has passed and perceptions of unplanned pregnancies have changed, maternity homes have adapted to help women leave an unstable or unsafe home environment, whether they are pregnant, have children or simply need a safe place to live. Today, many of the pregnant women who seek out a maternity house have plans to parent their children.

As the role of maternity shelters has changed, they have also grown to offer more services for expecting mothers. You can often find helpful resources such as parenting classes, pregnancy and childbirth education, and financial assistance through these organizations.

What You Will Find

You can usually expect a dorm-like environment with 5–15 other women. Some of them house women for the duration of their pregnancies, while others continue to provide assistance after the baby is born.

These places will most often offer :

Transportation
Counseling and education
Assistance applying for financial aid

Most often, it does not cost money to stay in housing programs for pregnant mothers. Some places will offer women the opportunity to work a low-stress job in exchange for paying any fees.

Considerations and Precautions

Some homes for pregnant women have particular rules or requirements that all residents must follow. Some of the things you should keep in mind as you research maternity homes include:

Eligibility – Sometimes, women must accept a particular religious affiliation or set of values in order to receive housing assistance. Other homes require mothers to sign a contract that they will carry their pregnancy to term.
Rules in the home – It is not uncommon to find curfews, supervision, and other rules in some maternity homes. However, you can also find homes that offer you a more independent lifestyle.
Emphasis of particular values – Depending on its affiliation, a maternity shelter might put pressure on you to make a particular decision about your pregnancy if you live there.

Many maternity homes work closely with adoption agencies, but there are also options for women who want to parent. It is usually recommended to find a maternity home that is publicly funded or allied with an adoption agency, as these tend to be more reputable. Be sure to carefully research the maternity homes you find and pick one that fits you best.

If you are considering placing your child for adoption, certain adoption agencies can provide free housing for pregnant women, whether through a maternity home or through the payment of your living expenses . Contact one of these adoption agencies to learn more about securing a safe, free and private place to live if you are pregnant and need help with housing.

If you do choose to work with an adoption agency to find housing options while pregnant, any assistance they provide you will never obligate you to choose adoption unless you are confident it is right for you.

Where to Find Maternity Homes

The list below will help you find a maternity home in your state:

Jesus Cares Ministries
Maggie’s Place
Hannah House
Highlands Maternity Home
TenderLife Maternity Home
Moses House Ministries
Mary’s Shelter
Villa Majella
His Nesting Place
Shannon’s Hope Maternity Home
Little Flower Maternity Home

Connecticut

Agnes Home, Inc.
Lifeline Family Center
Sunlight Home
Alpha House of Tampa
Hephzibah Ministries
Lifehouse Ministries
A Friend’s House
Ruth Harbor
Mary Elizabeth Home
Anne’s Center

Massachusetts

My Father’s House

Mississippi

The Christmas Village
Florence Crittenton
Rachel’s Joy

North Carolina

Lois’ Lodge
Florence Crittenton Services
Christian Life Home

North Dakota

The Perry Center
Saint Gianna’s Maternity Home
Hannah’s Home
Harbor House
Holy Family Home
Bethany House

Pennsylvania

Morning Star Maternity Home
Clara’s House
Mercy Multiplied
Promise House
Christian Homes & Family Services
Mercy House
Annunciation Maternity Home
Gladney Center for Adoption
Family First Aid
Special Delivery
New Beginnings
The Hannah Center

If you do not find your state listed above, contact a pregnancy center for local guidance on free or low-income housing for pregnant women like you.

Home » Healthcare

A Sample Foster Care Group Home Business Plan Template

A group home is a community-based, long-term facility for specific types of residents (juveniles) who cannot live with their families due to behavioral issues. It is important to state that some group homes treat the mentally ill and the disabled.

Available statistics show that there are now about 7,629 group homes (orphanages and foster homes inclusive) in the United States as of 2022, an increase of 1 percent from 2020. The data also shows that California has 754 group homes ( orphanages and foster homes inclusive), Florida has 296 group homes (orphanages and foster homes inclusive) and New York has 284 group homes (orphanages and foster homes inclusive). These are the States with the most number of group homes in the United States of America.

Steps on How to Write a Foster Group Home Business Plan

1. executive summary.

Golden Generation® Group Home Facility, LLC will be based in Espanola, New Mexico. The organization will be committed to serving a small number of teens who will reside in a family-like setting with trained staff and effective programs.

We will house between 4 to 12 children per time in a family setting where they can make full use of community resources, including employment, health care, education, and recreational opportunities. Daniel Young is the founder and CEO of Golden Generation® Group Home Facility, LLC.

Company Profile

A. our services.

Golden Generation® Group Home Facility, LLC will provide a wide range of services that revolves around providing therapy, 24-hour supervision, and support to troubled teens in a home-like setting. We will also provide psychiatric services to emotionally disturbed children.

b. Nature of the Business

Our Group Home facility will operate as a nonprofit organization. We will source finance from donor organizations, private individuals, and relevant government agencies.

c. The Industry

Golden Generation® Group Home Facility, LLC will operate under the orphanages and group homes industry.

d. Mission Statement

Our mission is to provide safe and secured group home facilities to meet the needs of children subjected to abuse and of course to also cater to children with emotional, intellectual, physical, medical, and/or behavioral issues

e. Vision Statement

Our vision of to become the number one group home facility in the whole of New Mexico.

f. Our Tagline (Slogan)

Golden Generation® Group Home Facility, LLC – The Family That Cares!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Golden Generation® Group Home Facility, LLC will be formed as a nonprofit corporation at the state level and we will apply for 501(c)(3) tax exemption at the federal level.

h. Our Organizational Structure

Head of Group Home (President)
House Manager (Administrator)
Nurse’s Aides
Teachers, Caregivers/Rehab Counselors
Account Officer
Front Desk Officer
Security Guards

i. Ownership/Shareholder Structure and Board Members

Daniel Young (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
David Young (Board Member) 14 Percent Shares
Chow Lee (Board Member) 10 Percent Shares
Pedro Philips (Board Member) 10 Percent Shares
Monica Tyson (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

Ideal Location for group home facility
Highly Experienced and Qualified Employees and Management
Access to Pool of Donor Organizations
Highly Secured and Clean Facility
Highly structured programs are aimed at helping teens live comfortably as though they are with their families.

b. Weakness

Budget Limitations
Lack of full-fledged educational structure
Inability to initially run and manage the organization without donations and grants
Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

The demand from individuals aged 15 and under is expected to remain high because the majority of orphanages and group homes cater to children in this age bracket regardless of external circumstances
Government funding for Medicare and Medicaid and private donations are anticipated to increase.
The orphanages and group homes industry is projected to reverse its decline trend and increase in the coming years.
We have a pool of finance from donor organizations, individuals, and relevant government agencies.

i. How Big is the Industry?

The orphanages and group homes industry is worth over $8 billion in the United States and there are about 9,623 licensed and registered correctional facilities and Group Homes with a workforce of about 124,872 scattered all across the United States.

ii. Is the Industry Growing or Declining?

Available statistics point to the fact that the industry is presently not growing and revenue for the industry has been adjusted from an increase to a decline of 8.1 percent in 2020 due to declining federal funding and donations. Since many operators are nonprofit, orphanages and group homes rely on federal funding and private donations. Since unemployment and consumer spending is anticipated to decline in 2020, leading to fewer donations, profit is set to decline.

Please note that in the coming year (2022), the revenue for the industry is anticipated to decline slightly, but as the economy recovers and COVID-19 (coronavirus) cases subsequently drop in line with the nationwide vaccination rollout, industry revenue will likely increase.

iii. What are the Future Trends in the Industry

The orphanages and group homes industry is changing, and players in the industry are improvising. No doubt, specialized treatment, technology, and social media will change the landscape of the industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

Yes, there are niche ideas in the orphanages and group homes industry, and here are some of them;

Residential treatment facilities.
Group Homes and intermediate care facilities.
Foster care and family support for children.
Supportive community options for adults with disabilities.
Group options for seniors with disabilities.

v. Can You Sell a Franchise of your Business in the Future?

Golden Generation® Group Home Facility, LLC has plans to sell franchises in the nearest future and we will target major cities with high children abandonment rates in the United States of America.

Lack of support from stakeholders and the government
Unfavorable government policy and regulations.
Community resistance
Liability problems
Reduction in abusive homes and teenage pregnancies

i. Who are the Major Competitors?

BrightSpring Health Service
VQ National Ltd.
Childhelp USA.
Assurant Care Homes – Minnesota Group Homes
Karen’s Board & Care
Dean’s Group Home
Los Angeles Ronald McDonald House
The Brambles (Group Home for Adults with Disabilities)
Verywell Mind (Group Homes for Troubled Teens)

ii. Is There a Franchise for Group Home? If YES, List at least 20 of them and their cost

No, there is no known group home franchise currently.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Group Homes?

Yes, there are county or state regulations or zoning laws for Group Homes. The law in the United States states that before a non-medical home care facility such as a group home can commence operation, there should be at least six residents and at least one trained caregiver there 24 hours a day and 7 days a week. So also, a standard group home is expected to have a house manager, night manager, weekend activity coordinator, and 2 or more caregivers depending on the size of the facility.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market is for children and adolescents between the ages of 10 and 15 years

ii. Level of Educational

We don’t have any restriction on the level of education of those we will accommodate in our group home.

iii. Income Level

We don’t have any cap on the income level of those who we will accommodate in our group home. Besides, most people who are admitted to group homes have no source of income.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will welcome into our group home.

v. Language

There is no restriction when it comes to the language spoken by the people we will welcome into our group home, but we will prefer people that speak English and Spanish.

vi. Geographical Location

Anybody from any geographical location will be welcomed in our group home.

vii. Lifestyle

Golden Generation® Group Home Facility, LLC will not restrict any child from accessing our facility and services based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

Host Themed Events That Catch Attention.
Tap Into Text Marketing.
Use FOMO to Run Photo Promotions.
Share Your Events in Local Groups and Pages.
Turn Your Social Media Channels Into a Resource
Develop Your Business Directory Profiles
Build Relationships With Other Nonprofits and related organizations in our Area

i. Traditional Marketing Strategies

Marketing through Direct Mail.
Print Media Marketing – Newspapers & Magazines.
Broadcast Marketing -Television & Radio Channels.
OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

Social Media Marketing Platforms.
Influencer Marketing.
Email Marketing.
Content Marketing.
Search Engine Optimization (SEO) Marketing.
Affiliate Marketing
Mobile Marketing.

iii. Social Media Marketing Plan

Start using chatbots.
Create a personalized experience for our teens (housemates).
Create an efficient content marketing strategy.
Create a community for our donors and volunteers.
Gear up our profiles with a diverse content strategy.
Use brand advocates.
Create profiles on the relevant social media channels.
Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Golden Generation® Group Home Facility, LLC will make sure it covers upkeep, medications, premium, economy or value, and full rehab package for each child.

Our pricing strategy will reflect;

Cost-Based Pricing
Value-Based Pricing
Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, religious organizations, nonprofit organizations, and charity to help refer abusive and abandoned children to us.

Golden Generation® Group Home Facility, LLC will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced.

b. Inventory Strategy

The fact that we will need educational materials, toiletries, medications, and foodstuffs means that Golden Generation® Group Home Facility, LLC will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Golden Generation® Group Home Facility, LLC will make available to her donors and contributors;

Payment via bank transfer
Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Golden Generation® Group Home Facility, LLC, we offer services, and the nature of services we offer does not accommodate return policy, but we will guarantee our housemates that great transformation will occur in their lives if they follow our program.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our housemates and donors, it will help us to first understand their needs, experiences, and pain points.

We will work with an effective CRM software to be able to achieve this. We will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.

We plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants that will enable us boost our service offering.

a. What Happens During a Typical Day at a Group Home?

The facility is open for the day
The facility is cleaned and prepared for the day’s activities
Housemates are welcomed and prepped for the day
Housemates are provided with educational programs that will help them to properly integrate back into society, learn new skills and morals.
House chores are carried out at different intervals during the day
The facility is closed for the day and housemates go back to their rooms to get it arranged and then go to bed.

b. Production Process (If Any)

There is no production process when it comes to a group home.

c. Service Procedure (If Any)

There is no service procedure when it comes to a group home.

d. The Supply Chain

Golden Generation® Group Home Facility, LLC will rely on social workers, counselors, religious organizations, and government agencies to refer children to us. Also, we have been able to establish business relationships with wholesale supplies of educational materials, toiletries, medications, foodstuffs et al.

e. Sources of Income

Golden Generation® Group Home Facility, LLC will make money from;

Contributions ffrom partners and donors
Grants from government agencies and charity organizations
Community support.

The cost to operate a group home varies and it will range from about $65,000 to over $100,000 annually.

Financial Plan

A. amount needed to start your group home.

Golden Generation® Group Home Facility, LLC would need an estimate of $550,000 to successfully set up our group home in the United States of America. Please note that this amount includes the salaries of all staff for the first month of operation.

b. What are the Cost Involved?

Business Registration Fees – $750.
Legal expenses for obtaining licenses and permits – $7,300.
Marketing, Branding and Promotions – $5,000.
Business Consultant Fee – $2,500.
Insurance – $5,400.
Rent/Lease – $200,000.
Other start-up expenses including, satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
Operational Cost (salaries of employees, payments of bills et al) – $40,000
start-up inventory – $15,000
Store Equipment (cash register, security, ventilation, signage) – $4,750
Furnishing and Equipping – $80,000
Website: $600
Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Golden Generation® Group Home Facility, LLC will not build a new facility for our group home; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Group Home?

Cost of stocking up supplies such as educational materials, medications, toiletries, beddings et al
Cost of food supplies and ingredients
Utility bills (gas, internet, phone bills, signage and sewage et al)
Salaries of employees

e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital

Head of Group Home (President) – $45,000 Per Annum
House Manager (Administrator) – $36,034 Per Annum
Nurse’s Aides – $29,660 Per Annum
Teachers, Caregivers/Rehab Counselors – $32,878 Per Annum
Fundraiser – $36,500 Per Annum and based on target
Account Officer – $35,000 Per Annum
Front Desk Officer – $28,000 Per Annum
Cleaners – $22,000 Per Annum
Security Guard – $22,000 Per Annum

f. How Do You Get Funding to Start a Group Home

Raising money from personal savings and sale of personal stocks and properties
Pitching our business idea and applying for business grants and seed funding from, government, and donor organizations
Source for soft loans from our family members and our friends.

Financial Projection

A. how much should you charge for your service.

At Golden Generation® Group Home Facility, LLC it is important to note that we will make our facility free of charge since we hope to attract enough grants and funds from donors.

b. Sales Forecast?

First Fiscal Year (FY1): $350,000
Second Fiscal Year (FY2): $475,000
Third Fiscal Year (FY3): $550,000

c. Estimated Profit You Will Make a Year?

Golden Generation® Group Home Facility, LLC will operate as a nonprofit organization.

d. Profit Margin of a Group Home

Golden Generation® Group Home Facility, LLC is not designed to make profits hence we don’t have a profit margin for our services.

Growth Plan

A. how do you intend to grow and expand .

Golden Generation® Group Home Facility, LLC will grow by first opening other outlets in key cities in the United States of America within the first five years, and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Golden Generation® Group Home Facility, LLC plans to expand first to Chicago, IL, and then to Cleveland, OH, Detroit, MI, Atlanta, GA, and Baltimore, MD. The reason we intend to expand to these geographical locations is that available statistics show that the cities listed above have the highest juvenile delinquencies in the United States.

As a matter of fact, according to the Illinois Criminal Justice Authority’s most recent annual report, almost 300,000 youths live in poverty in Chicago’s Cook County. Over 26,000 crimes against youths have been reported and over 31,000 youths in Cook County have been arrested for criminal offenses.

The founder of Golden Generation® Group Home Facility, LLC plans to exit the business via merger and acquisition. We intend to merge with an international charity organization that has a world spread so that the organization can be placed under a trusted hand when the founder retires.

The goal of combining two or more charitable organizations that are into group homes is to try and achieve synergy – where the whole (the new organization) is greater than the sum of its parts (the former two separate entities).

More From Forbes

The most lucrative ways for ‘mompreneurs’ to make money from home.

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It's estimated that 32.6 million Americans — or 22% of the workforce — will work remotely by 2025. ... [+] Of course, for many "mompreneurs," that future of remote work is already here. The ability to run your own business from the comfort of home lets you follow your career aspirations while still making time for your little ones.

It's estimated that 32.6 million Americans — or 22% of the workforce — will work remotely by 2025. Of course, for many " mompreneurs ," that future of remote work is already here. The ability to run your own business from the comfort of home lets you follow your career aspirations while still making time for your little ones.

One of the greatest advantages of today's work environment is the sheer variety of opportunities mompreneurs have to make money from home. No matter your interests or area of expertise, chances are there's something that will prove to be a lucrative career option for you.

1. Freelance Writer

Despite the fears of AI taking jobs away from writers, freelance writing and blogging continue to prove a lucrative outlet for mompreneurs. There's a good reason why 82% of freelancers are writers.

There are several routes you can take as a writer. You could write and self-publish e-books on topics within your area of expertise or submit articles for publication on prestigious sites. You could publish articles on your blog or website and use affiliate links and advertising to generate revenue based on your traffic. You could even ghostwrite content for businesses!

As long as you have a good eye for crafting engaging topics and editing, there are many ways to make a writing career work for you.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, 2. interior designer.

If you have an eye for interior design, this could easily become a successful home-based business option. For example, interior designers are often used for home staging — decorating and organizing a house to help it look as appealing as possible for real estate listings.

Of course, you can also work with clients in your area looking for help improving their home's appearance. The ability to work close to home with minimal startup costs and on a flexible schedule makes this an intriguing option for mompreneurs.

3. E-Commerce

E-commerce can take many different routes, depending on your interests. You could run a dropshipping business where you partner with suppliers to sell certain products to consumers. You could sell items you no longer need or use through websites like eBay. You could also sell products you make through Etsy or your website.

Understand your preferred target audience and cater your e-commerce offerings to those needs. For example, you might discover that you'll be able to make more money by selling niche products on Etsy. While overall demand might be lower, limited competition can help you achieve steady sales and gain a strong foothold in your market. Aiming for a 30% profit margin will put you on track for success, no matter what type of e-commerce business you wish to run.

4. Web or Graphic Designer

In our tech-driven world, web and graphic design services are in high demand. Many companies need these services but can't hire a full-time employee. As a mompreneur, this is where you can fill in the gap by offering freelance work that caters to the specific design needs of your clients. You can accomplish this job remotely by combining creativity and technical know-how.

As a designer, you'll naturally need your high-quality website to showcase your portfolio. Let your website demonstrate your capabilities so you can attract clients regularly.

Elijah Ching, with Primilink , advises, "Building a successful website means focusing on simplicity and effectiveness. A good first step is ensuring it's easy to navigate and understand. Quick loading times and clear navigation enhance user experience, guiding visitors to your desired action. Including customer testimonials establishes credibility and builds trust. By mastering these fundamentals, you can create websites that can be sold from $500 to $50,000. Any site's short "essential list" is user-friendly design, brevity, compelling calls to action, and social proof through testimonials. This foundation paves the way for entrepreneurial success in the digital space."

5. Accounting and Bookkeeping

Virtual accounting and bookkeeping is a high-demand field. Like web designers, many businesses don't have the budget to hire a person in this role full-time. But they can't neglect bookkeeping and accounting.

For mompreneurs with accounting certifications, this represents a lucrative opportunity. You can use your home office as a base for offering completely online services. Many clients don't need you to visit their office, and others only rarely. You can even use your skills to help other mompreneurs keep their business in the black.

6. Day Care

Not every new mother has the capacity or opportunity to stay at home with her children. Offering daycare or childcare services could be a good fit for those who do. You'll be helping other mompreneurs and working moms further their careers while also running your own lucrative business. The average weekly cost for daycare is $284 per child, which can add up quickly if you care for several children.

To offer childcare services out of your home, you'll need to ensure your home is properly equipped with safety equipment and other childcare necessities. In addition, many areas require special licensing, first aid, and CPR training to run a childcare business. As a mompreneur, however, you can be flexible regarding how many children you can care for in addition to your own child based on your space and preferences.

Follow Your Passions

The playing field has been leveled significantly for working moms, so you don't have to choose ... [+] between motherhood and a career.

No matter your career aspirations, there's a high likelihood that you can find a lucrative opportunity to make money from home. The playing field has been leveled significantly for working moms, so you don't have to choose between motherhood and a career. You can find the right balance for what you want to accomplish.

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A Small Business Owner’s Guide to Maternity Leave

Congratulations! As a fellow small business owner expecting my first bay-bee this summer, I understand the excitement and challenges that come with trying to plan for an actual baby while trying to take leave from your first baby—your business. Maternity leave is a precious time for both you and your growing family, but as a business owner it can feel very overwhelming and requires some extra planning. However, with the right preparation, you can take the time you need (and deserve!) to bond with your new baby and return feeling refreshed and ready to take on new challenges in your business baby.

In this guide, we’ll explore the ins and outs of navigating maternity leave while keeping your business buzzing.

Importance of Maternity Leave for Small Business Owners

If you’re anything like me, you constantly find yourself consumed with every aspect of your business—both for the good and the bad! That obsession has likely been replaced with countless blogs on birthing, podcasts on parenting, and videos on all things baby. You’ve got even more to worry about and you might be asking, what happens with my business baby now that I’m pregnant?

Throughout Honey’s 8 years in operation, I’ve seen other business owners give birth on a Monday and by Wednesday they’re sending out emails and scheduling calls. Whether due to financial restraints or feeling pressured to constantly be available when you’re the queen bee, I knew it was not the route I wanted to take if I could avoid it.

This brought up a crazy slew of questions *insert Googling frenzy*

Can women small business owners take maternity leave? What does that look like?

How much should I be saving for maternity leave?

How long is the average maternity leave for small business owners?

How to run a small business and be a stay at home mom?

Does disability insurance cover maternity leave?

Who will answer emails while I’m out on maternity leave?

What happens if I get a new client before the baby is due?

While these questions bounced around in my brain and in the Google search bar, my husband Tre’ was a voice of reason, “It will continue without you, and it will be just fine.”

After all these years of hard work, where I felt the pressure solely on my shoulders, it couldn’t be that easy for it to just “continue”, could it? But I truly think it can be! The best thing you can do is trust yourself and the business you created. Trust that the community will continue to support the company and the staff will help pick up the pieces in the meantime.

You can’t expect your business to thrive if your health and well-being are not being prioritized. Take the time you need to recover, adjust to your new role as a mother and the rest will come naturally.

Decide Your Maternity Leave as a Small Business Owner or Solopreneur

6 months+ before your due date

Step 1: Assess the impact on your business

Once the panic of pregnancy wears off and before you begin to fully plan for your maternity leave, start by assessing the impact your absence will have on your business:

How long do you plan to take off? Or rather, how long would you like to take off? This was a tough question to answer for me personally, especially in the US where paid maternity leave is very short-lived if given at all. And with more than 30% of mothers not taking any leave, this certainly doesn’t make answering the question any easier. But on average, federal law requires at least 12 weeks of unpaid leave. Ultimately, it’s up to you and your partner or support system to decide what is realistic and makes the most sense for your family.
Will you be able to delegate your responsibilities to someone else? A full-time staff member? A part-time contractor? Or even a willing friend!
How will your absence impact your revenue or client relationships? Will you accept new projects while you’re out? Will you pause everything or off-board any clients?

Once you have a clear understanding of the impact your absence will have on your business, you can begin to plan accordingly.

Step 2: Financial considerations and budget

Maternity leave can be expensive for anyone —self-employed or not — but particularly as a small business owner if you’re the one footing the bill for your own leave nest egg things start to add up. As a small business owner, it’s a good idea to budget for your time off and plan for any unexpected expenses.

Consider the following financial considerations:

How much time can you afford to take off? Try to consider not only covering your expenses and staff but also to continue paying yourself of course! Are there things you can pause to help conserve cash flow like advertising or unnecessary expenses?
Will you need to hire someone to cover your responsibilities while you’re away? Be sure to include this in your budget!
Do you have short-term disability insurance or other benefits that will help cover your expenses? Most short-term disability policies do not cover pregnancy as a qualifying life event but hey, you could be lucky! Check in with your partner as well to discuss their leave options.
Have you set aside a maternity leave fund to cover any unexpected expenses? If not, are there other options available that you could explore like a business or personal loan to help.
Consider childcare options now. This doesn’t have to be set in stone, but think about what flexibility (or not) you might have or want to have with childcare postpartum and once you’re ready to dive back into business again. Maybe look into the cost or availability of daycares, nannies, or ask relatives in advance to give you an idea of what to expect in the future.

Step 3: Establish a timeline and set expectations

Think of it like holiday shopping. Most e-commerce businesses give you a “final call” for placing orders that will arrive in time for Christmas. Similarly, once you’ve assessed the impact on your business and financial situation, get out your handy-dandy calendar to create a timeline for your maternity leave and set expectations with your team:

Work backwards from your due date: Do you want to work up to your due date? Or allow for a bit of a buffer period before baby arrives?
When will the final cut-off be to accept new clients or close down aspects of your business like product shipping, etc.?
Are there big deadlines before that need to be finished up or handed off to other members of your team?
How long do you plan to be away? Keep in mind if you’ve got a team AND clients, will you open the doors of communication internally first or to everyone all at once?

Consider the following deadlines:

Notification deadline for FMLA or other parental leave benefits (for you or your partner)
Deadline for delegating responsibilities and assigning temporary roles
Deadline for cross-training employees and documenting processes
Deadline for communicating with your clients, employees, and stakeholders
Deadline for reviewing your health insurance coverage

A Legal Note: Navigating Legal and Employment Policies

Familiarizing yourself with applicable laws and regulations.

As a small business owner, it’s important to be familiar with the laws and regulations that apply to maternity leave. Depending on your business structure and location, there may be federal or state laws that require you to provide certain benefits or accommodations to pregnant employees such as the following:

The Family and Medical Leave Act (FMLA)
State-specific maternity leave laws
The Pregnancy Discrimination Act

Reviewing your company policies (or partner’s policy) and handbook (if you’re not the primary business owner)

In addition to familiarizing yourself with applicable laws and regulations, it’s important to review your company policies and handbook to ensure they comply with these laws and provide adequate support for pregnant employees.

Consider the following policies:

Maternity leave policy
Short-term disability policy
Accommodation policy for pregnant employees
Family-friendly policies, such as flexible scheduling or telecommuting options

Evaluating short-term disability insurance

Short-term disability insurance can be a valuable resource for small business owners planning for maternity leave. This type of insurance provides income replacement for a limited period while you’re unable to work due to a covered disability, such as pregnancy or childbirth. Again, in my research there aren’t a ton of policies that consider pregnancy a type of disability but explore your options with an insurance professional nonetheless!

Consider the following factors when evaluating short-term disability insurance:

Coverage period
Benefit amount
Waiting period

Reviewing health insurance coverage

You likely already looked into this as soon as you found out, but it’s important to review your health insurance coverage before your maternity leave to ensure that you have adequate coverage for your medical expenses and baby’s. Factors to consider include:

Deductibles and out-of-pocket expenses
Coverage for prenatal care, childbirth, and postpartum care
Coverage for your baby’s medical expenses

Seeking legal counsel, if necessary

If you have questions or concerns about your legal obligations as a small business owner, it’s always good to seek legal counsel. A lawyer can help you navigate the complex legal landscape of maternity leave and ensure that you comply with all applicable laws and regulations. Let’s be honest, it can be super confusing and very jargon-heavy!

Prepare Your Small Business for Your Absence

3 months before your due date

Step 1: Delegate responsibilities and assign temporary roles

One of the first steps as you get closer to your due date is to delegate responsibilities and assign temporary roles to your employees or contractors. This of course helps with actually getting sh*t done but will provide a sense of relief while you’re out knowing things are under control!

Consider the following strategies:

Identify key responsibilities that need to be covered while you’re away. This can of course include client or project-specific tasks but also internal operations like ongoing email newsletters or social media presences. Make a document for this that is accessible for everyone!
Assign temporary roles to your employees or contractors. Interim director? Temporary project manager? Let everyone know what they can expect.
Provide training or cross-training to ensure that everyone is prepared for their new responsibilities.
Develop a plan for handling urgent matters or unexpected issues that may arise. When should they notify you, if at all?
Document your processes and procedures so that your employees can refer to them while you’re away.
Develop a system for tracking progress and monitoring performance while you’re away.

Step 2: Communicate with clients, employees, and stakeholders

You don’t want to be up in the middle of the night feeding baby wondering who answered what email so be sure to create a communication plan for a successful maternity leave. Although the plan was in progress well before, we opted for a 90 days out approach from my due date when announcing to our clients. Be sure to take care of the following:

Internal Communication:

Schedule regular check-ins with your employees and contractors to ensure that everything is running smoothly. This can be before you leave but also as you start to re-introduce work back into your post-parenting schedule (more on that later).
Develop a system for handling urgent matters or unexpected issues that may arise.
Decide if you want to set an out of office email or CC a teammate to handle contact.

External Communication:

Schedule meetings with your clients to discuss your plans and set expectations for your absence.
Meet with your employees or contractors to delegate responsibilities and establish a plan for your absence and introduce them to clients as needed.
Remind your clients when their final day for contact or projects might be so you’re not worried about ongoing tasks while you’re out.

Step 3: Create a comprehensive honey-do list

Now that you’ve got a plan in place for the basics, create a comprehensive to-do list (for internal and external operations) in preparation for your actual maternity leave:

Consider the following tasks:

Document your systems and processes
Communicate with your clients, employees, and stakeholders via email, meeting, or call
Delegate responsibilities and assign temporary roles
Cross-train employees and document processes
Make necessary team introductions to your clients
Implement a communication plan
Schedule out content like social media posts or email newsletters if needed

Step 4: Document important information for your absence

“What’s the login for MailChimp?” is NOT a Slack message you want to tend to while tending to baby. To ensure a smooth transition during your absence, you’ll want to make sure you document important information for your employees and contractors such as:

Contact information for your clients and stakeholders
Passwords and login information for important accounts
Standard operating procedures and processes
Key deadlines and milestones

Taking Care of Yourself During Maternity Leave

Step 1: prioritize self-care and mental health.

Maternity leave is a time to prioritize your own health and wellbeing, as well as your baby’s, just as you would give that same tender love and care to your growing business! Take the time you need to recover from childbirth and adjust to your new role as a mother by practicing these self-care strategies:

Lean into your support system and ask for help
Get plenty of rest and sleep! I read somewhere to abide by the 5-5-5 rule for birth recovery—5 days in bed, 5 days on the bed, 5 days near the bed to allow ample time for rest.
Eat a healthy, balanced diet
Take a bath
Stay hydrated
Engage in light exercise, such as walking or yoga
Practice stress-reduction techniques, such as meditation, deep breathing, or journaling

Step 2: Establish boundaries and managing expectations

As a small business owner, it can be difficult to disconnect from your business during your maternity leave. However, it’s advantageous to establish boundaries and manage expectations to ensure that you’re able to focus on your own health and wellbeing. This also means not just with your email!

Set clear boundaries for your availability
Distance yourself from social media, particularly from your business social accounts
Remove notifications from your devices for emails, social media, and any other PINGS you might get that could send you in a business blundering spiral (Slack, Google, etc)

Step 3: Stay connected with your business without overwhelming yourself (IF YOU WANT!)

While it’s recommended to disconnect from your business during your maternity leave, I also know that personally this is going to be really hard and a lot easier said than done. I’m allowing myself some grace and trying to go with the flow. If I feel more stressed about going zero dark thirty on my business and it’s causing me to feel distracted from baby, I’m allowing a check in here and there to stay somewhat loosely connected to ensure a smooth transition back but mostly to ease nerves. Here are some ideas to consider:

Schedule regular check-ins with your employees and contractors to stay informed of any updates or changes (without opening the client floodgates!)
Check your emails once a week (or even once every two weeks depending on the time you take off)
Skip social media one day and replace it with industry news or a podcast related to your field
For example, if you want to attract 5 new clients by the end of the calendar year, you can research new outreach tactics, create new cold-call email templates, etc. that can be used once you return from maternity leave. Basically, the things you never had time for while working in the business instead of on it!

Returning to Work and Transitioning Back

Step 1: prepare for your return and reintegration.

Returning to work after maternity leave can be challenging, especially if you’ve been away for an extended period of time. I mean hello, you just made a whole freakin’ baby and now you’ve gotta leave them?! For Honey, I’ll be checking in with just our operations manager 4-6 weeks postpartum via Slack once a week and increasing the frequency from there. In order to have a smooth reintegration, try the following:

Schedule a meeting with your employees and contractors to discuss any updates or changes that occurred during your absence.
Develop a plan for transitioning back to your responsibilities prior to going out on leave so you’re not left scrambling on the day you return
Meet with your clients to discuss any updates or changes to their projects.
Consider a gradual return to work schedule to ease the transition if possible! For example, start back 2 days a week and work your way up or even 2 hours per week at the beginning.

Step 2: Childcare and support

This will be hard. I know it and my baby is not even here! As business owners, we’re natural high achievers and think we can do it all but I know even now that I can not and do not want to try and balance a full-time business and being a full-time stay at home mom. I do not have an answer nor do I know what this will truly look or feel like but I’m trying to consider what feels good to me and my family while wanting to respect my business and baby.

Encouragement and support for small business owners

Maternity leave for small business owners isn’t typical. The brain never quite shuts off and a successful entrepreneur can’t just shutter her business. But honey, it is possible to nurture both babies at once with a little bit of planning, foresight and a team you trust and rely on!

Newborn days are beautiful, messy, chaotic, and fulfilling. But they are just that – days. If you keep your mind on the long game, you’ll get through it with a business that hopefully remains steady and a sweet baby you can’t take your eyes off of.

To the mamas and business owners who are crushing both roles – you’ve got this!

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Why buying a home isn't likely to get much cheaper even under Biden's housing plan

Biden has a plan to make housing more affordable, but prices might be stuck in the stratosphere.
Biden's proposals may not be enough to tackle the housing shortage that's pushing up prices.
It will take years for more supply to slow the pace of home price growth, economists say.

Americans waiting for the housing affordability crisis to ease might be waiting a long time, even with President Joe Biden's proposals to open up the market to more Americans, real estate experts told Business Insider.

That's not to say Biden's list of proposals to lower housing costs won't have an impact, according to Daryl Fairweather, the chief economist of the real estate listings site Redfin.

But some ideas — like tax credits for first-time buyers — do little to tackle the housing shortage and may end up stimulating more demand. That means any relief is unlikely to come in the form of bringing down sky-high prices.

"The effect on the housing affordability crisis is going to be muted. It's not going to be noticeable even in the long run," Fairweather said.

Low housing inventory is at the heart of the affordability issue. A lack of new construction of single-family homes since the financial crisis combined with the "lock-in" effect of existing homeowners staying put to hold on to their low mortgage rate has created a big supply-demand imbalance.

Some of Biden's housing affordability measures would fuel demand further at a time when supply is still historically tight, according to Lawrence Yun, the chief economist of NAR.

While the president's initiatives could help lower-income families get into the housing market, it could also exacerbate the supply-demand imbalance, putting upwards pressure on home prices overall.

Addressing a dearth of housing

According to Fairweather, the only initiatives that will make a long-lasting difference in home affordability are Biden's efforts to build more houses . The President is pushing for Congress to pass legislation to build or renovate around 2 million homes, which would help alleviate the lack of inventory .

Estimates of America's housing shortage range from 3 million homes to as many as 6 million .

The Biden administration is also offering a one-year $10,000 tax credit to homeowners who are willing to sell, which could unlock housing supply from those who own multiple properties, Fairweather said.

But what's really needed is new supply, and building enough homes to make housing more affordable is a huge task in America. Yun estimated that it could take at least three to four years of building for supply and demand to balance out.

Fairweather thinks it could take around a decade to build Biden's proposed 2 million homes. Building in America is difficult, and construction is often governed by a patchwork of local and state rules that make it hard for developers to break ground.

"Biden has his plan, which is to pump money into the system. But the problem with the housing market isn't really that there isn't enough money going toward housing. It's more the red tape and the local opposition that has been the biggest barrier to building housing," Fairweather said.

Even once that supply is added, the effect on home prices could still be muted. That's because the country is already deep in a housing shortage, Yun said, and it will take years for supply to catch up with demand, let alone have demand exceed supply, which is what would cause prices to drop.

"It will not come down in any meaningful way," Yun said of home prices. "Maybe there's a single-digit price adjustment temporarily, but any meaningful [decline] is not going to happen … So for anyone who's just waiting and waiting, well, that time will be long."

The upside is that prices aren't likely to rise much more. Yun thinks home prices will stay around their current level for the next three years before more supply finally makes its way to buyers. Then, assuming supply catches up with demand, the growth of home prices will likely slow in line with people's growing incomes, meaning housing will feel more affordable, even as actual prices don't see much of a change, he predicted.

The median sale price of a home in the US clocked in at $417,000 in the fourth quarter, according to data from the Department of Housing and Urban Development. That's a 27% increase from how much homes cost prior to the pandemic, with the median sales price clocking in at $327,100 in the fourth quarter of 2019.

Home prices were already up 6.5% year-over-year in February, according to Redfin data. According to an analysis by Zillow , homebuyers need to earn 80% more than they did before the pandemic to afford a home in 2024.

Watch: Millions of homes could flood the US housing market thanks to boomers

Main content

Thames Water shareholders blame Ofwat as they pull funding

Shareholders will not be injecting the first £500m of funding that was agreed last summer as industry regulations make the company's business plan "uninvestible".

Thursday 28 March 2024 09:30, UK

Thames Water workers repairing broken underground water pipes.

Shareholders in troubled Thames Water have blamed Ofwat for not giving the "regulatory support" needed to help the company's turnaround plan.

The nine shareholders said they had been in talks with Thames Water and the regulator to try and find a way through the "complex challenges" facing the company.

But in a statement, they said: "After more than a year of negotiations, Ofwat has not been prepared to provide the necessary regulatory support for a business plan which ultimately addresses the issues that Thames Water faces.

"As a result, shareholders are not in a position to provide further funding to Thames Water."

The water company serves nearly a quarter of the UK's population, but it has been drowning in more than £15bn of debt and the huge interest payments required to service it.

Shareholders, including the Universities Superannuation Scheme (USS) and China's sovereign wealth fund, had agreed to give it £750m in new equity funding, the first £500m of which was anticipated by the end of this month.

But on Thursday morning, Thames Water announced the shareholders would not be injecting the first £500m as regulatory arrangements made the company's business plan "uninvestable".

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The utility company had been seeking concessions including a 40% rise in consumers' water bills, an easing of capital spending requirements and leniency on forthcoming regulatory penalties.

Thames Water chief executive Chris Weston insisted on Thursday that it was "business as usual", adding: "Our 8,000 staff remain committed to working with our partners in the supply chain to provide our services for the benefit of our customers, communities and the environment."

Last summer, Sky News revealed that Whitehall officials had started drawing up contingency plans for Thames Water's collapse amid fears that it might not survive.

Ofwat said: "Today's update from Thames Water means the company must now pursue all options to seek further equity for the business to turn around the performance of the company for customers".

Thames Water said it was in talks with Ofwat to secure regulations that are "affordable for customers, deliverable and financeable for Thames Water, as well as investible for equity investors".

It said once the new regulatory plan is agreed with Ofwat, it "intends to pursue all options to secure the required equity investment from new or existing shareholders".

Read more: Thames Water lenders hire EY as debt deadline looms Thames Water bosses admit it can't meet April debt repayment Water firms face backlash over record sewage spills in England

It comes after Sky News City editor Mark Kleinman reported on Wednesday night that the company's board was in crunch talks, with the company's survival in doubt.

Thames Water has come under intense pressure in recent years because of its poor record on leaks, sewage contamination, executive pay and shareholder dividends.

It is facing multiple fines and regulatory investigations, including into the payment of dividends to Kemble Water, its parent company.

The company has also been beset by management turmoil, with Sarah Bentley, its chief executive for the last three years, resigning last summer to be replaced by Mr Weston, the former Aggreko chief.

Nearly £1.4bn of the company's bonds mature by the end of this year, with Ofwat price controls meaning water companies have little scope to generate additional income.

In total, tens of billions of pounds have been handed to shareholders in water utilities across Britain since privatisation, stoking public and political anger given the industry's frequent mismanagement.

Weil, Latham Aid Home Depot’s Plan to Buy SRS for $18.25 Billion

By Mahira Dayal

Home Depot Inc. leaned on Weil, Gotshal & Manges for advice in its acquisition of building materials supplier SRS Distribution Inc. for $18.25 billion.

Weil mergers and acquisitions partners Michael Aiello and Eoghan Keenan worked on the deal for Home Depot.

Aiello chairs the firm’s corporate department of more than 600 lawyers, and he handled past deals including Dow Chemical’s merger with Du Pont de Nemours, according to Weil’s website. Keenan previously worked on Scripps Networks Interactive Inc.'s merger with Discovery Communications.

SRS took guidance from Latham & Watkins, led by New York partners Paul Kukish, Michael Vardanian and Daniel Williams.

The $18.25 billion acquisition is part of Home Depot’s effort to build its professional services business. SRS, a portfolio company of private equity firm Leonard Green & Partners and Berkshire Partners, distributes materials for residential landscaping, roofing and pools in the US and has more than 760 branches.

The market for mergers and acquisitions has been slow as buyers and sellers struggle with expensive credit, mismatched valuation expectations and investor uncertainty. Global deal activity dropped to $3.6 trillion last year, down around 20% from 2022, according to Bloomberg data.

To contact the reporter on this story: Mahira Dayal in New York at [email protected]

To contact the editors responsible for this story: Chris Opfer at [email protected] ; John Hughes at [email protected] ; Alessandra Rafferty at [email protected]

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Biden Suggests a Bigger Federal Role to Reduce Housing Costs

A new report focuses on the prolonged struggle to build affordable housing across America and suggests federal incentives to help.

Share full article

President Biden speaking on a stage with red signs reading “President Joe Biden: Lowering Housing Costs.”

By Jim Tankersley and Conor Dougherty

Jim Tankersley covers White House economic policy. Conor Dougherty has covered housing policy for more than a decade.

Economists in the Biden administration are calling for more aggressive federal action to drive down costs for home buyers and renters, taking aim at one of the biggest economic challenges facing President Biden as he runs for re-election.

The policy proposals in a White House report being released on Thursday include what could be an aggressive federal intervention in local politics, which often dictates where homes are built and who can occupy them. The administration is backing a plan to pressure cities and other localities to relax zoning restrictions that in many cases hinder affordable housing construction.

That recommendation is part of a new administration deep dive into a housing crisis, decades in the making, that is hindering the president’s chances for a second term. The proposals, included in the annual Economic Report of the President, could serve as a blueprint for a major housing push if Mr. Biden wins a second term.

The report includes a suite of moves meant to reduce the cost of renting or buying a home, while encouraging local governments to change zoning laws to allow development of more affordable housing.

“It’s really hard to make a difference in this space, in this affordable housing space, without tackling land use regulations,” Jared Bernstein, the chairman of the White House Council of Economic Advisers, said in an interview.

Mr. Bernstein added that administration officials believed many local leaders were encouraging a bigger federal role in zoning reform — which can help override objections from local groups that oppose development. “I feel like we’re kicking through more of an open door now than we ever have before,” he said.

The report is full of statistics illustrating why housing has become an acute source of stress for American families and an electoral liability for Mr. Biden.

The administration has acknowledged that it has limited power over local zoning rules, which tend to dictate the design and density of homes in particular neighborhoods. Most of the president’s recommendations for expanding supply involve using the federal budget as a carrot to encourage local governments to allow more building — including adding low-income housing and smaller starter homes.

Such policies are unlikely to be put into law this year, with an election ahead and Republicans in control of the House.

But the focus on housing, and the endorsement of a comprehensive set of policies to increase its supply and affordability, could serve as a blueprint for a potentially bipartisan effort on the issue if Mr. Biden wins re-election. It could also add momentum to a housing reform movement that is well underway in state legislatures around the country.

The report documents how, over the past decade, home prices have significantly outpaced wage growth for American families. That has pushed ownership out of reach for middle-income home shoppers and left lower-income renters on the brink of poverty.

A quarter of tenants — about 12 million households — now spend more than half their income on rent. Prices are so high that if a minimum-wage employee worked 45 hours a week for a month, a median rent would consume every dollar he or she made.

Behind all this, the report said, is a longstanding housing shortage. The lack of housing has become a rare point of agreement among Democratic and Republican lawmakers.

The shortage is the product of decades of failing to build enough homes, a trend that worsened after the 2008 financial crisis. It has been exacerbated by the rising cost of construction along with the many local zoning and land use rules that make housing harder and more expensive to build. These rules also limit what kinds of units can go where, for instance by making it illegal to build apartments in single-family neighborhoods.

The lack of affordable housing particularly hurts lower-income families and couples starting out. Millions of lower-cost apartments have essentially disappeared over the past decade, either through rising rents or by falling into disrepair. At the same time, smaller and lower-cost “ starter homes ” are a shrinking share of the market.

Over the past several years, a bipartisan group of legislators in both red and blue states have pushed dozens of state laws to limit cities’ control over development. The report cheered them and noted the administration’s efforts to encourage such reforms, including the Housing Supply Action Plan , which was released two years ago.

Mr. Biden has focused heavily on housing in recent weeks, in part to show voters he is fighting to lower one of their major monthly costs. Privately, his aides have expressed hope that Federal Reserve interest rate cuts this year will drive down mortgage rates and possibly home prices, if a new supply of homes hits the market in response.

Publicly, Mr. Biden has seized on the initiative, calling on lawmakers to pass big federal investments in housing supply and tax credits for people buying homes.

“If inflation keeps coming down — and it’s predicted to do that — mortgage rates are going to come down as well, but I’m not going to wait,” Mr. Biden said on Tuesday in Las Vegas. “I’m not going to wait.”

Jim Tankersley writes about economic policy at the White House and how it affects the country and the world. He has covered the topic for more than a dozen years in Washington, with a focus on the middle class. More about Jim Tankersley

Conor Dougherty covers housing and development, focusing on the rising costs of homeownership. He is based in Los Angeles. More about Conor Dougherty

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