1. Short title This Act may be cited as the Restoring Community Oversight of Sober Living Homes Act of 2018 . 2. Zoning and licensing of recovery facilities Section 807 of the Fair Housing Act ( 42 U.S.C. 3607 ) is amended by adding at the end the following: (c) Nothing in this title or any other Federal law relating to protections for those with disabilities prohibits any State or local government from implementing laws, regulations, or ordinances that apply specifically to recovery facilities located in residentially zoned areas, including a law, regulation, or ordinance which prohibits recovery facilities in residentially zoned areas. . 3. Fair Housing Act definitions Section 802 of the Fair Housing Act ( 42 U.S.C. 3602 ) is amended— (1) in subsection (b), by inserting before the period at the end the following: , except that such term does not include any building, structure, or portion thereof that is located in a residentially zoned area and is used as a recovery facility ; and (2) by adding at the end the following: (p) Recovery facility means a building, structure, or portion thereof that is occupied by a person who is handicapped due to drug addiction or alcoholism, and for which a condition of such occupancy of such building, structure, or portion thereof is that it remains free of controlled substances and alcohol. . 4. Requirements for recovery facilities as a condition for certain Federal funding (a) In general A recovery facility in a residential zone may not receive direct or indirect payments or reimbursements or other remunerations from a Federal health care program unless— (1) the recovery facility is in compliance with State and local laws, regulations, or ordinances that apply within the zone where the recovery facility is located