Oregon’s Public Mental Health System includes a continuum of small community- based residential programs offering mental health treatment and 24/7 personal care support for adults experiencing severe mental illness. A team of several mental health paraprofessionals working under the direction of the facility administrator and the Master level therapist strive to gently challenge residents to set personally meaningful goals, practice functional skills and slowly take charge of their lives in the community. The author asserts that the manner in which daily operational and behavioral challenges are resolved by the treatment team, affects residents’ lives not less than strictly therapeutic interventions. This paper has a twofold aim: 1) To characterize leadership, organization and staff communication as building blocks of the collaborative, person-centered and strength-based residential treatment; 2) To show how clinical and administrative processes must interplay to create a spirt of recovery and optimism in home-like community residential facilities.