Your family sounds lovely and your poor brother is lucky to have some family who cares. I understand that many families are afraid of state hospitals due to how they are portrayed. I’d say go see one. Not that I would suggest that he be put in one if your willing to find a way to help him and keep him with you. But you want to have this knowledge first hand.
It’s sounds like your in the idea gathering phase… this is the only idea I’ve been able to find
http://www.helppro.com/Blog/post/2011/06/30/The-Social-Workers-Role-in-Major-Mental-Illness.aspx
This was a pretty good article with some ideas.
Check with your brother’s doc to see if you can get a visiting nurse once in a while. Check your DSHS offices to see if you can get a case worker to plug you and your loved one into resources in the area.
I hope your search brings you ideas.