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Michigan - Housing Stabilization — Licensing, Medicaid Enrollment and Startup Requirements

Last reviewed: 2026-09-10

Michigan does not enroll Medicaid providers under a distinct "Housing Stabilization" provider type in the Community Health Automated Medicaid Processing System (CHAMPS). Instead, tenancy support services—such as housing search, landlord mediation, and retention planning—are funded primarily through Community Living Supports (CLS) under the §1915(i) State Plan Amendment managed by Prepaid Inpatient Health Plans (PIHPs), or as Community Transition Services under the §1915(c) MI Choice Waiver.

Approval to bill for these tenancy supports requires securing a contract with a regional PIHP or a designated MI Choice Waiver agency before submitting a CHAMPS enrollment application. Standalone housing agencies cannot directly bill the Michigan Department of Health and Human Services (MDHHS) for tenancy supports without first being procured into one of these closed managed care networks.

1. Service Definition and Scope

Because Michigan lacks a standalone housing stabilization service, tenancy supports are absorbed into broader waiver service definitions. Under the behavioral health system, these tasks are billed as Community Living Supports (CLS) or Targeted Case Management (TCM), which assist beneficiaries in acquiring and retaining community-based housing.

For individuals transitioning from nursing facilities, the MI Choice Waiver utilizes Community Transition Services to fund one-time housing setup expenses and coordination, while ongoing retention planning falls under Supports Coordination.

2. Regulatory and Oversight Agencies

The Michigan Department of Health and Human Services (MDHHS) oversees all Medicaid waiver programs, but delegates direct network management to regional entities. The Behavioral Health and Developmental Disabilities Administration (BHDDA) oversees the PIHPs, while the Home and Community-Based Services (HCBS) Section oversees waiver compliance.

Providers must interact primarily with their regional PIHP or MI Choice Waiver agency for credentialing, quality oversight, and claims submission, rather than dealing directly with MDHHS for day-to-day operations.

3. Gatekeeping Prerequisites: Who Can Even Apply

A provider cannot simply apply to MDHHS to offer housing stabilization services. The state utilizes a closed managed care model for specialty behavioral health and waiver services, meaning providers must be selected through a regional procurement process.

Without an active contract or letter of intent from a PIHP or MI Choice Waiver agency, a CHAMPS enrollment application for these specific waiver services will be denied or remain inactive.

4. Licensure and Certification Requirements

Michigan does not issue a specific "Housing Stabilization Provider" license. Agencies providing tenancy supports under CLS or TCM must meet the credentialing standards set by the PIHP or waiver agency, which generally require organizational accreditation or specific staff qualifications rather than a facility license.

If the agency also provides adult foster care or operates a residential facility, a license from LARA is required, but standalone tenancy support agencies operating in the community are typically unlicensed entities.

5. Medicaid Provider Enrollment

All providers must enroll in the Community Health Automated Medicaid Processing System (CHAMPS) to receive a Medicaid Provider ID, even if they are billing through a PIHP. Agencies enroll as an Atypical Provider if they do not provide medical services, or as a standard organizational provider depending on the exact services contracted.

During CHAMPS enrollment, the provider must associate themselves with the PIHP or waiver agency that holds their contract, ensuring that claims routed through the managed care entity are recognized by the state.

6. Staffing, Training and Background Checks

Staff delivering tenancy supports under CLS or TCM must meet the qualifications outlined in the MDHHS Medicaid Provider Manual for those specific services. This typically requires staff to be at least 18 years old, possess a high school diploma or GED, and complete specific training modules.

All direct support staff must undergo comprehensive background checks through the Michigan Workforce Background Check system before having direct contact with beneficiaries.

7. Documentation, Policies and Records

Providers must maintain strict documentation to support claims billed to the PIHP or waiver agency. Every tenancy support intervention must be tied to a specific goal in the beneficiary's Person-Centered Service Plan (PCSP).

Agencies must also maintain policies demonstrating compliance with the HCBS Settings Rule, ensuring that individuals receiving tenancy supports have lease protections and privacy rights equivalent to those not receiving Medicaid HCBS.

8. Billing, Rates and Claims

Because tenancy supports are not a distinct state-level service, billing codes and rates are determined by the regional PIHP or waiver agency contracts. Providers submit claims directly to the managed care entity's clearinghouse, not to CHAMPS.

Commonly used codes include H2015 for Community Living Supports or T2038 for Community Transition Services, with rates varying significantly by region and provider contract.

9. Approval Sequence and Timeline

The timeline to become an approved provider depends entirely on the procurement cycles of the regional PIHPs or waiver agencies. Some regions only open their networks to new providers every few years through a formal RFP process.

Once a contract is awarded, the CHAMPS enrollment and PIHP credentialing process typically takes 60 to 90 days to complete before the provider can begin billing for services.

10. Common Denials and Survey Findings

The most frequent reason for application denial is attempting to enroll in CHAMPS without an existing contract or affiliation with a PIHP or waiver agency. MDHHS will not approve standalone applications for these waiver services.

During audits, providers frequently face recoupments for failing to link tenancy support activities directly to the goals outlined in the Person-Centered Service Plan, or for billing for unallowable activities like direct rent payments.

11. Key Contacts and Resources

Providers should direct enrollment questions to the Michigan Medicaid Provider Support helpline and consult the MDHHS Medicaid Provider Manual for detailed policy requirements regarding CLS and Community Transition Services.

For network access, providers must contact the specific PIHP or MI Choice Waiver agency operating in their target counties.

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