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

Last reviewed: 2026-08-16

Housing Stabilization Services (HSS) in Minnesota is a Medical Assistance (Medicaid) benefit designed to help seniors and people with disabilities find and keep housing. The service encompasses tenancy support, including housing search, application assistance, landlord mediation, and retention planning, rather than paying for room and board directly.

The single biggest structural barrier to entry for this service is that the Minnesota Department of Human Services (DHS) officially ended the HSS program on October 31, 2025. Consequently, there is a complete moratorium on new provider enrollments, and no applications are currently being accepted. The information detailed below reflects the statutory framework, forms, and enrollment processes that governed provider approval prior to the program's closure.

1. Service Definition and Scope

In Minnesota, Housing Stabilization Services are defined under Minnesota Statutes, section 256B.051, subdivision 8. The service is divided into three distinct components: Housing Consultation, Housing Transition, and Housing Sustaining. These services are strictly administrative and supportive; they do not cover rent, moving expenses, or room and board.

The target population includes Medical Assistance members who are seniors (65+) or individuals with disabilities, mental illness, or substance use disorders who are experiencing housing instability or homelessness.

• Housing Transition: Assisting members in searching for housing, applying for leases, understanding tenant rights, and arranging the logistics of a move.
• Housing Sustaining: Providing ongoing landlord mediation, lease education, and retention planning to prevent eviction once housed.
• Housing Consultation: Developing a person-centered plan for individuals who do not already have waiver case management or targeted case management.
• Statutory Authority: Governed by Minnesota Statutes, section 256B.051, subdivision 8, which outlines documentation and service delivery requirements.
• Target Population: Medical Assistance enrollees with a documented disability, mental illness, substance use disorder, or who are age 65 or older and at risk of institutionalization or homelessness.

2. Regulatory and Oversight Agencies

The primary Medicaid authority in the state is the Minnesota Department of Human Services (DHS) (https://mn.gov/dhs/), which oversees the Medical Assistance program. Within DHS, the Housing and Homelessness Division (https://mn.gov/dhs/partners-and-providers/policies-procedures/housing-and-homelessness/housing-stabilization-services/housing-stabilization-services.jsp) specifically managed HSS policy and provider standards.

For providers operating residential facilities or offering integrated home care, the Minnesota Department of Health (MDH) (https://www.health.state.mn.us/facilities/regulation/homecare/index.html) acts as the licensing body. Provider enrollment is handled through the Minnesota Health Care Programs (MHCP) division via the Minnesota Provider Screening and Enrollment (MPSE) portal (https://www.dhs.state.mn.us/main/idcplg?IdcService=GET_DYNAMIC_CONVERSION&RevisionSelectionMethod=LatestReleased&dDocName=MPSE-HOME).

• Minnesota Department of Human Services (DHS): The state Medicaid agency responsible for funding and overall program administration (https://mn.gov/dhs/).
• DHS Housing and Homelessness Division: The specific division that developed HSS policies, provider standards, and training requirements (https://mn.gov/dhs/partners-and-providers/policies-procedures/housing-and-homelessness/housing-stabilization-services/housing-stabilization-services.jsp).
• Minnesota Department of Health (MDH): The regulatory body that issues Home Care licenses and Integrated HCBS Designations for agencies providing direct care (https://www.health.state.mn.us/facilities/regulation/homecare/providers/hcbs/index.html).
• Minnesota Health Care Programs (MHCP): The division managing the MPSE portal and processing provider enrollment applications (https://mn.gov/dhs/partners-and-providers/policies-procedures/minnesota-health-care-programs/).

3. Gatekeeping Prerequisites: Who Can Even Apply

The absolute gatekeeper for this service is the Program Closure Moratorium; DHS completely shut down the Housing Stabilization Services program on October 31, 2025, meaning no new applications are accepted under any circumstances. This acts as a permanent closed network.

Prior to the shutdown, applicants faced strict structural preconditions before an application could be submitted. Providers had to complete mandatory state training prior to licensure or enrollment and prove compliance with federal settings rules.

• Program Closure Moratorium: The HSS program officially ended on October 31, 2025, creating an absolute block on all new provider enrollments.
• Waiver Provider Training 101: At least one owner or managerial official was required to successfully complete the DHS HCBS Waiver/AC Provider Training 101 before a license was issued or an enrollment application was accepted.
• Location Control Rule: Under Minn. Stat. §256B.04, Subd. 21(a), providers were required to separately enroll each provider-controlled location where direct services were provided.
• HCBS Settings Rule Compliance: Providers had to demonstrate that their service settings were fully integrated into the community and did not have institutional characteristics, per federal CMS guidelines.

4. Licensure and Certification Requirements

Minnesota does not issue a distinct, standalone "Housing Stabilization Services" license. Instead, providers were approved through a combination of existing HCBS licensure or explicit statutory exemptions.

Many providers operated under a DHS 245D HCBS license or an MDH Home Care license with an Integrated HCBS Designation. Providers who strictly offered housing transition and sustaining services without providing other direct care could operate without a 245D license by submitting a specific assurance statement to DHS.

• 245D License Exemption: Providers not required to hold a 245D license had to submit the Provider Not Required to Receive a 245D Program License Applicant Assurance Statement (DHS-6189Z).
• Integrated HCBS Designation: MDH-licensed home care providers could apply for this designation under Minn. Stat. § 144A.484 to provide basic support services without a separate DHS license.
• Licensing Agency ID: All applicants were required to upload the Request for Licensing Agency ID Number (DHS-3891) during the enrollment process.
• Surety Bond: DMEPOS and certain providers designated as high-risk for fraud, waste, or abuse were required to purchase an annually renewed surety bond naming DHS as the obligee.

5. Medicaid Provider Enrollment

Provider enrollment was processed entirely through the Minnesota Provider Screening and Enrollment (MPSE) portal (https://www.dhs.state.mn.us/main/idcplg?IdcService=GET_DYNAMIC_CONVERSION&RevisionSelectionMethod=LatestReleased&dDocName=MPSE-HOME). Paper applications were phased out in favor of this digital system.

Applicants had to select specific record and facility types unique to the HSS program and upload a series of mandatory assurance statements directly into the portal's notes section.

• Enrollment System: Applications were submitted via the Minnesota Provider Screening and Enrollment (MPSE) portal (https://www.dhs.state.mn.us/main/idcplg?IdcService=GET_DYNAMIC_CONVERSION&RevisionSelectionMethod=LatestReleased&dDocName=MPSE-HOME).
• Record Type: Providers had to select the enrollment record type "HCBS Housing Services -18-HSS".
• Facility Type: Applicants were required to select "Community/Public" for the facility type in the MPSE system.
• Service Assurance Forms: Providers had to upload the Housing Transition and Sustaining Assurance Statement (DHS-7967) and the Housing Consultation Provider Applicant Assurance Statement (DHS-7968).
• Ownership Disclosure: All enrolling entities had to submit the Disclosure of Ownership and Control Interest of an Entity (DHS-5259).

6. Staffing, Training and Background Checks

Minnesota requires rigorous background studies for all individuals providing direct contact services. These studies are processed through NETStudy 2.0, the state's background study system.

In addition to background clearance, staff providing HSS were required to complete specific training modules through a state-mandated learning management system and demonstrate ongoing knowledge of local housing resources.

• Background Studies: All owners, managerial officials, and direct care staff must pass a criminal background check prior to the issuance of a license or provision of services.
• Fingerprinting: Required for providers or staff designated as high-risk for fraud, waste, or abuse by CMS or DHS.
• Training Platform: Staff were required to complete foundational training modules through the College of Direct Support (CDS), a web-based learning management system utilized by DHS.
• Local Knowledge Requirement: Staff qualifications mandated that personnel be knowledgeable of local housing resources, continuum of care systems, and property management standards.

7. Documentation, Policies and Records

Documentation standards for HSS were strictly governed by Minnesota Statutes, 256B.051, subdivision 8. Providers were required to maintain auditable records proving the member's eligibility and the specific interventions provided.

A unique requirement for housing providers in Minnesota is mandatory participation in the state's homeless data tracking system, ensuring cross-agency visibility of housing instability.

• HMIS Data Collection: All providers were required to collect tenant data and enter it into the Homeless Management Information System (HMIS).
• Proof of Eligibility: Files had to contain proof of Medical Assistance enrollment and documentation of the member's disability, mental illness, SUD, or age (65+).
• Housing Assessment: Records required a formal housing assessment or a professional statement of need documenting the individual's housing instability.
• Person-Centered Plan: Providers had to maintain a copy of the member's person-centered plan detailing the specific housing goals and authorized services.
• Record Retention: Providers must adhere to MHCP general policies, retaining all medical and billing records for a minimum of five years for audit purposes.

8. Billing, Rates and Claims

Claims for Medical Assistance services in Minnesota are processed through the MN-ITS system, the state's web-based MMIS portal. Providers had to establish a designated billing profile before claims could be submitted.

Because HSS was a state plan amendment service, rates were standardized and published by DHS. Providers could not bill for room and board under these service codes.

• Billing System: All claims were submitted electronically through the MHCP MN-ITS system.
• Billing Designation: Providers were required to submit the Designation of HCBS Waiver or AC Program Billing Person form (DHS-6855).
• Provider Agreement: Agencies had to sign and adhere to the terms of the Minnesota Health Care Programs (MHCP) Provider Agreement (DHS-4138).
• W-9 Requirement: A Request for Taxpayer Identification Number and Certification (W-9) form was required to route payments correctly.
• Rate Limitations: Services were billed in 15-minute increments or per-diem rates as published on the DHS fee schedule, strictly excluding any rent or moving expense pass-throughs.

9. Approval Sequence and Timeline

When the program was active, the approval sequence required providers to secure training and licensing exemptions before touching the Medicaid enrollment portal. The process was sequential and heavily dependent on background study clearance.

Currently, this timeline is obsolete due to the October 31, 2025 program closure, but historically, a clean application took 30 to 60 days to process.

• Step 1: An owner or managerial official successfully completes the HCBS Waiver/AC Provider Training 101.
• Step 2: The agency obtains a 245D license, an MDH Integrated Designation, or completes the 245D exemption form (DHS-6189Z).
• Step 3: The agency clears all owners and managers through the NETStudy 2.0 background check system.
• Step 4: The provider submits the application, DHS-3891, DHS-7967, and DHS-7968 via the MPSE portal.
• Step 5: DHS reviews the application (historically a 30-60 day processing time) and issues an MHCP Welcome Letter.

10. Common Denials and Survey Findings

During the program's active years, DHS frequently rejected applications that failed to follow exact portal instructions or mismatched state licensing records.

Post-enrollment, survey findings often centered on providers failing to maintain the strict documentation required by statute, particularly regarding the separation of housing support from actual property management.

• Taxonomy Mismatches: Applications were immediately rejected if the provider taxonomy code on the MPSE application did not match the National Provider Identifier (NPI) registry.
• Missing Assurance Forms: Denials frequently occurred when providers failed to upload DHS-7967 or DHS-7968 into the 'NOTES' section of the MPSE portal.
• Settings Rule Violations: Providers were denied enrollment if their proposed service locations had institutional characteristics, violating the federal HCBS Settings Rule.
• Incomplete Background Checks: Applications were stalled or denied if any listed owner or managerial official had an unexplained gap or failed to clear the NETStudy 2.0 background check.
• Conflict of Interest: Surveyors cited providers who failed to maintain a firewall between their role as a landlord (property owner) and their role as a housing stabilization service provider.

11. Key Contacts and Resources

Because the Housing Stabilization Services program ended on October 31, 2025, current inquiries are generally limited to historical claims, audits, or transitioning members to alternative waiver services.

Providers seeking information on past enrollments or alternative HCBS licensing should contact the MHCP Provider Resource Center or the MDH Health Regulation Division.

• MHCP Provider Resource Center: 651-431-2700 or 800-366-5411 for questions regarding historical MPSE portal enrollments and MN-ITS billing (https://mn.gov/dhs/partners-and-providers/policies-procedures/minnesota-health-care-programs/provider-enrollment/).
• DHS Housing Stabilization Email: dhshousingstabilization@state.mn.us for policy questions regarding the closed program.
• MDH Health Regulation Division: Oversees home care licensure and Integrated HCBS Designations (https://www.health.state.mn.us/facilities/regulation/homecare/index.html).
• HB101 Minnesota: A state-sponsored resource for navigating housing benefits, which tracks program status updates and alternative housing supports (https://mn.hb101.org/a/47/).

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