The Minnesota Department of Human Services (DHS) announced Friday it plans to terminate its Housing Stabilization Services (HSS) program.
The HSS program is described by DHS as a “benefit to help people with disabilities, including mental illness and substance use disorder, and seniors find and keep housing.”
According to the DHS, the decision was made following a letter from DHS temporary commissioner Shireen Gandhi to the federal Centers for Medicare and Medicaid Services (CMS).
In the letter to CMS, Gandhi expressed the need to terminate the program after multiple credible allegations of fraud from 77 housing stabilization providers in Minnesota, which were using HSS.
“DHS is rooting out fraud wherever we find it. We cannot allow one more cent of taxpayer money going out the door to providers who claim to serve Minnesotans in need of stable housing while lining their pockets for personal gain,” said Gandhi. “As I made clear in my letter to CMS, our own data analysis has shown that this program does not have the necessary controls to stop bad actors, and we are urging CMS to approve our request to end this program as swiftly as possible.”
DHS said it intends to redesign and relaunch the benefit, and will work with the Minnesota legislature, providers, community partners, and CMS to prevent “bad actors” from entering the program.
In a statement from the Governor’s Office obtained by 5 EYEWITNESS NEWS, Governor Tim Walz supported the decision to terminate the program.
“The Governor fully supports this decisive action to ensure fraudulent actors do not receive another penny,” the statement read. “Until the legislature can redesign this program, it is simply too susceptible to fraud to continue. This effort is one of many that the Administration is making to tighten controls, catch and penalize criminal activity, and ensure state services go to only those who truly need them.”
RELATED: Feds serve search warrants related to alleged housing stabilization fraud scheme | Republican state lawmakers ask for federal audit of Minnesota DHS over Medicaid fraud | Minnesota halts payments to most housing stabilization providers amid fraud scrutiny
DHS said it had begun work with CMS to take the required actions to end the housing stabilization services benefit as soon as possible. This includes sending notifications to enrollees and service recipients, as well as providers, about the decision to terminate the program.
The Minnesota Bureau of Criminal Apprehension (BCA) told 5 EYEWITNESS NEWS that they are helping with the HHS fraud investigation, and provided a statement from BCA Superintendent Drew Evans.
“We applaud the Minnesota Department of Human Services for their continued efforts to strengthen program integrity and prevent fraud as we work to investigate those who exploit programs meant to help vulnerable Minnesotans.”
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