As Minnesota housing program faces scrutiny, tenants face uncertainty
Residents in limbo after housing fraud scandal
Tenants with disabilities are facing an uncertain future after a housing services fraud scandal caused the state to cease payments to several providers.
ST. PAUL, Minn. (FOX 9) - A man who lives at a St. Paul apartment complex said he was given 60 days to leave after the state stopped paying his housing provider.
He is the second tenant to face homelessness amid an ongoing fraud investigation into a state-run Medicaid program that provides housing services to disabled people.
Disabled tenant fears homelessness
What we know:
The tenant said he was given two months to find another place to live.
According to the notice he received, the Minnesota Department of Human Services (DHS) suspended payments to his provider, Metro Care Human Services.
He also received a notice from his complex telling him to leave within 60 days.
Neither document specified why the funding was pulled.
He said more than a dozen other tenants also received similar notices.
DHS said Friday that it will stop payments on Dec. 2 to five businesses encompassing a dozen properties. The move will impact 97 program participants, the agency said.
In September, DHS stopped payments to 11 providers over suspected fraud.
What they're saying:
In a statement on Friday, DHS Inspector General James Clark said: "We are working every day to tackle fraud while ensuring the health and safety of clients who depend on these programs. Our investigations have uncovered credible allegations that providers have repeatedly billed us for services that have not been provided. They are putting peoples' health and safety at risk and that is unacceptable."
Housing provider rescinds move-out notices, says tenants can stay
The latest:
In a statement on Monday released by its attorney, Metro Care Human Services said it had rescinded its move-out notices and will allow tenants to stay.
In the statement, it said, in part: "As we navigate the complexities of our current situation, I have firmly decided that no individual should have to face the loss of their housing. Housing is a fundamental human right, and it is imperative that we uphold this principle in all of our actions."
The other side:
"It’s just really upsetting. I haven’t been sleeping, and my mental health has been really bad ever since I got this letter," said the man, who did not want to be identified. "I just wish DHS would treat us better and help us more. They say they’re about helping people, but they’re just shutting this place down and there’s no real plan."
State launches investigation into program, uncovers suspected fraud
The backstory:
In September, the state uncovered "credible allegations of fraud" after it launched an investigation into Integrated Community Supports. The agency said the allegations primarily concerned providers billing for services that were not provided.
The state then cut off funding to 11 service providers that were suspected of fraud, leaving tenants scrambling to find another place to live.
In October, a woman who lived at another complex in St. Paul said she received a move-out notice.
Dig deeper:
According to DHS, "Integrated Community Supports (ICS) is a home and community-based service that provides personal care, household management support and training to clients living in apartment or multi-housing units that the service provider owns, operates or leases. Housing costs or rent is separate from and not included in the ICS service. The type and amount of services a person receives depends on the person’s specific assessed areas of need, as documented by the case manager in the person-centered support plan."