Minnesota Housing Stabilization Services ending on Halloween amid fraud allegations

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ST. PAUL, Minn. (FOX 9) - Minnesota's Housing Stabilization Services program is set to end on Halloween after multiple criminal indictments alleging widespread fraud.

READ MORE: 8 federally charged in massive Minnesota Housing Stabilization Services fraud scheme

Housing Stabilization Services program terminated

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Big picture view:

The Minnesota Department of Human Services (DHS) is ending the Housing Stabilization Services program after law enforcement discovered extensive fraud. 

The federal Centers for Medicare and Medicaid Services approved this termination. 

The program, launched in 2020, aimed to help seniors and people with disabilities secure housing. Despite efforts to improve oversight, the scale of fraud led to its closure.

READ MORE: MN fraud review: Gov. Walz orders third-party audit of Medicaid billing at DHS

Efforts to support affected participants 

What they're saying:

Temporary Human Services Commissioner Shireen Gandhi released the following statement on the program's termination: 

"It’s upsetting that we had to take this step to stop criminals from taking advantage of services intended to help people. We know that Housing Stabilization Services truly filled an important gap for so many participants. We’re working closely with partners to help them connect people to other services wherever possible."

READ MORE: MN Housing Stabilization Services fraud investigation: Feds raid homes, businesses

The Department of Human Services is collaborating with counties, tribes, and managed care organizations to find resources for those impacted by the program's end.

More information is available here.

Ongoing fraud investigations 

What's next:

The state’s nonpartisan watchdog said her office is doing what it can to catch fraud, but said the state needs to do more.

READ MORE: 'We’re going to find more fraud' — Legislative auditor says state must do more to stop fraud

Legislative Auditor Judy Randall said her office is taking new steps to crackdown on fraud but is limited in what it can do.

In a report to legislators released in September, DHS, which oversaw the housing stabilization program, said it had better internal controls to stop fraud, including expanded data analytics and the ability to stop payments faster.