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Supportive‑housing groups back temporary restoration of housing support rates and changes to housing stabilization services
Summary
Supportive-housing advocates testified that cuts to housing support rates and problems with the housing stabilization services program have reduced providers’ capacity to help people exiting homelessness; they asked the committee to restore rates temporarily and invest in program fixes.
Supportive‑housing providers and advocates told the House Health and Human Services Finance Policy Committee that funding and design problems in housing support and housing stabilization services (HSS) have reduced available placements for people exiting homelessness.
Marcus Schmidt, executive director of Hearth Connection, said supportive housing combines an affordable unit with services that help people find and keep housing. He said a 2020 change cut the state’s housing support rate for those eligible for Medical Assistance by 50%, and that many providers stopped offering HSS or declined to enroll eligible individuals because the reduced rate is unsustainable.
"Minnesota's supportive housing infrastructure is very fragile and failing to respond will only lead to more Minnesotans experiencing homelessness," Schmidt told the committee. He supported the governor’s proposed funding to increase staff capacity in HSS and asked lawmakers to consider a temporary restoration of the housing support rate while program improvements are made.
No formal committee action was taken during the hearing; witnesses asked lawmakers to prioritize short-term rate restorations and program fixes to preserve provider capacity and avoid further reductions in community-based supportive housing capacity.
