Committee recommends passage of bill allowing providers to secure county housing‑support contracts for eligible residents and sends it to Health and Human Servi

Senate File 814 would require counties to allow housing‑support contracts with licensed provider‑controlled residential settings so eligible residents could apply housing‑support dollars toward room and board in those settings. Sponsors and witnesses said the change is intended to reduce county‑level gatekeeping and increase financial stability for both residents and small providers.

Zania Harout of the Residential Providers Association of Minnesota told senators that housing support (formerly known as GRH) helps pay rent and food for low‑income seniors and adults with disabilities. She said access depends on whether a county chooses to contract with a provider; some metro counties have imposed informal moratoria or declined to contract with providers using single‑family homes or particular facility types. Harout and other witnesses urged a statutory change so providers licensed by DHS or MDH could more reliably obtain housing‑support contracts for eligible residents.

Amanda Vikstrom, executive director of the Minnesota Elder Justice Center, testified in support and said the committee’s coalition has observed counties acting as gatekeepers. Vikstrom and other advocates said they are seeking clarification that counties may not categorically refuse contracts for certain licensed residential settings without limited, specified reasons.

Matthew Bergeron, legislative counsel to RPMN, clarified that the bill’s language would not override municipal zoning codes. He said it would prevent a county from using zoning classification as the sole reason to deny a housing‑support contract when the provider is otherwise legally permitted to operate in that zone. Bergeron noted that state law treats residential facilities of six or fewer as a permitted use in many zones and that the bill aims to address administrative county practices rather than change local zoning law.

Witnesses told the committee that more than 20,000 Minnesotans receive housing support each month. Committee members asked about fraud risk and program integrity; witnesses distinguished this housing‑support discussion from federal reports about fraud in other housing or enrollment programs and said counties sometimes cite budget concerns for restrictive contracting practices. The Governor’s budget proposal was referenced as including a separate approach to allow certain certified recovery residences to enroll directly with DHS; witnesses said they would like a similar option for provider‑controlled settings licensed by MDH or DHS.

Disposition: the committee recommended Senate File 814 be referred to the Health and Human Services Committee for further consideration and asked staff to obtain a fiscal note where appropriate.