# Housing Stabilization Services *A Minnesota program authorized by Minn. Stat. § 256B.051, terminated by the State in 2025, and the subject of state and federal charges in 2025 and 2026.* Housing Stabilization Services is a Minnesota program whose statutory authority is Minn. Stat. § 256B.051.[^1] The [[Minnesota Department of Human Services]] (DHS) announced that it was moving to terminate the program. A history row in the record dates the termination October 31, 2025.[^2] The program's documented outputs in the record are charging instruments. On September 18, 2025 the [[Minnesota Attorney General]] and federal law enforcement announced the first indictments. In the record's summary of the U.S. Attorney's first-wave release, eight defendants were charged and the charged conduct totaled about $281 million.[^3][^4] Further indictments and a guilty plea followed on December 18, 2025.[^5][^6] The [[United States Department of Justice]]'s May 21, 2026 Minnesota health care fraud takedown charged 15 defendants with over $90 million in intended loss, and it included Housing Stabilization Services claims.[^7][^8] Except where a guilty plea is noted, the figures below are allegations. The record shows what was charged and when, and it shows that the DHS termination fell between the first and second waves of charges. It does not establish why the program's controls did not stop the conduct charged.[^2][^4] ## Who DHS administers the program and announced its termination. The project's Dakota County matrix notes that the State operated all four program lines charged in the 2026 takedown, Housing Stabilization Services among them.[^2][^9] The defendants are private operators and their principals. The Attorney General's September 18, 2025 announcement named principals of Leo Human Services, Liberty Plus, Brilliant Minds Services and Faladcare. The December 18, 2025 announcement added principals of Pristine Health, SafeLodgings, Chozen Runner, Retsel Real Estate and Star Autism Center.[^3][^5] Four charging authorities appear in the record: the Attorney General, the U.S. Attorney for the District of Minnesota, DOJ's Health Care Fraud Unit, and the [[Hennepin County Attorney's Office]].[^4][^7][^10] The record cites § 256B.051 as the program's authority. It does not carry the session law that enacted the section, its amendments, or the administrations under which it was maintained, so no enacting party is attributed here.[^1] DHS also faces a pending federal suit on a different subject. The project's claim:link record lists the department as an institutional defendant in [[United States v. State of Minnesota (0:26-cv-00273)]] (D. Minn. filed Jan. 14, 2026), a suit about state hiring rather than this program.[^11] The suit was announced in DOJ release No. 26-21, titled *United States Department of Justice Files Lawsuit Against Minnesota's 'Affirmative Action' Regime*. That title uses the United States' own term for the State's apparatus: "Minnesota's 'Affirmative Action' Regime". Attorney General Pamela Bondi certified the case as a matter of general public importance.[^12] The complaint is brought under Title VII of the [[Civil Rights Act of 1964]]. It cites [[Minn. Stat. § 43A.191]] eight times, including subd. 3(c)'s requirement that an agency explain the reason for hiring a non-affirmative candidate.[^13] The case is pending. The Clearinghouse entry lists it as a complaint-allegation before a three-judge panel.[^14] The project's catalogue of U.S.-government "regime" usages finds no other U.S. state so described.[^12] ## What Housing Stabilization Services is the statutory program established under § 256B.051. DHS has announced its termination.[^1][^2] The charges concern billing under the program. In December 2025 the Attorney General alleged that operators billed for services they did not deliver. In May 2026 DOJ alleged that one operator's employees were directed to bill hours whether or not services were provided.[^5][^8] One guilty plea is recorded. The remaining matters are charged allegations, and the record carries no disposition for them.[^6][^8] ## When - **September 18, 2025**: The Attorney General and federal law enforcement announce the first Housing Stabilization Services indictments. The U.S. Attorney releases the first-wave charges.[^3][^4] - **October 31, 2025**: Minnesota terminates Housing Stabilization Services, as dated in the record's history table. DHS announced the move to terminate.[^2] - **December 18, 2025**: The Attorney General announces further Housing Stabilization Services and autism-program indictments and a guilty plea. The U.S. Attorney reports six additional defendants and one plea.[^5][^6] - **May 21, 2026**: DOJ announces the Minnesota health care fraud takedown, with 15 defendants and over $90 million in intended loss.[^7][^8] The project's Freeman dossier dates a 15-defendant, roughly $90 million action by DOJ's Health Care Fraud Unit to July 2026. DOJ's own release dates it May 21, 2026.[^15] - **August 2026**: In the project's account, the Hennepin County Attorney's Office charges five defendants in a case involving Housing Stabilization Services billing.[^10] ## Where The first-wave charges named defendants and entities in St. Paul, Blaine, Brooklyn Park and Roseville. None were in Stearns County.[^4] One operator charged in the May 2026 takedown was based in Lake Elmo, Washington County.[^8] The Freeman dossier reports that several defendants in the 2026 federal charges are [[Minneapolis]] residents.[^15] The record also reports negative results. A Stearns County check found every named defendant in the Twin Cities metropolitan area.[^16] The record's Carver County review located no Carver provider, address or defendant in the Housing Stabilization Services releases or the May 2026 takedown list.[^4] For Wright County, the state and federal release archives did not return results to search. The record registers that as gap G-3 and makes no claim about Wright County.[^17] ## How The December 18, 2025 announcement alleges that operators billed the maximum authorized hours while delivering minimal or no services, including for clients already in stable housing.[^5] The DOJ case summary alleges that the Lake Elmo operator's employees were directed to bill assigned hours per client "week after week, regardless of whether services were actually provided."[^8] DOJ marks that matter as charged, not convicted.[^8] ## How much - **First wave, September 2025:** about $281 million, according to the record's summary of the U.S. Attorney's release. A Stearns at-issue pair uses the same figure as its label for the program's charges.[^4][^16] - **May 2026 takedown, all programs:** over $90 million in intended loss. The Freeman dossier gives roughly $90 million alleged and about $60 million paid.[^7][^15] - **Housing Stabilization Services share of the takedown:** $15.7 million across eight defendants, as tallied in the project's Dakota matrix. The pack carries no primary document for this breakdown.[^9] - **Lake Elmo operator:** over $4.3 million in claims, of which roughly $3.7 million was paid, as alleged.[^8] - **August 2026 county case:** roughly $2.5 million in alleged Medicaid billing across assisted living, Housing Stabilization Services and the autism benefit.[^10] - **Audit figure:** the project's claim:link record cites an [[Office of the Legislative Auditor (Minnesota)]] audit of the program as documenting a 4,054% overrun. The pack carries only the Auditor's homepage, not the report.[^18] ## How many - **First wave, September 2025:** eight defendants.[^4] - **December 2025:** six additional defendants charged and one guilty plea, per the U.S. Attorney. The at-issue record names five entities in the Attorney General's December 18 announcement.[^6][^5] - **May 2026 takedown:** 15 defendants across all programs.[^7] The Freeman dossier counts ten Minnesota cases.[^15] The Dakota matrix counts eight Housing Stabilization Services defendants.[^9] - **August 2026 county case:** five defendants.[^10] ## In the at-issue record Eight at-issue pairs in the record name the program. The Dakota pair lists the four program lines in the 2026 federal charging document, each operated by the State:[^9] - EIDBI autism services: $46.6 million - Housing Stabilization Services: $15.7 million - Individualized Home Supports: $22 million - child care: $5.025 million DHS's termination announcement is the agency's own account of the program's end.[^2] The charging record dated after it includes the December 2025 indictments, Housing Stabilization Services claims in the May 2026 takedown, and the August 2026 county case.[^5][^7][^10] The Washington pairs record that the State initiated the December 2025 indictments.[^5] The earlier [[Feeding Our Future]] case was brought federally: 47 defendants and $250 million, announced September 20, 2022.[^19] In [[At issue 077 - In August 2026 the Hennepin County Attorney's Office]], the record shows that the county office can bring a state Medicaid case and did so in August 2026, for about $2.5 million. That was about four years after the federal Feeding Our Future case began.[^10][^19] [[At issue 076 - DOJ's Health Care Fraud Unit charged fifteen defendants]] places the 2026 federal charges in the autism benefit, Housing Stabilization Services, integrated community supports, and child nutrition and childcare programs.[^15] Two pairs record negative results: no Stearns County nexus, and an unsearched Wright County gap.[^16][^17] ## Notes [^1]: Minnesota Office of the Revisor of Statutes, *Minn. Stat. § 256B.051* — statutory authority for Housing Stabilization Services. https://www.revisor.mn.gov/statutes/cite/256B.051 [^2]: Minnesota Department of Human Services, *Department moves to terminate Housing Stabilization Services program* (date not stated in the record) — DHS's announcement of termination. The October 31, 2025 termination date is from record history row HE-0249 (Ramsey County history companion), which carries no URL. https://mn.gov/dhs/media/news/?id=1053-700501 [^3]: Office of the Minnesota Attorney General, *Press release on Housing Stabilization Services indictments* (Sept. 18, 2025) — indictments announced with federal law enforcement against principals of Leo Human Services, Liberty Plus, Brilliant Minds Services and Faladcare. https://www.ag.state.mn.us/Office/Communications/2025/09/18_HHS.asp [^4]: U.S. Attorney's Office, District of Minnesota, *Defendants charged in first wave of Housing Stabilization fraud cases* (Sept. 2025) — eight defendants and about $281 million. Named defendants and entities are in St. Paul, Blaine, Brooklyn Park and Roseville, with none in Stearns or Carver County, per record dossier notes. https://www.justice.gov/usao-mn/pr/defendants-charged-first-wave-housing-stabilization-fraud-cases [^5]: Office of the Minnesota Attorney General, *Press release on Housing Stabilization Services and autism-program indictments* (Dec. 18, 2025) — alleges billing of maximum authorized hours with minimal or no services, including for clients in stable housing. The release names principals of Pristine Health, SafeLodgings, Chozen Runner, Retsel Real Estate and Star Autism Center and reports a guilty plea. These indictments were state-initiated, per at-issue pair AI-Washington-092. https://www.ag.state.mn.us/Office/Communications/2025/12/18_HSS.asp [^6]: U.S. Attorney's Office, District of Minnesota, *Six additional defendants charged, one defendant pleads guilty in ongoing fraud schemes* — six additional defendants and one guilty plea. https://www.justice.gov/usao-mn/pr/six-additional-defendants-charged-one-defendant-pleads-guilty-ongoing-fraud-schemes [^7]: U.S. Department of Justice, Office of Public Affairs, *Minnesota health care fraud takedown results in charges against 15 defendants in over $90M fraud* (May 21, 2026) — 15 defendants and over $90 million. https://www.justice.gov/opa/pr/minnesota-health-care-fraud-takedown-results-charges-against-15-defendants-over-90m-fraud [^8]: U.S. Department of Justice, Criminal Division, Health Care Fraud Unit, *2026 Minnesota HCF case summaries* (May 2026) — describes a Lake Elmo, Washington County operator with over $4.3 million in Housing Stabilization Services claims, roughly $3.7 million of them paid, and quotes the allegation that employees billed hours "regardless of whether services were actually provided." The matter is charged; the allegations are not convictions. https://www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit/2026-minnesota-hcf-case-summaries [^9]: Project at-issue pair AI-Dakota-055, *Dakota Claims Exposure Matrix* (Sept. 2, 2026) — lists four program lines in the 2026 takedown, including Housing Stabilization Services at $15.7 million across eight defendants, and notes that the State operated all four. The breakdown is not in a primary document in the pack. The pair is anchored to the White House, *Establishing the Task Force to Eliminate Fraud* (Mar. 2026). https://www.whitehouse.gov/presidential-actions/2026/03/establishing-the-task-force-to-eliminate-fraud/ [^10]: Project at-issue pair AI-Hennepin-077, *Freeman Apex Dossier* §III.e (Sept. 2, 2026) — Hennepin County Attorney's Office, August 2026, five defendants, roughly $2.5 million across assisted living, Housing Stabilization Services and the autism benefit. The dossier sources this to Fox 9 reporting that is not in the pack. The pair is anchored to the White House task-force order. https://www.whitehouse.gov/presidential-actions/2026/03/establishing-the-task-force-to-eliminate-fraud/ [^11]: Project claim:link rows 33 and 65 (Theories 1 and 4) — list the Minnesota Department of Human Services as an institutional defendant in No. 0:26-cv-00273. https://mn.gov/dhs/ [^12]: U.S. Department of Justice, Office of Public Affairs, *United States Department of Justice Files Lawsuit Against Minnesota's 'Affirmative Action' Regime*, release No. 26-21 (Jan. 14, 2026) — gives the release title and records Attorney General Bondi's certification of general public importance. https://www.justice.gov/opa/pr/united-states-department-justice-files-lawsuit-against-minnesotas-affirmative-action-regime [^13]: U.S. Department of Justice, Civil Rights Division, *Complaint, United States v. State of Minnesota*, No. 0:26-cv-00273 (D. Minn. filed Jan. 14, 2026) — a Title VII complaint that cites Minn. Stat. § 43A.191 eight times, including subd. 3(c). https://www.justice.gov/crt/media/1423361/dl [^14]: Civil Rights Litigation Clearinghouse, *United States v. State of Minnesota*, 0:26-cv-00273 (D. Minn. Jan. 14, 2026) — docket entry listing a complaint-allegation and a three-judge panel. https://clearinghouse.net/case/47712/ [^15]: Project at-issue pair AI-Hennepin-076, *Freeman Apex Dossier* §V (Sept. 2, 2026) — dates the Health Care Fraud Unit action to July 2026 and describes fifteen defendants, ten Minnesota cases, about $90 million alleged and about $60 million paid, with several defendants Minneapolis residents. The pair is anchored to the White House fact sheet on a new DOJ division for national fraud enforcement (Jan. 2026). https://www.whitehouse.gov/fact-sheets/2026/01/fact-sheet-president-donald-j-trump-establishes-new-department-of-justice-division-for-national-fraud-enforcement/ [^16]: Project at-issue pair AI-Stearns-049 — finds no Stearns County nexus in the $281 million Housing Stabilization Services charges, with every named defendant in the Twin Cities metro. The p