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December 30, 2025 CERTIFIED MAIL Sue Walker, Authorized Agent Hammer Residence Inc 1909 Wayzata Blvd Wayzata MN 55391-2047 License Number 1071279-HCBS (Home and Community-Based Services) License Number 1116927-H_CRS (Home and Community-Based Services-Community Residential Setting) Report Number 202506058 ORDER TO PAY A FINE FOR BACKGROUND STUDY VIOLATIONS Dear Sue Walker: The Department of Human Services (DHS) is ordering you to pay a fine of $400 for two background study violations. Details of our findings are provided below. Our next steps and your options are also detailed. Reason for the Fine DHS is issuing this fine order based on your failure to comply with the following background study requirement: As a result of an investigation, a DHS investigator determined you relied on a background study that was completed for a program that was not affiliated with your program. On an unknown date, Hammer Residence acquired another unrelated licensed program (ULP) and on September 20, 2023, the ULP closed its license. Staff persons who worked for the ULP began working for Hammer Residence and Hammer Residence did not complete background studies for two persons (P1 and P2) and relied on each persons’ background study completed by the ULP.
1. P1 had a study completed by the ULP on May 4, 2023, and on September 21, 2023, the ULP separated P1. P1 remained working for Hammer Residence and on September 10, 2025, Hammer Residence submitted a new background study request. 2. P2 had a study completed by the ULP on February 23, 2023, and on September 21, 2023, the ULP separated P2. P2 remained working for Hammer Residence until an unknown date in approximately July 2025.
Statute Violated: Minnesota Statutes, section 245C.07, subdivision 1, paragraph (a). Fine: $400 Corrective Action Required: You must comply with all background study requirements in Minnesota Statutes, chapter 245C. Billing and Payment of the Fine DHS will send you an invoice for the $400 fine. Payment must be made as directed on the invoice. If you request a contested case hearing, as described below, do not pay the fine at this time. Following the contested case hearing, the Commissioner of DHS will issue a final order on this matter. Please note, you may not avoid payment of this fine by closing, selling, or otherwise transferring the license to a third party. If this occurs, each controlling individual is personally and jointly responsible for payment. If you do not pay the fine on or before the date specified on the invoice and you did not request a contested case hearing, as described below, the Commissioner may issue a second fine, may not issue or reissue a license, or may suspend the license until the license holder pays the fine. Your Right to Appeal You have the right to appeal the fine. Your request must be in writing and clearly state that you are requesting a contested case hearing for this matter. Your request must be made before the deadlines provided below. If you do not meet this deadline, you lose your right to an administrative appeal. The timeline to appeal began when you received this order. If you are mailing your request, it must be sent by certified mail and postmarked within 10 calendar days from when you receive this order. Please send it to: Commissioner, Department of Human Services Office of Inspector General Legal Counsel’s Office Attn: Licensing Legal Unit PO Box 64953 St. Paul, MN 55164-0953 If your request is being personally delivered, it must be received by DHS within 10 calendar days from when you receive this order. Please bring it to: Commissioner, Department of Human Services Office of Inspector General Legal Counsel’s Office Attn: Licensing Legal Unit 444 Lafayette Road North St. Paul, MN 55155 Upon DHS’ receipt of your timely appeal, your case would be scheduled for a contested case hearing in front of an Administrative Law Judge. Following this hearing, the Commissioner of DHS will issue a final order. Legal representation at the contested case hearing You do not need a lawyer to appeal. However, a lawyer can help you with your appeal. The state or county will not get you a lawyer and will not pay for a lawyer. If you cannot afford a lawyer, you may be able to get free legal advice or help with your appeal. To find out if free help is available, contact: Volunteer Lawyers Network at 612-752-6677; Central Minnesota Legal Services at 612-332-8151; Southern Minnesota Legal Services at 651-222-4731; or go to www.lawhelpmn.org to find a local legal services program that may be able to help you. You can also find information on contested cases from the Office of Administrative Hearings website at https://mn.gov/oah/self-help. Click on Administrative Law Overview, then click on Administrative Law Contested Case Hearing Guide for a list of frequently asked questions. Legal Authority for this Licensing Action · DHS may impose a $200 fine for each background study violation under Minnesota Statutes, section 245A.07, subdivision 3, paragraph (c)(4)(iv). · The exception that allows a license holder who self-corrects a background study violation to avoid a fine does not apply when the license holder was cited for the same violation within the past 365 days, under Minnesota Statutes, section 245A.07, subdivision 3, paragraph (d). · Minnesota Statutes, section 245A.07, subdivision 3, paragraph (c)(5) states that license holders may not avoid payment of a fine by closing, selling, or transferring a license. · Minnesota Statutes, section 245A.04, subdivision 7, paragraph (d)(4), states that DHS shall not issue or reissue a license if the applicant, license holder, or controlling individual has an outstanding debt related to a license fee, licensing fine, or settlement agreement for which payment is delinquent. · Minnesota Statutes, section 245A.07, subdivision 3, paragraph (c)(2), states that that the license holder shall pay the fine assessed on or before the payment date specified, and if the license holder does not do so the commissioner may issue a second fine or suspend the license until the license holder complies. · License holders have a right to appeal licensing actions and request a contested case hearing, under Minnesota Statutes, chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. · NetStudy 2.0 is defined by Minnesota Statutes, section 245C.02, subdivision 13e. Questions If you have any further questions regarding this matter, you may contact Melanie Bridges, Supervisor, at 651-431-6559. Sincerely,
Maggie Hanson, Intake & Investigations Unit Manager Licensing Division Office of Inspector General
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