Page posted: 12/8/09
Page reviewed: 8/31/17
Page updated: 8/31/17
Corporate foster care setting: A licensed foster care setting where the license holder does not reside. This setting typically uses a shift-staff model of support (i.e., paid staff work shifts on a 24-hour basis).
Community residential setting: A licensed foster care setting where the license holder does not reside and everyone who lives in the setting is on the same disability waiver. This setting typically uses a shift-staff model of support.
The 2009 Minnesota Legislature authorized a moratorium on the growth of licensed adult and child corporate foster care and community residential settings.
Effective Sept. 1, 2009, the legislature established a statewide capacity threshold for the duration of the moratorium. This threshold is based on results of an ongoing needs determination process. In 2011, the legislature established a statewide capacity reduction of "up to 128" corporate foster care/community residential setting beds. This requirement was met by the June 30, 2014, deadline.
The moratorium remains in effect.
DHS licenses for corporate foster care and community residential settings are subject to the moratorium and de-licensing of vacancies and closures.
Lead agency management
The corporate foster care moratorium liaison at each county manages the day-to-day capacity process for corporate foster care settings.
The moratorium liaison where the setting is/would be located is the liaison who:
1. Serves as the contact person between the lead agency, county licensing agent, DHS Licensing Division and DHS Disability Services Division (DSD) regarding moratorium and capacity issues
The lead agency submits licensing applications for settings registered under Minnesota Statues, Chapter 144D directly to DHS Licensing (outside of this DSD process).
County moratorium liaisons should use the applicable sections of the Disability Services’ Request to Close or Develop New Corporate Foster Care form, DHS-6021 (PDF) to:
Approval of requests does not guarantee rates or licensing: They are separate DHS processes.
A corporate foster care or community residential setting may receive an exception from the licensing moratorium when it:
Exceptions with additional eligibility criteria
Exceptions with additional eligibility criteria are available for people:
In both these situations, the person must receive information from his/her case manager about options for services, providers and service locations to help him/her make an informed choice.
For a moratorium exception for a person transitioning from residential care waiver services to foster care services:
This scenario allows for a moratorium exception when the following is true:
For this exception:
This exception is available until June 30, 2018. It does not apply to people who live in their own home (see CBSM — Requirements for a person’s own home.)
How to request an exception
To request an exception, the corporate foster care moratorium liaison for where the setting is located completes Section D of the 6021 form.
Voluntary closure rate adjustment
Licensed providers can both:
This rate adjustment process is not available for retroactive closures or partial-home closures. A provider interested in a partial-home closure or licensed capacity reduction of a home should directly contact the county of residence's moratorium liaison.
How to obtain approval
A provider may obtain approval to close a licensed corporate foster care setting with the related rate adjustment by:
1. Writing the proposal on the Voluntary Closure Application, DHS-6021B (PDF)
Once agreement has been reached, the moratorium liaison where the setting is located:
1. Completes the DHS-6021B form (PDF):
DHS reviews documentation and bases decisions on the following:
DHS approves the request, denies the request or asks for additional information. Once DHS reaches a final decision, DHS notifies the county of residence's moratorium liaison and provider in writing. This application process is confidential until the provider has received approval of its application from DHS.
If the provider obtains approval
Within five working days of receiving DHS approval, the provider gives written notification to:
This notification must occur at least 45 days before the implementation of the DHS-approved closure proposal.
Change of premise or ownership
A provider must notify the moratorium liaison where the setting is located when it wants to either:
Change of premise example
An example of a move, or change of premise, is when a provider asks to relocate services from one location to a different, not-yet-licensed location. As part of the move, the provider is willing to give up its license for the setting it is leaving with the expectation that it will receive a license for identical or less capacity at the new location.
Change of ownership example
An example of a sale, or change of ownership, is when a provider decides to retire and another provider offers to buy the licensed business. The current provider no longer would be licensed for the location. The expectation would be that the new provider would receive a license for identical or less capacity at the same location.
Lead agency responsibilities
If a provider wants to either move a setting to another location or sell a setting to another qualified provider, the lead agency has the following responsibilities:
1. The assigned case manager(s) must review service and setting options with each person who lives in the affected home.
If DHS approves the change, it will notify the moratorium liaison with the approval decision. The liaison alerts the county licensing staff so they can process the change.
Closure of vacant beds
As required by 2012 legislation (Minn. Stat. §245A.03, subd. 7(c)), DHS provides a process for counties to recommend the de-licensing of current unused beds in a corporate foster care home to accomplish the consolidation or closure of settings.
Note: Counties are not required to de-license a particular number of beds.
The county must address service planning & fiscal considerations, such as the following, before it makes a de-licensing recommendation:
How de-licensing will affect rates:
How to recommend de-licensing
If a county wants to recommend de-licensing, the moratorium liaison should use the following process:
1. Complete the applicable portion of Section B in the DHS-6021 form (PDF), which includes, but is not limited to:
2. Attach a copy of the formal notice sent to the provider to the DHS-6021 form
3. Submit to DSD for approval.
DHS bases decisions on the following:
Once the process in complete, DHS returns the DHS-6021 form to the moratorium liaison.
If the county obtains approval
If the county obtains DHS approval, the moratorium liaison forwards the approved DHS-6021 form to the county licensing agent for processing with DHS Licensing.
If you have questions, contact the DSD residential fiscal policy planner at FCMoratorium@state.mn.us.