HF4641

Purpose

• Establish a targeted supplemental payment for a housing support provider in Washington County. The goal is to support up to 29 beds in facilities that offer room and board plus additional services to adults with mental illness, substance use disorders (SUD), or co-occurring conditions, as well as those experiencing housing instability and needing related functional or behavioral health support. The aim is to improve housing stability and access to behavioral health support by providing additional funding beyond the standard rate.

Main Provisions

• New subdivision added to Minnesota Statutes 256I.05 (Subd. y. Supplemental rate Washington County).
• A county agency must negotiate a supplemental rate for up to 29 beds in addition to the existing rate, specifically for housing support providers located in Washington County.
• The supplemental rate must not exceed $1,028 per month, and can include inflationary adjustments authorized by law.
• Eligible providers operate facilities that offer room and board and supplementary services to adults who:
  • have a primary diagnosis of mental illness,
  • have a primary diagnosis of substance use disorder,
  • have a co-occurring mental illness and substance use disorder, or
  • are experiencing housing instability and need related functional or behavioral health support.
• Providers must deliver 24-hour-a-day supervision and other support services.
• The supplemental rate negotiated under this subdivision is retroactive to April 1, 2026.
• This new subdivision applies “Notwithstanding” the provisions of subdivisions 1a and 1c, meaning it overrides those specific provisions for this supplemental rate.

Changes to Existing Law

• Adds a targeted, county-negotiated supplemental rate for Washington County to the existing housing support payment framework (Minnesota Statutes 256I.05).
• Creates a dedicated funding mechanism (up to 29 beds) that operates in parallel with, and adds to, the standard rate for housing support providers.
• Establishes a fixed monthly cap ($1,028) with inflationary adjustments, rather than relying solely on the base rate.
• Introduces a retroactive payment date (April 1, 2026), making the supplemental rate effective for past services if applicable.
• Overrides (Notwithstanding) certain existing subdivisions (1a and 1c) for the purposes of this supplemental rate.

Implementation and Administration

• Administered by the Washington County county agency through negotiation with housing support providers.
• Rate is in addition to the base rate, and is limited to up to 29 beds in the designated Washington County facilities.
• Inflation adjustments apply as provided by law, and retroactive effectiveness requires implementation of backdated payments.

Potential Impacts

• Provides additional funding to expand or stabilize housing with supportive services for vulnerable adults in Washington County.
• May improve access to stable housing and continuous supervision and behavioral health support for individuals with mental illness, SUD, or co-occurring conditions.
• Could influence provider capacity and service quality due to the 24/7 supervision requirement and the bed cap.

Population and Setting

• Applies to housing support providers in Washington County offering facilities with room and board and supplementary services.
• Serves adults with mental illness, substance use disorders, co-occurring conditions, or housing instability and related support needs.

Relevant terms - supplemental rate - housing support provider - Washington County - beds (up to 29) - $1,028 per month - room and board - supplementary services - adults - mental illness - substance use disorder - co-occurring mental illness and substance use disorder - housing instability - functional or behavioral health support needs - 24-hour-a-day supervision - inflationary adjustments - retroactive - Notwithstanding subdivisions 1a and 1c - Minnesota Statutes 256I.05

Relevant Terms - supplemental rate - Washington County - beds - room and board - supplementary services - mental illness - substance use disorder - co-occurring - housing instability - functional or behavioral health - 24/7 supervision - inflationary adjustments - retroactive - county agency - negotiations