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Sober Living House Hoped to Use Minnesota's Housing Stabilization Services. Then Came the Fraud Crackdown

On August 1, 2025, state officials in Minnesota revealed they would discontinue the Housing Stabilization Services program after discovering widespread fraudulent activity.
Authorities attributed the closure to widespread fraudulent activity, with Acting U.S. Attorney Joseph H. Thompson citing 'massive fraud' as the primary cause.
On September 18, Thompson's office announced the initial set of fraud charges in the HSS case, highlighting a complex series of scams that diverted aid intended for vulnerable individuals.
Estimates of the fraud’s scope remain uncertain, but officials referenced potential losses exceeding $100 million, and some called most provider billing fraudulent.
Service providers in Rochester and elsewhere saw a vital support program vanish, and nonprofit leaders voiced frustration and concern about lasting trust and financial challenges.

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Duluth News Tribune

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Sober living house hoped to use Minnesota's housing stabilization services. Then came the fraud crackdown

ROCHESTER — Micaella Weerts was ready to take a positive step forward in her life. After completing "about 15 months" of recovery and putting her life back together at Doc's Recovery House following years of addiction, she was ready mentally to move forward and move out on her own, to live life on her own terms. But she wasn't quite ready financially. That's where the state's Housing Stabilization Services (HSS) program could have come in to hel…

3 days ago·Cherokee County, United States

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