So you want to start a “Group Home” for individuals with disabilities…

Since 2009, the state of Minnesota has a moratorium in place on the development of new Corporate Foster Care Settings or Community Residential Settings, also known as “Group Homes.” To put it simply, you cannot open a new group home in the state of Minnesota. You may have heard from a friend or an acquaintance that they have opened a “group home” recently. They may be talking about a different license outside of 245D and using the term “group home” to mean something else. Here are some things other people may be referring to as a “group home”:

  1. They may have opened a home in a manner that is now considered illegal. In 2018, many providers were given notice the houses they opened were in violation of the law. These providers worked with the authorities to come into compliance. Since July of 2018, anyone who attempts to open a 245D-based home that meets the definition of a Community Residential Setting will face a misdemeanor.

  2. They may be providing services in the person’s own home. Many new providers have chosen to provide Home and Community-Based Services that are considered alternatives to living in group homes such as Homemaker Services, Companion Services, ILS, IHS, etc. These services are provided in the home or apartment of the person receiving services or in the community. Providing support to a person in the community or in the apartment or home that the person or their family owns or leases is the fastest growing area of Home and Community-Based Services. View more information about all of the 245D services. Keep in mind, the link includes all 245D options including “group homes,” such as Community Residential Settings. Since the providers who operated prior to the moratorium are still allowed to operate, the service remains on this list. It does not mean you can apply to open a new “group home.”

  3. They may have either started an Assisted Living with a Comprehensive Home Care License or started a Housing with Services Establishment with an Assisted Living Designation. This is option is usually for organizations who want to support individuals who are age 55 years or older. This license is through the Department of Health and unfortunately, STAR Services does not assist with this license. While STAR Services does not endorse any specific organization, here are the names of two companies who work in the realm of home health:
    Mefford, Knutson and Associates - 612-869-8011
    Home Care Consultants, LLC - 651-703-4704

  4. They may have opened an Adult Foster Care where they live in with the people they support. If you want to live in the same home with the people you support, you can click here to see the process of obtaining your license.


So what do I do now?

Unfortunately, for many people who have a dream of opening a group home, their dream may end here. If you feel you need further explanation, have additional questions, and want to meet with a consultant, you may do so at our consulting rate of $90.00 per hour. Payment is due at the time of the meeting. You can set up an appointment by calling 651-644-3140 ext. 200.

If you want to apply for a 245D license to support a person in one of the options that is not a group home and is currently available for licensing such supporting the person in their own home, apartment or in the community (not in a home or apartment the provider owns), we can help you with your 245D licensing application and MHCP Enrollment. We have created a list of the things you will need to have in place to complete those processes:  View the 245D application/MHCP breakdown

Preparing these items ahead of time helps you know what will be expected of you from the Department of Human Services and will ensure we are able to help. There are many things we cannot do for you, which are required as part of the application. The most effective use of your time and ours is for you to complete as much of the paperwork as you can before our first meeting. If this seems too difficult, that is okay, we can support you from the very beginning of the process. Keep in mind, any support we provide including in-person, phone, or e-mail consulting is charged at our $90.00 per hour rate. 


Pricing for the 245D application, MHCP enrollment, and STAR Services’ assistance:

  • 245D application fee: $500.00 paid to DHS at the time of the completion of the application

  • MHCP enrollment fee: In 2019, the price paid to MHCP enrollment was $586.00 (MHCP will not let you enroll until you have a proof of payment confirmation number)

  • Optional assistance from STAR Services: Our consulting rate is $90.00 an hour. All work we do with and for you will be charged at this rate, including the first time meeting and any work done on behalf of your company such as meetings, phone consulting, email, or document work you have instructed us to complete even if you are not present. The first meeting’s fee is paid at the conclusion of the meeting, and
    future work done on your behalf is considered billable.

  • Optional STAR Services policies and forms set: $750.00 (paid prior to the release of the documents)