The fraud-ridden Housing Stabilization Services (HSS) program at the state Dept. of Human Services (DHS) was shut down late last month and payments to all program providers were stopped. When announcing the move, Gov. Tim Walz predicted,
I fully expect some of those folks will sue the state of Minnesota.
His prediction has already come true. On Monday, a lawsuit was filed in federal court captioned Home Care Staffing v. Minnesota Department of Human Services.
Home Care Staffing is a private company participating in the HSS program, d/b/a 360 Housing Stability. To be clear, 360 is not one of the companies associated with any fraudulent activity in the HSS program. 360 operates out of an office suite in the Griggs-Midway building in St. Paul, an office building closely associated with the HSS program.
State records confirm that the company was founded in 2022.
Home Care Staffing/360 is suing DHS for more than $13 million. Records maintained by the state budget office indicate that the company has received nearly $277,000 from DHS over the past two years. The bulk of the claim against DHS (for $12 million) falls under the category “reputational harm and rebuilding costs.” The company reports having to lay off 80 percent of its staff in the wake of the program shutdown.
In their lawsuit, the company reports (p. 2) that payments were halted by DHS on August 1, “based solely on unverified data-mining flags alleging fraud.”
The company asserts various causes of action, including the 14th Amendment, and several federal statutes. As I always remind readers, I am not a lawyer. But as a taxpayer and a citizen, I am always baffled by arguments that government programs must continue to exist forever to keep providing payments, in perpetuity, to those who once received them.
DHS has three weeks to respond to the lawsuit.
Home Care Staffing filed their lawsuit, pro se, without listing an attorney. Today, the court notified the company that they must hire a lawyer or have their lawsuit dismissed, or refile as an individual.
