Each lead agency (county, managed care organization) and Tribal Nation will select one 245D moratorium liaison who will communicate with DHS regarding any exception requests.

It is up to each lead agency (county, managed care organization) and Tribal Nation to identify one 245D moratorium liaison. The moratorium liaison must be identified to DHS prior to submitting any exceptions requests and all requests must be submitted through that liaison. Each lead agency must email the name of the 245D moratorium liaison to licensemoratorium.dhs@state.mn. us by December 31, 2025.

If a change needs to be made to the designated 245D moratorium liaison, send an email to DHS at licensemoratorium.dhs@state.mn.us two weeks prior to the change.

If an applicant already submitted a 245D license application and the lead agency is seeking an exception before January 1, your 245D licensing moratorium liaison can send an email to licensemoratorium.dhs@state.mn.us to request an exception request form. After January 1, 2026, the exception request form will be shared with all lead agencies and Tribal Nations.

No. The 245D moratorium liaison should only submit the form to DHS if the lead agency or Tribal Nation is in support of the exception. Before submitting an exception request, the lead agency or Tribal Nation should have clearly identified an individual with a service need or a local/regional capacity deficit and a provider who is capable of meeting that need. If the lead agency or Tribal Nation does not believe that the provider can meet the person’s needs or local/regional capacity deficit, the agency should not submit an exception request.

In most cases, an exception request form will need to include a specific service recipient. However, DHS will consider requests from lead agencies or Tribal Nations if there is an identified geographic need for a service, or a particular a service where individuals receive care for a short period of time.

DHS may deny an exception request for a variety of reasons, including but not limited to:

• Determination, after consultation with the lead agency or Tribal Nation, that additional service providers are not needed in the geographic area;
• Other ways of meeting the service recipient’s needs have not been explored; and/or
• The lead agency has not clearly determined that the provider can meet the service recipient’s needs.

There is not an appeal option for the exception process. Lead agencies and Tribal Nations have discretion of whether to approve a request for an exception. DHS has discretion of whether a provider can apply for a license.

If a provider is approved to apply for a license and their application is denied, they have the same appeal rights as any other application (MN Statutes, section 245A.05).

The exception request form will ask for the service recipient’s preferences.

We expect that the exception process will take no more than 60 days and if approved, move to the submission of an application or request to add the service.

No. First, in consultation with the lead agency or Tribal Nation, DHS will need to determine that there is a need for services in the area. If DHS determines there is a need, the applicant will need to submit an application. The application will still need to go through the normal review process, and the applicant must meet all application requirements before being licensed.

DHS will notify the 245D moratorium liaison and the applicant of its decision.

It depends on how responsive the provider is and how quickly they provide documentation, but the application review process should not take longer than 45 days.

If the license holder already has the service on their license, they do not need to apply for an exception to open a new facility. If the provider is not licensed and/or does not have the requested service on their license, the lead agency will need to determine if it will recommend an exception to the moratorium.

However, if a license holder wants to add a CFRS or CRS to their license, they will need to go through the moratorium exception process for those settings. CBSM - Moratorium on corporate foster care and community residential setting development.

Any application submitted prior to January 1, 2026, will be cancelled unless it has been identified for an exception by a lead agency or Tribal Nation. Applicants will receive an email stating that their application has been cancelled and instructions for applying for a refund of the $500 application fee.

If the lead agency or Tribal Nation determines that there is a specific need for a service, they must submit an exception form with supporting information describing the need regardless of whether the license application was already submitted or is in progress.

If you have any questions, please send an email to licensemoratorium.dhs@state.mn.us.

If the acquisition or change of ownership requires a provider to apply for a new 245D license or add new services, the moratorium will be implemented, and the exception process would need to be used.