Sponsor: Health and Wellness & Safety and Justice
Title
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Allocation of Grant Funds from the Minnesota Department of Public Safety towards the Acquisition of Youth Healing and Treatment Homes
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Recommendation
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1. Approve the allocation of Minnesota Department of Public Safety grant funds toward the acquisition of Youth Healing and Treatment Homes in the amount of $1,950,000.
2. Authorize the County Manager to enter into the necessary loan or other agreements and execute amendments to loan or other agreements in a manner consistent with local regulations and requirements, in a form approved by the County Attorney’s Office.
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Background and Rationale
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Ramsey County’s youth justice reforms are rooted in nearly two decades of intentional system transformation focused on reducing detention, addressing racial disparities, and expanding community-based alternatives to out-of-home placement. These efforts culminated in a 2023 legislative appropriation to support the development of culturally specific, trauma-informed youth healing and treatment homes, informed by community engagement and statewide recommendations to create more individualized, community-centered systems of care.
Through cross-county and state collaboration, several bills were authored and passed with direct appropriations for Ramsey County. The focus of this Request for Board Action is an appropriation made in Laws 2023, Ch. 52, Public Safety Omnibus Bill, which states:
(h) Ramsey County Youth Treatment Homes Acquisition and Betterment
$5,000,000 grant to Ramsey County to establish, with input from community stakeholders, including impacted youth and families, up to seven intensive trauma-informed therapeutic treatment homes in Ramsey County that are licensed by the Department of Human Services, that are culturally specific, that are community-based, and that can be secured. These residential spaces must provide intensive treatment and intentional healing for youth as ordered by the court as part of the disposition of a case in juvenile court.
Following the board’s acceptance of the grant award in May 2024, the county conducted a structured solicitation in accordance with county procurement policies and procedures to identify qualified client services providers to partner with the county and capable of meeting programmatic, licensing, and community requirements to establish one or more youth treatment homes. Resulting client services agreements are currently under final negotiations and will be fully executed prior to the loan or other agreements being executed by the county.
Under these partnerships, in addition to the contracted amount specified in the client service agreements, this allocation of funding will facilitate full financing in the form of forgivable 10-year mortgages. The county’s interests in each loan will be secured through execution of a Promissory Note and a recorded Mortgage. All homes will be funded in compliance with applicable state and local regulations, using financing documents approved by the County Attorney’s Office. The acquisition of each home will be subject to required contingencies prior to execution of the financing documents, including execution of the services agreements; approval of the Purchase Authorization by the county; completion and approval of county inspections; and receipt of provisional zoning approval prior to closing. Additionally, the county will continue working with the Minnesota Department of Human Services (DHS) to build strong relationships and frameworks to support providers through the licensing process, which can only occur after the purchase is complete.
By authorizing the County Manager to execute the necessary loan, financing, and related agreements, the county will be positioned to respond efficiently to identified housing opportunities. This authority will support timely investment in the identified need for treatment capacity rather than long-term property management, strengthen community-based provider infrastructure, and advance the county’s goal of keeping youth closer to their families and communities while delivering intensive therapeutic services.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
Financing the acquisition of healing and treatment homes directly aligns with and advances Ramsey County’s long-term racial equity goals by addressing persistent and well-documented disparities in the youth justice system. Black, Indigenous, and other youth of color continue to be disproportionately represented among youth requiring court-ordered placement. This partnership and investment of the proposed home purchase for treatment services, informed by demographic data and priorities, supports a trauma-informed, culturally specific, community-based model of care that keeps youth closer to family, culture, and community supports. By shifting resources away from institutional settings and toward neighborhood-based healing and treatment homes, this action advances racial equity, strengthens community infrastructure, and contributes to more equitable outcomes for youth most impacted by system involvement.
Community Participation Level and Impact
Through the solicitation process referenced above, the importance of culturally responsive care, individualized treatment, strong family and community connections, and healing-centered environments was emphasized. These insights directly informed the planning, program design, and site selection for the proposed healing and treatment home. Program owners and service providers will help ensure that operations remain aligned with community-identified priorities, demonstrating meaningful participation and reinforcing a community-informed, culturally responsive approach for the long-term.
☒ Inform ☒ Consult ☒ Involve ☒ Collaborate ☒ Empower
Fiscal Impact
The resulting agreements and corresponding financing are supported entirely by state-allocated grant funds awarded to the county. There is no county tax levy included in this request. Sustainability of the services provided will be supported through a combination of revenue sources, including Title IV-E, potential utilization of county beds by regional partners, and the shifting of funds to this service area from other Social Services hospital and placement costs. In addition, future efforts will be made to pursue grant opportunities, nontraditional funding sources, and state support, as well as to seek enhanced per diem rates and explore legislative options.
Last Previous Action
On August 12, 2025 the Ramsey County Board of Commissioners hosted a board workshop to discuss the planning and implementation of treatment homes.
On July 23, 2024, The Ramsey County Board of Commissioners approved the amendment to the grant agreement with Minnesota Department of Public Safety for Therapeutic Youth Treatment Homes (Resolution B2024-144).
On May 7, 2024 the Ramsey County Board of Commissioners approved the award of Therapeutic Youth Treatment Homes grant (Resolution B2024-078).
Attachments
None.