Focus on New Laws: Regulation Changes for Licensed Assisted Living and Residential Programs

The 2026 Legislature enacted several significant policy changes in the omnibus human services bill (Chapter 121) that affect how the state regulates certain licensed assisted living facilities and residential programs, and how state licensing agencies share information and coordinate with local governments.

Several of these changes may affect cities that have small assisted living facilities — commonly referred to as group homes — located in residential neighborhoods.

The statutory changes primarily affect Minnesota Department of Health (MDH) assisted living facilities (Chapter 144G) and Department of Human Services (DHS) community residential settings with six or fewer residents (Chapter 245A).

While state agencies retain primary licensing authority, the new laws require them to:

• Notify cities when certain licenses are issued.
• Allow local governments to request inspection authority.
• Set updated colocation and proximity standards.

Cities must be notified when certain licenses are issued

Previously, cities could view licensing information for community residential settings through the MDH and DHS license lookup tools after a license was issued.

• Access the MDH Licensing Information Lookup.
• Access the DHS Licensing Information Lookup.

Effective July 1, 2026, under the new law, MDH and DHS must notify the affected municipality within five days after issuing a license to:

• An MDH-licensed facility with a capacity of six or fewer residents.
• A DHS-licensed residential living program that qualifies as a permitted single-family residence program.

Notifications are expected to be sent electronically to the city administrator, manager, or clerk-treasurer, as applicable to the city. The notice must include:

• License holder’s or business’s name.
• Street address.
• License category or type.
• Licensed capacity.
• Contact information for an authorized agent or prospective license holder.

Although cities do not approve or deny these state licenses, receiving earlier notification may help local officials coordinate public safety services, maintain accurate records of licensed facilities, and respond to resident inquiries.

Inspection authority may be delegated upon request

Effective Jan. 1, 2027, the commissioners of MDH and DHS may, at the request of a local unit of government, delegate certain inspection authority for existing assisted living facilities or residential programs with a licensed capacity of six or fewer residents.

Under the new law:

• State licensing agencies may enter into agreements allowing local governments to conduct authorized inspections.
• Routine inspections generally may occur no more than once a year, although a reinspection may be conducted if violations are identified.
• State licensing agencies must reimburse local governments for the cost of delegated inspections.
• Local governments may not charge additional inspection fees for delegated inspections.
• Local governments must notify the licensing agency of violations or concerns within 10 working days after completing an inspection.
• State licensing agencies retain responsibility for licensing oversight and must coordinate delegated inspections to avoid unnecessary duplication.

MDH and DHS will develop a delegation process before the Jan. 1, 2027, effective date. The process is expected to be similar to the existing delegation process used by the Minnesota Department of Labor and Industry for certain state-licensed facilities.

New location standards for certain community-based residential settings

Effective July 1, 2026, new location requirements apply to the following licensed home and residential service programs:

• Community residential settings licensed under Minnesota Statutes Chapter 245D.
• Adult foster care homes.
• Settings providing customized living services with a capacity of six or fewer residents.
• Settings providing 24-hour customized living services with a capacity of six or fewer residents.
• Assisted living facilities licensed under Minnesota Statutes Chapter 144G with a capacity of six or fewer residents.

A newly licensed facility or program cannot share a property with — or adjoin — an existing facility in the same regulatory categories.

The law defines adjoining property as a property that shares a common boundary, including parcels that meet at a common corner point.

These location restrictions are administered by the state licensing agencies, apply only to newly licensed facilities, and do not change local zoning authority. However, cities may receive questions from applicants or residents about whether a proposed location meets the new state licensing standards.

Local factors must be considered before licensing

New language in Minnesota Statutes, section 144G.15 requires MDH to consider local factors before issuing a provisional license for an assisted living facility with a capacity of six or fewer residents.

The local factors to consider include:

• Population.
• Geographic size.
• The city’s land use plan.
• Availability of community services.
• The number and size of existing licensed assisted living facilities within the city.

Although cities do not gain authority over state licensing decisions, local planning and community characteristics now have a statutorily defined role in the state’s licensing review. Cities also may receive requests from MDH for information related to these factors during the application review process.

What this means for cities

The new law does not restore city authority to license rental properties used as group assisted living facilities. Instead, Chapter 121 is intended to improve communication and coordination between state licensing agencies and local governments, provide the opportunity for cities to assist licensing agencies with inspections, and establish meaningful location standards to prevent the overconcentration of certain group assisted living facilities.  

Cities may wish to review their internal procedures for tracking licensed residential programs, coordinating with public safety and inspection staff, and responding to questions from residents and providers about these new state requirements.

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