Adult Foster Care - General Information

Overview of Adult Foster Care
Types of Foster Care
Relative Certification
Initial Licensing Process
Need More Information?

Adult Foster Care

Overview of Adult Foster Care 

Adult Foster Care (AFC) is a licensed, sheltered living arrangement for up to four adults with special needs; these adults are unable to live alone due to their functional impairments.  An adult foster care license holder may have a maximum license capacity of five if all persons in care are age 55 or over and do not have a serious and persistent mental illness or a developmental disability.

AFC homes provide five basic services: room, board, supervision, protection, and household services. Providers may also assist with medication, management of money, or personal care.

AFC providers receive a monthly payment for the services they provide.  This payment is made up of two parts:  "room & board" and "services".

Room and Board
This payment may come directly from the AFC resident, or if eligible, a Group Residential Housing grant can assist the AFC resident with some or all of the payment.  As of July 1, 2013, the rate is $877 per month.

If the AFC resident has a county social worker or case manager, a Difficulty of Care rate will be determined according to the level of services that the AFC provider will need to provide to the AFC resident.  The maximum amount allowed at this time is $459.85.

Many AFC providers accept private pay AFC residents.  These AFC residents are not receiving funding through the county because they do not qualify due to their assets, or their families choose to pay for the AFC placement.  The rate for services provided to the AFC resident is determined by the AFC provider and the AFC resident/family/legal representative.

Waiver Payments
Some AFC residents are eligible for certain federal Medicaid waiver programs which fund placement in AFC homes.  As of January 1, 2014, a Home and Community-Based Services license (245D-HCBS) will be required in order to provide AFC services to HCBS Waiver recipients, including those on CADI, CAC, DD, and BI waivers.

To learn more about becoming an HCBS Waiver provider, click here.  All questions relating to the 245D must be directed to the MN Department of Human Services.  For 245D-HCBS licensing standards, email  For questions about the 245D-HCBS on-line application, call 651-431-6624.

Tax on Payments
Qualified payments for the first five qualified placements in a family adult foster care home in a calendar year may be non-taxable.  "Private pay" resident payments are taxable.  Information regarding tax on AFC payments can be found here in IRS Publication 17, Chapter 12, Other Income.  All questions about tax on AFC payments must be directed to your tax professional.

Licensed family adult foster care providers are covered by a group liability insurance policy paid for by the State of Minnesota.  Information about the policy can be found here.

AFC providers receive notification of training opportunities from county social services professional staff.

back to top

Types of Foster Care

Family Adult Foster Care is based in a family home.  The resident is usually unknown at the time of licensure, and AFC residents are most often placed in the home for a long-term placement.

Family Adult Day Services is a program operating fewer than 24 hours per day that provides functionally impaired adults age 18 or older with an individualized and coordinated set of services including health services, social services, and nutritional services that are directed at maintaining or improving the participants' capabilities for self-care.  The capacity can be up to eight participants.  An AFC license holder can provide FADS services if all of the requirements of MN Statute 245A.143 are met in addition to the AFC requirements; the capacity would be limited to five participants in this case.

Corporate Adult Foster Care is provided at a site where the license holder does not live in the home.  The license holder hires shift staff to care for the residents.  At this time, there is a moratorium (ban) on the development of new corporate adult foster care homes.  MN Statute 245A.03, Subdivision 7.

back to top

Relative Certification

256B.0919 ADULT FOSTER CARE AND FAMILY ADULT DAY CARE.  Subdivision 3.  County certification of persons providing adult foster care to related persons.

A person exempt from licensure under section 245A.03, subdivision 2, who provides adult foster care to a related individual age 65 and older, and who meets the requirements in Minnesota Rules, parts 9555.5105 to 9555.6265, may be certified by the county to provide adult foster care. A person certified by the county to provide adult foster care may be reimbursed for services provided and eligible for funding under section 256B.0915, if the relative would suffer a financial hardship as a result of providing care. For purposes of this subdivision, financial hardship refers to a situation in which a relative incurs a substantial reduction in income as a result of resigning from a full-time job or taking a leave of absence without pay from a full-time job to care for the client.

Determination of eligibility for relative certification begins with the elderly individual being assessed and qualified for the Elderly Waiver by a screening team social worker.  If the above definition of hardship has been met, the screening team social worker will make a referral to the adult foster care licensor.  Applicants for relative certification undergo the same initial and renewal processes as applicants for licensure.  The agency's decision to certify a person to provide adult foster care to related persons is not subject to appeal.

back to top

Need More Information?

If you live in Wright County, please contact the licensor by email at  If you do not live in Wright County, please contact your local county social services department; click here for contact information for Minnesota counties.

back to top