DULUTH — Allegations of rampant fraud recently prompted Minnesota officials to pull the plug on funding for the state's Housing Stabilization Services program, and while financial support continues to flow for the moment, many local organizations are preparing for a period of austerity to come.

“It’s extremely important to have safeguards in place to prevent fraud, but I’d hate to burn down a house to kill a mouse,” said Jill Keppers, executive director of the Duluth Housing and Redevelopment Authority.

She said the state is right to hold organizations to account for shoddy records or questionable charges. Yet, she worries that worthy and competent nonprofits that are providing important services stand to unnecessarily suffer for the misdeeds of others. And Keppers says the people who ha

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