(ABC 6 News) – The Olmsted County Housing and Redevelopment Authority (HRA) announced the Minnesota Department of Human Services (DHS) did not approve an application for $10 million to help fund a housing stability center in Rochester, according to a county press release.

DHS received 98 eligible proposals across Minnesota, totaling about $365 million in requests. DHS held approximately $98 million in available funding.

“Despite the unfavorable outcome, this setback does not signal the end of the road,” said Olmsted County Housing and Planning Director Dave Dunn. “Olmsted County will continue exploring options and collaborating with community partners to enhance resources and services for people experiencing homelessness in our county.”

— RELATED: Olmsted County to purchase Old Town Hall building and turn it into homeless shelter —

“Our shelters are at capacity,” said Olmsted County Board of Commissioners Chair Gregg Wright. “Everyone deserves a safe space to rest their head at night, and we are committed to working with our community partners as we move forward with finding shelter and housing solutions.”

Located at 200 4 St. Southeast in Rochester, the Rochester Community Warming Center offers emergency overnight shelter for adults.

The Salvation Army in Rochester will work in collaboration with the Catholic Charities of Southern Minnesota-run Warming Center through Dec. 1 to March 31, 2024.

“With Catholic Charities in this endeavor, we wanna make sure that people have a safe place to sleep at night and know that, during these cold months, they can stay warm and healthy,” said Salvation Army Program Director Steve Friederich.

The Salvation Army’s Social Services center on First Avenue will act as an overflow space if the Warming Center reaches capacity.