The agency has now ordered the "Lighthouse" group home not to take any new children, and to pay a $10,000 fine.
Last month, 12-year-old Khalil Todd was staying at the Lighthouse when he was hit and killed on the side of the road in front of the home.
The DHHS report says the boy was verbally abusive with staff members, and repeatedly ran in and out of the home.
In a recent inspection, DHHS said the home didn't have a strategy for dealing with runaways.
The Lighthouse has 20 days to appeal the action.
The driver who hit Todd has not been charged.