diff --git a/contrib/rackspace/rackspace/resources/auto_scale.py b/contrib/rackspace/rackspace/resources/auto_scale.py
index 86cafed14a..339a79b95a 100644
--- a/contrib/rackspace/rackspace/resources/auto_scale.py
+++ b/contrib/rackspace/rackspace/resources/auto_scale.py
@@ -18,6 +18,7 @@ import six
 
 from heat.common import exception
 from heat.common.i18n import _
+from heat.common import template_format
 from heat.engine import attributes
 from heat.engine import constraints
 from heat.engine import properties
@@ -243,7 +244,7 @@ class Group(resource.Resource):
               'directly passed to Heat when creating a stack.'),
             schema={
                 LAUNCH_CONFIG_ARGS_STACK_TEMPLATE: properties.Schema(
-                    properties.Schema.MAP,
+                    properties.Schema.STRING,
                     _('The template that describes the stack. Either the '
                       'template or template_url property must be specified.'),
                 ),
@@ -533,7 +534,8 @@ class Group(resource.Resource):
             if st_tmpl:
                 st_files = st_args.get(self.LAUNCH_CONFIG_ARGS_STACK_FILES)
                 try:
-                    templatem.Template(st_tmpl, files=st_files, env=st_env)
+                    tmpl = template_format.simple_parse(st_tmpl)
+                    templatem.Template(tmpl, files=st_files, env=st_env)
                 except Exception as exc:
                     msg = (_('Encountered error while loading template: %s') %
                            six.text_type(exc))
diff --git a/contrib/rackspace/rackspace/tests/test_auto_scale.py b/contrib/rackspace/rackspace/tests/test_auto_scale.py
index f86cc28c42..8a709cb73e 100644
--- a/contrib/rackspace/rackspace/tests/test_auto_scale.py
+++ b/contrib/rackspace/rackspace/tests/test_auto_scale.py
@@ -232,7 +232,7 @@ class ScalingGroupTest(common.HeatTestCase):
                   type: launch_stack
                   args:
                     stack:
-                      template:
+                      template: |
                         heat_template_version: 2015-10-15
                         description: This is a Heat template
                         parameters:
@@ -336,20 +336,20 @@ class ScalingGroupTest(common.HeatTestCase):
                 'group_metadata': {'group': 'metadata'},
                 'name': 'My Group',
                 'launch_config_type': u'launch_stack',
-                'template': {
-                    'heat_template_version': '2015-10-15',
-                    'description': 'This is a Heat template',
-                    'parameters': {
-                        'flavor': {
-                            'default': 'm1.tiny',
-                            'type': 'string'},
-                        'image': {
-                            'default': 'cirros-0.3.4-x86_64-uec',
-                            'type': 'string'}},
-                    'resources': {
-                        'rand': {'type': u'OS::Heat::RandomString'}
-                    }
-                },
+                'template': (
+                    '''heat_template_version: 2015-10-15
+description: This is a Heat template
+parameters:
+  image:
+    default: cirros-0.3.4-x86_64-uec
+    type: string
+  flavor:
+    default: m1.tiny
+    type: string
+resources:
+  rand:
+    type: OS::Heat::RandomString
+'''),
                 'template_url': None,
                 'disable_rollback': False,
                 'environment': {
@@ -931,20 +931,20 @@ class AutoScaleGroupValidationTests(common.HeatTestCase):
                 "type": "launch_stack",
                 "args": {
                     "stack": {
-                        'template': {
-                            'heat_template_version': '2015-10-15',
-                            'description': 'This is a Heat template',
-                            'parameters': {
-                                'flavor': {
-                                    'default': 'm1.tiny',
-                                    'type': 'string'},
-                                'image': {
-                                    'default': 'cirros-0.3.4-x86_64-uec',
-                                    'type': 'string'}},
-                            'resources': {
-                                'rand': {'type': u'OS::Heat::RandomString'}
-                            }
-                        },
+                        'template': (
+                            '''heat_template_version: 2015-10-15
+description: This is a Heat template
+parameters:
+  image:
+    default: cirros-0.3.4-x86_64-uec
+    type: string
+  flavor:
+    default: m1.tiny
+    type: string
+resources:
+  rand:
+    type: OS::Heat::RandomString
+'''),
                         'template_url': None,
                         'disable_rollback': False,
                         'environment': {
@@ -995,20 +995,20 @@ class AutoScaleGroupValidationTests(common.HeatTestCase):
                         "imageRef": "image-ref",
                         },
                     "stack": {
-                        'template': {
-                            'heat_template_version': '2015-10-15',
-                            'description': 'This is a Heat template',
-                            'parameters': {
-                                'flavor': {
-                                    'default': 'm1.tiny',
-                                    'type': 'string'},
-                                'image': {
-                                    'default': 'cirros-0.3.4-x86_64-uec',
-                                    'type': 'string'}},
-                            'resources': {
-                                'rand': {'type': u'OS::Heat::RandomString'}
-                            }
-                        },
+                        'template': (
+                            '''heat_template_version: 2015-10-15
+description: This is a Heat template
+parameters:
+  image:
+    default: cirros-0.3.4-x86_64-uec
+    type: string
+  flavor:
+    default: m1.tiny
+    type: string
+resources:
+  rand:
+    type: OS::Heat::RandomString
+'''),
                         'template_url': None,
                         'disable_rollback': False,
                         'environment': {
@@ -1086,20 +1086,20 @@ class AutoScaleGroupValidationTests(common.HeatTestCase):
                 "type": "launch_server",
                 "args": {
                     "stack": {
-                        'template': {
-                            'heat_template_version': '2015-10-15',
-                            'description': 'This is a Heat template',
-                            'parameters': {
-                                'flavor': {
-                                    'default': 'm1.tiny',
-                                    'type': 'string'},
-                                'image': {
-                                    'default': 'cirros-0.3.4-x86_64-uec',
-                                    'type': 'string'}},
-                            'resources': {
-                                'rand': {'type': 'OS::Heat::RandomString'}
-                            }
-                        },
+                        'template': (
+                            '''heat_template_version: 2015-10-15
+description: This is a Heat template
+parameters:
+  image:
+    default: cirros-0.3.4-x86_64-uec
+    type: string
+  flavor:
+    default: m1.tiny
+    type: string
+resources:
+  rand:
+    type: OS::Heat::RandomString
+'''),
                         'template_url': 'https://myhost.com/template.yaml',
                     }
                 }
@@ -1179,20 +1179,20 @@ class AutoScaleGroupValidationTests(common.HeatTestCase):
                 "type": "launch_stack",
                 "args": {
                     "stack": {
-                        'template': {
-                            'SJDADKJAJKLSheat_template_version': '2015-10-15',
-                            'description': 'This is a Heat template',
-                            'parameters': {
-                                'flavor': {
-                                    'default': 'm1.tiny',
-                                    'type': 'string'},
-                                'image': {
-                                    'default': 'cirros-0.3.4-x86_64-uec',
-                                    'type': 'string'}},
-                            'resources': {
-                                'rand': {'type': u'OS::Heat::RandomString'}
-                            }
-                        },
+                        'template': (
+                            '''SJDADKJAJKLSheat_template_version: 2015-10-15
+description: This is a Heat template
+parameters:
+  image:
+    default: cirros-0.3.4-x86_64-uec
+    type: string
+  flavor:
+    default: m1.tiny
+    type: string
+resources:
+  rand:
+    type: OS::Heat::RandomString
+'''),
                         'template_url': None,
                         'disable_rollback': False,
                         'environment': {'Foo': 'Bar'},