"NEW SECTION.  Sec. 1   (1) The legislature finds that providing needy youth aging out of the state dependency system with safe and viable options for housing to avoid homelessness confers a valuable benefit on the public that is intended to improve public health, safety, and welfare.
     (2) It is the goal of this state to:
     (a) Ensure that all youth aging out of the state dependency system have access to a decent, appropriate, and affordable home in a healthy safe environment to prevent such young people from experiencing homelessness; and
     (b) Reduce each year the percentage of young people eligible for state assistance upon aging out of the state dependency system.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.63A RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Department" means the department of community, trade, and economic development.
     (2) "Eligible youth" means an individual who:
     (a) On or after September 1, 2006, is at least eighteen, was a dependent of the state under chapter 13.34 RCW in the month before his or her eighteenth birthday, and has not yet reached the age of twenty-three;
     (b) Except as provided in section 4(2)(a) of this act, has a total income from all sources, except for temporary sources that include, but are not limited to, overtime wages, bonuses, or short-term temporary assignments, that does not exceed fifty percent of the area median income;
     (c) Is not receiving services under RCW 74.13.031(10)(b);
     (d) Complies with other eligibility requirements the department may establish.
     (3) "Fair market rent" means the fair market rent in each county of the state, as determined by the United States department of housing and urban development.
     (4) "Independent housing" means a housing unit that is not owned by or located within the home of the eligible youth's biological parents or any of the eligible youth's former foster care families or dependency guardians. "Independent housing" may include a unit in a transitional or other supportive housing facility.
     (5) "Individual development account" or "account" means an account established by contract between a low-income individual and a sponsoring organization for the benefit of the low-income individual and funded through periodic contributions by the low-income individual that are matched with contributions by or through the sponsoring organization.
     (6) "Subcontractor organization" means an eligible organization described under RCW 43.185A.040 that contracts with the department to administer the independent youth housing program.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.63A RCW to read as follows:
     (1) The independent youth housing program is created in the department to provide housing stipends to eligible youth to be used for independent housing. In developing a plan for the design, implementation, and operation of the independent youth housing program, the department shall:
     (a) Adopt policies, requirements, and procedures necessary to administer the program;
     (b) Contract with one or more eligible organizations described under RCW 43.185A.040 to provide services and conduct administrative activities as described in subsection (3) of this section;
     (c) Establish eligibility criteria for youth to participate in the independent youth housing program, giving priority to youth who have been dependents of the state for at least one year;
     (d) Refer interested youth to the designated subcontractor organization administering the program in the area in which the youth intends to reside;
     (e) Develop a method for determining the amount of the housing stipend, first and last month's rent, and security deposit, where applicable, to be dedicated to participating youth. The method for determining a housing stipend must take into account a youth's age, the youth's total income from all sources, the fair market rent for the area in which the youth lives or intends to live, and a variety of possible living situations for the youth. The amount of housing stipends must be adjusted, by a method and formula established by the department, to promote the successful transition for youth to complete housing self-sufficiency over time;
     (f) Ensure that the independent youth housing program is integrated and aligned with other state rental assistance and case management programs operated by the department, as well as case management and supportive services programs, including the independent living program, the transitional living program, and other related programs offered by the department of social and health services; and
     (g) Consult with the department of social and health services and other stakeholders involved with dependent youth, homeless youth, and homeless young adults, as appropriate.
     (2) The department of social and health services shall collaborate with the department in implementing and operating the independent youth housing program including, but not limited to, the following:
     (a) Refer potential eligible youth to the department before the youth's eighteenth birthday, if feasible, to include an indication, if known, of where the youth plans to reside after aging out of foster care;
     (b) Provide information to all youth aged fifteen or older, who are dependents of the state under chapter 13.34 RCW, about the independent youth housing program, encouraging dependents nearing their eighteenth birthday to consider applying for enrollment in the program;
     (c) Encourage organizations participating in the independent living program and the transitional living program to collaborate with independent youth housing program providers whenever possible to capitalize on resources and provide the greatest amount and variety of services to eligible youth;
     (d) Annually provide to the department data reflecting changes in the percentage of youth aging out of the state dependency system each year who are eligible for state assistance, as well as any other data and performance measures that may assist the department to measure program success; and
     (e) Annually, beginning by December 31, 2007, provide to the appropriate committees of the legislature and the interagency council on homelessness as described under RCW 43.185C.170 recommendations of strategies to reach the goals described in section 5(2)(g) of this act.
     (3) Under the independent youth housing program, subcontractor organizations shall:
     (a) Use moneys awarded to the organizations for housing stipends, security deposits, first and last month's rent stipends, case management program costs, and administrative costs;
     (i) Administrative costs for each subcontractor organization may not exceed twelve percent of the estimated total annual grant amount to the subcontractor organization;
     (ii) All housing stipends must be payable only to a landlord or housing manager of any type of independent housing;
     (b) Enroll eligible youth who are referred by the department and who choose to reside in their assigned service area;
     (c) Enter eligible youth program participants into the homeless client management information system as described in RCW 43.185C.180;
     (d) Monitor participating youth's housing status;
     (e) Evaluate participating youth's eligibility and compliance with department policies and procedures at least twice a year;
     (f) Assist participating youth to develop or update an independent living plan focused on obtaining and retaining independent housing or collaborate with a case manager with whom the youth is already involved to ensure that the youth has an independent living plan;
     (g) Educate participating youth on tenant rights and responsibilities;
     (h) Provide support to participating youth in the form of general case management and information and referral services, when necessary, or collaborate with a case manager with whom the youth is already involved to ensure that the youth is receiving the case management and information and referral services needed;
     (i) Connect participating youth, when possible, with individual development account programs, other financial literacy programs, and other programs that are designed to help young people acquire economic independence and self-sufficiency, or collaborate with a case manager with whom the youth is already involved to ensure that the youth is receiving information and referrals to these programs, when appropriate;
     (j) Submit expenditure and performance reports, including information related to the performance measures in section 5 of this act, to the department on a time schedule determined by the department; and
     (k) Provide recommendations to the department regarding program improvements and strategies that might assist the state to reach its goals as described in section 5(2)(g) of this act.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.63A RCW to read as follows:
     (1) An eligible youth participating in the independent youth housing program must:
     (a) Sign a program compliance agreement stating that the youth agrees to:
     (i) Timely pay his or her portion of the independent housing cost;
     (ii) Comply with an independent living plan; and
     (iii) Comply with other program requirements and policies the department may establish; and
     (b) Maintain his or her status as an eligible youth, except as provided in subsection (2) of this section.
     (2) The department shall establish policies and procedures to allow the youth to remain in the program and continue to receive a housing stipend if the youth's total income exceeds fifty percent of the area median income during the course of his or her participation in the program. The policies must require the youth to:
     (a) Participate in the individual development account program established under RCW 43.31.460 and invest a portion, to be determined by the department, of his or her income that exceeds fifty percent of the area median income in an individual development account; or
     (b) If the youth is unable to participate in the individual development account program due to the program's capacity limits or eligibility requirements, participate in an alternate supervised savings program approved by the department, as long as the youth qualifies for and may participate in this savings program.
     (3) An eligible youth may participate in the independent youth housing program for any duration of time and may apply to enroll in the program with the department at any time.
     (4)(a) A youth may be terminated from the independent youth housing program for a violation of department policies.
     (b) Youth who are terminated from the program may apply to the department for reenrollment in the program through a procedure to be developed by the department. The department shall establish criteria to evaluate a reenrollment application and may accept or deny a reenrollment application based on the department's evaluation.

NEW SECTION.  Sec. 5   A new section is added to chapter 43.63A RCW to read as follows:
     Beginning in 2007, the department must annually review and report on the performance of subcontractor organizations participating in the independent youth housing program, as well as the performance of the program as a whole.
     (1) Reporting should be within the context of the state homeless housing strategic plan under RCW 43.185C.040 and any other relevant state or local homeless or affordable housing plans. The outcomes of the independent youth housing program must be included in the measurement of any performance measures described in chapter 43.185C RCW.
     (2) The independent youth housing program report must include, at a minimum, an update on the following program performance measures, as well as any other performance measures the department may establish, for enrolled youth in consultation with the department of social and health services, to be measured statewide and by county:
     (a) Increases in housing stability;
     (b) Increases in economic self-sufficiency;
     (c) Increases in independent living skills;
     (d) Increases in education and job training attainment;
     (e) Decreases in the use of all state-funded services over time;
     (f) Decreases in the percentage of youth aging out of the state dependency system each year who are eligible for state assistance as reported to the department by the department of social and health services; and
     (g) Recommendations to the legislature and to the interagency council on homelessness as described under RCW 43.185C.170 on program improvements and on departmental strategies that might assist the state to reach its goals of:
     (i) Ensuring that all youth aging out of the state dependency system have access to a decent, appropriate, and affordable home in a healthy safe environment to prevent such youth from experiencing homelessness; and
     (ii) Reducing each year the percentage of young people eligible for state assistance upon aging out of the state dependency system.

NEW SECTION.  Sec. 6   A new section is added to chapter 43.63A RCW to read as follows:
     This act does not create:
     (1) An entitlement to services;
     (2) Judicial authority to (a) extend the jurisdiction of juvenile court in a proceeding under chapter 13.34 RCW to a youth who has reached the age of eighteen or (b) order the provision of services to the youth; or
     (3) A private right of action or claim on the part of any individual, entity, or agency against the department, the department of social and health services, or any contractor of the departments.

NEW SECTION.  Sec. 7   A new section is added to chapter 43.63A RCW to read as follows:
     The independent youth housing account is created in the custody of the state treasurer. All revenue directed to the independent youth housing program must be deposited into this account. Expenditures from the account may only be used for the independent youth housing program as described in this act. Only the director of the department or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 8   Beginning in September 2008, the Washington state institute for public policy shall conduct a study measuring the outcomes for youth who are participating or who have participated in the independent youth housing program created in section 3 of this act. The institute shall issue a report containing its preliminary findings to the legislature by December 1, 2009, and a final report by December 1, 2010.

NEW SECTION.  Sec. 9   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2007, in the omnibus appropriations act, this act is null and void."