BILL REQ. #:  H-0905.2 

Read first time 02/01/2007.   Referred to Committee on Housing.

     AN ACT Relating to creating an independent youth housing program; adding new sections to chapter 43.63A RCW; creating new sections; and making appropriations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that protecting the public health, safety, and welfare by providing housing resources to needy or vulnerable persons, such as young people exiting the state dependency system, is a fundamental purpose of government. The legislature further finds that providing such young people with safe and viable options for housing to avoid homelessness confers a valuable benefit on the public that constitutes consideration for financial assistance to such youth.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.63A RCW to read as follows:
     (1) For the purposes of this section:
     (a) "Department" means the department of community, trade, and economic development;
     (b) "Eligible youth" means an individual who:
     (i) 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;
     (ii) Except as provided in subsection (3)(b)(ii) of this section, 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;
     (iii) Is not receiving services under RCW 74.13.031(10)(b);
     (iv) Complies with other eligibility requirements the department may establish;
     (c) "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;
     (d) "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;
     (e) "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; and
     (f) "Subcontractor organization" means an eligible organization described under RCW 43.185A.040 that contracts with the department to administer the independent youth housing program.
     (2) The independent youth housing program is created in the department to provide housing stipends to eligible youth to be used for independent housing. The department must serve the maximum number of eligible youth possible within the available funding for the program. The department shall solicit input from a variety of stakeholders involved with dependent youth, homeless youth, and homeless young adults to develop a plan for the design, implementation, and operation of the independent youth housing program. The department, in collaboration with the department of social and health services, shall:
     (a) Develop, administer, supervise, and monitor the independent youth housing program; and
     (b) Ensure that the independent youth housing program is integrated and aligned with all existing and future services and programs designed to assist foster youth transition to independent living.
     (3) To receive services under the independent youth housing program, an eligible youth 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 created in consultation with an assigned case manager; and
     (iii) Comply with other program requirements and rules the department may establish;
     (b) Maintain his or her status as an eligible youth, except that 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 department shall develop rules to allow the youth to remain in the program and continue to receive a housing stipend. The rules must require that the youth agrees to 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:
     (i) An individual development account; or
     (ii) If the youth is unable to participate in the individual development account program due to the program's capacity limits or eligibility requirements, an alternate supervised savings program approved by the department, as long as the youth qualifies for and may participate in this program.
     (4) 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.
     (5)(a) A youth may be terminated from the independent youth housing program for a violation of department rules.
     (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.
     (6) Under the independent youth housing program, the department of social and health services shall:
     (a) Refer a potential eligible youth to the department before the youth's eighteenth birthday, if feasible, and indicate, if known, where the youth plans to reside after exiting foster care; and
     (b) Collaborate with the department to provide information to all youth aged sixteen or older, who are dependents of the state under chapter 13.34 RCW, about the independent youth housing program, and encourage all dependents of the state nearing their eighteenth birthday to consider applying for enrollment in the program.
     (7) Under the independent youth housing program, the department may:
     (a) Adopt rules for 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 (8) of this section. Moneys awarded to these subcontractor organizations may be used for housing stipends, security deposits, first and last month's rent stipends, case management program costs, and administrative costs. Administrative costs for each subcontractor organization may not exceed twelve percent of the estimated total annual grant amount to the subcontractor organization;
     (c)(i) Determine the eligibility of youth referred by the department of social and health services and of youth who contact and apply to the department directly and (ii) refer eligible youth to the designated subcontractor organization administering the program in the area in which the youth intends to reside;
     (d) Develop a method for determining the amount of the housing stipend, and 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 fair market rent for the area in which the youth lives or intends to live, and a variety of possible living situations, including when youth are custodial parents of young children or two or more youth participating in the program choose to live together. 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 self-sufficiency over time. All housing stipends under this section are payable only to a landlord or housing manager of any type of independent housing; and
     (e) Review and report on the performance of subcontractor organizations, as well as the performance of the program as a whole, to the appropriate committees of the legislature annually by December 31st of each year, beginning in 2007. The report must include, at a minimum, an update on the following program performance measures for enrolled youth:
     (i) Increases in housing stability;
     (ii) Increases in economic self-sufficiency;
     (iii) Increases in independent living skills;
     (iv) Increases in education and job training attainment; and
     (v) Decreases in the use of all state-funded services over time.
     (8) Under the independent youth housing program, subcontractor organizations shall:
     (a) Enroll eligible youth who are referred by the department and who choose to reside in their assigned service area;
     (b) Issue housing stipends as well as security deposits and first and last month's rent, where applicable;
     (c) Monitor participating youth's housing status;
     (d) Evaluate participating youth's eligibility and compliance with department rules at least twice a year;
     (e) Assist participating youth to develop and implement an independent living plan focused on obtaining and retaining independent housing;
     (f) Educate participating youth on tenant rights and responsibilities;
     (g) Provide support to participating youth in the form of general case management and information and referral services;
     (h) 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; and
     (i) Submit expenditure and performance reports to the department on a time schedule determined by the department.
     (9) This section does not create:
     (a) An entitlement to services;
     (b) Judicial authority to 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 to order the provision of services to the youth; or
     (c) 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. 3   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 shall 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. 4   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 2 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. 5   The sum of two million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 2009, from the Washington housing trust fund to the department of community, trade, and economic development, and provided solely for housing stipends administered through the independent youth housing program. Any of the money that is not obligated by the department by January 31, 2009, shall be added to the housing assistance program under chapter 43.185 RCW.

NEW SECTION.  Sec. 6   (1) The sum of two hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2008, from the general fund to the independent youth housing program account created in section 3 of this act for the purpose of implementing and operating the independent youth housing program.
     (2) The sum of two hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2009, from the general fund to the independent youth housing program account created in section 3 of this act for the purpose of implementing and operating the independent youth housing program.