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.

Provides that, 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 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.

Appropriates the sum of two million dollars, or as much thereof as may be necessary, 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.