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Presentation, discussion, and possible action authorizing the Department to amend the service area for the Foster Youth to Independence Initiative
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RECOMMENDED ACTION
recommendation
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) Foster Youth to Independence (FYI) Initiative is designed to provide rental assistance vouchers to youth aged 18 to 24 who have left foster care or will leave foster care within 180 days in accordance with a transition plan described in Section 475(5)(H) of the Social Security Act and who are homeless or at-risk of becoming homeless;
WHEREAS, on March 15, 2023, HUD published PIH Notice 2023-04 related to its FYI Initiative;
WHEREAS, on April 9, 2025, HUD published PIH Notice 2025-08 modifying certain provisions in the FYI Initiative;
WHEREAS, the Department is an eligible entity to participate in the FYI Initiative as a Public Housing Authority (PHA) currently administering the Housing Choice Voucher (HCV) Program;
WHEREAS, on September 5, 2024, the Board authorized staff to request vouchers under the FYI Initiative but while that action allowed the Department’s issuance authority statewide, it contained a caveat that to the extent that other PHAs are offering FYI vouchers, the Department would only issue in areas of the state that already have an administering PHA if that PHA has maximized their voucher allocation or has otherwise declined to issue a voucher to an eligible participant;
WHEREAS, the Department has now been issuing FYI vouchers to youth referred from the Department of Family and Protective Services (DFPS);
WHEREAS, staff recommends that TDHCA’s service area for the FYI Initiative be expanded statewide irrespective of other FYI voucher availability from another PHA to better allow full statewide access to the program for youth; and
WHEREAS, the recommendation to remove the prior restriction is supported by the Department’s referral partner, DFPS;
NOW, therefore, it is hereby
RESOLVED, the Department is authorized to proceed with implementation of the FYI Initiative on a statewide basis without limitation.
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BACKGROUND
The Foster Youth to Independence (FYI) Initiative is a HUD-funded program administered by Public Housing Authorities (PHAs). The FYI Initiative provides Housing Choice Vouchers (HCVs) to youth eligible under the Family Unification Program. While the Department does not administer the Family Unification Program, HUD has provided PHAs with the opportunity to apply for these HCVs for the FYI Initiative so long as they meet certain qualifications, including holding an existing Annual Contributions Contract to administer regular HCVs.
FYI Vouchers are awarded under a noncompetitive process, and HUD awards vouchers which may be issued to an eligible participant referred by the Department of Family and Protective Services. Limitations on the number of vouchers that may be issued are determined by HUD. The Board determined that TDHCA may participate in the FYI Program at its meeting of September 5, 2024. To date, 48 vouchers have been requested from HUD for referred youth, and eight have been issued to the eligible youth.
Prior to placing the request for a voucher to HUD, the PHA must have identified the youth to be served and certify their eligibility. Additionally, the PHA must include its certification that it has entered into a partnership with a Public Child Welfare Agency (PWCA) responsible for making eligibility determinations and referrals to the PHA, as well as third party partners and supportive services providers. The Department has entered into an agreement with the Department of Family and Protective Services (DFPS). The DFPS State Office of Transitional Living Services provides these referrals, and arranges all required supportive services for the youth at no cost to the Department.
The FYI Initiative requires youth assisted under the Initiative to meet specific eligibility requirements, including being at least 18 but not more than 24 years of age. The eligible youth must have either left foster care, or be leaving foster care within 180 days, and must be homeless or at-risk of becoming homeless. This may include pregnant or parenting youth and is not limited to single-person households. DFPS ensures that assisted youth are receiving the required supportive services, which must be made available during the entire duration of the assistance term, which is generally limited to 36 months.
Staff have conferred with DFPS’s Office of Transitional Living Services and recommends that the Department administer the FYI Initiative on a statewide basis. The prior authorization limited TDHCA’s service area to areas where no PHA was administering FYI, or where the administering PHA had maximized their voucher allocation or has otherwise declined to issue a voucher to an eligible participant. A statewide model allowing the voucher to be requested and issued by TDHCA would allow for the vouchers to be utilized more rapidly, and to best meet the needs of the participating youth. This recommendation is supported by DFPS, who has agreed to make referrals to TDHCA from any area of the state in order to maximize effective use of available FYI vouchers.