New Study Finds Potential in FYI Housing Vouchers to Fill Critical Gap for Transitional Foster Youth



The Urban Institute released a report earlier this year, identifying Foster Youth to Independence (FYI) vouchers as a potentially critical resource to fill the gap in services for young people where Family Unification Program (FUP) vouchers are unavailable or insufficient. According to the report, FYI’s on-demand nature specifically creates more flexibility and encourages voucher partners to remain active throughout the allocation process.

The study examines how FUP partnerships design local programs to serve young people and identifies several barriers youth encounter in acquiring and utilizing FUP vouchers, including challenges in securing a lease and variance of support services offered by different counties. Consistent with research conducted by JBAY in 2021, the report notes a primary obstacle being that HUD does not provide funding for the services.

California has worked to address this challenge through an $8.7 million expansion of the Housing Navigation & Maintenance Program in the 2022-23 state budget, empowering county child welfare agencies to provide housing navigation and supportive services to youth with FUP/FYI vouchers.

JBAY is currently inviting county child welfare agencies and public housing authorities across California to participate in the FYI Voucher Community of Practice, launching in early 2023. Child welfare agencies and public housing authorities can express their interest in joining the Community of Practice here. For more information, email Andy Lomeli at andy@jbay.org to set up an informational phone call.

New Federal Legislation Would Remove Housing Barriers for Homeless Students



Last month, bipartisan federal legislation was reintroduced in the U.S. House of Representatives and the U.S. Senate to help unaccompanied youth experiencing homelessness access housing while pursuing higher education. The Housing for Homeless Students Act would update the Low Income Housing Tax Credit (LIHTC) Program to allow full-time students to live in LIHTC housing if they’ve experienced homelessness within the last seven years. The bill also includes homeless or formerly homeless veterans pursuing full-time education. 

The LIHTC Program is one of the largest funding sources available for the construction of affordable housing. Currently, the program does not allow tenants living in units funded by the program to be full-time students. Exceptions are made for part-time students, former foster youth, married students, TANF recipients, and several other student groups. However, homeless and formerly homeless youth are not exempt. These youth must choose between housing and pursuing education full-time. To contact your U.S. Senators and U.S. Representative to express support, click here. 

New Publication Explains Guaranteed Basic Income Payments Should Not Reduce Financial Aid

Chapin Hall released a publication last month that describes the impact of direct cash transfers (DCT) on postsecondary financial aid and Pell Grants. Direct cash transfer programs, often referred to as Guaranteed Basic Income, have expanded in California and elsewhere and will be rolled out in the coming months by seven organizations awarded funding through a budget allocation included in California’s 2021-22 budget. The brief is part of a series of publications that describe the impact of direct cash transfer programs on various forms of government aid. 

According to the brief, the FAFSA Simplification Act of 2021 removed several questions about nontaxable income from the Free Application for Federal Student Aid (FAFSA), including the question regarding cash support. Therefore, DCT gift income will no longer be reportable on the FAFSA, beginning with the 2024–25 academic year and therefore will not be considered when reviewing federal financial aid applications. DCTs received during the 2022 tax year and after will be able to take advantage of this new exclusion. The report notes, however, that this analysis assumes that the income is nontaxable. If DCTs are determined to be taxable, they would then be included as income and could have an impact on Pell Grants and other awards. Funds received prior to 2022 should be reported as nontaxable income under gift aid. 

DCTs are also not considered part of the Estimated Financial Assistance calculation, as long as the program is not conditioned on enrollment in a program of higher education. If the program does require enrollment in higher education, the DCT program would be considered a source of financial aid and could result in a dollar-for-dollar reduction of availability for other financial aid.

New Report Recommends Expanding the CalEITC to Support Young Adults in Making Ends Meet

The California Budget and Policy Center released a report stating that young workers in low paying or unstable work would benefit from an increase in the California Earned Income Tax Credit (CalEITC). One in five young adult Californians were found to not have enough resources to afford basic needs. The report describes low wages and involuntary part-time work as common among more than half of young workers. In 2021, the CalEITC maximum credit for single filers was $255. The report states that increasing that amount would specifically benefit young workers, particularly Black and Latinx workers experiencing low wages and pay discrimination.

Recognizing the benefits of an increased cash back tax refund, JBAY advocated for the passage of SB 201, which established the Foster Youth Tax Credit worth $1,000 for current and former foster youth who were eligible for CalEITC. When current and former foster youth aged 18 through 25 by December 31, 2022 file their taxes next year, they may be the first young workers to benefit from this increase. Learn more about the Foster Youth Tax Credit here or order posters and flyers to help spread the word by filling out this form.

Upcoming Webinars, Trainings, and Events

• $1,083 reasons to file your taxes – California’s New Foster Youth Tax Credit



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