Beyond Shelter: Innovative Flexible Cash Assistance Approaches to Youth Homelessness

Isaac Sanders I November, 2024

Innovative cash assistance programs are revolutionizing how we address youth homelessness. From prevention to intervention, these flexible financial solutions empower young people, promote stability, and challenge traditional approaches. Discover how direct cash transfers transform lives and offer hope in the fight against youth homelessness.

Flexible Cash Assistance Programs Addressing Youth Homelessness

As youth homelessness continues to be a critical issue in many communities around the world, various flexible cash assistance programs have emerged as promising interventions. These innovative approaches aim to support young people experiencing or at risk of homelessness by providing direct financial aid along with optional supportive services. Specifically, in youth homelessness, this approach is a powerful option for youth and young adults who historically have been underserved or do not need intensive support like other program approaches, i.e., shelter, rapid rehousing, etc. This blog will review current state-of-the-art approaches to flexible cash assistance and how your community can implement this.

Homelessness Prevention & Diversion Fund (HPDF)

The Homelessness Prevention & Diversion Fund (HPDF) is a targeted program to prevent youth homelessness before it occurs. Implemented in several Washington state counties apart of the Anchor Community Initiative, which is a program run by A Way Home Washington, HPDF offers:

Fast, flexible, and low-barrier access to resources for youth at risk of homelessness
An average intervention of $1,900 per household
A remarkable 93% housing retention rate after 12 months
Funds that can be used for various needs, including rental assistance, relocation costs, and utility bills

The HPDF has successfully housed more young people than any other housing program in each county. This program demonstrates the effectiveness of early intervention in preventing youth homelessness. You can read more about this program here.

Direct Cash Transfers for Youth

Direct Cash Transfer programs for youth, such as the Trust Youth Initiative in New York City, provide regular cash payments to young people experiencing homelessness. Key aspects include:

Monthly payments of $1,150 for up to 2 years
Optional supportive services to complement financial assistance
Focus on empowering youth to make their own financial decisions
Aim to help young people sustainably exit homelessness

The DCT approach recognizes that young people are often best positioned to determine their needs and priorities. This program is the first systematic effort to develop and rigorously evaluate a cash transfer intervention for youth experiencing homelessness. You can read more about this program here.

Two-Year Direct Cash Transfer Programs

Some communities are exploring longer-term direct cash transfer programs specifically for youth experiencing homelessness. These programs typically offer:

Regular cash payments over a two-year period
Minimal restrictions on how the money can be used
Opportunities for young people to build financial stability and plan for their futures
Ongoing evaluation to assess long-term impacts on housing stability and well-being

For example, three community-based organizations in Oregon serve 120 young people with 5 months of Direct Cash Transfers, providing $1,000 monthly payments. You can read more about this program and similar programs here.

Direct Cash Transfers as Prevention (DCT-P)

Point Source Youth has launched an initiative to scale Direct Cash Transfers as Prevention (DCT-P) in multiple U.S. cities. We are the evaluation partners for this project. DCT-P offers:

One-time cash payments with no upper limit
A goal of preventing youth from entering homelessness in the first place
Services provided by local community-based organizations, such as housing navigation, financial counseling, and peer support

Early results from a similar program in Washington state showed that 93% of young people who received these one-time payments did not return to homelessness after 12 months. You can read about this program and similar programs here.

Impact and Effectiveness

Emerging research suggests that flexible cash assistance programs can have significant positive impacts on youth experiencing homelessness:

Increased Housing Stability: Programs like HPDF demonstrate high rates of housing retention.
Improved Well-being: Direct cash transfers allow young people to meet their basic needs and reduce stress.
Enhanced Autonomy: These programs promote independence and self-efficacy by trusting youth to make financial decisions.
Long-term Benefits: Extended support may lead to improved educational and employment outcomes.

After just six months of receiving direct cash transfers in some programs, 63% of youth found stable housing. These results highlight the potential of cash-based interventions to impact youth homelessness significantly.

How We Can Help You

Collaborative Strategy Development: SCP specializes in facilitating collaborative strategy development. They could help communities unite various stakeholders to create comprehensive strategies for implementing flexible cash assistance programs1.
Capacity Building: SCP offers capacity-building services. We assist communities in developing the necessary skills and infrastructure to manage and implement cash assistance programs.
Systems Thinking Approach: SCP employs a systems thinking approach to address complex social issues. This methodology could be applied to understand the broader context of youth homelessness and design cash assistance programs that address root causes.
Cross-Sector Collaboration: SCP has experience in fostering cross-sector collaboration. We help communities engage diverse partners (e.g., government agencies, young people, nonprofits, and businesses) to support and enhance cash assistance initiatives.
Data-Driven Decision Making: SCP emphasizes the importance of data-driven decision-making. We assist communities in setting up robust data collection and analysis systems to evaluate the effectiveness of cash assistance programs.
Change Management: Implementing new programs often requires organizational change. SCP’s expertise in change management helps communities navigate the challenges of introducing and scaling cash assistance programs
Policy Advocacy: While not explicitly mentioned on their website, SCP’s focus on systems change suggests they could potentially support communities in advocating for policy changes that facilitate the implementation of flexible cash assistance programs
Knowledge Sharing: SCP facilitates knowledge sharing between communities, helping to disseminate best practices and lessons learned in implementing cash assistance programs
Stakeholder Engagement: SCP’s skills in stakeholder engagement is valuable in ensuring that the voices of youth experiencing homelessness are centered in program design and implementation
Sustainable Implementation: SCP’s approach to creating lasting change helps communities develop sustainable models for flexible cash assistance programs that can be maintained and scaled over time

As communities grapple with youth homelessness, flexible cash assistance programs offer promising solutions. By providing direct financial support and trusting young people to make their own decisions, these interventions have the potential to break the cycle of homelessness and set youth on a path to stable, independent adulthood.

– Isaac Sanders