The Secret to Winning Grants for Foster Youth Housing Projects

Every year, 23,000+ youth age out of foster care in the U.S.—many with no family, no stable job, and nowhere to live.

And for the foster-focused nonprofits trying to provide safe, supportive housing?

You face some of the biggest funding challenges in the nonprofit world.

Between zoning laws, staffing requirements, and skyrocketing real estate costs… it’s easy to feel like housing grants are only for large, national organizations.

But here’s the secret:

Foundations, government agencies, and corporate funders are actively looking to fund housing projects for youth aging out of foster care—if you know how to position your request.

This guide will show you how to:

Identify funders that actually support housing for foster youth
Frame your application to meet their priorities
Use the right language that unlocks capital
Get funding even without owning your own property

The Real Reason Most Foster Housing Projects Go Unfunded

It’s not because your mission isn’t important.
It’s not because you don’t have the impact.

The biggest reasons?

You’re not using the right funding categories in your application.
You’re not matching your narrative to the funder’s language.

Let’s break this down.

Most funders don’t call it “housing for foster youth.”

Instead, they fund:

Transitional housing
Supportive housing
Housing for homeless youth
Aging-out services
Workforce readiness with housing components

And unless you use those words in your proposals, your incredible program could get overlooked.

Types of Funders That Support Foster Youth Housing

Let’s explore who’s actively funding these initiatives and how to get their attention.

1. Private Foundations Focused on Youth Aging Out

Some of the most consistent housing dollars come from private foundations that specifically target youth transitioning out of foster care.

Example: The Walter S. Johnson Foundation

Focus: Youth transitioning from foster care in CA & NV
Funds: Housing, workforce, education, wraparound services
Strategy: Funds capital campaigns and program ops
Website: www.wsjf.org

Example: Annie E. Casey Foundation

Focus: Youth and young adult well-being
Strategy: Funds transitional programs including housing
Website: www.aecf.org

2. Government and HUD-Backed Programs

Federal and state agencies provide millions in grant funds to nonprofits and housing orgs for youth-focused housing.

These include:

HUD’s Family Unification Program (FUP)

Helps housing authorities and nonprofits provide vouchers to foster youth
Often accessed via partnerships with local housing authorities

HUD Youth Homelessness Demonstration Program (YHDP)

Funds cities and counties to address youth homelessness
Your nonprofit can be a sub-grantee on these local funds

Tip: Connect with your local Continuum of Care (CoC) and request inclusion in youth housing funding proposals.

3. Youth Homelessness & Human Services Funders

Even if they don’t mention foster care by name, these funders are often very open to youth who have aged out or are system-involved.

Example: The Raikes Foundation

Focus: Preventing and ending youth homelessness
Strategy: Invests in models that combine housing, education, and employment
Website: www.raikesfoundation.org

Example: The Hilton Foundation

Focus: Transition-age foster youth and housing
Strategy: Large-scale systems work and pilot project funding
Website: www.hiltonfoundation.org

4. Community Foundations + Donor-Advised Funds

Local community foundations are incredible sources of support for:

Renovations
Case management
Housing stipends for foster youth

You’ll want to frame your project as:

A local homelessness prevention effort
A youth workforce/housing initiative
A stabilization strategy for vulnerable young adults

Frame It Right: Positioning Your Housing Project for Approval

Even if your program is about foster youth housing, that’s not always how you should lead your proposal.

Use one of these framing strategies depending on the funder’s focus:

If the Funder Supports “Youth Homelessness”:

✅ Frame your proposal like this:

“Youth aging out of foster care are at high risk of homelessness. Our transitional housing program prevents street homelessness and creates long-term pathways to independence.”

If the Funder Supports “Workforce & Education”:

If the Funder Supports “Family & Community Stability”:

✅ Frame it like this:

“Our housing program helps former foster youth build community, access life skills, and transition into adulthood without the trauma of instability.”

The 4 Types of Housing Projects You Can Get Funded

You don’t need to build a shelter to get funded.

Let’s break down fundable housing models for foster youth:

1. Transitional Housing

12–24 months
Includes supportive services
Often used after youth exits care
Can be a rental partnership or group home

Best for: Foundations and government grants focused on youth homelessness prevention

2. Host Homes or Shared Living

Community members provide a room to youth with wraparound support
Low-cost, high-impact
Great for pilot projects or rural areas

Best for: Innovation grants and community foundations

3. Supportive Apartments or Housing Units

Leased or owned apartments
On-site or mobile case management
May include vouchers or rental assistance

Best for: Government partnerships and public-private collaborations

4. Campus-Based Housing or College Dorms

On-campus housing subsidies for foster youth
Often tied to scholarship or academic success programs

Best for: Funders focused on education, equity, and upward mobility

Grant Language Templates That Win Funding

Need help writing it? Use these tested phrases:

Problem Statement Example:

“Each year, hundreds of youth exit the foster care system in our state with no stable place to live. 40% become homeless within 18 months. Our program provides transitional housing, mentorship, and life skills to break this cycle.”

Goal Statement:

“To provide 18 months of transitional housing and case management to 20 youth aging out of foster care, helping them build the skills and resources for independent living.”

Outcome Example:

“At least 80% of participants will exit our program into permanent housing, with a job or continued education, and no return to homelessness within 12 months.”

Application Checklist for Foster Youth Housing Grants

Before applying, make sure you have:

✅ Program design with clear timeline and staffing
✅ Budget for rent, staffing, food, casework
✅ Data on local foster care aging out rates
✅ Clear measurable outcomes
✅ Letters of support from child welfare partners or local authorities
✅ Testimonials or stories from previous clients
✅ A plan for sustainability or exit strategy

Real-Life Example: How One Nonprofit Raised $500K for Foster Youth Housing

Project HomeStart – Illinois

Converted a former church into a transitional living space
Received $125K from a local community foundation
Partnered with a regional bank for $150K capital loan
HUD voucher program funded rent for 12 youth
Used a trauma-informed model with weekly coaching

How they won grants:
They framed their project as a homelessness prevention + workforce development model, not just “housing for foster youth.”

Your Next Steps: Ready to Win Housing Grants?

Here’s how to move forward today:

✅ 1. Place order for Foster Housing Funding Starter Kit- $29

Includes 25+ funders that support housing for youth aging out of care, plus sample language, budgets, and LOIs.

To place your order,click here

✅ 2. Book a Grant Strategy Session

Want personalized help framing and funding your housing project? We offer full-service grant writing and strategic planning.
Book Your Free Discovery Call

✅ 3. Join the Grant Writing Academy – Founding Membership

Our premium training + resource hub includes:

Templates for housing grants
Real funded proposals
Direct support from expert grant writers
Become a Founding Member – $1,999/year

FINAL WORD

Here’s the bottom line:

Foster youth aging out of care deserve more than a referral to a shelter. They deserve safety, dignity, and a place to become who they were created to be.

Your organization can make that happen—and grant funding can help you get there.

But you must tell your story strategically. Frame it right. Find the funders who care. And ask with confidence.

We believe in your work—and we’re here to help you fund it.