The award is part of $75 million being distributed in 23 local communities across the country, including eight rural areas.
The funds will go towards helping communities build local systems and support housing programs such as rehousing, permanent supportive housing, transitional housing and host homes.
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"Homelessness is no way to start out in life for young people reaching adulthood," said HUD Secretary Ben Carson. "Today we make another critical investment in the futures of our youth, sparing them a life on the streets or in our shelters and placing them on a path to self-sufficiency."
The idea is to develop a plan and to end homelessness for people under the age of 25 through partnerships, new housing and services.
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