He said if young people are helped early enough, they don't have to rely on help for permanent housing long term.
The proposed location is close to the nonprofit's main office. Planners expect about a dozen tiny houses to be built each year.
On Monday the City Plan Commission unanimously approved land rezoning for the project. The commission must approve a detailed development plan for the project to move forward.
The county launched the Housing First initiative two years ago and has decreased homelessness in the county by 40 percent, said County Executive Chris Abele.
"We've made such a great deal of progress on chronic homelessness that we can now begin to have a forward-thinking strategy on preventing homelessness, particularly with vulnerable young people," Abele said.
The county has committed $100,000 to the tiny house development and will use federal and local funds for rent subsidies, said James Mathy, housing administrator for the county Housing Division.