1. This is a teen who needs guidance, not an adult bully who will never learn.
2. This "opportunity" sounds like a typical pay-to-play college-friendly program where the companies involved make money off the room and board: did someone even check that kids are allowed to stay elsewhere? Usually they're not allowed, both for safety reasons as well as not being financially rewarding to the organization.
3. OP's stance is childish and immature. I would never refuse a rude 16 year old nephew houseroom for the summer. My teens, my husband and I are perfectly able to put such a person in his place!