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If the parents kicked him out at 16, then legally they are the ones who are breaking the law and could be charged with child abuse and neglect. If you are taking him in and giving him a place to stay, then you aren't violating any laws here.
Yes, you are not breaking any laws by taking in a vulnerable child and providing support for him. As for the police, you can do so, and they could potentially charge the parents with child abuse and neglect, but they could also end up forcing the child to return to the parents home, so that should be considered prior to involving them and whether that is in the child's best interests..