The character of "Freddie" was based on a real life street kid, named Lulu (Lou Ellen Couch). Lulu was featured in the documentary Streetwise (1984), and just like Freddie, she stood up for other street kids. Lulu was stabbed to death after Streetwise filmed, her funeral was covered by CNN and over 200 people attended.
The story is based on the relationship between a young runaway in the 1980s named Dewayne Pomeroy and his father who was incarcerated for robbery and attempted arson. They can both be seen in the 1984 documentary, Streetwise (1984), which focuses on several of Seattle's runaway youth in the 1980s. Dewayne committed suicide at the age of 16. The story was later developed by Peter Silverman, Martin Bell and Mary Ellen Mark. Then, Silverman and Bell wrote the screenplay.
The apartment building Jack Kelson and his son lived in was presented as Queen Anne Hill in the movie. In actuality, the movie was filmed in an apartment building on Capitol Hill in Seattle, on the 1700 block of Summit Avenue North.