Pay for Success
Everyone housed by Pay for Success now has a roof over their heads. They sleep soundly knowing they have a place they can call home and won’t be braving the mercurial Boston weather.
- United Way Massachusetts Bay & Merrimack Valley
What is Pay for Success? (taken from Social Finance)
Pay for Success projects, also known as social impact bonds, are an innovative method that allows government to draw in greater resources to solve significant social challenges.
At its core, Pay for Success is a public-private partnership, which funds effective social services through a performance-based contract. Pay for Success projects enable federal, state, and local governments to partner with high-performing service providers by tapping private investments to expand effective programs. If, following an independent evaluation, the program achieves predetermined outcomes that benefit society and generate value for government, then government will make outcomes payments to investors. However, the government pays only at the level of outcomes achieved. Hence the title: we pay for success.
Pay for Success: Rhode Island
The Rhode Island Coalition for the Homeless supports including Pay for Success funding in the FY2021 state budget. Passing this funding would bring in close to 2 million dollars in federal monies to support the project.
If this funding is preserved, this would be the first implemented social impact bond in Rhode Island's history. So what does it look like?
A Home for Our Most Vulnerable Neighbors
Pay for Success will utilize 125 Permanent Supportive Housing vouchers for chronically homeless individuals that are high utilizers of the healthcare, homeless shelter, and criminal justice systems over four years. As it currently stands, the state of Rhode Island spends $5.5 to $7.5 million dollars each year on costs incurred by high utilization of these resources. The system now is unsustainable: expensive and not nearly as effective in keeping people stably housed.
By intervening with permanent housing and access to case management & other critical resources, RI could see an estimated annual savings of $1.8M-$2.6M in total. Most importantly, we can provide the best possible path for our neighbors in need to find stable housing and rebuild their lives.
Want to get more involved? Contact Kristina Contreras Fox, Policy Analyst: firstname.lastname@example.org