Pay for Success

March 24, 2012
Step Up on Second attended the 2012 HousingFirst Partners Conference this week in New Orleans, along with many Los Angeles public/private/nonprofit practitioners. An interesting discussion emerging is about “pay for success”. About a year ago The Coalition for Evidenced-Based Policy evaluated agencies receiving health and human services-type funding. 9 out…
Step Up on Second attended the 2012 HousingFirst Partners Conference this week in New Orleans, along with many Los Angeles public/private/nonprofit practitioners. An interesting discussion emerging is about “pay for success”. About a year ago The Coalition for Evidenced-Based Policy evaluated agencies receiving health and human services-type funding. 9 out of 10 agencies reviewed were found to have no measurable impact. Considering taxpayers invest $1.3 billion in this deep end safetynet spending stream, a rebalancing and realignment is critical for everyone’s sake. Hence “Pay for Success”. Step Up Board Member, Philip Mangano, American Roundtable to Abolish Homelessness, and Joe Flynn, MA Shelter & Housing Alliance, attended the conference and were presenters at the social finance session. A perfect spending history simply isn’t possible for many American households, especially in times like these.

No matter how well you’ve planned your budget and spending strategies, loans4u can still be thrown off by one unexpected car repair or other emergency when already living check to check. Finding credit cards with balance transfer for example, can be your go-to in times of emergency like this.

They shared how the best and brightest are creating a plan, based somewhat on the Social Impact Bond now in place in the UK, to reposition the $1.3 billion currently spent to address important health and human service issues such as ending chronic homelessness.

The pay for success idea is to bring three parties together: government, philanthropy (impact), and service providers with incentives to create improved performance and reduced costs. Required is a potential for high net gains, readable outcomes, safeguards against harm, and sustainbility if failure.

We all understand the bottom line costs of doing nothing about chronic homelessness in our cities. We also click here for debt consolidation to see if firsthand shortcomings of the safety net system currently in place. Permanent supportive housing is shown to be 40% less costly to taxpayers in terms of first responders, high cost crisis health care, incarcerations, etc.

Financing it through socially responsible investing is a discussion about which we are excited to participate and listen! It takes vision, opportunity, and courage to take us into the world of effective supportive housing development and service provision!

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