In 2016, the U.S. Departments of Housing and Urban Development (HUD) and the U.S. Department of Justice (DOJ) launched the Pay for Success Permanent Supportive Housing Demonstration (the Demonstration). PFS is an innovative financing model that links payment for programs to the outcomes they achieved. This Year 3 report summarizes the grantees’ progress in the third year of the demonstration, January 2019 through December 2019. Four of the six remaining demonstration sites remained in the transaction structuring phase, with two of the four sites successfully launching pilot programs in 2019. Of the two sites that implemented programs in 2017 and 2018, one (Los Angeles) completed enrollment after 2 years, used PFS to expand jail diversion, housed over 349 people, and made just over $2.2 million in success payments to investors based on observed participant outcomes. The other site in the implementation phase, Lane County, housed almost half of its target number, prepared its first outcome payment report, and is committed to securing the additional capital needed to continue to house the new clients necessary to meet the overall goal of reducing recidivism and preventing homelessness.

Click here for the Evaluation of the HUD-DOJ Pay for Success (PFS) Permanent Supportive Housing (PSH) Demonstration.