The Source forHousing Solutions

CSH SIF Pay for Success RFPIntroduction and OverviewJanuary 14th, 2016

Welcome and Today’s Presenters

CSH Andy McMahon, Managing Director, Government

Affairs and Innovations Team Stephanie Mercier, Senior Program Manager,

Government Affairs and Innovations Team Center for Health Care Strategies (CHCS)

Allison Hamblin, Vice President Third Sector Capital Partners (TSCP)

Nadia Ahmed, Analyst

Agenda for Today’s Webinar

What is PFS and Why Does it Make Sense for Supportive Housing?

Overview of SIF and PFS Overview of Feasibility Technical

Assistance Introduction of CSH Collaborating

Partners Overview of the RFP Questions

CSH

CSH advances solutions that use housing as a platform for services to improve the lives of the most vulnerable people, maximize public resources and build healthy communities.

What is Pay for Success?

Social Impact InvestmentPay for Success(a.k.a. social impact “bonds”)

Upfront Working Capital

Pay for Success Contracts

Social Impact Investment Flow

Investors

7

34

5

6

2

1

Funds Data

Investors

Intermediary

Housing/Services & Target Population

Evaluator

Government

7

Government/End Payorselects a desired intervention and contracts with all relevant parties.

1

Social Impact Investment Flow

Investors

7

34

5

6

2

1

Funds Data

Investors

Intermediary

Housing/Services & Target Population

Evaluator

Government

7

2Investors provide the upfront capital to finance the intervention.

Social Impact Investment Flow

Investors

7

34

5

6

2

1

Funds Data

Investors

Intermediary

Housing/Services & Target Population

Evaluator

Government

7

Intermediary provides the service provider(s) with the working capital to implement the intervention.

3

Social Impact Investment Flow

Investors

7

34

5

6

2

1

Funds Data

Investors

Intermediary

Housing/Services & Target Population

Evaluator

Government

7

Service providers deliver the transition supports, rental assistance, and services to the target population.

4

Social Impact Investment Flow

Investors

7

34

5

6

2

1

Funds Data

Investors

Intermediary

Housing/Services & Target Population

Evaluator

Government

7

Outcomes and costs are tracked and provided to the third-party evaluator.

5

Social Impact Investment Flow

Investors

7

34

5

6

2

1

Funds Data

Investors

Intermediary

Housing/Services & Target Population

Evaluator

Government

7

The evaluator determines whether the agreed upon metrics have been achieved.

6

Social Impact Investment Flow

Investors

7

34

5

6

2

1

Funds Data

Investors

Intermediary

Housing/Services & Target Population

Evaluator

Government

7

Government/End Payormakes success payments to either the intermediary for distribution or directly to the investors if outcomes are met.

7

Social Impact Investment Flow

Investors

7

34

5

6

2

1

Funds Data

Investors

Intermediary

Housing/Services & Target Population

Evaluator

Government

7 2Investors provide the upfront capital to finance the intervention.

3Intermediary provides the service provider(s) with the working capital to implement the intervention.

4Service providers deliver the transition supports, rental assistance, and services to the target population.

5Outcomes and costs are tracked and provided to the third-party evaluator.

6The evaluator determines whether the agreed upon metrics have been achieved.

7Government makes success payments to either the intermediary for distribution or directly to the investors if outcomes are met.

Government selects a desired intervention and contracts with all relevant parties.

1

Supportive Housing: An Intervention that Works

• Targets households with barriers to housing and/or employment

• Is affordable• Provides tenants with leases• Engages tenants in flexible and voluntary services• Coordinates among key partners• Supports tenants in connecting with the

community

Evidence for Supportive Housing

• 79% to 83% stay housed one year or more

• 41% to 67% decrease in Medicaid costs

• 24% to 34% fewer emergency room visits

• 27% to 29% fewer inpatient admissions and hospital days

• 87% fewer days in detox and fewer psychiatric inpatient admissions

The Social Innovation Fund (SIF) is a key White House initiative and program of the Corporation for National and Community Service SIF’s goal: finding solutions that work, and making

them work for more people. How: Unite public and private resources to evaluate and

grow innovative community-based solutions that have evidence of results in low-income communities.

Three priority areas: economic opportunity, healthy futures, and youth development

Pay for Success at the Social Innovation Fund

Pay for Success (PFS) is an approach for government to partner with the private sector to fund proven and promising practices.

PFS leverages philanthropic and private dollars to fund services up front, with the government paying after they generate results.

PFS has strong bi-partisan support in Congress as a strategy for increasing return on taxpayer dollars while improving the quality of services provided in our communities.

Three Goals of SIF’s PFS Program

Strengthen and diversify the pipeline of governments and nonprofit organizations that are prepared to engage in PFS projects

Assess the potential of PFS to address a variety of social issues relating to diverse populations in diverse geographic contexts

Attract capital to high-performing institutions seeking to strengthen, grow, and sustain effective solutions for challenges facing low-income communities

Through two approaches: Provide Technical Assistance to Assess Feasibility and

Develop PFS Capacity Structure PFS Transactions. These activities will contribute

to the infrastructure necessary to implement future PFS projects.

2014 Social Innovation Fund Pay for Success Grantees

*CSH (Corporation for Supportive Housing) Green & Healthy Homes Initiative Harvard Kennedy School Social Impact Bond Lab *Institute For Child Success, Inc. *National Council on Crime and Delinquency Nonprofit Finance Fund *Third Sector Capital Partners, Inc. *University of Utah David Eccles School of Business

PFS Lab

*Grantees with currently open competitions

CSH’s SIF PFS Award

This grant award DOES: Fund the Provision of Technical Assistance to

Assess Feasibility and Develop PFS Capacity Awarded a $750,000 3-year grant on October 1, 2014 We will match this 1:1 for a total value of $1.5M

This grant award DOES NOT: Invest directly in particular Pay for Success deals Provide direct funding to create housing or services

Feasibility Technical Assistance

Create, publicize and issue RFPs

Define project success with all stakeholders

Develop a financial model and framework

Select housing and service providers

Outline the structure for quality supportive housing

Collect and analyze data to understand status quo costs

Convene multiple cross-department stakeholders

Collaborating Partner: CHCS

Allison Hamblin, Vice President

24

About the Center for Health Care Strategies

A non‐profit health 

policy resource 

center dedicated to 

advancing access, 

quality, and cost‐

effectiveness in 

publicly financed 

health care

CHCS Technical Assistance

• Data analysis • Policy analysis• Financial modeling• Metric selection• Collaboration with government officials

25

Collaborating Partner: TSCP

Nadia Ahmed, Analyst

Third Sector Capital Partners, Inc.

27

Mission Accelerate America’s transition to a performance driven social sector

Who We Are Third Sector Capital Partners, Inc. is a 501(c)3 nonprofit advisory firm that collaborates with government, funders and service providers to build the capacity of communities through Pay for Success initiatives.

PFS AdvisoryServices

• Feasibility Studies• Project Construction • Field Building and Advocacy

Our Work • Launched $28 million Massachusetts juvenile justice project• Launched $5 million Cuyahoga family homelessness project• Launched $8 million Santa Clara chronic homelessness project• 30+ projects in development nationwide

For This Collaboration

• Support CSH and provide technical assistance to governments• Work with Sub-Recipients to ensure PFS viability: definition of

target population, robust evaluation plan, assessment of data, identification of target outcomes, level of success payments

• Write a distinct PFS Value Proposition for each Sub-Recipient

RFP: What will Selected Applicants Receive?

CSH anticipates selecting 4-6 Sub-Recipients in the first round

Sub-Recipients will receive: 12-18 months of assistance from CSH and its

partners at an estimated value of $75-100,000 $15,000 in resources Complimentary membership to CSH’s training

center

CSH’s PFS RFP: Key Dates

2/1/16LOIs Due

2/4/162nd intro webinar

2/15/16Deadline for Questions

2/19/16Applications

Due

~4/1/16AwardsMade!

Letters of Intent

Due February 1st

Should be sent to pfs@csh.org Should include:

Name of lead applicant division/organization Contact info for lead applicant point of contact Name(s) of other organizations on applicant/program

team Proposed target geographic location of program Proposed target population of interest

No more than 2 pages Optional, but strongly encouraged

RFP: Eligible Applicants

Government (state, county or city) or tribe.Eligible non-profit organizations including

health care organizations such as managed care organizations or non-profit hospitals.

Interest in receiving technical assistance to explore a Pay for Success initiative with supportive housing as the targeted intervention.

Intent to commit a minimum of $45,000 in in-kind staffing dedicated to this effort as demonstrated by a letter of commitment from the organization/division providing the staff.

RFP: Eligible Intervention and Populations

Applicants must be interested in supportive housing targeted to one of the following: Residents of Health Care Institutions who Prefer to

Live in the Community (Olmstead) Super Utilizers of Health, Jail or Other Crisis Resources Families with High Utilization of Child Welfare

Systems Young Adults who are Homeless, in Foster Care, and/or

in the Juvenile Justice System Other

Applicants can also propose other target populations that are not the 4 listed above

Sections of the Application

1. Applicant Details1. Applicant Details2. Target Population2. Target Population3. Supportive Housing3. Supportive Housing4. Access to Data4. Access to Data5. End Payor Commitment5. End Payor Commitment6. Leadership Team and Project Support6. Leadership Team and Project Support7. Project Environment7. Project Environment

Next Steps: Recap

Review the RFP Identify or recruit team members Submit the LOI on February 1st

Participate in the next webinar on February 4th

Visit www.csh.org/pfs for FAQs and updates

Email pfs@csh.org with questions

Questions?