American legislative acronyms are on a roll right now what with the JOBS act and indeed the FAST act which is, clearly a deliberate oxymoron concerning some American infrastructure. However FAST includes PFS structures and that is resoundingly good news:
HUD Pay For Success Pilot Program Passes Congress
Diane Yentel & Kenny Marable – Enterprise
Included in the law, the Fixing America’s Surface Transportation (FAST) Act, which authorizes federal highway and transit funding for the next five years, there is a small but important provision that authorizes a new Pay for Success (PFS) demonstration within the Department of Housing and Urban Development (HUD) to improve the efficiency of water and energy systems in government-supported multifamily buildings. This pilot has the potential to be a true “win-win-win,” resulting in long-term cost savings for the federal government, improved health outcomes for residents and benefits to the environment.
Under the new law, HUD can now enter into contracts with outside entities, which then raise private capital from investors to fund energy and water upgrades in HUD-assisted properties. Investors are paid back only when certain cost savings are realized, as verified by a third party. In addition to improving energy usage in old buildings, energy efficiency upgrades have proven to improve the quality of life for residents by meaningfully reducing instances of asthma and other health problems.