Crunchy stories today: happy scrolling from Washington DC to far far beyond the Beltway…
A Financing Model For Affordable & Supportive Housing In D.C.
Michael Downey – Washington Post
“Pay for success” has gone viral among those seeking to tie government funding to measurable impact.
And it’s time for the District to consider whether this type of financing could address its affordable-housing crisis.
The premise behind pay for success (also known as social impact bonds) is straightforward: Investors fund a set of interventions to achieve a desired social outcome. If the goals are achieved, the government repays the costs of the program, plus a return for the financial risk the investors bore. If the goals are not achieved, the investors lose their money, and the government owes nothing.
The region’s struggles with ensuring an adequate supply of affordable housing are well-documented. The 2014 study “Housing Security in the Washington Region” examined the area’s affordable-housing supply across a range of income levels. This study and others have found that the causes of homelessness run the gamut, from an inadequate supply of affordable options to a lack of well-paying jobs to struggles with mental health.
To address this crisis, D.C. Mayor Muriel E. Bowser (D) has made good on her promise to commit $100 million per budget year to the Housing Production Trust Fund. The fund is the district’s main tool for financing housing.
Global Social Innovation Round-Up #33
Ellie Ward – Pioneers Post
Impact venture fund invests $13m to prevent malaria
HERi Africa, an impact venture fund that invests in socially driven companies in Madagascar, has co-invested $13m in Bionexx – a company that produces the active ingredients of a new generation anti-malaria medicine. Since 2005 Bionexx has been cultivating and purifying these active ingredients. According to the European Venture Philanthropy Network (EVPN), of which HERi Africa is a member, Bionexx purchases the active ingredients of the antimalarial (Artemisia Annua) directly from smallholder farmers, in turn contributing to a 30% additional yearly income of 10,000 rural families. EVPA also revealed that HERi Africa and Bionexx are currently exploring the launch of a social impact bond.
Social Ventures Australia welcomes new government fund
In its budget this week the Australian government announced a AU$96.1m fund to ‘finance innovative policy interventions to help people find jobs and avoid getting trapped on welfare’. The Try, Test and Learn Fund aims to test interventions and policies that engage the private sector with social issues.
CEO of Social Ventures Australia Rob Koczkar told Pro Bono Australia: “The fund could unlock opportunities for the development of innovative service and finance models, and attract co-investment from the private sector in important social initiatives… Private capital is never going to replace the need for ongoing investment by government in critical services, but there is scope for it to have significant impact in areas including affordable housing supply, social impact bonds (SIBs) and social enterprise development.”