September 15 2015

PLY: A cornucopia of news from today’s SIB News looking forward to seeing some readers at our Young Markets “future of finance” symposium this week!

Government Accountability Office Looks At Social Impact Bonds
CWLA

On September 9, the GAO issued a report, Collaboration Among Federal Agencies Would Be Helpful as Governments Explore New Financing Mechanisms that examined the use of social impact bonds and their potential as well as where the federal government can play a roll.

Alternative to Private Finance of the Welfare State: A global analysis of Social Impact Bond, Pay-for-Success & Development Impact Bond Projects
Alissa Pemberton – Community Action: MK

The first detailed critical analysis of the growing global market in social impact bond projects and reveals that they are the latest new ‘buy-now-pay-later’ scheme to privatise public services and the welfare state. Details 30 financial and public policy flaws in these projects. Proposes an alternative strategy consisting of government and public sector plans for early intervention and prevention; Public Service Innovation and Improvement Plans at departmental or service level; and trade union/community alliances to develop strategies and scope for transnational action. Published jointly by ESSU and the Australian Workplace Innovation and Social Research Centre, University of Adelaide. Read it here.

Strong Families Fund To Finance Decade-long Pilot Pairing Affordable Housing, Intensive Social-Services Coordination for Low-Income Families
PRNewswire-USNewswire

A number of banks and philanthropic partners, led by The Kresge Foundation, the Robert Wood Johnson Foundation, KeyBank and Goldman Sachs, have committed more than $70 million to launch the Strong Families Fund, the largest pilot pay-for-performance project to finance social services coordination and quality, affordable housing for low-income families.

The Strong Families Fund is expected to finance construction or renovation of 600 to 700 affordable-housing units in the next three years. It will also support on-site access to high quality social services coordination over the next decade.

The first funded project is Deborah Strong Housing, located in Ypsilanti, Michigan. The complex, named in memory of a longtime housing advocate in Ypsilanti, is moving forward with the rehabilitation of 112 units of affordable, family housing.

The Fund combines federal Low-Income Housing Tax Credits for capital development with a pay-for-performance model to provide access to up to 10 years of incentive payments to housing developments.

In return, developments must provide on-site, social service coordination targeted to improving resident and property outcome measures in five areas including health and wellness, housing stability and education. Multiple studies speak to the improved outcomes for families and children from high-quality affordable housing with well-defined links to services. Such settings, the research shows, also may ultimately lead to reduction in other public sector costs.