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 (PFS) Permanent Supportive Housing (PSH) Demonstration (the Demonstration) to document the process and progress of the funded sites in implementing the PFS PSH Demonstration, the benefits and time spent on pay for success (PFS) activities, and to see if PFS is a scalable model for permanent supportive housing for the reentry population. This Years 4 and 5 report summarizes the grantees’ progress from January 2020 through December 2021:
By the end of 2021, half of the remaining sites continued to make progress in the implementation phase (Los Angeles and Lane Counties had met and exceeded their project targets, respectively, and reported positive housing and other outcomes for their participants) or transitioned from the pilot phase to full implementation (Anchorage).
During 2021, the other half of the remaining sites in transaction structuring remained in that phase (Austin/Travis County continued to serve people through its pilot program while it remained in the transaction structuring phase), were on pause because of the COVID-19 pandemic (Rhode Island and Prince George’s County) resumed transaction structuring (Rhode Island) or resumed feasibility analysis (Prince George’s County).
The COVID-19 Pandemic had a mixed impact on implementation including exacerbating existing housing and service provision challenges, reduced size of the target population through jail reduction policies, and opportunities for increased resources for housing and support of PFS projects to reduce homelessness.
PFS complexity led to modifications to original financing approaches. A number of sites in transaction structuring decided not to involve external investors in the traditional sense to finance PFS projects and be repaid with interest, which was different from the sites’ original expectations.
Pilot phases were helpful to demonstrate effectiveness and refine program design.
Sites in transaction structuring continue to progress, albeit at a much slower pace than originally expected largely due to COVID-19, changes in key partner participation, risk tolerance, and shifting political leadership priorities.
