Pay for Success Permanent Supportive Housing Demonstration Webinar. December 9, 2015
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1 Pay for Success Permanent Supportive Housing Demonstration Webinar December 9,
2 Presenters: -Marlisa Grogan, HUD -Patrick Taylor, The Cloudburst Group Resource Advisors: -Michael Roanhouse, HUD -Deanna Reed, HUD 2
3 Webinar Format Webinar will last approximately 1 hour Recording will be posted on the HUD Exchange Webinar slides will be posted on the HUD Exchange If you experience technical difficulty with the audio or video portions of this webcast, try: Logging off, then logging in again Requesting help through the Questions pane of the Go To Webinar toolbar 3
4 Submitting Questions Due to the high volume of participants, everyone will be muted during the presentation. Submit questions any time during the webinar via the Questions pane of GoToWebinar. If your question is not answered during the presentation, please submit it to: 4
5 Poll Question #1 5
6 Webinar Objectives Familiarize applicants with Pay for Success (PFS) Demonstration framework and requirements Provide an overview of the application requirements, timeline, and selection process Note: HUD strongly advises applicants to thoroughly read the PFS Demonstration NOFA and the Application Guide before they begin their applications. 6
7 Background Department of Justice (DOJ) received $5 million FY14 and $5 million FY15 funds for Pay for Success programs implementing Permanent Supportive Housing (PSH). DOJ and HUD entered into an interagency agreement that designates HUD as the agency responsible for implementing the PFS Demonstration. The PFS Demonstration implements the PSH model for a population continuously cycling between the criminal justice system and homeless services. 7
8 Background Opening Doors: Federal Strategic Plan to Prevent and End Homelessness, released in 2010 by the Obama Administration, established goals for ending homelessness. On a single night in January 2014, there were still over 80,000 people identified as chronically homeless in the United States. A lack of resources has forced the Obama Administration to push back the Opening Doors goal of ending chronic homelessness to Increasing the availability of Permanent Supportive Housing (PSH) is critical to meeting that goal as well as contributing to Continuum of Care efforts to address homelessness. 8
9 Quotes DOJ and HUD Having the opportunity to find a job and a place to call home is a core value in our society. Unfortunately, too often individuals that committed minor crimes are falling into homelessness because they don t have the opportunity for a second chance. These grants will allow us to develop model of success that can help us stop the cycle of dependency and reduce the costs associated with recidivism and homelessness. - HUD Secretary Julián Castro The Department of Justice is committed to giving formerlyincarcerated individuals the tools they need to become productive members of society. Providing meaningful support through housing opportunities, prevention programs and other critical services is vital to our ongoing efforts to reduce recidivism, promote public safety, and foster positive results in communities across the country. - Attorney General Loretta Lynch 9
10 PFS Demonstration Objectives Pilot test PFS financing approach to fund a PSH Intervention. Create an opportunity for communities to increase the availability of PSH for the target population. Determine whether PSH provided for the target population will reduce recidivism and chronic homelessness. Determine extent of taxpayer savings and improved costeffectiveness through reduced spending in homeless services, corrections systems, emergency medical care, etc. Identify lessons learned and best practices on the feasibility of scaling-up and replicating effective PSH and service delivery interventions. 10
11 What is Pay for Success? Public-private arrangement to test or expand innovative programs (intervention) while the government entity pays only for those that achieve agreed-upon target outcomes PFS contracting might require PFS financing, through which social investors provide up-front funding for an evidence-based intervention Well-defined, achievable outcome targets are agreed upon by all stakeholders Achievement of outcomes is verified by an independent evaluator Government entity issues Success Payments to social investors, dependent, in whole or in part, on the achievement of the outcome targets 11
12 Key Roles & Partnerships 12
13 Why Does PFS Financing Matter? Limited resources and growing need PFS offers a solution for financing additional PSH, an evidencebased practice shown to reduce the public costs of shelter, corrections, and health care. Leverage private sector investors to scale effective interventions Philanthropic and other private organizations provide the up-front capital for the PSH Intervention that, when successful, achieves measurable outcomes that improve lives and reduce future needs. 13
14 Why Does PFS Financing Matter? Achieve better outcomes for Federal, State and local governments in the area of preventing and ending homelessness PFS emphasizes evidence-based approach to addressing homelessness provided by innovative, data-driven service providers. Minimizes risk to the government and maximizes return on taxpayer dollars - The government pays only for demonstrated results; social investors bear the primary financial risk until outcomes are achieved. 14
15 PFS Demonstration Projects Feasibility Analysis Transaction Structuring Contract Implementation 15
16 PFS Demonstration Projects Feasibility Analysis - Assess suitability of PFS - Assist local stakeholders to determine their capacity to participate in PFS - Identify barriers - Identify potential funding sources Transaction Structuring Contract Implementation 16
17 PFS Demonstration Projects Feasibility Analysis Transaction Structuring - Assist local stakeholders to structure and close a PFS Contract - Raise capital and develop capital structure - Close contract and prepare for contract implementation - Ramp-up activities Contract Implementation 17
18 PFS Demonstration Projects Feasibility Analysis Transaction Structuring Contract Implementation (PSH Intervention) - Oversight and support throughout service delivery - Outcome Evaluation o Data collection o Outcome monitoring and validation - Success Payments 18
19 Eligible Applicants Direct Service Providers Private Nonprofits Individuals Private Institutions of Higher Education Public Institutions of Higher Education Public Nonprofits 19
20 Available Funding NOFA makes available up to $8.679 million Maximum individual grant amount: $1.3 million No set number awards (approximately 6) Applicants may apply for only 1 Demonstration Site per application Applicants may submit multiple applications Recommended maximum amounts per Eligible Activity Type: o o o o Feasibility Analysis: Up to $250,000 Transaction Structuring: Up to $600,000 Outcome Evaluation: Up to $250,000 Success Payments: Any amount up to $1.3 million cap 20
21 Key Program Requirements Partnership with Government Entity Participation in HUD Evaluation Knowledge Sharing Annual Reporting PSH Intervention: o o o o Participant Eligibility Guidelines Permanent Supportive Housing Guidelines Maintenance of Effort Participation in HMIS/Coordination with CoC 21
22 Poll Question #2 22
23 PSH Intervention Design Participant Eligibility Severity of Service Needs Pattern of Homelessness Stays in Correctional Facilities History of high-cost utilization of crisis services; OR Significant health or behavioral health challenges or functional impairments requiring high cost level of support to maintain permanent housing Meet HUD definition of chronically homeless ; OR Literally homeless for 12 months cumulatively over the last 3 years; OR Literally homeless for at least 1 night during the year at any point in each of the last 3 years Multiple jail or prison stays within the last 3 years, most recent of which occurred within the last 12 months 23
24 PSH Intervention Design PSH Guidelines 100 Households (identified through data-driven methods) Housing First Approach Assertive Outreach, Recruitment, Engagement Quality Permanent & Affordable Housing o o o Leases (initial lease for 1 year) Tenant contribution limit (30% gross monthly income) Meets habitability requirements Accessible Transportation and Employment Available Housing Stability Services Informed Property/Landlord Management Available Care Management & Service Coordination Coordination with Criminal Justice System 24
25 PFS Demonstration Rating Factors Rating Factors Executive Summary Points Threshold Criterion Program Design 50 Organization Experience and Commitment Staff Experience 8 Project Budget 7 35 TOTAL
26 Budget Forecast Worksheet Budget Forecast Worksheet and instructions are posted on Grants.gov as part of the application package Format is not mandatory but strongly encouraged to ensure applicants submit all required information Include any supplementary information in narrative form if not captured in the worksheet Be as specific as possible and plan for all necessary costs, including those covered by other sources of funding 26
27 Budget Forecast Worksheet 27
28 Application Content Guidelines 45-page maximum (excluding attachments) Use Budget Forecast spreadsheet No attachments (other than those required per NOFA) will be accepted Checklist of required forms p
29 Review and Selection Review process: o Phase 1 Threshold Review (Section III.C.2 of PFS Demonstration NOFA) - Resolving curable deficiencies - Applications not meeting threshold will not be scored o Phase 2 Application Scoring - Individual reviews - Paneling for final score Selection process: o Ranked order o Factor in geographic areas of Demonstration Sites o Factor in number of qualifying applications per applicant o Funding decisions for selected applicants 29
30 Timeline NOFA released: October 15,
31 Timeline NOFA released: October 15, 2015 Deadline to submit questions: February 11, 2016 by 5 p.m. ET 31
32 Timeline NOFA released: October 15, 2015 Deadline to submit questions: February 11, 2016 by 5 p.m. ET Applications due: February 12, 2016 by 11:59:59 p.m. ET 32
33 Timeline NOFA released: October 15, 2015 Deadline to submit questions: February 11, 2016 by 5 p.m. ET Applications due: February 12, 2016 by 11:59:59 p.m. ET Anticipated Award Announcement: SPRING
34 Resources Grants.gov: PFS Demonstration Application Guide PFS Demo Budget Forecast Instructions for Completing the PFS Demonstration Budget Forecast Technical support Coming Soon: Fact Sheet Frequently Asked Questions PFS Listserv for updates Policy questions: 34
35 Questions 35
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