WASHINGTOIN, DC -- In an effort to prevent homelessness, reduce recidivism, and find more effective strategies to deliver assistance to those in need, U.S. Senator Jack Reed today announced that the Rhode Island Coalition for the Homeless (RICH) and Social Finance (SF) will receive a $1,297,624 Pay for Success (PFS) Permanent Supportive Housing Demonstration grant. 

The federal funding, which is administered in partnership by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice (DoJ), will be used by RICH and SF to partner with housing non-profits and private organizations to help house 160 chronically homeless individuals in Rhode Island for five years.  The PFS program is the first of its kind in Rhode Island, and will require grantees to successfully achieve the goals of the program in order to receive payment for the services provided.

The PFS grant will help RICH and SF conduct an initial feasibility study and leverage Rhode Island’s payments to develop a PFS program that will have a significant, positive impact on homeless populations and Permanent Supportive Housing models.  The goal of the program is to develop a model that successfully breaks the cycle and reduces the costs of homelessness and recidivism.

“I commend the Rhode Island Coalition for the Homeless and their partners and I am proud to support this innovative financing model,” said U.S. Senator Jack Reed, the Ranking Member of the Senate Appropriations Transportation, Housing and Urban Development (THUD) Subcommittee, who strongly supported the joint application submitted by the Rhode Island Coalition for the Homeless and Social Finance.  “This is a smart, efficient investment in measurably improving the lives of homeless individuals while striving to generate savings for taxpayers.  These federal funds will help the Rhode Island Coalition for the Homeless provide critical housing and support services.  This Pay for Success approach will leverage community resources to provide supportive housing, mental health, and addiction services to one hundred and sixty chronically homeless individuals in Rhode Island.”

The Pay for Success program offers new financing to test cost-effective strategies aimed at helping people cycling between the criminal justice and homeless service systems.  In addition, this demonstration will offer a new source of financing to support Permanent Supportive Housing for the reentry population.

RICH has been a leading advocate for Permanent Supportive Housing in Rhode Island for years.  Social Finance is one of the first organizations in the U.S. dedicated to providing Pay for Success intermediary services, with directly relevant experience assessing the feasibility of the program, and designing and launching Pay for Success programs. For this program, RICH will contribute deep regional experience across the state, expertise in Permanent Supportive Housing programming, and a network of local service providers, while SF will contribute national expertise on structuring and implementing PFS projects.

Rhode Island was one of several states to receive Pay for Success funding from HUD and DoJ’s initial pool of $8.7 million in demonstration grants.