Cities experiment to reduce homelessness with “pay for success” finance

Source: Carey L. Biron, Reuters, February 1, 2018
 
Although he had tried to find a home during that time, he was discouraged by the paperwork and process. But shortly after Easter last year, a social worker contacted him and said he had been selected to participate in a new housing program.  “Within two weeks, I had a place to stay,” Cushinberry told the Thomson Reuters Foundation from Denver. “They gave me housing first, and then we tried to work out all the other kinks in my life.”  The program is one of a rising number of initiatives around the world bringing together government departments, service providers, foundations, banks, pension funds and more to address complex social problems.  The key innovation is how they these programs are financed.  Rather than rely on handouts by cash-strapped governments, private investors step in to provide money through a financing tool known as a social impact bond. …