Ending Family Homelessness: An Opportunity for Pay-for-Success Financing

This Urban Institute brief analyzes how a pay-for-success model could help solve family homelessness. Family homelessness remains high, and the authors believe that political will and arbitrary budget divisions stand in the way of solving this problem. Using a pay-for-success model allows state and local governments to overcome these challenges. In a pay-for-success project, an investor provides the upfront funding to a program, and if the program can achieve positive outcomes, then the investor can get their money back plus a potential positive return. The brief describes how such a model has been used for other housing interventions, such as housing vouchers and permanent supportive housing, and describes the benefits and complexities of a pay-for-success project.