There’s an exciting opportunity bubbling up in the Pay for Success world. New legislation, the Social Impact Partnership to Pay for Results Act (SIPPRA), promises to expand outcomes-oriented private-public partnerships by providing up to $100 million in federal funding. LISC’s Pay for Success program manager, Anna Smukowski, takes a look at previous examples of public-private partnerships that were designed to serve low-income communities and dives into how SIPPRA can help scale PFS.
September 15 marks the beginning of Hispanic Heritage Month. To celebrate, we’re spotlighting the extraordinary staff and clients of the Latin American Youth Center, a longtime LISC partner in Washington, D.C. In its 50 years, LAYC has welcomed and served 27,000 youth, many of them recent immigrants, helping connect them to education, mentors, housing, work, mental health services and each other. This kind of work makes an enormous difference in young lives and in our communities, and we’re honored to be part of it: we’ve invested nearly $2 million in LAYC’s people and programs, including financing the purchase of the group’s home base in the Columbia Heights neighborhood.
Up to 50 percent of chronically homeless adults are estimated to have been homeless as youth, yet little research has been done to study youth homelessness. With that in mind, LISC’s Pay for Success team is working to scale up a promising program in the Washington, DC area. Working with the Latin American Youth Center, this PFS project will take LAYC’s Promotor Pathway Model®, an evidenced-based case management program designed for disconnected and disengaged youth facing multiple obstacles, to the next level.
At the recent Opportunity Finance Network annual conference in D.C., LISC and partners hosted a panel that dove into the ins and outs of underwriting Pay For Success transactions. Borrowing strategies from traditional debt financing, the panelists walked the audience through the special considerations that can make for a successful Pay For Success deal.
Through the Pay for Success model, LISC is working with the National Kidney Foundation of Michigan to scale an evidence-based lifestyle change program to reduce the prevalence of Type 2 diabetes. One of three LISC Pay For Success projects, the goals of the Michigan program are potentially game-changing: find effective healthcare interventions that reduce short- and long-term healthcare costs at the same time.