Pay for Success (PFS) Permanent Supportive Housing (PSH) Demonstration

The Department of Justice (DOJ) and HUD are partnering to advance Pay for Success (PFS), a new, promising model for financing services that can attract additional, non-traditional sources of funding. The Consolidated Appropriations Act, 2014 (Pub. L. 113-76) and the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235) authorized DOJ to make funds available for a PFS initiative implementing the PSH model for a population continuously cycling between the criminal justice system and homeless services. DOJ and HUD entered into an interagency agreement that designates HUD as the agency responsible for implementing the PFS Demonstration, and through this NOFA, HUD is making $8,679,000 available.

What is Pay for Success?

PFS is an innovative financing model that leverages philanthropic and private dollars to provide assistance up front, with the government paying after they generate results. Unlike programs structured around processes rather than measurable results, PFS provides greater flexibility for state, local and tribal governments to implement evidence-based solutions, carefully test promising innovations, and scale programs that work.

PFS Demonstration Objectives

The DOJ/HUD PFS Demonstration is an opportunity to test the effectiveness of using a PFS financing model to fund Permanent Supportive Housing (PSH) using a Housing First approach for the target population: people experiencing homelessness with frequent contact with the criminal justice, homeless services, and health care systems.

Visit this page regularly for important updates and reminders and to access supporting resources for the PFS Demonstration application as they become available.