What does a social impact investment look like for financing supportive housing interventions?

Social impact investment provides a new and innovative way to finance supportive housing by creating a formal partnership between:

  • Institutional and philanthropic investors that provide the needed upfront capital;
  • State or local government that repays the investment and provides a return only when the intervention succeeds based on agreed upon metrics;
  • Housing and service providers that work closely with the target population to ensure that each individual can select the housing and service options that best meet their needs;
  • A third-party evaluator that determines whether the agreed upon metrics have been met; and,
  • An intermediary that identifies and coordinates the partners together and oversees the effort for the long term.

In effect, the partnership provides the financial resources, technical expertise, and community capacity to deliver the intervention upfront, with government reimbursements coming after proven success.

Read about the Concept of Social Impact Investment and Supportive Housing.

The chart below illustrates how this approach works.

Social Impact Investment_FlowChart







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