Social Impact Investing

US
Massachusetts: The second of two pilots launched by the Commonwealth of
Massachusetts in 2012 addresses the issue of chronic homelessness. In this Pay for
Success model, Third Sector Capital Partners will partner with the Massachusetts
Housing and Shelter Alliance (MHSA), lead intermediary for a chronic homelessness
project, as well as the Corporation for Supportive Housing and United Way. The
Massachusetts Housing and Shelter Alliance represents nonprofit housing organizations
that provide housing and support services, such as medical care and vocational
training. The consortium will try to raise the number of housing units it provides to
around 600 from 220. Through the social innovation financing contract, MHSA and its
partners plan to expand MHSA’s Home & Healthy for Good (HHG) low-threshold
housing initiative. HHG has demonstrated that the often traumatic and undertreated
health conditions which beset chronically homeless individuals are better treated after a
person gains the basic level of stabilization that permanent housing provides. In addition
to successfully housing those often considered the hardest to serve, HHG has
demonstrated significant cost savings to the Commonwealth.
Australia
Australia's second Social Impact Bond focused on chronic homelessness was launched
on 21 December 2017 by the Victorian Minister for Housing, Disability and Ageing. The
SIB will be focused on three cohorts of 60 individuals, providing rapid housing and
wrap-around, individualised, case-management support for three years each. The SIB
provides expansion capital for Sacred Heart Mission's 'Journey to Social Inclusion'
program which had previously been through pilot testing. Lead external advisors for this
SIB deal were Latitude Network.
Health
US
Fresno, CA: In April 2013 Social Finance US and Collective Health launched an
asthma management demonstration project in Fresno, California. This two-year project
is designed to prove the effectiveness of up-front investment in asthma management,
by focusing on solid evidence and performance measurement. Fresno is one of the
nation’s asthma hot spots; around 20 percent of its children have been diagnosed with
the disease, which takes an especially heavy toll among poor communities. Two service
providers with proven track records, Central California Asthma Collaborative and Clinica
Sierra Vista, will work with the families of 200 low-income children with asthma to
provide home care, education, and support in reducing environmental triggers ranging
from cigarette smoke to dust mites. Social Finance expects that the program will
produce meaningful cost savings and quality of life improvement for these children, and
will deploy rigorous data collection and analysis techniques to prove its effectiveness.
This proof-of-concept project will build a foundation for the first health-focused Social
Impact Bond, and will pave the way for future SIB opportunities in the health arena.
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