IMPACT INVESTING TO REDUCE AND PREVENT …...2Impact Investing to Reduce and Prevent Youth...

SEPTEMBER2016

IMPACT INVESTING TO REDUCE AND PREVENT YOUTH HOMELESSNESS IN NEW SOUTH WALESWRITTEN BY THE SOCIAL IMPACT HUBIN COLLABORATION WITH THE MERCY FOUNDATION

© Social Impact Hub Pty Ltd, 2016. Some rights reserved.

Creative Commons Attribution 3.0 Australia Licence

Except where otherwise noted the material presented in this document is provided under a

Creative Commons Attribution 3.0 Australia licence

creativecommons.org/licenses/by/3.0/au. Licence conditions are on the Creative Commons

website as it is the legal code for the CC BY 3.0 AU licence

creativecommons.org/licenses/by/3.0/au/legalcode.

Social Impact Hub

Project Officer & Lead Author: Henry Cornwell

Researchers: Daniel Schwartz, James Oughton, Romi Bacher, Silje Remme and Hui Yang

Supervisors: Jessica Roth, Sally Garis and Kylie Marks

Expert Reviewer: Emma Tomkinson

Mercy Foundation

Chief Executive Officer: Felicity Reynolds

Manager, Projects and Communications: Sue Mowbray

We gratefully acknowledge the advice of Social Ventures Australia.

This report was designed by Gavin Tong.

For any questions about this report, please contact [email protected].

The information contained in this document does not constitute legal or financial advice and should not be construed as such.

1

ImpactInvestingtoReduceandPreventYouthHomelessnessinNewSouthWales

PREFACE

TheSocialImpactHubbringsuniversitystudentstogetherwithindustry,not-for-profits,socialenterprisesandfoundationstodevelopandconductappliedprojectsinfieldsofsocialimpactunderthesupervisionofindustryexperts.Thisinnovativeprogramaimstofosterthenextgenerationofsocialchangeagentswhileprovidingnot-for-profitsandsocialenterpriseswithaccesstohighquality,industry-standardconsulting,policy,research,advocacyandadvisoryservices.Inadditiontoworkingdirectlywithsocialenterprisesandnot-for-profits,theSocialImpactHubhasalsoundertakenanumberofthoughtleadershipprojects,suchastheFieldGuidetoImpactInvestingforAustralianCharitableTrustsandFoundations.TheMercyFoundation,whichwasestablishedin1990bytheNorthSydneySistersofMercy,iscommittedtosocialjusticeandsince2008ithashadaspecificfocusonhomelessness.TheMercyFoundationsupportsnewandinnovativeinitiativeswhichendorpreventpeople’sexperienceofhomelessnessandhasaspecialinterestintheimplementationofbetterpolicy,systems,serviceandhousingresponses.TheMercyFoundationworksinpartnershipwithotherorganisationstoadvocate,toresearchandtohelpdrivenewapproachesthatwillhelpbringanendtohomelessnessinAustralia.WhentheNSWOfficeofSocialImpactInvestmentreleaseditsStatementofOpportunitiesin2015,itidentifiedpreventingorreducingyouthhomelessnessasoneoffourpriorityareas.Bothorganisationswereexcitedbythepotentialofimpactinvestingtochallengetheexistingcharitablemodelsofserviceprovisionandachievebetteroutcomes.However,webelieveitisveryimportantthatthedevelopmentofanyimpactinvestmentmechanismbeinformedbytheevidence–particularlyfrominternationalexperiences.ThiscollaborationbetweentheSocialImpactHubandtheMercyFoundationisawonderfulexampleofcross-sectorco-operation.StudentsfromUNSWledtheresearchandwritingofthereport,aspartofcompletinganelectivecourseattheSocialImpactHub.WealsoexpressourthankstoSocialVenturesAustraliaforsharingitsinsights.Wehopethatthisreportisusefulforthoseserviceprovidersworkingtoendorpreventyouthhomelessnessandareactivelyconsideringwhetherimpactinvestmentissuitableforthem.Wealsohopethatthishelpsinformthedevelopmentphaseofthesocialimpactbondscurrentlyunderway.Ultimately,wehopeitinspiresandassistsnewimpactinvestmentsthatcanhelppreventorreduceyouthhomelessness.

JessicaRoth FelicityReynoldsFounder&Director ChiefExecutiveOfficerSocialImpactHub MercyFoundation

2


EXECUTIVESUMMARYTheNewSouthWalesGovernmenthascommittedtotwosocialimpactinvestmenttransactionsperyear.In2015,itidentifiedreducingorpreventingyouthhomelessnessasapriorityarea.

Eachyear,12,000peopleagedunder25presentalonetospecialisthomelessservicesinNSW.WhilstthisnumberrepresentsaboutaquarteroftheState’shomelesspopulation,thetruenumber,includingthosewhomaybecouchsurfingorsurvivingwithoutassistancefromhomelessservices,isevengreater.Aswellasdamagingyoungpeoples’relationships,physicalandmentalhealth,andprospectsofthrivingineducationandfindingemployment,youthhomelessnessdrasticallyincreasestheriskofchronichomelessnessinadulthood.

Socialimpactinvestmentmodelssuchassocialimpactbondsandpaymentbyresultshavethepotentialtofacilitateandscalethefundingofinnovativehomelessnessservicesthatcaninterruptyoungpeoples’trajectoriestowardshomelessness,andofferthesupporttheyneedtoflourish.WhilepatientcapitalandinvestmentpoolingvehiclessuchasRealEstateInvestmentTrustshavethepotentialtofundthedevelopmentandpurchaseofaffordablehousing,itisthepotentialmechanismsforfundingsupportprogramsthatarethefocusofthisreport.

Inthelastfouryears,NorthAmericaandtheUnitedKingdomhavepioneeredtheuseofsocialimpactbondstotacklehomelessness.Asthoseinvestmentsreachandapproachtheirterms,theyoffervaluableinsightsthatcouldinformtheapproachtakenforayouthhomelessnessbondinNSW.Aboveall,thoselessonsstresstheimportanceof:

! significantscopeforgovernmentsavings;

! strikingabalancebetweeninnovationandriskmitigation;

! measurability;

! settingrealistictargets;

! measuringsuccessacrossabroadfieldofoutcomes;

! sharingriskandopportunitybetweenmultipleserviceproviders;

! astrategyforrespondingtodifficultcases;

! aconducivepolicyandeconomiccontext;

! co-operationbetweenstakeholders;

! attentiontotheendoftheproject’stermanditslegacy;and

! aviablehousingsolutionforbeneficiariesduringandafterthetermoftheintervention.

ThereareyouthhomelessnessservicescurrentlyoperatinginNSWthatcouldbenefitfromreplicationandscalingthroughanimpactinvestment.ThisreportconsiderstheFoyermodelandKidsUnderCoverstudiohousingmodelasespeciallypromisingmodelsforrealisingtheNSWGovernment’sobjectiveofpreventingorreducingyouthhomelessnessthroughanimpactinvestment.

3


TABLEOFCONTENTS1. IntroductionandBackground........................................................................5 2. SocialImpactInvestmentConcepts ...............................................................8

2.1 OutcomesFocusedGrants.............................................................................8 2.2 PaymentbyResults.......................................................................................8

2.3 SocialImpactBonds(SIBs).............................................................................9 2.4 LayeredInvestments .....................................................................................9

2.5 AustralianRealEstateInvestmentTrusts(A-REITs)........................................9

2.6 SocialInvestmentTaxRelief(SITR)..............................................................10 2.7 PatientCapital ............................................................................................10

3. YouthHomelessnessinNSW .......................................................................12 3.1 DefiningHomelessness ...............................................................................13 3.2 TheDifferencebetweenYouthHomelessnessandGeneralHomelessness ..13

3.3 DriversofYouthHomelessness ...................................................................16 4. InternationalHomelessnessImpactInvestmentModels..............................20

4.1 UnitedKingdom ..........................................................................................22 4.1.1 HomelessnessintheUnitedKingdom.............................................................. 22

4.1.2 UnitedKingdomHomelessnessSIBs ................................................................ 23

4.1.3 TheYouthEngagementFund ........................................................................... 35 4.1.4 SITR................................................................................................................... 35

4.2 UnitedStatesofAmerica.............................................................................36

4.2.1 HomelessnessintheUnitedStatesofAmerica................................................ 36 4.2.2 UnitedStatesofAmericaHomelessnessSIBs .................................................. 36

4.2.3 LowIncomeHousingTaxCredits(LIHTC) ......................................................... 40

4.2.4 RealEstateInvestmentTrusts(REITs) .............................................................. 42 4.3 Canada........................................................................................................43

4.3.1 HomelessnessinCanada .................................................................................. 43

4.3.2 CanadianHomelessnessSIBs............................................................................ 43 4.4 Ireland ........................................................................................................44

5. ImpactInvestmentforNewSouthWales ....................................................46 5.1 LessonsforNewSouthWales......................................................................47 5.2 FoyerHousing .............................................................................................54

5.3 KidsUnderCover:StudioHousing ...............................................................57 5.4 Conclusion ..................................................................................................60

4


INTRODUCTION AND BACKGROUND

CHAPTER 1

5


1. INTRODUCTIONANDBACKGROUNDTheNewSouthWalesGovernment(theGovernment)iscommittedtoreducinghomelessnessinNewSouthWales(NSW).

Ithasidentifiedyoungpeople,whoareover-representedinthehomelesspopulation,asaprioritygroupforpreventionandearlyinterventioninordertoaddresstheproblemsthatleadtohomelessnessbeforetheyariseorbecomeentrenched.Accordingly,theGovernmenthasexpressedinterestinexploringthepossibilityofdevelopingasocialimpactinvestmentmechanismtotargetacohortofhomelessorat-riskyoungpeople.Inparticular,ithasidentifiedyoungpeopleleavingout-of-homecareandotherhigh-riskgroupsasappropriatetargets.1

TheGovernmenthassaidthattheultimateoutcomesoughtthroughasocialimpactinvestmentmechanisminthisareaisthepreventionorreductionofhomelessnessamongyoungpeople.2

RelatedoutcomestheGovernmenthasidentifiedasappropriateformeasurementinclude:3

! thepercentageofparticipantsengagedinemploymentoreducationprograms;

! thepercentageofparticipantswhopresenttoemergencydepartmentsandthenumberofpresentations;

! thepercentageofparticipantswhohavecontactwiththejusticesystem;and

! anincreaseinthementalwellbeingoftheparticipantsmeasuredthroughadevelopmentallyappropriatestandardisedtool.

InJune2015,theGovernmentreleaseditsprinciplesforsocialimpactinvestmentproposals.Theyare:4

1. Robustmeasurement.Therearethreeessentialelementsofameasurementframework,namelyclearandreliableoutcomemeasures,awell-definedclient(or‘intervention’)groupandrobustmethodstodetermineperformance(ideallya‘control’groupwithsimilarcharacteristics).

2. Valueformoney.Obviously,theexpectedbenefitsneedtooutweighthecosts.Itisimportanttoidentifythenatureofbenefits(cashsavings,avoidedcosts,productivitygains,orothers),aswellasthebeneficiariesandthetimingofbenefits.

3. Aservicelikelytoachievesocialoutcomes.Thismeansevidenceoranalysistosupportthelikelihoodoftheservicedeliveringoutcomes,aswellas

4. Appropriatesharingofrisksandreturns.5. Afocusonhighprioritysocialproblems.

1NSWGovernmentOfficeofSocialImpactInvestment,‘2015StatementofOpportunities’(Report,February2015),13–15. 2Ibid. 3NSWGovernmentOfficeofSocialImpactInvestment,‘MarketSounding:PreventingorReducingHomelessnessAmongYoungPeople’(9March2015).4NSWGovernmentOfficeofSocialImpactInvestment,‘PrinciplesforSocialImpactInvestmentProposalstotheNSWGovernment’(June2015).

6


ThisreportexploresthepossibilitiesforimplementingsocialimpactinvestmentstopreventandreduceyouthhomelessnessinNSW.Itdoesthisfirstbydefiningimpactinvestment,anddescribingsomeimpactinvestmentconceptsthatmightassistinthedevelopmentofayouthhomelessnessinterventionforNSW.ItthenprovidesanoverviewofyouthhomelessnessandhowitmanifestsinNSW.Then,itconsidersanumberofhomelessness-targetedsocialimpactinvestmentsthathavebeenimplementedintheUnitedKingdom(UK),theUnitedStatesofAmerica(US)andCanada,andtheirlessonsandinsightsforNSW.Finally,itproposesconsiderationoftwoprovenmodelsforaddressingyouthhomelessnessthatcouldbetrialledandimplementedinNSW.

7


SOCIAL IMPACT INVESTMENT

CONCEPTS CHAPTER 2

8


2. SOCIALIMPACTINVESTMENTCONCEPTSTheterm‘impactinvestment’firstemergedduringagatheringofleadersattheRockefellerFoundation’sBellagioCentrein2008,andwasfurtherestablishedbytheMonitorInstitute’s2009report,InvestingforSocialandEnvironmentalImpact.5Impactinvestmentsintendtodeliverbothafinancialandasocialorenvironmentalreturn.Thisdifferentiatesimpactinvestmentfromphilanthropy,whichdoesnotseekafinancialreturn,andregularinvestmentmechanisms,whichdonotnecessarilyseektohaveapositivesocialimpact.6

Socialimpactinvestingcanfosterentrepreneurshipandinnovationbyprovidingsocialenterprisesandnot-for-profitswithaccesstofinanceandsupportinthemainstreamfinancialmarket.Innovativeapproachestosocialimpactinvestingcanbenefitcommunitiesbycreatingmarketsfortheprovisionofnewservices,infrastructureandjobs.Importantlyforinvestors,theycancreateopportunitiestoinvestinaccordancewiththeirvalues.Byaccessingtherightopportunitiesandimplementingprojectscarefully,governmentscanspendmoreeffectivelyintargetareasandmeasureoutcomesmoreclearly.Not-for-profitscanbuildontheirsuccessesbyscalingtheiroperations.

ThischapteroutlinessevensocialimpactinvestmentconceptsthatmightinformthedevelopmentofanimpactinvestmentdirectedatyouthhomelessnessinNSW.

2.1 OUTCOMESFOCUSEDGRANTSOutcomesfocusedgrantsareofferedbygovernmentsorfoundationsseekingserviceorprojectdeliverybasedontheachievementofmeasurableoutcomes,ratherthanthecosttotheserviceproviderornumberornatureofitsoutputs.Outcomesfocusedgrantsrequiretheprojectorservice’ssuccesstobeevaluatedaftercompletion,thecostofwhichmayhavetobefactoredintothegrant.Benefitsbeyondtheproject’simmediateoutcomescanincludecontributiontocostanalysesofsocialoutcomes,thesocialsector’scapacitytocollectandevaluatedata,andamoresophisticatedevidencebasefordevelopingsocialpolicy.TheMercyFoundation’s‘GrantstoEndHomelessness’isanexampleofacharity-runoutcomefocusedgrantprogramdirectedataddressingchronichomelessness.7

2.2 PAYMENTBYRESULTSPaymentbyresultscontractsinvolvegovernmentagreeingtopayserviceprovidersonlyfortheachievementofagreedresults,placingboththeincentiveforefficiencyandthefinancialriskofunderperformanceontheserviceprovider.Thismayrequiretheserviceprovidertofundtheprojectfromitsownresources.Alternatively,workingcapitalcanberaisedfromprivatesourcesorarisk-weightedgovernmentpayment.Ifpaymentfortheoutcomesachievedbytheserviceproviderexceedsthecostofdelivery,theserviceprovidercanreinvestits‘profits’intheproject,ordirectthemtowardsotherprojects.Provisionsmandatingareinvestmentschememaybeincorporatedintothecontract.

5JessicaFreireichandKatherineFulton,‘InvestingforSocialandEnvironmentalImpact:ADesignforCatalyzinganEmergingIndustry’,(Report,MonitorInstitute,2009).6RosemaryAddis,JohnMcLeodandAlanRaine,‘IMPACT–Australia:Investmentforsocialandeconomicbenefit’,(Report,AustralianGovernmentDepartmentofEducation,EmploymentandWorkplaceRelations,March2013).7MercyFoundation,GrantstoEndHomelessness<https://www.mercyfoundation.com.au/grants/index.cfm?loadref=19>.

9


2.3 SOCIALIMPACTBONDS(SIBS)ASIB(termedsocialbenefitbondinNSW)isoneformofpaymentbyresultswherebythegovernmentandserviceproviderscontractwithinvestorstofundtheserviceup-front,toberepaidfromlatergovernmentpayments.TheSIBaimstoachievespecifiedoutcomeswhilstyieldinggovernmentsavings.InthecaseofahomelessnessSIB,theprojectmightaimtoseepeopletransitionintostablehousingandemployment,yieldingsavingsinthecostofsocialhousing,welfare,interactionswiththejusticesystemandpresentationathealthcareservices.ThegovernmentmaycontractwithanintermediarytobrokertheSIB,whichwillraisecapitalfrominvestorstofundtheproject.Theserviceproviderwillrepayinvestorsupontheirachievementofagreedoutcomes,usuallywithareturnthatincreasesrelativetotheachievementofoutcomes.Variablesincludewhetherthegovernmentguaranteestheprincipalinvestment,whetherthereisacaponreturnstoinvestors,andwhetherpaymentistobeincrementalorlumpsum.Throughouttheservicedeliveryperiod,anevaluationadviserwillusuallymonitorprogressandadviseserviceprovidersonstrategiesformeetingperformancetargets.Atcompletion,anindependentevaluatorassessestheseachievements.

SIBscanencourageinnovationbygivingserviceprovidersgreaterfreedomandincentivestoachieveoutcomes.However,settingabaselineandrateforrepaymentrequiresaccuratedataonthetargetoftheinterventionandanabilitytoadequatelypredicttheproject’schancesofsuccess.InordertobeanappropriateinterventionforaSIB,aprojectshouldbemoreeffective,yieldagreaterimpactandprovideahighersavingsrateforgovernmentthanexistingprograms.Programswillalsoideallybescalableandreplicable.Manyexamplesofthesearediscussedinchapterfour.

2.4 LAYEREDINVESTMENTSLayeredinvestmentsarepooledinvestmentsstructuredtodisrupttheriskprofileadoptedbyeachinvestor,sothatsometakegreaterriskandahigherreturn,whileotherstakelessriskforalowerreturn.Typically,layeredinvestmentswillbeadoptedinordertoencouragegreaterinvestmentinapotentiallyhigh-riskprojectthatwillachieveasocialorpolicyend.Governmentorphilanthropicinvestorstakeonthelessattractiveinvestment,offeringamoreacceptablerisk-rewardprofileforindependentandcommercialinvestors.Thegovernmentorphilanthropiccapitalthuscatalysesthecreationofalargeraggregatedpoolofinvestment.8

2.5 AUSTRALIANREALESTATEINVESTMENTTRUSTS(A-REITS)

A-REITSarelistedonthestockexchangeandtradedlikeothersecurities.Theygiveindividualinvestorsaccesstopropertyassetsthatmayotherwisebeoutofreachforanindividualinvestor,generatingwealththroughrentalincomeandtheassets’capitalgrowth.9A-REITSmaybesuitableforimpactinvestmentforthedevelopmentofpublicorsocialhousing,whereareturncouldbegeneratedthroughrentalincomethatispaidorsubsidisedbytheGovernmentratherthantenants.ThiswouldlimitriskforinvestorsandcreatesavingsfortheGovernment,whowouldotherwisehavetoprovidethefullfundingforthesocialdevelopment.

8Addis,McLeodandRaine,aboven6,37.9ASX,A-REITs(2016)<http://www.asx.com.au/products/managed-funds/areits.htm>.

10


2.6 SOCIALINVESTMENTTAXRELIEF(SITR)SITRisaUKpolicyinitiativetoencourageimpactinvestmentbydrivingdownthecostofcapitalforsocialenterprises.Forlenderstoselectedprograms,thegovernmentofferstaxreliefthatreconcilesinvestmentinprojectsthatwouldotherwisebeunacceptablyhigh-risk.Inthisway,SITRintheUKhasencouragedinvestmentinsocialenterprisesseekingsubstantialloansbutwhichareunwillingtopaymorethan3%to6%interest,withnoassetstoofferassecurity.10SITRcanbeusedinconjunctionwithotherimpactinvestmentmechanisms,ashasbeenseeninitsusetoattractinvestorstoAmbitionEastMidlandsSIBdiscussedbelowat4.1.2.1.SITRisalsodiscussedfurtherat4.1.4.

2.7 PATIENTCAPITALPatientcapitalisfinanceprovidedbyprivatesectorinvestorsforasocialpurposeunderconditionsthatofferalowerrateofreturnsandrepaymentoveranextendedschedule.IntheUSithasbeenusedbynot-for-profits,socialenterprisesanddeveloperstoattractfundingaffordablehousingdevelopments,11overcomingthedifficultysocialenterprisesoftenfaceinattractingconventionalfinance.12Investorsacceptgreaterriskandslowerrepaymentthanatraditionallendingagencyorbank,andthesocialenterprisecreatesafinancialandsocialreturnforinvestorsthroughthecashflowsgeneratedfromthehousingdevelopment.13

Table2.1:SocialImpactInvestmentConceptssummarisesthemodelsdiscussedinthischapterandtheirbenefitstogovernment,investorsandserviceproviders.

10UKGovernment,SocialInvestmentTaxRelief<https://www.gov.uk/government/publications/social-investment-tax-relief-factsheet/social-investment-tax-relief>.11NewJerseyGovernment,‘AGuidetoAffordableHousingFundingSources’(October2008)31–34.12SocialEnterpriseFund,HowWeHelp<http://socialenterprisefund.ca/?page_id=14>.13NewJerseyCommunityCapital<http://www.newjerseycommunitycapital.org>.

11


Table2.1:SocialImpactInvestmentConcepts

Concept TransactionBenefittoGovernment

BenefittoInvestors

BenefittoServiceProviders

Outcomesfocussedgrants

Government/philanthropistoffersgrantstoserviceprovidersachievingparticularoutcomes

Directsserviceprovidertowardsoutcomes;createsopportunitiesfordatacollectionanddevelopingbestpracticeandpolicy

N/A Encouragesefficiencyandinvestmentintoresearchandmeasurement

Paymentbyresults

Governmentpaysserviceproviderforachievingoutcomes

Governmentpaysonlyforoutcomes,notunnecessaryoutputsandinefficiency;providescertaintyovercostefficiency

N/A Encouragesefficiencyandinvestmentintoresearchandmeasurement

SIBs Governmentpaysinvestorsuponserviceprovidersachievingoutcomes

Createssavings;drivesinnovation;outsourcesrisktoinvestors

Createsopportunitytoinvestinaccordancewithvalues;ifselectivelyappliedandcarefullyimplemented,canyieldprofit

Drivesinnovation,encouragesinvestment,createsopportunitiestoscale

LayeredInvestments

Investorsredistributerisk

Encouragesprivateinvestmentinpriorityareas

Createsopportunitytoinvestinaccordancewithvalueswithcommerciallyacceptableriskprofile

Encouragesinvestment

A-REITS Investorspoolinvestmentsintrusts

Canbeharnessedforinvestmentinpublicandsocialhousing

Createsopportunitytoinvestinsafecommodity

Encouragesinvestment,enablesscale

SITR Governmentreimbursesinvestorsforinvestinginpriorityareas

Encouragesprivateinvestmentinpriorityareas

Createsopportunitytoinvestinaccordancewithvalueswithcommerciallyacceptableriskprofile

Enablesborrowingfromsocialimpactinvestorsatlowerinterestrates

PatientCapital

Investorsagreetohigherriskandaslowerrepaymentschedule

Noneedforgovernmentinvolvement.However,governmentcanencouragethisasamodelforattractingprivateinvestmentinpriorityareas

Createsopportunitytoinvestinaccordancewithvalues

Encouragesinvestment

12


YOUTH HOMELESSNESS

IN NSW CHAPTER 3

13


3. YOUTHHOMELESSNESSINNSW3.1 DEFININGHOMELESSNESSTheAustralianBureauofStatistics(ABS)definesapersonashomelesswhentheircurrentdwellingisinadequate,whentheyhavenotenureoverit,orwhenitdoesnotallowthemtohavecontrolofandspaceforsocialrelations.14

HousingNSWhasidentifiedthreetypesofhomelessness:primaryhomelessness,whichreferstopeoplewhosleeprough;secondaryhomelessness,whichreferstopeoplewhoareconstantlymovingthroughoutshelters;andtertiaryhomelessness,referringtopeoplewhodonotliveinalease-securedaccommodationordonothaveaccesstoprivatefacilities.15InadevelopedcountrysuchasAustralia,thislattercategoryisthemostprominentformofhomelessness,andisoftenoverlookedinanalysisandpolicy.

AccordingtotheABSCensusof2011,NSWhadahomelesspopulationof28,190,or40.8foreverytenthousandpeople.16

3.2 THEDIFFERENCEBETWEENYOUTHHOMELESSNESSANDGENERALHOMELESSNESS

TheABShasacknowledgedthedifficultyindelineatingyouthhomelessnessandidentifyingthosetowhomitapplies.Thisdifficultyhasvariouscauses,includingdivergenceinopinionastowhetheritshouldincludeonly12-18yearoldsorbeextendedtoinclude12-24yearolds.Additionally,thefactthatyoungpeoplewhoarehomelessand‘couchsurfing’mayneverthelessreportaprimaryresidenceintheCensusmakesthemdifficulttodistinguishfromyoungpeoplewhoaresimplyvisitingafriendonCensusnight.17Forthesereasons,aswellasdifferencesinpriorityandfocus,differentorganisations’andagencies’analysisofyouthhomelessnesswillsometimesdiffermarkedlyintheiridentificationoftheyouthhomelesspopulations’sizeandproportionrelativetogeneralhomelesspopulations.

Unlessotherwisestated,thispaperappliestheterm‘youthhomelessness’topeopleaged12-24yearsoldwhoarecurrentlyexperiencinghomelessness.18Muchoftheanalysisanddiscussionwillalsoapplytoyoungpeopleinthatagebracketwhoareatriskofbecominghomeless.

14AustralianBureauofStatistics,‘InformationPaper–AStatisticalDefinitionofHomelessness’(No4922.0,4September2012)7.15NSWGovernment,‘AWayHome:ReducingHomelessnessinNSW–NSWHomelessnessActionPlan2009–2014’(2009)5.16AustralianBureauofStatistics,‘CensusofPopulationandHousing:EstimatingHomelessness’(No2049.0,12November2011)12.17AustralianBureauofStatistics,Factsheet:YouthHomelessness(4September2012)4922.0-InformationPaper-AStatisticalDefinitionofHomelessness,2012http://www.abs.gov.au/ausstats/[email protected]/Latestproducts/4922.0Main%20Features42012?opendocument&tabname=Summary&prodno=4922.0&issue=2012&num=&view=.18ThisdefinitionissimilartoMissionAustralia’sconceptof“ChildandYouthHomelessness”:MissionAustralia,‘Home&Away:ChildandYouthHomelessnessReport’(February2016)10.ItdepartsfromtheAustralianGovernment’sInstituteofHealthandWelfare’s(AIHW)definition,whichispeopleaged15–24yearsoldwhoarecurrentlyhomelessorcurrentlyatriskofbecominghomeless:AustralianGovernmentAIHW,‘SpecialistHomelessnessServices2011–2012’(2012)42.In‘YouthHomelessnessinAustralia2006’,theAustralianGovernmentDepartmentofSocialServicesdefinestheagebracketas12–18yearsofage:DavidMacKenzieandChrisChamberlain,‘YouthHomelessnessinAustralia2006’(AustralianGovernmentDepartmentofSocialServices,2008)vii.

14


YoungpeopleareoverrepresentedinAustralia’shomelesspopulation.Ofthe105,237homelesspeopleinAustralia,42%areundertheageof25,19and60%areunder35.20AccordingtoMissionAustralia,over85%ofAustralia’shomelessyoungpeoplespenttimecouchsurfingbeforetheageof18.AmongstyoungAustralianswhoarenotcurrentlyhomelessandwhoweresurveyedbyMissionAustralia,38%havecouchsurfedatsomepoint.21

Eachyear,12,000peopleagedunder25presentalonetospecialisthomelessservicesinNSW,representingaboutaquarteroftheState’shomelesspopulation.22From2011-2014,theproportionofpeoplepresentingalonetospecialisthomelessnessservicesinNSWwhowereaged15-25increasedslightly,from23.3%to23.5%.23

Youngpeoplefaceparticularrisksandchallengeswhenhomelessbeyondthosefacedbythehomelesspopulationgenerally.AccordingtoMissionAustralia:

Youngpeople’sexperiencesofhomelessnessinAustralia,includingisolation,fearandtrauma,havemanysimilaritiestothoseofothergroups,buttherearedifferentpatternsandcausesofchildandyouthhomelessness,inpartduetoitshiddennature,anddifferentwaysofpreventingandrespondingtoit.24

Foryoungpeople,homelessnesscanresultindisruptedschoolingandpoorereducation,health,emotional,behaviouralanddevelopmentaloutcomes.25Itcanalsodamagesupportnetworks,communityconnectionsandfamilybondsduringformativeyearsoftheirlives.26Alloftheseimpactsmayhavelong-termconsequences,andmaymakehomelessyoungpeoplemorevulnerabletorepeatperiodsofhomelessnessthroughouttherestoftheirlives.27Australia’sfirstnationallongitudinalstudyinvestigatingtheeconomic,personalandsocialcostsofyouthhomelessnessovertimefoundthatonlyonethirdofhomelessyoungpeopleovertheageof18havecompletedyear12.2890%areunemployed,andthevastmajoritywereonsomeformofincomesupportarrangement.29

InformationfromtheAustralianInstituteofHealthandWelfareindicatesthatcomparedwiththeoverallpopulationofpeopleaccessingspecialisthomelessservicesin2013-2014,youngpeoplepresentingweremorelikelytoneedassistancewithlivingskillsandpersonaldevelopment(35%comparedwith21%),education(19%comparedwith9%),employment(16%comparedwith7%)andtraining(13%comparedwith5%).30

Significantly,experienceofhomelessnessasayoungpersonhasbeenidentifiedasamajordeterminantoflongertermhomelessnessforadults.31Justoverhalfoftheunder25yearoldsinAustraliawhoarehomelesssleptroughforthefirsttimebeforetheyturned18.32

19HomelessnessAustralia,‘HomelessnessinAustralia’(FactSheet,January2016).20AustralianBureauofStatistics,‘CensusofPopulationandHousing:EstimatingHomelessness’,aboven7.21MissionAustralia,aboven18,3.22NSWGovernmentOfficeofSocialImpactInvestment,‘MarketSounding:PreventingorReducingHomelessnessAmongYoungPeople’,aboven3.23Ibid,3.24MissionAustralia,aboven18,10.25AustralianGovernmentAIHW,‘SpecialistHomelessnessServices2011–2012’,aboven9,42.26MissionAustralia,aboven18,3.27AustralianGovernmentAIHW,‘SpecialistHomelessnessServices2011–2012’,aboven9,42.28PaulFlatauetal,‘TheCostofYouthHomelessnessinAustraliaStudy’(SnapshotReportNo1,17February2015)4.29Ibid6.30AustralianGovernmentAIHW,‘SpecialistHomelessServices2013–2014’(15Dec2014).31AustralianGovernmentAIHW,‘YoungPeoplePresentingAlone’(2015)<http://www.aihw.gov.au/homelessness/specialist-homelessness-services-2014-15/presenting-alone/>32Flatauetal,aboven28.

15


MissionAustraliaidentifiesthattheinterestsofmosthomelessyoungpeoplearebestservedbyreturningtotheirfamilies.Whenthisisnotsafeorappropriate,theirageorotherneedswilloftenrequirethemtoentertheout-of-homecaresystem.Itrecommendsthatapproachessupportyoungpeopletoengageineducationandemployment,andtoprogresstowardsindependentliving.33

Relativetotheiroldercounterparts,asmallerproportionofhomelessyoungpeopleneedlongtermhousingwithintensivesupportandagreaterproportionneedshorttermsupportwithaffordablehousing(seeInsightBox3.1).

InsightBox3.1:YouthHomelessnessinSydney34

HomelessnessNSW’sInnerCityRegistryWeekidentified516homelesspeopleeitherroughsleepingorincrisisaccommodation,boardinghousesortemporaryaccommodationintheSydneyLocalGovernmentArea.35(7%)ofinnerSydney’shomelesspeoplewerereportedtobeundertheageof25.Homelessyoungpeopleweresignificantlymorelikelytohavehadinteractionswithpoliceovertheprevioussixmonths,amassing1228interactionsovertheprevioussixmonths,comparedto9,200forthegeneralpopulation.Datafromtheweekshowedthatinordertoexithomelessness,35%ofSydney’shomelesspopulationwouldrequirelongtermhousingwithintensivesupport,potentiallyfortherestoftheirlives,51%wouldrequireshorttermsupportandaffordablehousing,and14%wouldrequireaffordablehousingwithminimal,ifanysupport.Bycomparison,inordertoexithomelessness,29%ofyounghomelesspeoplewouldrequirehousingwithintensivesupport,insomecasesforthedurationoftheirlives,60%wouldneedshorttermsupportwithaffordablehousing,and11%wouldrequireonlyhousing.

33MissionAustralia,aboven18.34HomelessnessNSW,‘InnerCitySydneyRegistryweek2015Report’(Report,February2016)5–6,10–11,20.PotentialdiscrepanciesbetweenthesefiguresandthosereportedbytheAustralianBureauofStatistics,aboven16andMissionAustralia,aboven18,3,maybetheresultofmethodologicaldifferences,asRegistryWeekstatisticsmayreflectgreateraccesstoyoungpeoplesleepingroughthanthoseexperiencingothertypesofhomelessnessininnercitySydney.

16


3.3 DRIVERSOFYOUTHHOMELESSNESSTheFederalGovernmentWhitePaper,‘TheRoadHome’35describesfourmainpathwaystohomelessness:

! Housingstress,oftendrivenbypovertyandaccumulateddebt;

! Familybreakdown,particularlydrivenbydomesticviolence;

! Poorlifetransitions,particularlyoutofthechildprotectionsystem,prisonorstatutorycare;and

! Untreatedmentalhealthandsubstanceusedisordersthatleadtothelossofhousing,education,employment,familyandotherrelationships.

Overcrowdingwasalsoidentifiedasafactor,particularlyamongstIndigenouspeople.36Researchshowsthatcrampedlivingconditionsharmfamilyrelationships,negativelyaffectchildren’seducationandcausedepression,stressandanxiety.

ThepathwaysthatleadyoungpeopleintohomelessnesstodayremainsimilartothoseidentifiedbytheBurdekinreportin1989,whichfoundfamilybreakdown,conflict,andpovertywerethemajorfactorsdrivingayoungpersonoutofhome.37

In2015,PaulFlatauetalidentifiedfamilyviolenceandleavingout-of-homecareastheprimarydriversofyouthhomelessness.38TheGovernment’srecognitionoftheimportanceofsecurityandstabilityforchildreninout-of-homecareisreflectedinitsApril2016announcementofitsinterestindevelopinganimpactinvestmenttoincreasethepermanencyofchildren’splacementsinoutofhomecare.39

AccordingtoFlatauetal’slongitudinalstudyintoyouthhomelessnessinAustralia,

Aroundone-quarterof[youngpeople]whoranawayfromhomeduetoviolencebetweenparentswenttorelatives,32%wenttofriendswhile20%wenttothestreetorpark(sleptrough).Thelatterfindingunderlinesthestrongrelationshipbetweenviolenceinthefamilyhomeandearlyonsetroughsleeping.40

Inthe2014–2015financialyear,41,780youngpeopleweresupportedbyspecialisthomelessnessservicesinAustralia.52%ofthemwerehomeless.Themostcommonreasonstheyreportedforseekingassistancewerehousingcrisis,domesticandfamilyviolence,andfamilyorrelationshipbreakdowns.4139%ofhomelessyouthreportpolicehavingcometotheirhomesonmorethanoneoccasionbecauseofviolencebetweentheirparentsorcarers.56%reportedthattheyhadlefthomeonatleastoneoccasionbecauseofviolencebetweentheirparentsorcarers.42

35 AustralianGovernment,‘TheRoadHome:ANationalApproachtoReducingHomelessness’(Report,December2008),24.36Ibid2,6,17,50.37BrianBurdekin,‘Ourhomelesschildren:reportofthenationalinquiryintohomelesschildren’(Report,AustralianHumanRightsandEqualOpportunityCommission,1989). 38Flatauetal,aboven28,8,9.39NSWGovernmentOfficeofSocialImpactInvestment,‘2016StatementofOpportunities’(Report,April2016),4–6. 40Flatauetal,aboven28,9.41AustralianGovernmentAIHW,‘YoungPeoplePresentingAlone’,aboven20.42Flatauetal,aboven28,8.

17


MissionAustraliacorroboratesFlatauetal’sfindingthatyoungpeopleareparticularlyvulnerabletohomelessnesswhenleavingout-of-homecare.43TwothirdsofhomelessyoungAustralianswereplacedinsomeformofout-of-homecarebeforeturning18.Bycomparison,childreninout-of-homecarecompriselessthan1%ofallAustralianchildren.44

Oftenyoungpeopleseetheirrelationshipwithparentsorotherparentfiguresascentraltotheircapacitytoremainathome.45Theconnectiontofamilyisstillimportanttoyoungpeopleevenwhenfamilyconflictordisruptionhasledtohomelessness.AccordingtoDrPhilCrane,amajorityofhomelessyoungpeoplewouldprefertostayathomeifanacceptabledegreeofsafetyandsecuritycouldbeprovided.46Unfortunatelythisisnotalwaysthecaseforyoungpeopleinhomesunderphysicaloremotionalstress,oftenleadingtohomelessness.

ChamberlainandJohnsonhaveidentifiedthatonceyoungpeoplefindthemselveshomeless,‘socialadaptation’drivesthedevelopmentofhomelessnessintochronichomelessness.Oncehomeless,youngpeoplebegintoformbondsandasenseofbelongingwithotherhomelessyouthwhohavesufferedsimilarexperiencestothem.Thesesocialtiesassistthemtodevelopsurvivalstrategieswhichcanconflictwithattemptstotransitionintostablehousing.Substanceabusecanemergeasawayofdealingwithstress,andriskbecominghabitual.Thesefactorsmakeitincreasinglydifficulttoescapefromhomelessnessandcanformpartofthepathwaytochronicadulthomelessness.47

ChamberlainandJohnsonemphasisethatsocialadaptationdoesnotrepresentanembraceofhomelessnessasawayoflife,butratherapragmaticapproachtosurvival.Inordertopreventsocialadaptationtohomelessnessfromtakinghold,itmustbedisruptedbyeffectiveeducational,psychological,relationship,housing,and,whereappropriate,employmentsupport.48Earlyinterventionthatsupportsyoungpeopletoaddresstheirsocialandpsychologicalneeds,completetheireducationandtraining,andultimatelyfindstableaccommodationandemployment,isthereforeessentialforaddressingyouthhomelessness.

MissionAustraliaarguesthatinordertoaddresstheproblemofyouthhomelessnessinAustralia,earlyidentificationofchildrenandyoungpeopleatriskofbecominghomeless,specialistsocialandpsychologicalsupport,adequatefinancialsupportandopportunityandaffordablehousingmustbeprioritised(seeInsightBox3.2).

43MissionAustralia,aboven18.44Flatauetal,aboven28,8.45Crane&Brannock(1996,p.vii)46Ibid,2.47ChrisChamberlain,andGuyJohnson,‘FromYouthtoAdultHomelessness’(2008)43(4)AustralianJournalofSocialIssues563.48Ibid.

18


InsightBox3.2:MissionAustralia’sprioritiesforaddressingyouthhomelessnessinAustralia49

MissionAustraliahasrecentlycampaignedforapolicyobjectiveofhalvinghomelessnessby2020whilsttheAustralianAlliancetoEndHomelessness(AAEH),ofwhichtheMercyFoundationisamember,iscontinuingtocampaignforgovernmenttoendchronichomelessness.MissionAustraliahasidentifiedthefollowingprioritiesforadoptionbygovernmentandNGOsaspotentiallyinstrumentaltoaddressingyouthhomelessness:

! Earlyidentificationofchildrenandyoungpeopleatriskofbecominghomeless,withparticularattentiontochildrenandyoungpeopleleavingout-of-homecare,includingby:

-rollingouttheschools-basedyouthhomelessnessidentificationandinterventionmodelpioneeredbyTheGeelongProjecttohigh-riskcommunities;-introducingyouthoutreachprogramstoallhigh-riskcommunities;and-adoptingazero-toleranceapproachtoyoungpeopleleavingtheout-of-homecaresystembecominghomeless;

! Placementofyouthspecialistsinhomelessnessserviceswhocanlinkyoungpeopletoothersupportservicesandhousing;

! Prioritisingprovisionofcrisisaccommodationtochildrenandyoungpeoplefacingdomesticandfamilyviolence;

! Providingsupportivehousingforunder-18yearoldswhocannotbereconnectedwiththeirfamilies,includinginFOYER-stylemodels;

! Consideringsocialhousingforyoungpeoplewhocanliveindependently;

! Makingaffordablehousingavailabletoyoungpeopleontheprivaterentalmarket;

! Atargetof200,000netnewsocialhomesby2025;

! Anetyear-on-yearincreaseinsocialandaffordablehousingineachstateandterritory;

! Adequatelevelsofwelfarepayments,increasingtheYouthAllowanceandCommonwealthRentAssistance;and

! Inclusionaryzoningtorequiresupportive,socialandaffordablehousinginkeydevelopmentsites.

49Source:MissionAustralia,aboven18,8.FormoreinformationontheGeelongProject,seetheGeelongProject(2013)<http://www.thegeelongproject.com.au>.FormoreinformationontheReconnectProject,seeAustralianGovernmentDepartmentofSocialServices,Reconnect(22March2016)<https://www.dss.gov.au/families-and-children/programmes-services/reconnect>.

19


INTERNATIONAL HOMELESSNESS

IMPACT INVESTMENT MODELS

CHAPTER 4

20


4. INTERNATIONALHOMELESSNESSIMPACTINVESTMENTMODELSHavingdescribedsomesocialimpactinvestmentconceptsandoutlinedtheyouthhomelessnesslandscapeinNSW,thisreportwillnowdrawinsightsfromimpactinvestmentprojectsintheUK,theUSA,andCanada.ThiswillprovidethebasisforconsiderationofsomepossibleapplicationstoyouthhomelessnessprogramsinNSW.

TheUK,theUSAandCanadaarepioneeringtheuseofimpactinvestmentmechanismstopreventandreducehomelessness.ThischapterdescribestheirapproachesbeforeconsideringtheirapplicabilitytotheAustraliancontextandlessonswecanlearnfromoverseas.

Inparticular,weexaminehomelessnessprogramsusingtheSIBmodel.Asonlyonefund,theUKGovernment’sFairChanceFund,haslaunchedSIBsaimedexclusivelyatyouthhomelessness,thechapterconsiderseverySIBtoaddresshomelessnessthathasbeenimplementedtoMay2016.

ItshouldbenotedthatotherSIBs,suchasThinkForward,aLondonyouthunemploymentSIB,andrecidivismSIBssuchastheMassachusettsJuvenileJusticePayforSuccessInitiativeandEngland’sONEService,affecthomelessnessamongbeneficiaries,astheyaddressunderlyingsocialandindividualdrivers.TheyaredescribedinsomedetailintheBrookingsInstitute’sreportonSocialImpactBonds,ThePotentialandLimitationsofImpactBonds,50whichhasbeenaprimaryresourceindevelopingthischapter.

Table4.1:OverseasHomelessnessSIBssummarisesthevalueandsizeoftheSIBsdiscussedinthischapter.

50EmilyGustafsson-Wright,SophieGardinerandVidyaPutcha,‘ThePotentialandLimitationsofImpactBonds:LessonsfromtheFirstFiveYearsofExperienceWorldwide’(Report,BrookingsInstitute,July2015).

21


Table4.1:InternationalHomelessnessSIBs51

SIB Jurisdiction Size Investment*

LocalSolutions(FairChanceFund)

UK(LiverpoolandKnowsley)

Approximately130younghomelesspeople

£550,000

YourChance(FairChanceFund)

UK(Manchester,Oldham,RochdaleandGreenwich)


£620,000

HomeGroup(FairChanceFund)

UK(Newcastle,Northumberland,SouthTyneside,NorthTyneside,Gateshead,DurhamandSunderland)


£498,000

FusionHousing(FairChanceFund)

UK(Kirklees,CalderdaleandWakefield)


£940,000

AmbitionEastMidlands(FairChanceFund)

UK(LeicestershireandDerbyshire)


£600,000

AspireGloucestershire(FairChanceFund)

UK(Gloucestershire) Approximately150younghomelesspeople

£310,000

RewritingFutures(FairChanceFund)

UK(Birmingham,Coventry,Solihull,Walsall,andWyreForest)


£1,030,000

StreetImpact(LondonHomelessnessSIB)

London 416persistentroughsleepers £650,000

ThamesReachAce(LondonHomelessnessSIB)

London 415persistentroughsleepers Notpubliclyavailable

PartneringforFamilySuccessProgram

CuyahogaCounty,Ohio 135recentlyhomelessfamilies US$4million

ChronicIndividualHomelessnessPayforSuccessInitiative

CommonwealthofMassachusetts

Upto800chronicallyhomelessadults

US$24.5million

DenverSocialImpactBond

Denver 250chronicallyhomelesspeople US$8.63million+US$15million)

SweetDreams Saskatoon,Saskatchewan

22singlemothersofchildrenundereightwhoareatriskofrequiringchildandfamilyservices,andtheirchildren

CA$1million

51Ibid.Gustafsson-Wright,GardinerandPutcha’sreportingofaSIB’svalueisnotadjustedforthecontributionofgovernmentdepartmentsandagenciesandotherstakeholdersnotpartytotheSIB.TheextenttowhichaSIBreliesonexistingservices,andwhetherthecontributionofthoseservicesareincludedinthecalculationofaSIB’svalueaccountsforsomeofthediscrepancyintheSIBs’reportedvalue.

22


4.1 UNITEDKINGDOM4.1.1 HomelessnessintheUnitedKingdomIntheUK,thenumberofindividualssleepingroughhasincreasedeveryyearsince2010.Between2014and2015,England’sroughsleeperpopulationroseby30%to3,569people.52InSeptember2015,nearly69,000householdswereintemporaryaccommodationincouncilsacrossEngland,a13%increaseonthepreviousyear.53

AccordingtotheCentreforSocialImpactBonds,80,000(52%)ofthoseseekinghelpwithhomelessnessareundertheageof25andmakeupoverhalfofthoselivinginhomelessnessaccommodationservices.54

Moreover,60%ofyounghomelesspeopleintheUKarenotineducationortraining.Despitetheirefforts,localcouncilshavesucceededinpreventingonlyoneinfivecasesofyouthhomelessness.55AccordingtoDeniseHatton,NationalSecretaryandCEOofYMCAEngland,

Ourownresearchshowsthatninein10ofourYMCAshavebeenunabletoacceptreferralsinthepastduetoalackofbedspaceswhileevidencealsoshowsthatroughsleepinginLondonamong18to25-year-oldsisontherise.56

ThecostofhomelessnesstotheUKGovernmentisestimatedatapproximately£1billionannually,notincludingthefullrangeofindirectcostssuchashealthorbenefitexpenditure.57AccordingtothePrince’sResponsibleBusinessNetwork,eachhomelesspersononbenefitswhocouldbeconsidered‘readyforwork’coststhegovernmentapproximately£26,000perannum.58

AddressinghomelessnessbecameaclearpriorityfortheUKGovernmentin2014.Thatyear,itannouncedplanstospend£470million(aroundAU$906million)overthefollowingfouryearsonhomelessnessprevention.59Keyinitiativesinclude:

! NoSecondNightOut,whichfocusesonprovidingarapidresponsetofirst-timeroughsleeperssothattheydonothavetosleepoutforasecondnight;

! StreetLink24/7,awebsite,hotlineandappthatfacilitatesreportingroughsleepingtohomelessnessservices;

52HomelessLink,RoughSleeping–ExploretheData<http://www.homeless.org.uk/facts/homelessness-in-numbers/rough-sleeping/rough-sleeping-explore-data>.53UKGovernmentDepartmentforCommunitiesandLocalGovernment,‘StatutoryHomelessness:JulytoSeptemberQuarter2015England’(StatisticalRelease,17December2015).54UKGovernmentCabinetOfficeCentreforSocialImpactBonds,FairChanceFund<https://data.gov.uk/sib_knowledge_box/fair-chance-fund>.55Ibid.56AndrewBurnsandTheoHooper,‘UKBudget2016:CharitiesCondemn“Short-Term”SolutionstoHomelessness’,TheBigIssue(online)16March2016<http://www.bigissue.com/the-mix/news/6373/uk-budget-2016-charities-condemn-short-term-solutions-to-homelessness>.57UKGovernmentDepartmentforCommunitiesandLocalGovernment,‘EvidenceReviewoftheCostsofHomelessness’(Report,August2012).58BusinessintheCommunity,‘MakingWork,Work’(Report,January2009)2.59UKGovernment,‘GovernmentExpandingSupporttoBeatHomelessness’(PressRelease,10June2014).

23


! TheHomelessnessTransitionFund,aprogramadministeredbyHomelessLinkthatbetween2011and2014provided£20millioningrantsto175projectsinordertoimplementNoSecondNightOut,developotherinnovationstoendroughsleeping,andprotectandenhanceessentialhomelessnessservicesthroughsupportingbusinessdevelopmentactivitiestobecomesustainable;60and

! the£16millionYouthEngagementfund,whichwaslaunchedtoaiddisadvantagedyoungpeoplenotineducation,employmentortraining(NEET),andtohelppeopletoavoidfallingintothissituation.Fundedprogramssupportupto18,000peoplebetween14and17acrossmorethan100schoolsinEngland.61

4.1.2 UnitedKingdomHomelessnessSIBsTheUnitedKingdominventedsocialimpactbondsandhasoneofthemostadvancedlegislativeandpolicyframeworksforsupportingthem.LiketheNSWGovernment’sDepartmentofPremierandCabinet’sOfficeofSocialImpactInvestment,theUKPrimeMinister’sCabinetOfficehoststheCentreforSocialImpactBonds,taskedwithguidingdevelopingSIBs,sharinginformationonoutcomes-basedcommissioningandsupportingthegrowthofthesocialinvestmentsector.62InNovember2012,theCabinetOfficelauncheda£20millionSocialOutcomesFundtocontributetoSIBswheregovernmentsavingsaccrueoveranumberofdepartments.63

4.1.2.1 FAIRCHANCEFUNDTheCentreforSocialImpactBondslaunchedtheFairChanceFundinDecember2014.TheprogramcommencedinJanuary2015andwillcontinueuntilDecember2018.Withabudgetof£10millionfromtheDepartmentforCommunitiesandLocalGovernmentand£5mfromtheCabinetOffice,thefundinghasledtothecreationofsevenregionalSIBs.Theseaimtotackleyouthhomelessnessbyimprovingthelong-termsituationsof18-24yearoldswhoarenotineducation,employmentortraining,byassistingthemintoaccommodation,educationortraining,andsustainedemploymentorvolunteering.64

Thefundingallowsserviceproviderstodevelopsolutionsthatcanbetailoredtolocalcontextsandtheindividualbeneficiary’sneeds.Localauthoritiesareresponsibleforreferringbeneficiariestoserviceproviders.65

Inadditiontoachievingdirectoutcomesforbeneficiaries,theCentreforSocialImpactBondsidentifies‘Greatersavingsfor[centralandlocal]governmentfromlowerdependencyonaccommodationandcareservices’,andgreaterpublicrevenue‘asaresultoftheindividual’semployment’astheSIBs’directsocietalimpacts.Moreover,itishopedthattheseSIBswillsparkinnovativesolutionstoyouthhomelessness,andprovideamodelforsimilarprojectsinthefuture.66

60HomelessnessTransitionFund,‘Threeyearsoftransition:TheHomelessnessTransitionFund2011to2014’(Evaluationsummary,2015).61UKGovernment,‘£30millionboosttoimprovethelivesofBritain'smostvulnerableyoungpeople’(PressRelease,30April2014).62UKGovernmentCabinetOfficeCentreforSocialImpactBonds,FairChanceFund,aboven54;Gustafsson-Wright,GardinerandPutcha,aboven50,33.63Gustafsson-Wright,GardinerandPutcha,aboven50,33.64UKGovernmentCabinetOfficeCentreforSocialImpactBonds,FairChanceFund,aboven54.65Ibid.66Ibid.

24


TheSIBs’investorsincludeBridgesVentures,SocialEntrepreneursFund(contributorstobothfundsincludeBigSocietyCapital,theEuropeanInvestmentFund,DeutscheBankSocialInvestments,J.P.MorganSocialFinance,BridgesCharitableTrust,ThePrince’sCharities,OmidyarNetwork,Panahpur,EsmeeFairbairnFoundation,HighwoodFoundation,theU.K.CabinetOffice,Nesta,TrustforLondon,GreaterManchesterPensionFund,andMerseysidePensionFund),theKeyFundandMontpellierFoundation.SocialFinanceUK,Numbers4GoodandTriodosBankUKhaveprovidedadvisoryservices.67

Inordertobeeligiblefortheprogram,beneficiariesmustbeaged18-24(21-24iftheindividualspenttimeinstateout-of-homecarewhileunderage18),notineducation,employmentortraining,homeless,asdefinedinhomelessnesslegislation,butnotinpriorityneed,andapriorityforlocalauthoritysupportbutunabletobeaccommodatedinasupportedhousingscheme.YoungpeopleinpriorityneedbutdeemedintentionallyhomelessmayalsobesupportedatthediscretionoftheLocalAuthority.68

Serviceprovidersbecomeentitledtopaymentuponbeneficiariesachievingassessment,accommodation,entryintotrainingoreducation,andentryintofulltimeemploymentorlongtermvolunteering(seeTable4.2:FairChanceFundPaymentModel),asevaluatedbydatasubmittedbyserviceprovidersandvalidatedbydatatheDepartmentforCommunitiesandLocalGovernment.Itisworthnotingthatthesemilestonesdonotneedtobecomparedtoanythingelsebeforepaymentsaremadebygovernment.Theydonotdependonacalculationofwhatmighthavehappenedintheabsenceoftheprograms.

TheDepartmentforCommunitiesandLocalGovernmentpaysforachievementofeachoutcomebyeachbeneficiary.69Outcomepaymentsareinitiallyrecycledtocontinueservicedelivery,beforebeingrepaidtoinvestors.Serviceproviderswereinvitedtobidtodelivertheprojectforlessthanthestipulatedmaximumpayments.Thelevelofbiddiscountwasfactoredintothebidscoringmechanismtodecidewhichbidderswereawardedcontracts.70

Eachtypeofoutcomecanonlybeclaimedonce,andthetotalvalueofoutcomepaymentsclaimableforsupportprovidedtoanindividualparticipantislimitedto£17,000.ThereisalsoacapontotaloutcomepaymentsfromtheDepartmentforCommunitiesandLocalGovernmentforeachproject.71

Unlessotherwisenotedinthediscussionbelow,repaymentsaremadequarterlybytheDepartmentforCommunitiesandLocalGovernmentandtheCabinetOffice,andrepaymentstoinvestorsaremadeasandwhenapprovedbyprojectleadership.72

BesidesHomeGroup,forwhichinvestorsare90%liable,investorsareliableforthefullamountoftheirinvestment.SocialFinanceUKandTriodosBankhavebeenintermediariesinmanyoftheSIBsimplementedthroughtheFairChanceFund,variouslybysupportingorganisationstodeveloptheirbids,raisecapitalanddelivertheirservices,andbyplayingongoingadvisoryroles.73

67UKGovernmentCabinetOfficeCentreforSocialImpactBonds,FairChanceFund,aboven54;Gustafsson-Wright,GardinerandPutcha,aboven50,88–100.68UKGovernmentDepartmentforCommunitiesandLocalGovernmentandCabinetOffice,‘FairChanceFund:FullBidSpecificationDocumentation’(Bidspecificationdocumentation,June2014)9.69Ibid,20.70Gustafsson-Wright,GardinerandPutcha,aboven50,89–91.71Ibid.72Ibid,50,88–89.73Ibid88–100.

25


TheseSIBsarecurrentlyintheirearlyphases,andnoinformationontheirprogressisyetpubliclyavailable.TheirlessonswillbesalienttoanypotentialSIBaddressingyouthhomelessnessinNSW.EachFairChanceFundSIBisdiscussedbelow.

Table4.2:FairChanceFundPaymentModel74

Assessment(Canbeclaimedwithin9monthsofregisteringanindividualontothescheme)

InitialAssessmentFee £500

SecondAssessment £500

ThirdAssessment £200

Maximumassessmentfeepayment £1,200

Accommodation

Moveintoaccommodation £500

Accommodationsustainedfor3months £1,500




Maximumtotalaccommodationpayment £6,500

EducationandTraining

EntryintoEducationorTraining £500

Individual’sfirstEntrylevelqualification(includingMathsand/orEnglish)

£1,500

Level1Qualification £2,500

Individual’sfirstfulllevel2orequivalent £3,500

Maximumtotaleducationpayment £8,000

74Source:UKGovernmentDepartmentforCommunitiesandLocalGovernmentandCabinetOffice,‘FairChanceFund:FullBidSpecificationDocumentation’aboven68,20–21.

26


VolunteeringandEmployment

6weeksvolunteering(6to16hrs) £500




EntryintoEmployment £500

13weeksP/TEmployment £3,000


13weeksF/TEmployment £4,500


Maximumtotalemploymentpayment £15,000

LocalSolutions

TheLocalSolutionsSIBhasbeenimplementedinLiverpoolandKnowsley,NorthWestEngland,supportedbya£550,000investment.Approximately130youngpeopleareexpectedtoparticipateintheprogram.Theinterventionconsistsprimarilyofsupportworkersprovidingintensiveone-on-onesupporttohelpclientsfindaccommodation,progressineducationortraining,andattainfulltimeemploymentorlongtermvolunteering.Theprojectisbeingdeliveredinclosecollaborationwithalocaleducationalcollege.

YourChance

YourChancehasbeenimplementedbyDePaulUKinManchester,OldhamandRochdale,NorthWestEnglandandGreenwich,GreaterLondon,supportedbya£620,000investmentbyinvestorsincludingtheMontpelierFoundation.Approximately180youngpeopleareexpectedtoparticipateintheprogram.AswithLocalSolutions,theinterventionconsistsprimarilyofsupportworkersprovidingintensiveone-on-onesupporttohelpclientsfindaccommodation,progressineducationortraining,andattainfulltimeemploymentorlongtermvolunteering.

HomeGroup

TheHomeGroupSIBhasbeenimplementedinNewcastle,Northumberland,SouthTyneside,NorthTyneside,Gateshead,DurhamandSunderland,NorthEastEngland,supportedbya£498,000investmentbyNorthstarVentures,forwhichitis90%liable.Approximately230youngpeopleareexpectedtoparticipateintheprogram,whichaimstoprovideaccommodation,education,volunteeringandemploymentopportunities.

FusionHousing

TheFusionHousingSIBhasbeenimplementedinKirklees,CalderdaleandWakefield,YorkshireandtheHumber,supportedbya£940,000investmentbyBridgesVentures,afundwhosecontributorsincludeBigSocietyCapital,theEuropeanInvestmentFund,DeutscheBankSocialInvestments,JPMorganFinance,ThePrince’sCharities,OmidyarNetwork,andmanyothers,andtheKeyFund.

Approximately261youngpeopleareexpectedtoparticipateintheprogram.Theprojectaimstoestablishthreemulti-disciplinarysupportteamsbasedatahubineachlocalauthority.

27


Theteamsprovidearangeofservicestailoredtotheindividualclient’sneeds,includingsupporttomaintaintenancy,educationtrainingortrainingforemployment.

AmbitionEastMidlands

AmbitionEastMidlandshasbeenimplementedinLeicestershireandDerbyshirebyP3(PeoplePotentialPossibilities),TheYinLeicester,andYMCADerbyshire.Approximately340youngpeopleareexpectedtoparticipateintheprogram.LikeLocalSolutionsandYourChance,theinterventionconsistsprimarilyofsupportworkersprovidingintensiveone-on-onesupporttohelpclientsfindaccommodation,progressineducationortraining,andattainfulltimeemploymentorlongtermvolunteering.Theprojectisalsobeingdeliveredinclosecollaborationwithalocaleducationalcollege.

TheSIB’sseniorinvestmentis£330,000fromKeyFundandBigIssueInvest.Retailinvestors,qualifyingforSITR,contributed£150,000.P3,TheYinLeicester,andYMCADerbyshiremadeanequityinvestmentof£120,000.

Theseniorinvestmentisdebtwithasetinterestrate(whichisnotpubliclyavailable).KeyFundandBigIssueInvestmayalsoreceiveasmallvariableprofit-share‘kicker’,payableattheendoftheprogramdependingonperformance,forwhichSITRinvestorsarenoteligible.

TheSITRinvestmentalsotakestheformofadebtinstrument.ItranksbehindtheKeyFundandBigIssueInvestloan,butaheadoftheequitycontributedbyP3,TheYinLeicesterandYMCADerbyshire.TheequityinvestorswillbepaidwhatremainsintheSpecialPurposeVehicleaftertheseniorinvestorshavebeenrepaid,soreturnscouldvarywidelydependingontheproject’ssuccess.

Inadditiontothe£17,000caponoutcomepaymentsperclaimant,thereisalsoa£2.95millioncapontotaloutcomepaymentsfromtheDepartmentforCommunitiesandLocalGovernment.Notallofthatamountwouldgotoinvestors,aspartofitwouldbereinvestedintheprogramitself.75

AspireGloucestershire

AspireGloucestershirehasbeenimplementedinSouthWestEnglandbyP3andCountyCommunityProjects.Approximately150youngpeopleareexpectedtoparticipateintheprogram,whichwillhelptoplacethemwithexternalhousingproviders,andtoconnectthemwithemploymentandeducationservices.

CAFVenturesomehaveinvested£205,000,andretailinvestorsbenefittingfromSITRhaveinvested£45,000intheSIB.P3andCCPhaveinvested£60,000inequity.

CAFandtheretailinvestors’investmentisadebtinvestmentwithasetinterestratewhichisnotpubliclyavailable.CAFmayalsoreceiveasmallvariableprofit-share“kicker”payableattheendoftheprogramdependentonperformance,forwhichtheSITRinvestorsarenoteligible.

TheSITRinvestmenttakestheformofadebtinstrumentrankingbehindtheCAFloanbutaheadoftheP3andCCPequity.

OutcomepaymentsareclaimedquarterlybyCAFVenturesomeandtheretailinvestorsinarrears.Lendersaretoberepaidatprogramcompletion,althoughdebtholdershavearighttoearlyrepaymentincertaincircumstances.Equityinvestorsarerepaidatcompletion.

75Gustafsson-Wright,GardinerandPutcha,aboven50,96–97.

28


Inadditiontothe£17,000caponoutcomepaymentsperclaimant,thereisalsoacapontotaloutcomepaymentsfromtheDepartmentforCommunitiesandLocalGovernmentof£1.45m.Onceagain,aswiththeAmbitionEastMidlandsSIB,partofthatamountwouldbereinvestedintheprogram.76

RewritingFutures

RewritingFutureshasbeenimplementedinBirmingham,Coventry,Solihull,Walsall,andWyreForest,WestMidlandsbyStBasils,supportedbya£1.03minvestment.Approximately300youngpeopleareexpectedtoparticipateintheprogram,whichisalsobasedonintensiveone-on-onesupportprovidedbysupportworkers,helpingclientstofindaccommodation,progressineducationortraining,andattainfulltimeemploymentorlongtermvolunteering.

4.1.2.2 LONDONHOMELESSNESSSOCIALIMPACTBOND(LONDONSIB)TheLondonSIB,commissionedbytheGreaterLondonAuthority(GLA)with£5millionfundingfromtheUKGovernment’sDepartmentforCommunitiesandLocalGovernment,waslaunchedinMarchandbeganoperationsinNovember2012.Pre-datingtheFairChanceFund,itranforthreeyears,withinvestorsrepaidoverfouryears.InitsSpendingReviewandAutumnStatement2016,theUKGovernmentannounceditwouldexpanditssupportforSIBs,77andinthe2016Budget,itannounceditwoulddoubleitsfundingfortheSIBto£10million.78Whileitisnotyetclearhowthisadditionalfundingwillbeutilised,theannouncement,alongwiththeimplementationoftheFairChanceFund,isaclearsignaloftheUKGovernment’ssatisfactionwiththeSIB.

TheGLAcommissionedhomelessnesscharitiesStMungo’sandThamesReachtodeliverfrontlineservicestoanamed,fixedcohortof831entrenchedroughsleepersinLondon.7948%ofthecohorthadanalcoholsupportneed,29%hadasubstancemisusesupportneed,and44%hadamentalhealthsupportneed.49%werenotUKcitizens.80TheLondonSIBwasdesignedtoaddressagapbetweenRS205,aprogramfocussedonadefinedcohortofentrenchedroughsleeperswithmorecomplexneeds,andNoSecondNightOut.81

Socialinvestors,includingCAFVenturesome,BigIssueInvestandtheOrpFoundationprovidedupfrontfunding.ReturnsoninvestmentstooktheformofoutcomespaymentsfromtheGLA,dueoncespecificoutcomeshadbeenachieved.82

76Gustafsson-Wright,GardinerandPutcha,aboven43,98–99.77UKGovernmentHMTreasury,PolicyPaper:Spendingreviewandautumnstatement2015(27November2015)<https://www.gov.uk/government/publications/spending-review-and-autumn-statement-2015-documents/spending-review-and-autumn-statement-2015>.78UKGovernmentHMTreasury,PolicyPaper:Budget2016(16March2016)<https://www.gov.uk/government/publications/budget-2016-documents/budget-2016>.79UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’(SecondInterimReport,March2015)2.80Ibid14.81Ibid.82TamsynRoberts,TheCentreforSocialImpactBonds(22October2013)UKGovernmentCivilServiceQuarterlyBlog<https://quarterly.blog.gov.uk/2013/10/22/the-centre-for-social-impact-bonds>.

29


TheLondonSIB’sgoalsweretoreducetheproportionofregularroughsleepersreturningtoLondon’sstreets,reduceadmissionstohospitalaccidentandemergencyunits,andtomoveroughsleepersintosettledaccommodationandemployment.83Successfuloutcomesweredeemedtoincludeassistedvoluntaryrepatriation,administrativeremovalordeportationfornon-UKnationalswherethatoutcomewasconsideredappropriate.84ThepaymentbyresultsstructureadoptedisoutlinedinTable4.3:LondonSIBPaymentModel.

Deliveryoftheprojectwasprecededbyafeasibilitystudythatfeatured‘awide-rangingconsultationandevidencereviewtoidentifyaneffectiveinterventionmodel.’85Themodelfocussedoneffectivepracticeratherthanadefinedintervention.

83UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79.84Ibid14.85Ibid4.

30


Table4.3:LondonSIBPaymentModel86

Accommodation

Initialaccommodation £700


Accommodationsustainedfor18months £3,000Reconnection(movebynon-citizentoanothercountry)

Initialreconnection £800

Sixmonths’reconnection £6,100

VolunteeringandEmployment

13weeksvolunteering/self-employment £200

26weeksvolunteering/self-employment £600

13weeksP/TEmployment £500



26weeksF/TEmployment £4,000EducationandTraining

Level2Qualification £400

Individual’sfirstfulllevel2orequivalent £3,500

ComparisontoBaselines

Paymentperindividualabovegivenbaselinenotseenroughsleepingingivenquarter

£3,800forfirstfourquarters,£2,400thereafter

Paymentperaccidentandemergencyserviceuseavoidedbeyondbaselineperyear

£100

Note:TheDepartmentofCommunitiesandLocalGovernmentpaidforoneormoreoutcomesperparticipant.Eachoutcomewasclaimableonlyonceperparticipant.Serviceproviderswereinvitedtobidtodelivertheprojectforlessthantheamountsstipulated,whichcontributedtothedeterminationoftheawardofthecontract.‘Baselines’areratesagreedbetweenstakeholders,improvementsuponwhichqualifyforpayment.

86Ibid16.

31


StreetImpact

StreetImpactwasimplementedbyStMungo’sBroadway,with£650,000infundingfromCAFVenturesome,theOrpFoundation,andotherindividualinvestors,anda£237,000subordinateinvestmentfromStMungo’sitself.Thefundswereinvestedthroughaspecialpurposevehiclewhichheldtheriskofunderperformance.St.Mungo’sBroadwaywastobepaidtheremainderofthespecialpurposevehicleaftertheseniorinvestorshadbeenrepaid.

Figure4.1:StreetImpactSIBStructure87

Theprojectwasaimeddirectlyat416persistentroughsleepersinLondon.Underthescheme,theDepartmentforCommunitiesandLocalGovernmentpaidStMungo’sBroadwayformeetingaccommodation,educationandemploymenttargets,aswellasreductionsinbeneficiaries’roughsleepinganduseofaccidentandemergencyservices.Outcomeswereevaluatedbyhistoricalcomparisonofdata.Eachparticipanthadhisorherownindividualinterventionplan,personalisedbudgetand“personalnavigator”,astaffmemberresponsibleforconnectingthemwithsituation-appropriateprograms.Thisprovidedamoreflexibleapproachthanexistingservices,andamorefocused,long-termrelationshipwithasingleadvocate.

OutcomepaymentswereclaimablefromtheDepartmentforCommunitiesandLocalGovernmentquarterlyinarrears.DebtinvestorswerepaidatprogramcompletionandStMungo’sasequityinvestorwaspaidatcompletion.88

87Ibid4.88Ibid3,4,14–18;Gustafsson-Wright,GardinerandPutcha,aboven50,80–81.

32


ThamesReachAce

ThamesReachAcewasimplementedbyThamesReach.ThamesReachfundeditsinterventionthroughunsecuredloansfromBigIssueInvest,theDepartmentofHealthSocialEnterpriseInvestmentFund,andotherindividuals,therebysharingtherisk.ThamesReachalsoinvesteditsownequity,toberepaidafterrepaymentofprincipalandinteresttoseniorinvestors.

Figure4.2:ThamesReachAceSIBStructure89

Theprojectwasaimeddirectlyat415persistentroughsleepersinLondon.AswithStreetImpact,theDepartmentforCommunitiesandLocalGovernmentpaidThamesReachformeetingaccommodation,educationandemploymenttargets,aswellasreductionsinbeneficiaries’roughsleepinganduseofaccidentandemergencyservices.Outcomeswereevaluatedbyhistoricalcomparisonofdata.Eachparticipanthadhisorherownindividualinterventionplan,personalisedbudgetandpersonalnavigator.

Attheendofitsfirstyear,ThamesReachreorganiseditsteamtoshiftitsapproachtosupportingclientswhohadreachedstableaccommodation.Twonavigatorsweremaderesponsibleforworkingwithroughsleepersandclientsinhostels,andtwoweremaderesponsibleforsupportingthoseinmoresettledaccommodation,assistedbythreeassistantsupportworkers.90

89UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79,4.90Ibid3,4,14–18;Gustafsson-Wright,GardinerandPutcha,aboven50,82–83.

33


EvaluatingtheLondonSIB

AlthoughthetermoftheLondonSIBiscomplete,itsfinalevaluationreporthasnotyetbeenreleased.Thereis,however,sufficientevidenceofitssuccessesandlessonstodrawoutsomepreliminaryinsights.

TheSecondInterimReport,releasedinMarch2015,reportedthatalthoughinsomequarterstargetswerenotmetacrossallmetrics,bytheendofthethirdquarteroftheproject’ssecondyear,252beneficiarieshadenteredstableaccommodation,including119for12monthsand33for18months,considerablybeyondthetargetsof201,82and18respectively.91Althoughprogresswasmadeovereachoftheothermetrics,targetswerenotmetinanyofthem.Healthdatawasnotavailable,asitsreleasewasobjectedtobytheHealthandSocialCareInformationCentre.92Onehundredandsixtytwomembersofthecohorthaddisappeared,and21haddied.93

Althoughthetargetedreductioninroughsleepingwassurpassedinthefirstyear,itwasnotmetinanyofthefirstthreequartersofthesecondyear.Nevertheless,thenumberofroughsleepersremainingwithinthecohortdroppedsignificantlyto134bytheendofthatquarter,representingaconsiderablereduction.Failuretomeetthetargetmayreflectmoreonthetargetitselfthantheachievementoftheserviceproviders.Accordingtothereport,‘Bothprovidersnotedthattheirtargetshadbeensetintheabsenceofcomprehensivedataaboutthecohortonwhichtobasetheirpredictions.’94Oneinvestorreportedthatperformancewastrendingtowardsaslightlyhigherreturnthanwasexpected.95Thiswaslargelyduetostrongachievementintheoutcomeofstableaccommodation,whichaccountedfor40%ofavailablepayments.96

AccordingtotheGLA’sUpdatePaper,bytheendofApril2015,89%ofparticipantswerenolongerseensleepingrough,andthenumberofparticipantsmovingintofulltimeemploymentandaccommodationwasexceedingpreliminarytargets.

However,someoftheproviders’initialtargets,specificallythosearoundreconnectionsabroadandparttimeworkorvolunteering,havenotyetbeenachieved.Performancearoundreconnectionshas,however,beenimprovingastheprojecthasprogressed.Inaddition,whilethenumbersmovingintoparttimeworkorvolunteeringhavebeenlowerthanexpected,thenumberssecuringfulltimeworkhavebeenhigher.97

91UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79,19–20.92Ibid21.93Ibid21.94Ibid21.95Ibid22.96Ibid6,31–32.97JamieRatcliff,‘SocialImpactBondforRoughSleepersUpdate’(PaperpresentedatGLAInvestmentandPerformanceBoardMeeting,18August2015)at[3.4].

34


BytheendofQuarter10oftheproject(theendofApril2015):98

! contacthadbeenmadewith87%ofthecohort;

! atleastoneofthestatedoutcomeshadbeenachievedfor402clients(48%ofthecohort);

! 380(46%ofthecohort)clientshadbeensupportedoffthestreets(accommodationorreconnection);

! therehadbeenacontinuedreductioninthenumberofclientsseenbeddeddown(11%ofthecohortseeninQ10);

! thenumbersmovingintoaccommodationandemployment(282and49respectively),andsustainingthese,hadexceededthetargetssetbyprovidersattheoutsetoftheproject;

! thenumberofreconnectionsabroadhadfallenshortoftheproviders’targets.However,performancewasimproving;

! broadly,peoplewithsupportneeds(alcohol,drugsandmentalhealth),includingthosewithhighsupportneeds,wereaslikelyasthosewithnosupportneedstohavemovedintoaccommodation,butarelesslikelytohavesecuredemployment.Non-UKnationalsweresignificantlymorelikelythanthosefromtheUKtohaveobtainedemploymentorqualifications.

TheGLAupdatenoted‘markeddifferencesbetweentheperformanceofthetwoproviders,withoneperformingbetterontheroughsleepingandreconnectionsoutcomesandtheotherperformingbetteronthoseforaccommodationandemployment.’99

InanundateddocumentavailablefromtheThamesReachwebsite,ThamesReachreportsthatfundingfromtheSIBallowedthecreationofpersonalbudgetsforeachbeneficiary,whichgave‘workersmoreautonomytospendmoneywithinagreedlimitssothatopportunities’,particularlyfleetingonessuchasaspaceinahotel,‘couldbeseizedpromptly.’Longerterm,theseallowedclient-specificexpenditureon,forexample,swimminglessonsforaclientdeterminedtoimprovetheirhealthaftergettingoffthestreet,bootsforaclientwhofoundwork,aPlaystationforaclientwhowasstrugglingtoadapttoaccommodation,andafootballcoachingqualificationforaclientwhowishedtobecomemoreinvolvedinthecommunity.100

Animportantresponsetotheprogressmetricshasbeentheabandonmentofthe‘traditionalpathway’fromroughsleepingtostableaccommodationviaahostel,todirectplacementinstableaccommodation,orplacementinstableaccommodationafteronlyaverybriefstayinahostel.ThamesReachreportsthatthishasnotledtohighlevelsoftenancyfailure,asmayhavebeenfeared.101

ThamesReachalsoabandonedtheorthodoxpreferenceforgivingclients‘timetosettleinaccommodationbeforeseekingtogettheskillsandknowledgerequiredtoreturntowork’,insteadcommencingtrainingforwillingparticipantsasquicklyaspossible,throughpartnershipsdevelopedwithMcKinsey&Company,afoodcateringcompanyandUniversityCollegeHospital.102

98Ibid,[4.1].99Ibid,[4.3].100ThamesReach,‘SocialImpactBondforEntrenchedRoughSleepers:KeyAreasofLearning’(Report2016)2.101Ibid3.102Ibid3,4.

35


4.1.3 TheYouthEngagementFundThe£16millionYouthEngagementFundwaslaunchedalongsidetheFairChanceFundaspartofasinglestrategyforreducinghomelessnessandimprovingoutcomesforyoungpeople.WhereastheFairChanceFundisdirectedtowardssupporting18–24yearoldsintohousing,theYouthEngagementfundisaimedat14-17yearolds.ItisalsoaSIBfund,whichaimstofundprojectsimplementedtoimproveyoungpeople’semployability,reducetheirlongtermdependencyonbenefits,andreducetheirlikelihoodofoffending.103Fourprojectshavebeenlaunchedusingthisfunding:104

! UnlockingPotentialLtd:workingwithupto4,040youngpeoplewithbehavioural,mentalhealthorwellbeingissuesaged14-17inGreaterMerseyside;

! PrevistaLtd:workingwithupto1,000youngpeopleaged14to17inLondon,70%ofwhomwillbegangmembers,ex-offenders/atriskofoffending,incare/careleavers,andthosewithhighlevelsofschoolabsence;

! FutureshapersSheffieldLtd:workingwithupto1,319youngpeopleaged14to17inSheffieldwhohavepoorattendanceatorhavebeenexcludedfromschool,whohaveexperienceintheyouthjusticesystem,are‘lookedafter’,havespecialeducationalneedsordisability,orareteenparents;and

! TeensandToddlersYouthEngagementLLP:workingwithupto1,680youngpeopleaged14to17yearsinGreaterManchesterwhoareincare/edgeofcare,haveahistoryofoffending/atriskofoffendingand/orotherriskybehaviour(e.g.drugs/teenpregnancy),havebehaviouralormentalhealthissuesandaretruanting.

4.1.4 SITRTheUKGovernmentintroducedSITRin2014toencourageinvestmentincharitiesandsocialenterprises.ItwillbeavailableforinvestmentsmadeandcapitalgainsarisingbetweenApril2014and2019.Underthepolicy,investorscanclaimincometaxreliefat30%oftheamountinvestedandotherformsofcapitalgainsreliefarisingfromsocialinvestmentsthatmeettheconditionsoftheprogram.105Tobeeligible,theenterprisemustreceiveHMRevenueandCustomsApproval.Enterprisesmusthaveadefinedandregulatedsocialpurpose,fewerthan500employeesandgrossassetsofmorethan£15million.Otherconditionsalsoapplytoinvestorsandenterprises.106

InNovember2015,SocialFinanceandKinCapitallaunchedtheUK’sfirstnationalsocialinvestmenttaxrelieffund,theBrightFuturesFund.TheFundintendstoworktowardsmeetingthesocialsectordemandforinvestmentcapital.Itiscurrentlylookingtoprovide£100,000-£250,000of3-5yearunsecureddebttoapproximately12qualifyingexpandingcharitiesandsocialenterpriseswhomeetrevenueandtradinghistoryrequirementsandsupportchildren,youngpeopleandsocialgroupsincludingthehomeless.107

103UKGovernment,‘£16millionYouthEngagementFundpromotedaroundthecountry’(PressRelease,14July2014).104UKGovernment,‘Newsocialimpactbondstosupportpublicservices’(PressRelease,19March2015).105SocialFinance,‘FirstNationalSocialInvestmentTaxReliefFundLaunched’(PressRelease,24November2015).106Forfurtherdetail,seehttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/389931/investors-process.pdf,https://www.gov.uk/government/publications/social-investment-tax-relief-factsheet/social-investment-tax-relief,https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/378085/se-guide.pdf107SocialFinance,‘FirstNationalSocialInvestmentTaxReliefFundLaunched’(PressRelease,24November2015).

36


4.2 UNITEDSTATESOFAMERICA4.2.1 HomelessnessintheUnitedStatesofAmericaAccordingtotheUSDepartmentofHousingandUrbanDevelopment,therewere610,042homelesspeopleintheUSinJanuary2013.65%hadshelter,and35%livedinunshelteredlocations.Thetotalnumberofhomelesspeopledeclinedby4%from2012to2013,andby9%since2007.ThereductionofhomelessnessintheUShasbeenagoalpursuedbytheObamaAdministrationsincethe2010announcementoftheOpeningDoors:FederalStrategicPlantoPreventandEndHomelessnessplan.IncludedinthisPlanwastheambitiousgoalofendingchronichomelessnessintheUSAby2015.108Inthe2016budget,thePresidenthascalledfornearly$5.5billionintargetedhomelessnessassistance. 109

4.2.2 UnitedStatesofAmericaHomelessnessSIBsTheWhiteHouseestablishedaSocialInnovationFundwithintheCorporationforNationalandCommunityService,whichawardedgrantstoeightorganisationstofacilitatethedevelopmentofSIBsin2014.TheObamaadministrationalsotriedtoestablishanationalfundtosupportoutcomefundingforSIBs,however,Congresshassofarfailedtoapprovebudgetappropriations.110HarvardKennedySchool’sGovernmentPerformanceLabprovidestechnicalassistancetostateandlocalgovernmentsinordertohelpthemstructureSIBsfortheirjurisdictions.111

4.2.2.1 PARTNERINGFORFAMILYSUCCESSPROGRAMThePartneringforFamilySuccessProgramwaslaunchedinDecember2014,targetingfamilyhomelessnessandchildwelfareinCuyahogaCounty,Ohio.Theprogramwillreach135families,includingapproximately270children,whohaverecentlybeenhomeless.60%ofthechildrenreachedareanticipatedtobeundertheageofsix.Theprogramwillrunforfiveyears,witheachfamilyreceivingintensivetreatmentforaperiodof12–15months.112

Undertheagreement,theSIBfundshomelessnessserviceproviderFrontLine’sCriticalTimeIntervention,whichlinksfamiliestopublicandvoucher-basedhousingprovidedbytheCuyahogaMetropolitanHousingAuthority,EmeraldDevelopment&EconomicNetwork,Inc,andFamicosFoundation,andprovidesemotionalandpracticalsupportduringthetransitionfromhomelesssheltertostablehousing.FrontLinealsoprovidesage-appropriateandevidence-basedtraumaservicestostrengthencarer-childrelationships.TheCriticalTimeInterventionmodelanticipatesthatbyprovidingcarersaccesstohousingbeforebeingreunitedwiththeirchildren,theycanparticipatemoreeffectivelyinmentalhealthservices,substanceabusecounselling,andjobinterviewsinadvanceofreunification.Thisalsoaimstoallowincreasedchildvisitationsinasafeandstablehomeenvironmentduringthattime.ThesefactorsareintendedtoimproveprospectsoftheCounty’sDivisionofChildrenandFamilyServicesgrantingreunificationdecisionstothesefamiliessooner.113

108USDepartmentofHousingandUrbanDevelopment,‘The2013AnnualHomelessnessAssessmentReport(AHAR)toCongress’(Report,2013)1.109UnitedStatesInteragencyCouncilonHomelessness,‘ThePresident’s2016Budget:FactSheetonHomelessnessAssistance’(Factsheet,2016)1. 110Gustafsson-Wright,GardinerandPutcha,aboven50,33–34.111HarvardKennedySchoolGovernmentPerformanceLab,TheGovernmentPerformanceLab<http://hks-siblab.org/about-us?>.112FrontlineServiceetal,‘FactSheet:TheCuyahogaPartneringforFamilySuccessProgram’<http://www.payforsuccess.org/sites/default/files/141204_cuyahoga_pfs_fact-sheet.pdf>1.113Ibid2.

37


TheReinvestmentFundhasinvestedUS$1.575millionasseniorinvestors,whiletheGeorgeGundFoundation,NonprofitFinanceFund,theClevelandFoundation,andSistersofCharityFoundationofClevelandhavecontributedUS$2.275millionasasubordinateinvestment.SistersofCharityFoundationofClevelandhascontributedUS$150,000inrecoverablegrantsandinvestmentguarantees.Subordinateinvestorswillbepaidonceseniorinvestorshavebeenpaidprincipalandinterest,andgrantswillberecoveredoncebothseniorandsubordinateinvestorshavebeenpaidprincipalandinterest.Investorswillreceivealumppaymentfromtheoutcomefunderattheproject’scompletion.

TheCountywillpayUS$75eachdaynotspentinfostercareforeachchild.114Thisfigurerepresentsthecurrentcombinedaveragecostoffostercareandrelatedplacementservices.CaseWesternReserveUniversitywillmeasuretheeffectoftheSIBbycomparingoutcomesforbeneficiaryfamiliestoarandomisedcontrolgroupofthesamesize.115

Theproject’stargetimpactisa25%reductionindaysspentinfostercarebythetreatedpopulation.Allfunderswillberepaidtheirprincipalinvestmentplusbaseannualinterestifthetargetishit.Ifthetargetisexceeded,subordinatefunderswillreceiveupto$1millioninsuccessfeesthatrepresentadditionalsavingstotheCounty.TheGeorgeGundFoundationintendstorecycleanysuccessfeesintofuturepayforsuccessprojects,andtheSistersofCharityFoundationofClevelandwillreinvestanyrepaidgrantfundingintoFrontLineforcapacitybuilding.116

PaymenttermsaresetoutinTable4.4.

114Ibid4.115Ibid3.116Ibid4.

38


Table4.4:PartneringforFamilySuccessProgramPaymentModel117

Paymenttermsarebasedonreducedout-of-homecareplacement(OOHCP)daysfor135families.

PerCentReductioninOOHCPDays

GrossSavingsforCuyahogaCounty

SuccessPaymentsbyCuyahogaCounty

NetSavingsforCuyahogaCounty

50% US$8,500,000 US$5,000,000 US$3,500,000

40% US$6,800,000 US$5,000,000 US$1,800,000

30% US$5,100,000 US$4,550,000 US$550,000

25% US$4,250,000 US$4,125,000 US$130,000

20% US$3,400,000 US$3,400,000 US$0

10% US$1,700,000 US$1,700,000 US$0

Theproject’stargetimpactisa25%reductioninOHPdaysforthetreatedpopulation.Atthislevelofimpact,allfunderswouldberepaidtheirprincipalinvestmentandbaseannualinterest.

4.2.2.2 CHRONICINDIVIDUALHOMELESSNESSPAYFORSUCCESSINITIATIVEMassachusetts’ChronicIndividualHomelessnessPayforSuccessInitiativewasalsoannouncedinDecember2014andisadministeredbytheMassachusettsHousingandShelterAlliance(MHSA),anon-profitpublicpolicyorganisation.

TheinitiativebuildsonMHSA’ssuccessfulHome&HealthyforGoodprogram,whichplacedover800individualsintopermanenthousingbetween2006andJanuary2015,resultingin‘tremendoussavingsinhealthcarecosts,especiallyhospitalisations’.118MHSAestimatesthatitsavestheStateanannual$9,339pertenanthousedthroughtheprogram.119TheSIBfundingwillexpandthemodelinexistinglocationsandintroduceitinnewones.

Massachusettshasahomelesspopulationestimatedat2000–3000.120Theprogramaimstoprovideupto550unitsofsupportivehousingforupto800chronicallyhomelessindividualsoversixyears.Thesupportivehousingisaffordableforpeoplewithlow-incomesandprovidesresidentswithcasemanagementservicesandothercommunitysupport.121

MHSApartneredwiththeCorporationforSupportiveHousing,UnitedWayofMassachusettsBayandMerrimackValleytoformtheMassachusettsAllianceforSupportiveHousing(MASH),aspecialpurposesubsidiaryofMHSA.MHSAledprogramdevelopment,oversightandservicecoordination,UnitedWayraisedthecapitalandservesasfinancialmanager,andCSHprovidestechnicalassistancefortheinitiativeonnationalbestpractices.122TheHarvardKennedySchoolSIBLabalsoassistedtheGovernmentduringdealdevelopment.123

117Ibid4.118MassachusettsHousingandShelterAlliance,PayforSuccess<http://www.mhsa.net/PFS>.119MassachusettsHousingandShelterAlliance,‘HomeandHealthyforGood–PermanentSupportiveHousing:ASolution-DrivenModel’(ProgressReport,January2015)11.120EvanHorowitz,‘ANewApproachtoFightingHomelessness’,TheBostonGlobe(online)8December2014 <http://www.bostonglobe.com/metro/2014/12/08/new-approach-fighting-homelessness/qsykICR3XLBBBnHb6LLLuK/story.html>.121Gustafsson-Wright,GardinerandPutcha,aboven50,117.122MassachusettsHousingandShelterAlliance,‘SocialInnovationFinancing“PayforSuccess”Initiative’(Factsheetprovided7March2015).123Gustafsson-Wright,GardinerandPutcha,aboven50,117.

39


AnumberofotherStateagenciesareinvolved,includingtheExecutiveOfficeforAdministrationandFinancefortheCommonwealthofMassachusetts,whichisresponsibleforcoordinatingtheinitiative,executingpaymentsforsuccessandproducingthefinalevaluationreport,theMassachusettsDepartmentofHousingandCommunityDevelopment,whichprovidesrentalvouchersfortheprogramandworkswithserviceproviderstoamendtheirsheltercontractssotheycaninsteadfundhousingthroughthisinitiative,andtheExecutiveOfficeofHealthandHumanServicesfortheCommonwealthofMassachusetts,whichensuresMedicaidreimbursementforhomelessindividualsinvolvedintheinitiative.124

SantanderBank,CSHandUnitedWayinvested$2.5millionasseniorinvestors.TheCommonwealthofMassachusettsSocialInnovationFinancingTrustFundpays$3,000peryearperparticipanthousedforatleastoneyear.Thefirstpaymentismadeattheendofthefirstyear,withquarterlypaymentsthereafter.Thepaymentwillbeproratedbydayafterthefirstyeareachparticipantstaysinhousing.Thiscorrespondstoalossofprincipaliflessthan80%oftheparticipantsstayinhousingfortheyear,a3.33%returnif85%staytheyear,anda5.33%returnifallthetenantsstaytheyear.125

Bywayofnon-recoverablegrants,theCommonwealthofMassachusettsDepartmentofHousingandCommunityDevelopmentisinvestingshelterresourcesandhousingvouchersfor145unitsofsupportivehousing,worthatotalof$14million.TheMassHealthprogramcommitted$7millionforhealthcareofprogramparticipants.Serviceprovidersarealsoentitledtouseotherresourcesattheirdisposaltosupportparticipants,includingfromthefederalDepartmentforHousingandUrbanDevelopment.126

4.2.2.3 DENVERSOCIALIMPACTBOND(DENVERSIB)TheDenverSIBprogramtoaddresshomelessnesslaunchedinFebruary2016.Thebondaimstoprovide250chronicallyhomelesspeoplewithpermanentsupportivehousing.AccordingtotheDenverCrimePreventionandControlCommission,eachchronicallyhomelesspersoninDenverwillcosttheeconomyUS$29,000injaildays,policeencounters,courtcosts,detox,visitstoemergencyroomsandothermedicalvisitseachyear.127

Eligibleparticipantsintheprogramwillbeindividualswitharecordofatleasteightarrestsoverthepastthreeyearsandadocumentedcaseoftransiencyatthetimeoftheirlastarrest.Thoseselectedtoparticipate(fromarandomisedlottery)willbegivenstreamlinedaccesstohousingwithconditionsthatdonotexceedthoseofnormalleaseholders,andgivenaccesstoservicesincludingintensivecasemanagement,crisisintervention,substanceabusecounselling,mentalhealthtreatment,peersupport,skillsbuilding,connectiontoprimarycare,andvariousotherservicesidentifiedasappropriatetotheclient’sgoals.TheDenverSIBwillprovideflexiblefundingtopayfortheservicesandprovideshort-termrentalsubsidieswhilelonger-termsubsidiesaresecured.ThebeneficiarieswillmostlybehousedinnewunitsbuiltfortheSIB.128

124MassachusettsHousingandShelterAlliance,‘SocialInnovationFinancing“PayforSuccess”Initiative’,aboven117.125Gustafsson-Wright,GardinerandPutcha,aboven50,118.126Ibid122.127DenverGovernmentetal,‘Factsheet:DenverSocialImpactBondProgramtoAddressHomelessness’<http://www.payforsuccess.org/sites/default/files/Denver%20SIB%20FactSheet.pdf>1.128DenverGovernmentetal,‘DenverSocialImpactBondInitiative:PermanentSupportiveHousing’,(Summarysheet)<http://www.payforsuccess.org/sites/default/files/Denver%20SIB%20Summary.pdf>2.

40


Privateinvestorshavebeenbrokenintotwogroups,thefirstcontributingUS$4.5milliontowardshousingstabilityoutcomes,andthesecondcontributingUS$4.13milliontowardsareductioninoccupationofjailbedsbyparticipants.AnadditionalUS$15millioninfederalresourceswillbecontributedtotheprovisionofservices.129

TheCitywillrepaythefirstgroupofinvestorsUS$15.12foreachdayspentinhousingminusthenumberofdaysthataparticipantspendsinjail.Thecitywillonlypayforparticipantswhospendatleastoneyearinhousing.However,participantswhofailtomeettheoneyearthresholdcanbereplacedwithanewparticipant.130

Thecitywillrepaythesecondgroupbaseduponthepercentagereductionintimespentoccupyingjailbedsseenbetweenparticipantsandnon-participantsoveratleastthreeyears.Norepaymentswillbemadeforareductionbelow20%,andrepaymentforthismetriciscappedatUS$6,130,000foranimprovementof65%orover.131

Theexpectedreturnforinvestorsbasedonanticipatedoutcomesofa35–40%reductioninjailbeddaysand83%increaseinhousingstabilityamongthetargetpopulationisapproximatelyUS$9.6million,acombinedannualisedrateofabout3.5%.132ThereturniscappedatapproximatelyUS$11.4millionfor100%housingstabilityanda65%jailbedreduction,ora132%returnontheinvestment.133

4.2.3 LowIncomeHousingTaxCredits(LIHTC)LIHTCisaformofsocialinvestmenttaxreliefaimedatbuildingaffordablehousing.Housingdevelopersbidforalimitedpooloftaxcreditsofferedbygovernment,whichsuccessfulbidderscantheneitheroffertoinvestorsinexchangeforequity,orusetooffsettheirowntaxbills.Successfulbidsmustmeetprogramrequirements,aswellascomplyingwithanyregulationsanddevelopmentapprovalsthatmaybeinplace.

IntheUSA,thishasgenerated60,000to100,000affordablehousingunitsperannumsinceitsinception.Thehousingdevelopedhasbeenmorediverse,ofhigherqualitythantraditionalsocialhousing,andhastestednewconstructionmethods.Thisfundinghasalsostimulatedarangeofinnovativehousinginvestmentpartnershipsbetweennon-profitsandfor-profitinvestors.Mostimportantly,thisprogramhasbeeneffectiveinfulfillingitspurposeofprovidingaffordablehousingfromprivatesectorfunding.134

LIHTCissensitivetothehealthoftheeconomy.DuringtheGlobalFinancialCrisis,investordemandforcreditsfellascompaniesmadelossesandtaxcreditsbecamelessvaluable.Thisoccurredatatimewhenaffordablehousingdevelopmentsweremostdesperatelyneeded.Investordemandfortaxcreditscanbeexpectedtorecoverwiththeeconomy.Itshouldbenotedthatwhilethereisconsiderableoverlap,providingaffordablehousingisadistinctimperativefromresolvinghomelessness.ResearchindicatesthattheLIHTChasnotachievedasignificantreachintothelowestincomegroups.135 Resolvingyouthhomelessness,inparticular,requiresnotonlyhousing,buttheprovisionofeffective,holisticsupportservices.

129DenverGovernmentDepartmentofFinance,‘MayorHancockAnnouncesSocialImpactBondstoServeFirst25ParticipantsatNorthColoradoStation’(Pressrelease,16February2016).130DenverGovernmentetal,‘DenverSocialImpactBondInitiative:PermanentSupportiveHousing’,aboven128,2.131Ibid2–3.132Ibid3;DenverGovernmentDepartmentofFinance,‘MayorHancockAnnouncesSocialImpactBondstoServeFirst25ParticipantsatNorthColoradoStation’,aboven129.133DenverGovernmentetal,‘DenverSocialImpactBondInitiative:PermanentSupportiveHousing’,aboven128,3.134KennethGibb,DuncanMaclennanandMarkStephens,‘InnovativeFinancingofaffordablehousing:InternationalandUKPerspectives’(Report,JosephRowntreeFoundation,March2013)29–32.135Ibid.

41


Figure4.3:LIHTCStructure136

136UnitedStatesGeneralAccountingOffice,‘TaxCreditsOpportunitiestoImproveOversightoftheLow-IncomeHousingProgram’(ReporttotheChairman,CommitteeonWaysandMeans;andtheChairman,SubcommitteeonOversight,CommitteeonWaysandMeans,HouseofRepresentatives,GAO/GGD/RCED-97-55,March1997)24.

ReviewingandRevitalisingWorkplaceGiving 42


4.2.4 REALESTATEINVESTMENTTRUSTS(REITS)REITshaveplayedasignificantroleinshapingtheUShousinglandscape.Asfundsthatinvestinrealestate,REITstypicallyfocusonaparticulartypeofrealestate,suchasretail,orinthecaseofsocialpurposeREITs,housingforthehomelessandotherdisenfranchisedordisadvantagedgroups.TheHousingPartnershipNetwork’sHousingPartnershipEquityTrust(HPET)aimstocreatealong-termandlow-costsourceofcapitalfortheefficientacquisitionofhousing.137HPEThaspartneredwithtwelveestablishednon-profithousingproviderstoraiseUS$100millionfromcorporationsandfoundations,whichitinvestsin‘multi-familyproperties’.HPET'stwofoundationinvestorsactedas‘first-movers’,whosecatalyticphilanthropiccontributioninspiredprivatesectorconfidencetoinvest.138Themodelhasbenefitedfromastreamlinedcapital-raisingprocessforacquiringaffordablehousingunits,reducedtransactioncostsandindependencefromgovernment.139Again,whilstaffordablehousingmustplayaroleintheresolutionofhomelessness,thismodelofhousingprovisioncouldonlybeoneaspectofabroaderstrategythatincorporatesholisticsupportservices.

137HousingPartnershipEquityTrust,‘HousingPartnershipEquityTrustLauncheswith$100MillioninFundingforAffordableMultifamilyHousing’(Pressrelease,29April2013).138Ibid.139Ibid.



4.3 CANADA4.3.1 HomelessnessinCanadaAccordingtoCanada’sHomelessHub,atleast200,000Canadiansaccesshomelessemergencyservicesorsleepoutsideeachyear,andatleast30,000Canadiansarehomelessonanygivennight.Ofthesepeople,14,400stayinhomelesssheltersand2,880sleepwithoutanyshelteratall.ItisfurtherestimatedthatCanada’s‘hiddenhomeless’populationofthosetemporarilystayingwithfriends,relativesorothers,couldnumberasmanyas50,000.140

A2001studyinBritishColumbiaindicatedthatitcostsCA$30,000-40,000annuallytosupportonehomelessperson.141AnotherreportestimatesthatitcostsoverCA$20,000annuallytoaccommodateayoungpersoninanemergencyshelter,evenbeforetakingintoaccountaddedcostsofmentalhealthandaddictionsupport,healthcareandcorrectionsthatmayberequired.142AccordingtoStephenGaetzoftheHomelessHub,itcostsCA$1,932forasinglehomelesspersontobeaccommodatedinashelteredbed,CA$4,333inaprovincialjail,andCA$10,900forahospitalbedpermonth.143

4.3.2 CanadianHomelessnessSIBsCanadacalledforexplorationofthepotentialofSIBsinfutureplanninginits2012EconomicActionPlan.144A2013DeloitteandMaRSCentreforImpactInvestingsurveyindicatedsignificantinterestamongstrespondentsinimpactinvestment.ThebarrierstoSIBinvestmentidentifiedbythestudyincludedlackofgovernmentcommitment,lackofliquidity,andlowconfidenceinthedevelopmentofarobustSIBmarket.145Sincethen,governmentinitiativesandtheappearanceofSIBintermediariessuchasFinanceforGoodhavedrivencollaborationbetweenserviceproviders,governmentsandinvestors.146ThereisoneSIBdeliveringservicesinSaskatchewantoaddressunemploymentandhomelessness.147In2016,OntarioisdevelopingtwoSIBs,bothofwhichaimtocombathomelessness.Oneofthese,TheRAFT,willfocusonyouthhomelessnessspecifically.148

140StephenGaetz,JesseDonaldson,TimRichter,&TanyaGulliver‘TheStateofHomelessnessinCanada’(ResearchPaper,theHomelessHub,2013)5,6.141MEberle,etal‘Homelessness–Causes&Effects:TheCostsofHomelessnessinBritishColumbia’(Report,BritishColumbiaMinistryofSocialDevelopmentandEconomicSecurity,2001).142DaphneWinlandandStephenGaetz,‘FamilyMatters–HomelessyouthandEva’sInitiatives“FamilyReconnect”Program’(Report,theHomelessHub,2011).143StephenGaetz,‘TheRealCostofHomelessness:CanWeSaveMoneybyDoingtheRightThing?’,(Report,theHomelessnessHub,21September2012).144CanadianGovernment,‘Jobs,GrowthandLong-TermProsperity:EconomicActionPlan2012’(Tabled29March2012)173.145MaRSCentreforImpactInvestingandDeloitte,‘SocialImpactBondsinCanada:InvestorInsights’(Report,2014)7.146Ibid5.147OntarioGovernment,SocialImpactBonds<https://www.ontario.ca/page/social-impact-bonds>.148Ibid.



4.3.2.1 SWEETDREAMSTheSweetDreamsprojectwasagreedbetweentheGovernmentofSaskatchewan,ConexusCreditUnion,SaskatoonphilanthropistsWallyandColleenMah,andtheSaskatoonDowntownYouthCentre–EGADZ,in2014.Theprogramprovidessixmonthsofaffordablehousingandsupportto22singlemothersofchildrenundereightwhoareatriskofrequiringservicesfromChildandFamilyServices.149

WithCA$500,000investedbyConexusCreditUnionandCA$500,000byWallyandColleenMah,inadditiontoadditionalgrantsworthCA$535,000fromtheGovernmentofCanada’sHomelessnessPartneringStrategy,theCityofSaskatoon,andotherprivatedonors,EGADZhouses11mothersinalargehouseincentralSaskatoon.150Themotherscookandsharemealstogether,andeachmothersharesaprivatebedroomwithherchildren.151Themothersaresupportedbystafftodevelopparentingskills,continuetheireducation,findemployment,andrespondtootherissuesastheyarise.152

TheSaskatchewanMinistryofSocialServiceswillonlyreimbursetheinvestorsif17ofthe22childrenhaveremainedwiththeirmotherssixmonthsafterleavingtheproject.Repaymentisthenmadeonaslidingscaleof75%principleand5%interestfor17meetingthethreshold,to100%principleplus5%interestfora100%successrate.153

Dependingontheproject’ssuccess,theGovernmentofSaskatchewanexpectssavingsfromkeepingthechildrenoutoffostercareareestimatedtobebetween$540,000and$1.5millionovertheproject’sfiveyears,notincludingpotentialsavingsrelatedtohealth,criminaljustice,orfuturesocialassistance.ThefirstinterimreportfromDeloitte,theindependentassessor,isduein2016.154

4.4 IRELANDIn2014,afteralengthydevelopmentperiod,ClannCredo,asocialfinancer,issuedaninvestormemorandumseekingtoraise€500,000forIreland'sfirstSIB.155Theprojectintendedtoassist136familiesinDublintransitionfromemergencyaccommodationintosustainablehousing.FocusIrelandistobetheserviceprovider,withoutcomepaymentsbeingmadebyDublinCityCouncil.InvestorapplicationsclosedinJanuary2015.Publicinformationregardingfurtherprogressiscurrentlyunavailable.

149SaskatchewanGovernment,‘NewHomeforSingleMothersOpensinSaskatoon;FundingFirstofitsKindinCanada’(Pressrelease,12May2014);UKGovernment,CabinetOffice,CentreforSocialImpactBonds,Saskatchewan–ChildrenatRiskofCare<https://data.gov.uk/sib_knowledge_box/saskatchewan-children-risk-care>.150Gustafsson-Wright,GardinerandPutcha,aboven50,127.151ConexusCreditUnion,SweetDreams–SocialImpactBond(12May,2014)<https://www.youtube.com/watch?v=ZjWxDZE5Uts>.152SaskatchewanGovernment,aboven149.153Gustafsson-Wright,GardinerandPutcha,aboven50,127.154SaskatchewanGovernment,aboven149.155TheWheel,ClannCredotoManageIreland’sFirstSocialImpactInvestment(SII)(31October2013)<http://www.wheel.ie/news/clann-credo-manage-ireland%E2%80%99s-first-social-impact-investment-sii>.



IMPACT INVESTMENT FOR NEW SOUTH

WALES CHAPTER 5



5. IMPACTINVESTMENTFORNEWSOUTHWALESThefinalchapterofthisreportconsiderstheimplicationsofthelessonsofChapter4forNSW,beforeseizingupontwointerventionmodels,FoyerHousingandStudioHousing,toexploretheirpotentialforimplementationinNSWtotargetyouthhomelessnessthroughanimpactinvestment.

TheseareonlytwoofmanyinnovativeprogramsthroughoutAustraliadesignedtoaddressyouthhomelessness.Tonameafewothers,theInnerCityYouthatRiskProjectwasapartnershipthatdrewtogether21governmentandnon-governmentorganisationstoaddressyouthhomelessnessinKingsCrossandthesurroundingarea.156WesleyMission’sWesleyIndependentLivingAshfieldprovidesmedium-termsupportedaccommodationandalivingskillsprogramforupto34youngpeoplebetweentheagesof16and25.In2015WesleyMissionreportedthatithadwonatendertoestablishWesleyHomelessSupport,YouthontheNSWMid-NorthCoast.Thiswillaccommodate100homelessyoungpeopleandsupportthemtofindstableaccommodation,whilstreachingouttoafurther200homelessandat-riskyoungpeopletoresolvethecausesoftheirriskfactorsandhomelessness.157MaristYouthCare’sAffordableHousingforLife(AHFL)programprovideslongtermandsustainablesolutionstohousingandunemploymentforatriskyoungpeople.Throughlinkswithindustrybodies,trainingorganisationsandresidentialconstructionemployers,AHFLfacilitatespracticalon-the-jobtrainingprogramslinkedtoemploymentopportunities.158 Eachoftheseprogramscouldcontributetoayouthhomelessnessimpactinvestment.

Tovaryingdegrees,thecohortstargetedintheprogramsoutlinedinthepreviouschapterreflecttheimportance,whendesigninganimpactinvestment,ofchoosingbeneficiarieswhoareindireneedofsupport,yetstillpresentarealisticprospectforsuccessfulintervention.Theinterventionmustbecarefullymatchedtothecohort.Itisimportantthatpotentialbeneficiarieswhoareultimatelydeemedunsuitableforaparticularinterventionarenotleftbehind.Rather,oneappropriateuseofgovernmentsavingsistoreinvesttheminprogramstargetingindividualswhohavenotbeenreachedbytheimpactinvestment.

156NSWGovernment,DepartmentofHealth,InnerCityYouthatRiskProject<http://www.seslhd.health.nsw.gov.au/youth_health/InnerCity.asp>;ChristineEastmanandKylieValentine,‘OutcomesoftheInnerCityYouthatRiskProject’(Report,SocialPolicyResearchCentre,October2012)157WesleyMission,WesleyIndependentLivingAshfield<http://www.wesleymission.org.au/home/our-services/wesley-homeless-services/wesley-accommodation/wesley-independent-living-ashfield/>;‘AnnualReport2015’,44.158MaristYouthCare<http://www.maristyc.com.au>.



5.1 LESSONSFORNEWSOUTHWALESHavingoutlinedtheSIBsandsomeothermechanismsthathavebeenimplementedthroughouttheworldtoaddresshomelessness,theremainderofthisreportseekstodrawtheirlessonsintoclearinsights.Werecommendattentiontothefollowingprinciplesindevelopingayouthhomelessnessimpactinvestment.

DefinePotentialSavingsforGovernment

Impactinvestmentscaninvolvesignificantriskandexpenditure.Understandingpotentialgovernmentsavingswillbevitaltothedevelopmentofaneffective,replicableyouthhomelessnessimpactinvestmentthatsatisfiestheexpectationsofallinvolved.Fromapurelyfinancialperspective,thegreaterthesavings,thestrongertheincentivetoact.AgoodexampleofaconsideredapproachtothisissueisthesavingsandpaymentsmatrixdevisedbyCuyahogaCountyforthePartneringforFamilySuccessProgram.159

Intheyouthhomelessnesscontext,theUKGovernmentidentifiedreducedexpenditureonsocialhousingandcareservicesasprimaryfinancialobjectiveswhenintroducingtheFairChanceFund.160Dependingonthecohorttargeted,asuccessfulyouthhomelessnessimpactinvestmentinNSWcould,forexample,leadtoGovernmentsavingsfromyoungpeopleremainingwithfamiliesratherthangoingintoout-of-homecare,reducedinteractionwithpoliceandthejusticesystem,fewervisitstoemergencydepartments,andmovingintoprivateratherthansocialhousing.

ThecostofyouthhomelessnesstotheGovernmentispresentlyunclear.MacKenzieetalhaveassessedthatonaverage,

ThecoststotheAustraliaeconomyofhealthservicesassociatedwithyoungpeopleexperiencinghomelessnessisanaverageof$8,505perpersonperyearor$355millionacrossallyoungpeopleaged15-24accessingSpecialistHomelessnessServices.Thisis$6,744.00perpersonperyearmorethanforlong-termunemployedyouth.

ThecosttotheAustralianeconomyisanaverageof$9,363perpersonperyearor$391millionacrossallyoungpeopleaged15-24accessingSpecialistHomelessnessServices.Thisis$8,242perpersonperyearmorethanforlong-termunemployedyouth.161

TheUniversityofQueenslandhasrecentlyconductedanevaluationonCommonGroundBrisbane.162For12monthspriortohomelesspeoplelivinginCommonGround,theyfounditcostgovernment$48,217annuallyinhealth,criminaljusticeandhomelessnessservicesforeachperson(usinggovernmentadministrativedata).Inthefirst12monthsresidingatCommonGround,thecostwas$35,117ingovernment-fundedservicesannuallyperperson(includingthecostoflivingatCommonGround).Thisdatashowsasavingof$13,100tohouseandsupporteachformerlyhomelessperson.

AnaccurateunderstandingofpotentialGovernmentsavingsintheNSWcontext,relatedtoadetailedprofileofthetargetcohort(s)andthecostoftheirhomelessnesstotheGovernmentwouldformavaluablebasisfordevelopingaSIB.

159SeeTable4.4.160UKGovernmentCabinetOfficeCentreforSocialImpactBonds,FairChanceFund,aboven54.161DavidMacKenzie,PaulFlatau,AdamSteen,MonicaThielking,‘TheCostofYouthHomelessnessinAustralia’(ResearchBriefing,28April2016)2.162CameronParsell,MareePeterson,OrnellaMoutou,DennisCulhane,EdLucio,andAlanDick,‘EvaluationoftheBrisbaneCommonGroundInitiative’,18December2015,availableathttp://www.hpw.qld.gov.au/SiteCollectionDocuments/BrisbaneCommonGroundFinalReport.pdf.



IdentifyandPrepareDatasetsfortheMeasurementofOutcomes

Measurementisthekeytoasuccessfulimpactinvestment.Beforeoneisimplemented,theGovernment,investorsandserviceprovidersshouldhaveaclearideaofthesocialcostoftheissuetobeaddressed,thesavingstobegainedfromintervention,andhowoutcomeswillbemeasured.

Inthefaceofdisappointingperformanceonsomemetrics,theLondonSIBserviceproviders“notedthattheirtargetshadbeensetintheabsenceofcomprehensivedataaboutthecohortonwhichtobasetheirpredictions.”163Whileinvestorswereprotectedbyserviceproviders’strongperformanceinsecuringstableaccommodation,thelackofdataonwhichtobasepredictionscouldhavehaddireconsequencesfortheSIB’ssuccess.

Similarly,outcomesmustbereadilymeasurable.Examplesofclearlymeasurableoutcomesincludeareductioninthepercentageofthecohortleavingout-of-homecareintohomelessnesscomparedtoacontrolpopulation,areductioninnumbersofnightsspentonthestreetbyparticipants,ordaysspentineducationortraining.AswasdemonstratedbytheinabilitytogainaccesstohealthdatafortheLondonSIB,164thismayrequireagreementbetweeninternalandexternalstakeholdersandgovernmentdepartmentsonthereleaseofinformationinadvance.

SetRealisticTargets

Ambitious,butachievabletargetsshouldbeset.Unrealistictargetsandoverlyhighthresholdsforpaymentriskcreatingperceptionsoffailureevenwhereapositiveimpacthasbeenmade.FailuretoexecuteaprofitableSIBforinvestorscouldharmmoraleandthereputationsofserviceprovidersandtheinvestmentmodelgenerally,aswellaspotentiallyleadingtoserviceproviderburnoutandinvestorreluctancetoinvestinalleviatingyouthhomelessnessinthefuture.Thisrequiresabalancetobestruckbetweeninnovationandreplicationofprovenmodels.Althoughintermediatereportsindicateinvestorsatisfaction,below-targetresultsinsomemeasuresindicatethatNSWcouldimproveupontheLondonSIBinthisrespect.

Again,thismayrequirecarefulconsiderationofoutcomesmeasurement.Measurementofthe‘reducingroughsleeping’metricintheLondonSIBhasprovedcontentious,asasinglenightspentroughsleepingbyabeneficiarywithinanoverallpatternofimprovementwouldjeopardisepaymentifwitnessedandrecordedbyanoutreachworker.165

Definingrealistictargetscanbedifficult,particularlywhentheapproachemphasisesinnovationoverreplicationoftriedapproaches.Inthesecircumstances,attractinginvestmentmaybeaidedbyguaranteeingpartoralloftheprincipalinvestment,asoccurredintheBenevolentSocietySocialBenefitBond.166TheLondonSIBapproach,inwhichinvestorsachievedareturnforimprovementeveniftargetswerenotmet,wouldnodoubtbemoreattractivetoinvestorsthantheSweetDreamsapproach,whereinvestorsstandtolosetheirentireinvestmentregardlessofimprovementifhightargetsarenotmet.Analternativetothisapproachwouldseeinvestorsreceivesomereturnformeetingthestatusquo,withimprovementonidentifiedcriteriarewardedaccordingtoascale.

JeremySwain,CEOofThamesReach,hasalsoemphasisedtheimportanceoftheserviceproviderinvestingmanageablyandavoidingasituationwhereitsfutureoperationswillbeat

163UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79,21.164Ibid8.165Ibid25–26.166Gustafsson-Wright,GardinerandPutcha,aboven50,121.



stakeiftheSIBfails–bothintermsofitsexposuretotheSIB’srisk,anditsabilitytoattractinvestmentinfutureprojects.BeforeagreeingtoinvestingintheirSIB,theThamesReachboardconcludedthateveniftheycouldnotdeliveronanyofthefiveoutcomesmetrics,theamounttheystoodtolosewas£200,000,‘makingitprettylowriskforanorganisationwithourlevelofreserves’.167

Unrealistictargetsriskplacingconsiderablepressureonserviceproviders,potentiallyleadingtoburnout.AsoneThamesReachNavigatorputit,‘Itryanymeans.Igooutonearlyshift,lateshift,whateverittakes…that’sthedifferencewithSIB.Itneedsalotofflexibility.Youcan’twork9to5.’168Whilstmotivatingcaseworkersisimportant,pressuresshouldbeconsideredagainsttheirresources,timeandmentalhealth.

Moreover,serviceprovidersunderpressuremayidentifyandfocustheireffortsonthebeneficiariesmostlikelytocontributetoreachingtargets,leavingindividualswhopresentmorecomplexcasesundersupported.AGLAupdateandtheSecondInterimReportidentifyserviceproviders’ethosasimportanttomitigatingthisrisk,169butrelianceonethoscouldcreateproblemswhenreplicatingtheSIBelsewhereandwithotherorganisations,whichshouldbealong-termambition.

RewardProgressAgainstaBroadFieldofOutcomes

Rewardingprogressagainstabroadfieldofmeasurableoutcomescancounterbalancetheriskthatdespiteefforts,sometargetsproveunachievable.Itspreadsriskovermultiplemetrics,allowsamorenuancedviewofsuccess,andencouragesinnovationinagreaternumberofareas.

Further,breakingeachmetricdownintomilestonesforeachpotentialbeneficiary,aswithbothUKfundsandthePartneringforFamilySuccessProgram,protectsinvestorswhilstencouragingserviceproviderstoperseverewithmorechallengingbeneficiariesandtostriveevenfurtherwiththosewhomeetearlyoutcomesquicklyandeasily.170

TheLondonSIB’soutcomemeasurementandpaymentmodelmeasuressuccessaccordingtofivedifferentoutcomes,andprovidesformultiplesmallerpaymentsthatcanonlybemadeonceperindividual.TheGLAupdateexplainsthatthismodel‘wasdesignedtofinanciallyincentiviseproviderstoworkwitheverymemberofthecohort,notjustthoseforwhomoutcomeswereeasiesttoachieve.’171

Abroaderfieldofoutcomesformeasurementlessenstheriskofcreatingperverseincentivesorundervaluingcertainachievements.ThisisalessonfromtheLondonSIB,wheresomebeneficiariesparticipatedinconsiderablevolunteerwork,butlessthantheeighthoursperweekdefinedasthedesirableoutcome.Volunteeringlessthaneighthoursperweekresultedinnooutcomepayments,despiteincreasedcommunityengagement.Thusthemetricdidnotadequatelyreflectorrewardthepositiveoutcomeforthebeneficiaryandtheircommunity.172

167EllieWard,‘Socialinvestment:disruptingservicestoimproveoutcomes’,PioneersPost(online),29April2015<https://www.pioneerspost.com/business-school/20150429/social-investment-disrupting-services-improve-outcomes>.168UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79,27.169Ibid,30,35;Ratcliff,aboven97,4.170ThamesReach,‘SocialImpactBondforEntrenchedRoughSleepers:KeyAreasofLearning’,aboven100,5.171Ratcliff,aboven97,2.172UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79,44.



BalanceInnovationwithRiskMitigation

Whereexistingprogramsarealreadyefficientlyyieldingsatisfactoryresults,thecostandriskofembarkingonanimpactinvestmentisunnecessary.Impactinvestmentshouldthereforebedrivenbyaneedtodepartfromthestatusquoofgovernmentfunding.Thisrequiresabalancetobestruckbetweeninnovationandreplicationofprovenmodelsforintervention,whichmitigatesriskforallstakeholders.Intheirreportonkeyareasoflearning,ThamesReachstressthatfocusonoutcomesratherthanoutputsbrought“freedomfromthenormallabourintensivecommissioningrequirements”,allowingthemtobetter“concentrateongettingonwiththejob.”173CEOJeremySwainhasemphasisedtheimportanceoftheinvestmentmatchingthescaleoftheenterprise.174

SharingRiskandOpportunitybetweenMultipleServiceProviders

AkeyfeatureoftheUKSIBsprofiledismultipleservicesprovidersforeachgovernmentpackageoffunding.Thismultipliesthescopeforlessonsandinnovation,whilstcontainingtheharmsoffailure.TheGLAupdatenoted,withrespecttotheLondonSIB,

markeddifferencesbetweentheperformanceofthetwoproviders,withoneperformingbetterontheroughsleepingandreconnectionsoutcomesandtheotherperformingbetteronthoseforaccommodationandemployment.175

Thishascontributedtoanoverallperceptionofsuccess,whichmayhavebeendiminishedifthefundcouldonlyhaveclaimedtheachievementsofasingleSIB.Moreover,thisallowedscopeforcompetition,collaborationandlearningfromoneanother’sachievementsduringthecourseoftheSIB,ratherthanwaitingforevaluation.ItalsomultipliesthelessonsandinsightsavailableforfutureSIBs.

WhilsttheUKGovernment’simplementationoftheFairChanceFundacrosssevenserviceprovidersisnodoubtdriveninpartbyabeliefinregionalsolutionsandthepracticalbenefitofbuildingonexistinglocalprojects,italsosuggestsanappreciationofthegreaterinnovativepotentialoftheapproach.

DeviseaStrategyforRespondingtoDifficultCases

AnimpactinvestmenttoaddressyouthhomelessnessinNSWshouldhaveaclearstrategyforrespondingtodifficultcases.Somepeoplerequireongoingsupportthatnotemporaryintervention,evenofthehigheststandard,couldresolve.Again,thisisanareainwhichtheUKGovernmenthasstressedtheimportanceofserviceproviders’ethos.Nevertheless,itappearsthatthisisanareathatrequiresgreaterattentionthanpreviousSIBshaveprovided.

Forinstance,participantsintheDenverSIBwhofailtomeettheone-yearpaymentthresholdforremaininginaccommodationcanbereplacedwithanewparticipant.176Itwouldalsoappearthatparticipantswhofallintoarrearswiththeirrentrunaconsiderableriskoflosingtheiraccommodation.

Similarly,theSweetDreamsproject,withitsstarkimperativeofreachingthehighthresholdforpayment,wouldappeartoemphasisetheriskofdifficultcasesbeingleftbehindratherthanmitigatingit.

173ThamesReach,‘SocialImpactBondforEntrenchedRoughSleepers:KeyAreasofLearning’,aboven100,6.174Ward,aboven167.175Ratcliff,aboven97,4.176DenverGovernmentetal,‘DenverSocialImpactBondInitiative:PermanentSupportiveHousing’,aboven127.



Althoughnotclearlyacknowledged,thetensionbetweenachievingoutcomesandperseveringwithdifficultclientsismanifestindiscussionofdifficultcasesintheUKGovernment’sSecondInterimReport.177

BeConsciousofContext

Lastingimpactdemandsaconduciveenvironment.AsSIBsandsimilarinvestmentswillrarelyprovidemorethanafractionofthefullinvestmentrequiredtoimplementaproject,surroundinginfrastructure,partnersandeconomiccircumstancesplayasignificantroleinbothanintervention’ssuccessanditsimpactonthebroaderpictureofthesocialissueitseekstoaddress.ThisshouldbeborneinmindwhenimplementingayouthhomelessnessimpactinvestmentinNSW.

LondonSIBserviceprovidersreportedfrequentchallengesrelatingtowelfarepaymentsandtenancy.Beneficiarieswouldoccasionallyhavebenefitssanctionsimposeduponthemwhichwouldleadtorentarrears,puttingtheirtenancyatrisk.Thisemphasisestheimpactthatexternalfactorssuchashousingrequirementsandwelfarepolicycanhaveonratesofhomelessness.178

Intheabsenceofsafe,affordablehousing,beneficiarieswillbeatriskofreturningtothestreetssoonafteraproject’scompletion,regardlessofthelevelofsupporttheyreceivethroughouttheproject.Youngpeopleprovidedwiththehigheststandardofeducationandtrainingmaysimilarlylosethebenefitofthattrainingiftheyareunabletofindemploymentorlosetheirnewlyfoundemploymentsoonafteraproject’scompletion.

Impactinvestmentsarenotasubstituteforaddressingthestructuralcausesofhomelessness,andcannottaketheplaceofpoliciesthatwould.Forinstance,despitethesuccessoftheUKSIBs,roughsleepinginEnglandincreasedmorethan30%inthetwelvemonthstoMarch2016alone.179

IfinnovationssuchasSIBsformpartofabroader,long-termstrategy,theprospectsofsuccessareclearerandmorepositive.AccordingtoRickHenderson,CEOofHomelessLink,

WiththeGovernmentworkinginpartnershipwiththehomelessnesssectortodevelopacoherentstrategytoensurepeopledon’tendupsleepingroughinthefirstplace,andtomakesurethatfrontlineservicesandlocalauthoritiesareproperlyresourced,SIBfundingcouldhaveamajorimpactonlevelsofroughsleepinginthecapital.180

EnsureStakeholderCo-operation

Theco-operationofstakeholdersbothinternalandexternaltoaninterventionissimilarlyimportant.SIBsoftenrequireserviceproviderstoinvesttheirownresources,whileothersprovidenon-recoverablegrantsandothergovernmentdepartmentsandagencies,particularlysocialservices,provideessentialservicesuponwhichsuccessdepends.Forinstance,theBrookingsInstitutecalculatestheupfrontcapitalinvestmentintheMassachusetts’ChronicIndividualHomelessnessPayforSuccessInitiativeatUS$24.5million,theSIBitselfcomprisingonlyUS$2.5millionofthatamount.181

177UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79,29.178Ibid7.179BurnsandHooper,aboven56.180Ibid.181Gustafsson-Wright,GardinerandPutcha,aboven50,117.Theauthorsaresomewhatinconsistentintheirapproachtocalculating‘upfrontcapitalcommitment’.Forsomeprojects,thecostofhousingisincludedinthiscalculation,butforothers,onlythecostoftheinterventionisincluded,sometimeswhentheprojectwillnecessarilyinvolvethecostofhousingbeingbornebygovernmentorsomeotherstakeholder.



HomelessnessSIBsdependinparticularontheavailabilityofaffordablehousing,butSIBsthemselvesareinappropriateforhousingdevelopmentprojects.TheviabilityandappropriatenessforthecohortofthehousingsolutioncouldmakeorbreakahomelessnessSIB,despitebeinganexternalitybeyondserviceproviders’andinvestors’control.

Co-operationwithexternalpartnersalsoprovedimportanttothesuccessoftheLondonSIB.Therealityofworkwithhomelessnessisthatmanyserviceprovidersmayplayaroleinabeneficiary’slife,andtheyallhavetobebroughtonboard.Accordingly,somebeneficiaries’primarycaseworkerswerefromorganisationsexternaltotheSIB,requiringcollaborationandrespectforpre-existingrelationships.182Conversely,securingco-operationfromtheHealthandSocialCareInformationCentreinadvanceoftheprojectwouldhavepreventedtheemergenceofthehealthoutcomesimpasse.

WorkTowardsLastingResults,withanEyetotheEndoftheTerm

AccordingtoDeniseHatton,NationalSecretaryandCEOofYMCAEngland,

Itisessential…thatanymoneyinvestedisdonesointherightwayandattherightleveltoprovidesustainablesupport.Withouthelptoovercomementalandphysicalhealthproblemsandtogainmeaningfulemployment,aroofoversomeone’sheadisoftenlittlemorethanaquickfixthatmaynothelppeopletotrulyovercometheissuesthatcausedtheirroughsleeping.183

ASIBshouldproducetrulylastingresults,ratherthanresultsthatsimplylastthedurationofthepaymentperiod.Approachesthatfocusonhousingreadinessratherthanhousingfirstarguablyfacethebiggestriskinthisrespect.Forinstance,Canada’sSweetDreamsmeasuresthesuccessofeachparticipantafteronlysixmonthsofleavingtheproject,lookingonlytowhetherthemotherisstillwithherchildorchildren,regardlessofthenatureorsecurityofheraccommodation.ThiscreatesarealriskthatbeneficiariesmaybeplacedininappropriateaccommodationandsupportedonlyforthetermoftheSIB.AstheUKGovernmentidentifies,multiplepaymentsoverasingleoutcomegosomewaytowardsmitigatingthisrisk.184However,theydonotresolveitentirely.

TheUKGovernmenthasalsoacknowledgedthatsomebeneficiarieshavemaintainedtheirtenanciesonlythroughtheongoingsupportofserviceproviders.185Thisgroupisparticularlyatriskofsuccumbingtohomelessnessagainoncetheinterventioniscomplete.

TheGLAalsorecognisestheriskofdifficultclientsbeingleftwithoutsupportafterthetermoftheSIB,andinAugust2015reportedthatserviceproviderswereworkingonexitstrategiestomitigatethisrisk.186

StMungo’shasemphasisedthatthosewithintheircohortwhose‘communityisthestreet’would‘needmorethanthreeyearstobesupportedoutofroughsleeping’.

182UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79,27-28.183KirstyWeakley,‘Governmentannounces£115mtotacklehomelessness’,CivilSociety(online)16March2016<http://www.civilsociety.co.uk/finance/news/content/21475/the_government_announces_115m_to_tackle_homelessness?topic=&print=1>.184UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79,35.185Ibid29.186Ratcliff,aboven97,5.



Bothprovidersexplainedthattheywillcontinuetosupportclientsthattheydonotexpecttoachieveapaidoutcomefor,reflectingtheirethosasorganisations.Buttheyacknowledgedthattherewasabalancetobereachedinprovidingappropriatesupportwhilstfocusingresourcesinthefinalyearonthepaidoutcomesthatcouldbeachieved.187

Whilstsuchanethosisclearlypositive,suchasituationbodesproblemsforlong-termsolutionsandreplicatingtheSIBatscale.OnestrengthofaSIBtargetedatyouthhomelessnessmaybethatyoungbeneficiarieswouldbelesslikelytohavedevelopedentrenchedhabitsandsocialadaptationtohomelessnessthanchronicroughsleepers.

PartnertheProgramwithaViableHousingSolution

Manyoftheseinsightstouchontheunderlyingpremisethatasuccessfulinterventionwithlastingresultsrequiresaccesstoaccommodation.MostoftheSIBsdiscussedinthischapterinvolveanelementofassistingbeneficiariestofindstableaccommodationduringoraftertheirperiodofengagement,regardlessofwhethertheinterventionitselfprovideslong-termaccommodation.Assistingbeneficiariestofindaffordableaccommodationisclearlyimportant:intheabsenceoflongtermaffordablehousing,nointerventioncanprotectbeneficiariesfromtheriskofbecominghomelessinthefuture.ThamesReachhasreportedthatitspartnershipwithVisionHousinghasbeeninstrumentaltoitssuccess.188Thelongevityofthissuccess,ofcourse,remainstobeseen.Chapterthreetouchedonsomemodelsforencouragingprivatesectorinvestmentinaffordablehousing,whichcouldbeimplementedinconjunctionwithaSIBdesignedtoequipyoungpeoplewiththelifeskillstomaintainandpayrentonaffordablehousingatthecompletionoftheintervention.

187UKGovernment,DepartmentforCommunitiesandLocalGovernment,‘QualitativeEvaluationoftheLondonHomelessnessSocialImpactBond’,aboven79,6.188ThamesReach,‘SocialImpactBondforEntrenchedRoughSleepers:KeyAreasofLearning’,aboven100,3.



5.2 FOYERHOUSINGTheFoyermodelforsupportinghomelessandatriskyoungpeople(aged16-24)totransitionintostableaccommodationwasintroducedtoAustraliain2001.TheconceptoriginatesinFranceandhasbeenwidelyadoptedintheUK.AccreditationisgrantedbytheFoyerFederation,aninternationalcoordinatingbody.IntheUK,capitalfundingfortheFoyersisreliantonaSocialHousingGrantfromthegovernment,togetherwithprivatefundingsourcesincludingEUsocialfundsandnationallotteryproceeds.189DespiteitssuccessabroadandadoptioninVictoria,ithasbeenslowtotakeoffinNSW,wheretheonlyaccreditedprogramistheIllawarraYouthFoyerProject,runbySouthernYouthandFamilyServices.190NSW’sfirstfoyerservice,theLive‘N’LearnCampusinMiller,Liverpool,isnolongerrunning.

Underthemodel,youngpeopleareaccommodatedforuptotwoyearsandgivenaccesstopsychologicalsupportandlifeskillstraining,withaparticularemphasisoneducationandemployment.Participantsareencouragedtoparticipateactivelyintheircommunityandsupportedbymentorswhomonitortheirprogress.191Themodelisdistinctfrommostshelterandsupportedhousingschemesinthatparticipationinsupportprogramsismandatory.Thetransitionalnatureofaccommodationdistinguishesitfromthehousingfirstmodel,whichprioritisesimmediatetransitionintostableaccommodationinordertolimittheriskofadaptationtohomelessness.

TheFoyerFoundationestimatesthatthereareapproximately14FoyersorFoyer-typeservicesacrossAustralia.Mostofthecapitalfundingforfoyerprojectshascomefromthepublichousingsectorandthesupportedhousingsector.192Perth,Melbourne,Geelong,Warrnambool,Ballarat,PortAdelaide,Brisbane,CanberraandIllawarraareallhometoFoyeraccommodationservices.193

Whilstsomestudieshavebeenundertakenintospecificprograms,empiricalanalysisofthesuccessofthemodelasawholehasbeenlimited.194NonehasbeendoneinAustralia.However,a2006studybyJoanSmithetalevaluatedtheexperienceof126alumnifromtenUKFoyersandconcludedthattheoutcomesdependednotonlyonthequalityoftheireducationandothersupportintheFoyers,butsignificantlyonexternalfactorssuchastheperson’sindividualresourcesandemploymentopportunitiesinthelocalarea.195

189AdamSteenandDavidMacKenzie,‘FinancialAnalysisofFoyerandFoyer-LikeYouthHousingModels’(Report,SwinburneUniversity,June2013)29.190FoyerFoundation,Foyers<http://foyer.org.au/foyers-in-australia/>.191Ibid.192SteenandMacKenzie,aboven189.193FoyerFoundation,Foyers,aboven190.194SteenandMacKenzie,aboven189,24;DeborahQuilgars,SarahJohnsenandNicholasPleace,‘ReviewofYouthHomelessnessintheUK’(Report,JosephRowntreeFoundation,May2008).195JoanSmithetal,‘WhatHappenedNext?AReportonEx-residentsofFoyers’,(Report,LondonMetropolitanUniversity,2006).



TheLive‘N’LearnCampusinMilleraimedtoprovidestableaccommodationtoyoungpeoplewhilstsupportingthemtofindindependentaccommodation,pursueaneducationandfindpaidemployment.196ThefinalevaluationoftheLive‘N’LearnCampusinMillerindicatedthattheprojectsucceededinprovidingstableaccommodationto15studentsbetween16and25yearsoldwhohadpreviouslybeenlivingwithfamilymembersotherthanparents(5),withparents(2),insupportedaccommodation(3),temporaryaccommodation(1),achildren’shome(1),withfriends(2)orintransigently(1).Accordingtothereport,

Residentsgavearangeofreasonsforleavingtheirformeraccommodation,insomecasescitingmultiplereasons.Themostcommonlymentionedwerethattheirpreviousaccommodationwascasualortemporary(7)andthattheyhadaneedforindependence(5).Threecitedrelationshipbreakdownwithparentsorotherfamilymembers,andtwocitedovercrowding.Otherreasonsincludedviolenceathome,harassmentandfamilymovingaway.

TheywerereferredbyTAFE,family,theDepartmentofHousing,theDepartmentofCommunityServices,anemployerandasupportedaccommodationprovider.197Residentsfounditslocationdifficulttoaccessviapublictransport,andhadconcernsaboutthesafetyofthearea,ifnottheaccommodationitself.198Otherwise,satisfactionamongstresidents,theBoardandtheserviceproviderswashigh.Ultimatelythereportconcludedthattheprovisionofaccommodationwasthemostimportantoutcometheinitiativeachieved,asitallowedbeneficiariestopursuetheireducationandfindworkinasupportiveenvironment,whilsttransitioningintoindependentliving:

Oncetheworryofavulnerableorunsatisfactoryhousingsituationislifted,theCampusprovidedresidentswithanopportunitytoconcentrateonachievingeducationalandtraininggoals.199

Thereportalsoidentifiedthattheinterventionplayedanimportantroleinpreventingtheyoungresidentsfromfallinginto“pettycrime,poormentalhealthandhomelessness.”200Thereportindicated“unanimoussupportforthereplicationoftheCampusmodelelsewhere”,201yetclearly,thisdidnotcometofruition.Itisunclearwhytheservicewasbroughttoanend.

TheFoyermodelprovidesanidealmeansforyoungpeoplemotivatedtogainaneducationandbecomeindependenttopursueasupportedtransitiontowardsstableaccommodationandemployment.Themodelallowsasufficientmixofindependenceandsupportfrommentorsandotherssuchasmentalhealthworkerstobeappropriateforyoungpeopleaged16–25ofvaryinglevelsofneed.

TheFoyermodelshouldbeconsideredforimplementationthroughanimpactinvestmentinNSW.Suchaninterventioncouldbefundedthroughanoutcomesfundedgrant,paymentbyresultsoraSIB.ASIBcouldtaketheformoutlinedinTable5.1.

196BillRandolphandHelenWood,‘AninterimevaluationoftheMillerLive‘N’LearnCampus’(ReportNo84,AustralianHousingandUrbanResearchInstitute,July2005)50.197Ibid26–27.198Ibid32.199Ibid65–66.200Ibid66.201Ibid66.



Table5.1:ProposedFoyerSIB

Keyarea Possibleterms

Targetpopulation: 16-25yearoldswho! arecurrentlyorareatriskofbecomingunabletoremainwith

theirfamilyorcarerforreasonsofovercrowding,financialinstability,relationshipbreakdownorareotherwiseunabletopursueeducationwhilststayingwiththem;

! havemoderatesupportneeds;! areatriskofbecominghomeless;! aremotivatedtopursueeducationortrainingandenterthe

workforce.

Baseline: Ratepercentatwhichcontrolpopulationsettlesintostable,independentaccommodation

Target: Apercentageimprovementinsettlingintostable,independentaccommodationabovebaseline

Saving: SocialHousing.Otherareascouldalsobeconsidered.

Paymentscheme: ! Proratapaymentforimprovementonbaselineaboveacertainamount.

! Paymentforachievementofqualification–SC,HSC,TAFECertificates,undergraduatedegree,postgraduatedegree,increasingincrementally.

! Paymentoversixmonthincrementsinstableemployment.! Paymentoversixmonthincrementsstayingin

accommodation.! Paymentoversixmonthincrementsforremaininginstable

accommodationafterleavingsupportedaccommodation.

Timeframe: 3yearsoruntilaccommodationfound

Accommodation: ConsiderableattentionhasbeengivenalreadytoaffordablehousingsolutionsinNSW,andthispaperdoesnotproposetoaddtothatdiscussion.However,havingrecognisedthatanappropriatehousingsolutionwouldbeanintegralpartofasuccessfulyouthhomelessnessintervention,layeredinvestments,A-REITSandpatientcapitalmayeachbeappropriateavenuestofundtheconstructionorpurchaseofaccommodation.SocialInvestmentTaxReliefcouldalsobenefitthedevelopmentofhousing,however,itwouldrequireCommonwealthco-operationandconsiderablegovernmentresourcestoimplementsuchascheme.



5.3 KIDSUNDERCOVER:STUDIOHOUSINGKidsUnderCover(KUC)isaVictoriancharitythatdeliversanearlyinterventionstrategyaimedatpreventinghomelessnessamongat-riskyoungpeople.KUCseesfamilyrelationshipsasfundamentaltothecapacityofchildrenandyoungpeopletoremaininthefamilyhome.Throughpartnershipswithmorethan70CommunityServiceOrganisationsinVictoria,KUCprovidesdemountablestudiounitstotheparentsandcarersofyoungpeopleplacedatriskbyovercrowding,familybreakdownandviolence.Itfocusesonchildrenatriskofbeingremovedfromtheirfamiliesandplacedinout-of-homecare,youngpeopleexitingout-of-homecare,andyoungpeopleotherwiseplacedatsevereriskofhomelessness.Themodelispremisedontheassumptionthatintransitioningtowardsindependentliving,youngpeoplebenefitfrombothindependenceandasupportiverelationshipwithacarerorparentandtheirfamilyunit.

KUCinstallsone-andtwo-bedroomensuitestudiosinthebackyardsofexistingdwellingstoassistfamiliesatriskofbreakdownandfostercarerswhoneedmoreroomtoaccommodateyoungpeopleintheircare.Thestudioisdesignedtobesemi-independentsothatthebeneficiarymaintainstheirrelationshipwiththemainhousehold.Thestudiosareconnectedtomainsandplumbed,andcanaccommodateoneortwopeople,withspaceforworkandleisure.Thisallowsbeneficiariestodevelopasenseofindependencewithinandresponsibilityfortheirownlivingspace,aplacetostudy,andaplacetoretreatfromfamilytensionswithouthavingtotaketothestreet.Thisbenefitsthefamilyasawhole,asissuesstemmingfromovercrowdingareavertedandrelieved.Foodpreparation,eatingandlaundryarerequiredtotakeplaceinthemainresidence,ensuringsupportiverelationshipsaremaintained.

Beneficiariescanremainintheirstudiosintotheir20s.Particularlyforyoungpeopleinout-of-homecare,thisguardsagainsttheriskoffallingintohomelessnessuponturning18.202Thestudiosremainforanaverageoffiveyears,untilthebeneficiaryissufficientlyindependenttomoveout.OncetheStudioisnolongerrequired,itisrelocatedtoaccommodateanotheryoungpersoninneed.

Beneficiariesarereferredbycaseworkers,whoserelationshipwiththebeneficiaryisindependentfromKUC.Beneficiariesdonothavetobeplacedwithparentsorfostercarers,butcangotoanyfamilywillingtotakethemin.Thestudiosareprovidedrent-free,aremaintainedandcanberedeployeduptofourtimesoveralifespanofapproximately20years.203KUCalsoprovideseducationandvocationaltrainingscholarshipstobeneficiariesandtheotheryoungpeoplewhoresidewiththem.204

Withmorethan3000youngpeopleaccommodatedduringthelast20years,theprovisionofstudiosandscholarshipshashadanenormousimpactonthelivesofbeneficiaries,workingwiththemtoevadehomelessnessthroughincreasedfamilyengagement,educationalengagementandvocationalopportunity.

KUCisfundedbytheVictorianOfficeofHousing,inadditiontoindependentrevenueschemessuchasproceedsdonatedfromthesaleofvehiclestheyadministeronbehalfofdonors,PhilanthropicOrganisationsandgeneraldonationsfromthepublic.205

ItissuggestedthattheStudiomodelshouldbeconsideredforimplementationthroughanimpactinvestmentinNSW.Suchaninterventioncouldbefundedthroughanoutcomesfundedgrant,paymentbyresultsoraSIB.ASIBcouldtaketheformoutlinedinTable5.2.

202KidsUnderCover<http://www.kuc.org.au/>;‘AnnualReport2015’(Annualreport,2015).203Ibid. 204Ibid.205Ibid.



ASIBdevelopedinpartnershipwithKUCwouldcomplementandbuildonthesuccessesofNSW’sproposedjointventurebetweenUniting,StGeorgeCommunityHousingandSocialVenturesAustraliatosupportyoungpeopletransitioningfromoutofhomecaretoindependence.206PursuanttotheOfficeofSocialImpactInvestment’s2016StatementofOpportunities,suchaninterventioncouldalsostandtoimproveratesofpermanentplacementforchildreninoutofhomecare,withstableandcontinuousrelationshipswithfamily,friendsandthelocalcommunityaswellasimprovededucationalandhealthoutcomes.207Importantly,itwouldalsoreducetheneedforadditionalaffordablehousing,whichsooftenconstrainsthescaleofhomelessnesssolutions.

206NSWDepartmentofPremierandCabinet,‘NSWSocialImpactInvestmentPolicy:StatementofProgress2015’(Pressrelease,2015);SallyRose,‘SocialImpactInvestmentMarkettogetaBoostin2016’,SydneyMorningHerald(online)3January2016<http://www.smh.com.au/business/social-impact-investment-market-to-get-a-boost-in-2016-20151223-gltxgg.html>. 207NSWGovernmentOfficeofSocialImpactInvestment,‘2016StatementofOpportunities’(Report,April2016)4.



Table5.2:ProposedStudioHousingSIB

Keyarea Possibleterms

Targetpopulation:

Youngpeopleatriskofenteringoutofhomecare,aged12-17;Youngpeopleleavingoutofhomecare,aged18+;and/orYoungpeopleatriskofbecominghomelessaged12-24

Baseline: RatepercentofyoungpeopleleavingoutofhomecarewhodonotbecomehomelessRatepercentofyoungpeopleatriskofenteringout-of-homecarewhoenteroutofhomecare

Target: ApercentageimprovementoverhomelessnessbaselineinbeneficiarieswhodonotbecomehomelessApercentageimprovementoveroutofhomecarebaselineinbeneficiarieswhodonotenteroutofhomecare

Saving: SocialHousingInteractionswithpolice/juvenilejusticesystemInteractionswithhealthcaresystemOutofhomecare

Paymentscheme:

Proratapaymentforpercentagereductioninchildrenenteringoutofhomecarebelowbaseline.Proratapaymentforimprovementonbaselineaboveacertainamount.Proratapaymentforpercentagereductioninyoungpeopleengagingwithpoliceandthejusticesystembelowbaseline.Paymentforachievementofqualification–SC,HSC,TAFECertificates,undergraduatedegree,postgraduatedegree,increasingincrementally.Paymentoversixmonthincrementsinstableemployment.Paymentoversixmonthincrementsstayinginstudioaccommodation.Paymentoversixmonthincrementsforremaininginstableaccommodationafterleavingaccommodation.Paymentforreductionofincidencesofrunningaway.

Timeframe Approximatelyfiveyears

Accommodation: Studioaccommodation



5.4 CONCLUSIONAlthoughimpactinvestmentisstillarelativelynascentfieldinAustralia,carefulconsiderationofinternationalexperiencegivescauseforoptimismforthepotentialforSIBsandotherimpactinvestmentstoimproveandscalesuccessfulapproachestopreventingandrespondingtoyouthhomelessness.Modelsthatfosterbothindependenceandasenseofcommunity,suchastheFoyermodelandKidsUnderCovers’studiohousing,areripeforintroductionandexpansionthroughoutNSW.ImplementingaSIBtargetedatacarefullyselectedcohortcouldyieldinnovative,supportiveandholisticresponsestoyouthhomelessnessanditsrisks,creatingbrighterfuturesforbeneficiaries,aflourishingsocietyandgreateropportunityforGovernmenttoinvestsavingsinotherpressingareas.

AlsoworthyoffurtherconsiderationandpotentiallyfutureresearchisthedevelopmentofaSIBtoaddresschronichomelessness.Inthesouthernhemisphere,SouthAustraliaisleadingthewayinthisrespect,havingannouncedachronichomelessnessSIBinpartnershipwithCommonGroundinSeptember2015.TheSIBwillinvestAUD$9millioninprovidinghousingandsupporttohomelessandat-riskpeople.208ANSWchronichomelessnessSIBcouldbuildonthelessonsoftheLondonSIB,whichwillbecomeclearerwhenitsfinalreportispublishedlaterin2016.

208LinaCaneva,ProBonoAustralia,FirstSIBtoTargetHomelessness’,ProBonoAustralia(online)9September2015<http://probonoaustralia.com.au/news/2015/09/first-sib-to-target-homelessness/>.

IMPACT INVESTING TO REDUCE AND PREVENT …...2Impact Investing to Reduce and Prevent Youth...

Documents

Transcript of IMPACT INVESTING TO REDUCE AND PREVENT …...2Impact Investing to Reduce and Prevent Youth...