By Allison Charette, Research Analyst & Felicia Kiefer, Intern
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In an effort to better link program funding with outcomes, the federal government is becoming increasingly interested in the “pay for success” approach. Under this model, investors and funders receive return on investments only if programs reach desired outcomes. Representatives Todd Young (R-Ind.) and John Delaney (D-Md.) have introduced a social impact bond bill, which supports this “pay for success” approach. (The Upshot, The New York Times, July 15) And earlier today, Representatives Dennis Ross (R-Fla.), Sean Duffy (R-Wis.), Jim Himes (D-Conn.), Emanuel Cleaver (D-Mo.) and John Delaney (D-Md.) introduced the Pay for Success Affordable Housing Energy Modernization Act. With the support of Enterprise Community Partners, Low Income Investment Fund (LIIF) and Stewards of Affordable Housing for the Future (SAHF), this legislation gives HUD the authority to establish a demonstration program and enter into performance-based agreements that reduce energy and water costs for multifamily housing. Read the joint press release by Enterprise, LIIF and SAHF on this bill’s introduction here.