Research on Housing Mobility, Co-Authored by LIIF and Partners, Garners Attention from the Philanthropy World

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Earlier this fall, a working paper co-authored by LIIF, the Poverty & Race Research Action Council, the Urban Institute, and Johns Hopkins School of Medicine shed light on a new financing tool that could help individuals from high-poverty areas move to more affluent neighborhoods – a strategy which has shown improvements in educational, economic and health outcomes for families. The tool, Pay for Success (PFS), aims to create a process through which innovation can occur by empowering private capital to fund social programs with the expectation that government agencies will pay back these investors once the intervention is proven successful.

The paper’s findings were highlighted by media outlets including Governing and Inside Philanthropy, emphasizing the importance of housing mobility strategies to improving outcomes for impoverished families as well as the potential for Pay for Success as a tool to fund these new approaches. In an interview with Inside Philanthropy, Dan Rinzler, LIIF’s Manager of Special Projects and Initiatives and a co-author of the report, explains the promise of Pay for Success across multiple sectors:

“On the surface… cross-sector issues are daunting. Housing mobility is a classic example of the wrong pocket problem because it’s an investment in one area that generates impact in other areas like medical cost savings and increased tax revenue from higher incomes. But…pay-for-success could provide a safe testing ground for an initiative that involves collaboration between sectors and between different levels of government. This could be the beginning of a fruitful relationship between these agencies that normally don’t get together. In other words, it’s a great way to address the wrong pocket problem.”

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