Opportunity Information: Apply for FR 5900 N 26
The Pay for Success Permanent Supportive Housing (PSH) Demonstration was a joint effort by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice (DOJ) designed to help communities reduce homelessness and avoidable incarceration at the same time. The core idea was to expand Permanent Supportive Housing, an evidence-based intervention that combines affordable, stable housing with voluntary supportive services, and to do it using a Pay for Success (PFS) financing approach. Under a PFS model, partners use outcomes-based agreements so that payments are tied to achieving measurable results, such as reducing returns to homelessness and lowering recidivism among people reentering the community after incarceration. In practical terms, the demonstration aimed to give communities a new way to pay for PSH projects up front by attracting or coordinating public and private resources, then rewarding success based on verified outcomes.
A major emphasis of the program was on systems-level coordination and performance. HUD and DOJ framed the demonstration as both an expansion strategy (getting more PSH units and services into operation) and a learning opportunity (testing whether an outcomes-based financing structure can improve cost efficiency and effectiveness in homelessness assistance). The target population highlighted in the description includes people in the reentry population who are at risk of cycling between homelessness and incarceration. By stabilizing housing with a Housing First orientation (meaning housing is not contingent on treatment compliance or sobriety), the program sought to interrupt that cycle and reduce downstream public costs tied to jails, shelters, emergency medical care, and repeated crisis responses.
Applicants were not applying as direct service providers alone; they were expected to serve as an intermediary for the demonstration. That intermediary role generally means coordinating the deal structure and partnerships required for PFS, aligning government and service systems, supporting implementation of the PSH intervention across partners, and ensuring the project has the operational backbone to manage performance, data, and evaluation requirements. The notice made clear that HUD welcomed eligible faith-based and community organizations as long as they met the eligibility requirements, but it also explicitly stated that individuals could not apply through this competitive process. Foreign entities and sole proprietorships were also not eligible.
Eligible applicant types included public and state-controlled institutions of higher education, private institutions of higher education, and nonprofits both with and without 501(c)(3) status (as long as they otherwise met the program requirements). The funding instrument was a cooperative agreement under HUD (assistance listing/CFDA 14.273), indicating that recipients could expect substantial federal involvement during implementation compared with a more hands-off grant. The opportunity was categorized as discretionary housing funding. At the time of the announcement, HUD anticipated making about six awards, with an award ceiling of $1.3 million per award. The original closing date listed was February 12, 2016, and the opportunity was created on October 15, 2015.
Selection competitiveness was tied heavily to demonstrated capability in both Pay for Success and Permanent Supportive Housing. Strong applicants were expected to show a track record of high performance and reliable past results, along with experience completing a PFS feasibility analysis and/or structuring a PFS contract that successfully closed (or comparable experience in social finance or social innovation). Because PFS projects depend on multi-party alignment, applicants also needed experience brokering partnerships between public and private entities. On the PSH side, applicants were expected to bring advanced knowledge of the PSH model and the Housing First approach, familiarity with the research evidence supporting PSH, and the practical ability to implement PSH with partners. Finally, because payments and credibility in PFS depend on measured outcomes, the program looked for expertise in research methods and in translating those methods into real-world evaluation and performance measurement (often meaning strong data capacity, outcome definition, and the ability to support rigorous assessment of results).
Overall, the demonstration can be summarized as a federal effort to scale PSH for high-need populations, especially people impacted by reentry, by pairing an evidence-based housing intervention with an outcomes-driven financing mechanism. The federal government’s goal was not only to house people and provide supports, but also to prove and pay for measurable results that reduce repeat homelessness and recidivism, while testing whether this approach can deliver better value and expand communities’ access to capital and funding streams for supportive housing.Apply for FR 5900 N 26
- The Department of Housing and Urban Development in the housing sector is offering a public funding opportunity titled "Pay for Success Permanent Supportive Housing Demonstration" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.273.
- This funding opportunity was created on 2015-10-15.
- Applicants must submit their applications by 2016-02-12. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $1,300,000.00 in funding.
- The number of recipients for this funding is limited to 6 candidate(s).
- Eligible applicants include: Public and State controlled institutions of higher education, Nonprofits having a 501 (c) (3) status with the IRS, other than institutions of higher education, Nonprofits that do not have a 501 (c) (3) status with the IRS, other than institutions of higher education, Private institutions of higher education.
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Frequently Asked Questions (FAQs)
What is the Pay for Success Permanent Supportive Housing (PSH) Demonstration?
The Pay for Success Permanent Supportive Housing (PSH) Demonstration was a joint initiative of the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice (DOJ) intended to help communities reduce homelessness and avoidable incarceration at the same time by expanding Permanent Supportive Housing using a Pay for Success financing approach.
Which federal agencies ran this demonstration?
The demonstration was a joint effort between HUD and DOJ.
What does Permanent Supportive Housing (PSH) mean in this program?
PSH is described as an evidence-based intervention that combines affordable, stable housing with voluntary supportive services. The program emphasized a Housing First orientation, meaning housing is not contingent on treatment compliance or sobriety.
What is the Pay for Success (PFS) financing approach?
Under a Pay for Success model, partners use outcomes-based agreements where payments are tied to achieving measurable results. In this demonstration, example outcomes included reducing returns to homelessness and lowering recidivism among people reentering the community after incarceration.
What outcomes was the program trying to achieve?
The demonstration emphasized measurable outcomes such as reducing returns to homelessness and reducing recidivism for people in the reentry population. It also aimed to reduce downstream public costs tied to jails, shelters, emergency medical care, and repeated crisis responses.
Who was the target population for this demonstration?
The description highlighted people in the reentry population who are at risk of cycling between homelessness and incarceration.
Was this program focused only on adding housing units, or also on system change?
It was framed as both an expansion strategy (getting more PSH units and services into operation) and a learning opportunity (testing whether outcomes-based financing can improve cost efficiency and effectiveness in homelessness assistance). A major emphasis was systems-level coordination and performance.
What role were applicants expected to play?
Applicants were expected to serve as an intermediary for the demonstration, not only as direct service providers. The intermediary role generally includes coordinating the Pay for Success deal structure and partnerships, aligning government and service systems, supporting implementation of PSH across partners, and ensuring the operational backbone for performance management, data, and evaluation.
Who was eligible to apply?
Eligible applicants included public and state-controlled institutions of higher education, private institutions of higher education, and nonprofit organizations with or without 501(c)(3) status, as long as they otherwise met program requirements.
Are faith-based organizations eligible to apply?
Yes. The notice indicated HUD welcomed eligible faith-based and community organizations, provided they met the eligibility requirements.
Who was not eligible to apply?
The notice explicitly stated that individuals could not apply through this competitive process. It also stated that foreign entities and sole proprietorships were not eligible.
What type of federal funding instrument was used?
The funding instrument was a cooperative agreement under HUD, which indicates substantial federal involvement during implementation compared with a more hands-off grant.
What is the assistance listing/CFDA number for this opportunity?
The assistance listing/CFDA number provided was 14.273.
How many awards did HUD anticipate making?
At the time of the announcement, HUD anticipated making about six awards.
What was the maximum funding amount per award?
The award ceiling was $1.3 million per award.
What kind of funding opportunity category was this?
The opportunity was categorized as discretionary housing funding.
What were the key dates for the opportunity?
The opportunity was created on October 15, 2015, and the original closing date listed was February 12, 2016.
How competitive was the selection process?
Selection competitiveness was tied heavily to demonstrated capability in both Pay for Success and Permanent Supportive Housing, including a track record of high performance and reliable past results.
What Pay for Success experience was the program looking for?
Strong applicants were expected to show experience completing a PFS feasibility analysis and/or structuring a PFS contract that successfully closed, or comparable experience in social finance or social innovation. Because PFS requires multi-party alignment, experience brokering partnerships between public and private entities was also emphasized.
What Permanent Supportive Housing expertise was the program looking for?
Applicants were expected to demonstrate advanced knowledge of the PSH model and the Housing First approach, familiarity with the research evidence supporting PSH, and the practical ability to implement PSH with partners.
What evaluation and data capacity was expected?
Because payments and credibility in PFS depend on measured outcomes, the program looked for expertise in research methods and in translating those methods into real-world evaluation and performance measurement, including strong data capacity, outcome definition, and the ability to support rigorous assessment of results.
Why did HUD and DOJ combine PSH with Pay for Success in this demonstration?
The demonstration aimed to scale an evidence-based housing intervention for high-need populations while using an outcomes-driven financing mechanism to pay for verified results. It also served as a test of whether this approach could deliver better value, improve cost efficiency, and expand communities' access to capital and coordinated public and private funding streams for supportive housing.
Does the program require sobriety or treatment participation as a condition of housing?
The program description emphasized a Housing First orientation, meaning housing is not contingent on treatment compliance or sobriety.
What kinds of partnerships were implied by the demonstration design?
The description emphasized coordinating public and private resources and brokering partnerships between public and private entities, consistent with the multi-party structure typical of Pay for Success projects.
How did the program plan to pay for PSH projects up front?
In practical terms, the demonstration aimed to provide communities a new way to pay for PSH projects up front by attracting or coordinating public and private resources, then rewarding success based on verified outcomes through outcomes-based agreements.
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| HUD's FY 2024 and FY 2025 Community Compass Technical Assistance and Capacity Building Program Notice of Funding Opportunity (NOFO) Apply for FR 6800 N 06 Funding Number: FR 6800 N 06 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $42,500,000 |
| Community Development Block Grant Program for Indian Tribes and Alaska Native Villages Apply for FR 6800 N 23 Funding Number: FR 6800 N 23 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $5,000,000 |
| VA's Grant and Per Diem Program FY 2017 NOFA Apply for GPD NOFA FY2017 Funding Number: GPD NOFA FY2017 Agency: Homeless Providers Grant and Per Diem Program Category: Housing Funding Amount: Case Dependent |
| GPD Per Diem Only Grant Program (PDO) Apply for VA GPD PDO FY2020 Funding Number: VA GPD PDO FY2020 Agency: Homeless Providers Grant and Per Diem Program Category: Housing Funding Amount: Case Dependent |
| GPD Per Diem Only Grant Program TIP Apply for VA GPD TIP FY2020 Funding Number: VA GPD TIP FY2020 Agency: Homeless Providers Grant and Per Diem Program Category: Housing Funding Amount: $1,600,000 |
| Continuum of Care Notice Apply for CPD 2021 01 Funding Number: CPD 2021 01 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: Case Dependent |
| GPD Per Diem Only Grant Program (PDO) Apply for VA GPD PDO FY2024 Funding Number: VA GPD PDO FY2024 Agency: Homeless Providers Grant and Per Diem Program Category: Housing Funding Amount: Case Dependent |
| GPD Per Diem Only Grant Program (TIP) Apply for VA GPD TIP FY2024 Funding Number: VA GPD TIP FY2024 Agency: Homeless Providers Grant and Per Diem Program Category: Housing Funding Amount: Case Dependent |
| GPD Program Special Need Grant Apply for VA GPD SN FY2025 Funding Number: VA GPD SN FY2025 Agency: Homeless Providers Grant and Per Diem Program Category: Housing Funding Amount: Case Dependent |
| Indian Housing Block Grant (IHBG) Competitive Grant Program Apply for FR 6800 N 48 Funding Number: FR 6800 N 48 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $7,500,000 |
| Eviction Protection Grant Program Apply for FR 6800 N 79 Funding Number: FR 6800 N 79 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $2,500,000 |
| Lead and Healthy Homes Technical Studies (LHHTS) Grant Program Apply for FR 6800 N 15 Funding Number: FR 6800 N 15 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $1,000,000 |
| Lead Hazard Reduction Grant Program Apply for FR 6800 N 13 Funding Number: FR 6800 N 13 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $7,000,000 |
| HUD FY2024 Healthy Homes and Weatherization Cooperation Demonstration Apply for FR 6800 N 62 Funding Number: FR 6800 N 62 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $1,000,000 |
| Healthy Homes Production Grant Program Apply for FR 6800 N 44 Funding Number: FR 6800 N 44 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $2,000,000 |
| Lead Hazard Reduction Capacity Building Grant Program Apply for FR 6800 N 31 Funding Number: FR 6800 N 31 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $2,500,000 |
| FY 2024 and FY 2025 Continuum of Care Competition and Renewal or Replacement of Youth Homeless Demonstration Program Grants Apply for FR 6800 N 25 Funding Number: FR 6800 N 25 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: $15,000,000 |
| Continuum of Care NOFA Apply for FR 5900 N 25 Funding Number: FR 5900 N 25 Agency: Department of Housing and Urban Development Category: Housing Funding Amount: Case Dependent |
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