Promising Practice Archive
11/15/2012 - New Department of Labor “Innovation Fund” To Test Employment and Housing Services Collaborations
One of the challenges in providing employment services to homeless families is a lack of coordination across systems and across funding streams. Three projects recently funded through the Labor Department’s Workforce Innovation Fund (“the Innovation Fund”) are directly addressing this coordination challenge.
At the September meeting of the U.S. Interagency Council of Homelessness, Michael Mirra, executive director of the Tacoma Housing Authority (THA) discussed his agency’s Housing and Employment Navigator, a specialized case management program that offers individualized and flexible supports to link homeless families served by THA and other housing programs to mainstream employment and job training services.
Tacoma’s Navigator is one of the new Innovation Fund grantees and is being implemented under the leadership of WorkForce Central. The program will serve a total of 400 families in the Puget Sound region. Under the program, homeless families are assigned a personal case manager— called a “navigator”—with specific expertise in housing, social service, and workforce systems. The navigator works with the family to develop housing and employment self-sufficiency plans; register for and enroll in employment and job training programs and interventions; and offer assistance in addressing barriers to successful completion of programs and entry into employment. Meanwhile, housing and workforce agencies at the system level are participating in integrated service planning, interagency communication, cross training of staff, and streamlining and sharing outcomes around stable housing, full employment, and reduced reliance on public benefits.
Several pilot programs in the United States have recently begun using social impact bonds, or Pay-For-Success bonds, to finance initiatives aimed at solving entrenched social problems like homelessness. First implemented in the United Kingdom, social impact bonds are an innovative way that some American cities can work with established private and non-profit partners to create real change. So what are social impact bonds and what are the new projects in the United States that use this model of financing?
Social impact bonds (SIBs), or pay-for-success bonds, are a new financial instrument that utilizes the typical structure of a municipal bond, where bonds are used to procure funds from private sector investors who are then paid back with interest if the project can achieve required outcome targets. As distinct from municipal bonds, SIBs invest in social innovation programs that range in focus from the justice system to homelessness and can therefore be used to incentivize change in both public and nonprofit systems working on these issues.