Pay for Success Permanent Supportive Housing Demonstration


The purpose of the Department of Justice's (DOJ's) and Department of Housing and Urban Development's (HUD's) PFS Demonstration is to strengthen communities’ ability to prevent and end homelessness and reduce avoidable incarceration by increasing the provision of Permanent Supportive Housing (PSH), a proven evidenced-based practice. The PFS Demonstration is an opportunity to equip communities with a new financing mechanism for funding PSH projects that will prevent returns to homelessness and reduce recidivism among the reentry population. The PFS Demonstration is also a valuable opportunity to test ways of achieving greater cost efficiency effectiveness in providing homelessness assistance while expanding communities’ access to available funding for PSH.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Agency: Department of Housing and Urban Development
Office: Office of Community Planning and Development
Type(s) of Assistance Offered
Project Grants
Program Accomplishments
Not Applicable.
Consolidated and Further Continuing Appropriations Act, 2015, Public Law 113-235; Consolidated Appropriations Act, 2014, Public Law 113-76.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
The grantee will use grant funds for assessing the feasibility of a PFS project and/or structuring PFS operations, including: partnership building, capital-raising activities, program design for the target population at the Demonstration Site, managing contracts with service providers, making Success Payments on behalf of the government entity, and managing third-party evaluators. Intermediaries may carry out all activities directly and/or subaward funds to subrecipients or procure the services of contractors to carry out PFS activities.
Beneficiary Eligibility
See program's Notice of Funding Availability.
Various records and forms are required for applicants. Applicants should review the Notice of Funding Availability for specific requirements. 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. See PFS Demonstration Notice of Funding Availability for more information about application submission procedures.
Award Procedure
See PFS Demonstration Notice of Funding Availability for more information about application submission procedures.
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
DOJ and HUD will announce awardees once the application review process is complete.
Not Applicable.
Not Applicable.
How are proposals selected?
Selection criteria are described in the PFS Demonstration NOFA.
How may assistance be used?
Grant funding may be used to carry out a Pay for Success (PFS) model for the provision of PSH for the target population. Please see the PFS Demonstration’s Notice of Funding Availability for the description of eligible activities and restrictions on the use of funds. Use of funds must be consistent with the funded application and are subject to the Department of Housing and Urban Development's grants administration laws, regulations, and policies.
What are the requirements after being awarded this opportunity?
No program reports are required. No cash reports are required. Grantees will be required to develop performance measures to assess their progress in achieving the objectives for each eligible activity and meeting the terms of the grantee’s cooperative agreement with HUD. Grantees will be required to report to HUD annually on all performance measures and fiscal expenditures in a form prescribed by HUD. Grantees are also expected to participate in regular, at least quarterly, check-in meetings or conference calls with HUD staff. Grantees will be required to report to HUD annually on all performance measures and fiscal expenditures in a form prescribed by HUD. HUD staff will conduct monitoring using risk assessments, desk monitoring, and on-site reviews.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503.
Grantees are required to maintain all grant financial and program records for a period of three years from the date of submission of the final Federal Financial Report for the award. This includes but is not limited to all financial records including receipts, disbursements, and vouchers for Federal and nonfederal costs, timecards, copies of all contracts, personnel records, and job descriptions, program execution and performance records, and similar records to reflect all activities and spending performed under the award.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
The duration of the period of performance will vary depending on the eligible activities for which the grantee is awarded. Generally, HUD expects that Feasibility Analyses will require up to 12 months to complete, Transaction Structuring will require up to 18 months, and deal implementation will require at least several years before outcome verification may trigger Success Payments. As described in the PFS Demonstration NOFA, applicants must include a projected timeline in their application to account for the eligible activities for which the grantee is applying. HUD will continue to work with grantees to finalize an appropriate timeline that will be included in the cooperative agreement.

The total grant amount will be awarded at the time of initial award. The release of funds will be staggered, contingent upon the submission and approval of deliverables as outlined in the cooperative agreement. Method of awarding/releasing assistance: by letter of credit.
Who do I contact about this opportunity?
Regional or Local Office
None. The PFS Demonstration will be administered by the SNAPS Office at HUD Headquarters.
Headquarters Office
Michael Roanhouse Office of Special Needs Assistance Programs, Room 7262, Office of Community Planning and Development, Department of Housing and Urban Development, Washington, District of Columbia 20410 Email: Phone: (202) 708-1226
Website Address
Financial Information
Account Identification
(Project Grants) FY 14 $5,000,000; FY 15 est $5,000,000; and FY 16 Estimate Not Available - $8,875,000 is expected to be awarded through federal grants. The remainder of the $10,000,000 appropriation ($1,125,000) is for administration and program evaluation of the PFS Demonstration.
Range and Average of Financial Assistance
See HUD when the awards are published.
Regulations, Guidelines and Literature
Please see the PFS Demonstration Notice of Funding Availability.
Examples of Funded Projects
Not Applicable.


Federal Grants Resources