§ 42-160-2. Legislative findings.
The general assembly hereby finds and declares as follows:
(1) Pay-for-success contracts are executed detailing the outcomes, associated repayment,
and evaluation process to be conducted by a third party. The proceeds are disbursed
to a nonprofit organization(s) that will execute the intervention delivering services
and other resources, such as housing, to the target population. An independent evaluator
monitors the outcomes of the intervention to determine if success was met. If the
intervention improves financial and social outcomes in accordance with established
metrics, the
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§ 42-160-2. Legislative findings.
The general assembly hereby finds and declares as follows:
(1) Pay-for-success contracts are executed detailing the outcomes, associated repayment,
and evaluation process to be conducted by a third party. The proceeds are disbursed
to a nonprofit organization(s) that will execute the intervention delivering services
and other resources, such as housing, to the target population. An independent evaluator
monitors the outcomes of the intervention to determine if success was met. If the
intervention improves financial and social outcomes in accordance with established
metrics, the government, as outcome payor, pays back the investors with interest using
a portion of the savings accrued from the successful outcomes. If the evaluator determines
that success was not met, meaning there is no improvement in financial or social outcomes,
the investors lose money.
(2) In 2016 the United States Department of Justice (DOJ) and the United States Department
of Housing and Urban Development (HUD) awarded funding to the Rhode Island Coalition
to End Homelessness to pursue a pay for success social impact bond in Rhode Island
focusing on housing and supportive services for persons experiencing homelessness
who are high utilizers of the healthcare and justice systems. The pilot program will
leverage eight hundred seventy-five thousand dollars ($875,000) in outcome payment
funding from the HUD/DOJ grant as well as the intervention and independent evaluation
process described in the grant agreement.