Ready to scale your innovative housing solution? We can help.
It’s time to bring the most promising housing and
health programs to more communities in Detroit.
As a human and social service provider working in Detroit, you know firsthand how hard it can be to find the resources to implement and scale solutions that advance your community mission. Building a budget through donor fundraising and chasing grants is resource and time intensive, often comes with strings attached, and can fall short of what you really need to make your program work.
A new partnership between the Quicken Loans Community Fund, the City of Detroit, and the impact investment firm Quantified Ventures is addressing this challenge. Through a new outcomes-based financing model called “Pay for Success,” we are helping human and social service organizations serving Detroit tap into alternative funding streams—with more flexibility and the resources needed to scale.
To help secure this capital, we are providing free transaction consulting services to two local organizations, enabling them to finance growth
based on anticipated success.
We are currently soliciting proposals for holistic and innovative housing programs that, absent capital, do not have a viable path to full implementation and/or scale. Through this initiative, we will provide free transaction structuring services to develop investor-ready deals, and bring all parties to the table.
HOW IT WORKS
Participating in this initiative means awardees will work with us to identify and engage the following parties involved in a PFS transaction:
a payor - a source of potential revenue that can, over time, repay investors (principal plus negotiated interest)
one or more investors willing to provide up-front capital and assume project financial risk
an independent evaluator, who will design a process to assess and measure the achievement of target outcomes
As the service provider, you will collaborate closely with Quantified Ventures to define and design all aspects of the housing-related solution, contribute necessary data and information, and prepare for the transaction closing.
WHY "PAY FOR SUCCESS"?
This type of financing engages private investors interested in making a difference. Some of the benefits of working with us include:
Business-driven: We’ll rapidly assess your best path to financing.
Free program design: We’ll work with you to develop pragmatic evaluation designs, prioritizing “better” over “perfect” and using straightforward, easily measurable metrics of success that map directly to desired outcomes, at no cost to you.
Robust partners: Leveraging our existing relationships in Detroit, we can help you draw upon local assets and guidance.
“Investor speak”: We’ll help you create financial structures recognizable to the capital markets, which will legitimize your transaction, provide national attention to your innovative housing and health intervention, and help grow the field for other service providers to leverage similar models.
Share the risk: By engaging non-governmental, risk-bearing entities as investors, you are minimizing risk to your organization and ensuring a backup plan if the project falls short.
RFP Release: October 16, 2018
Informational webinar (optional): October 30, 2018
In-person workshop (optional): November 8, 2018
Letters of intent due: December 3, 2018
Submissions due: January 15, 2019
Awardees notified: March 22, 2019
Projects announced: April 2, 2019
SOME IDEAS FOR WHAT WE'RE LOOKING FOR: SAMPLE PROJECTS
Example program types eligible for this project include:
Reducing/removing vacant homes in local neighborhoods to reduce blight (material)
Workforce development training or an after-school mentorship program (meaningful)
Testing for and removing environmental triggers, like lead-based paint, lead contaminated dust, or mold, that are the root causes of poor physical and mental health conditions (material)
Supportive housing and housing subsidies (systemic)
Possible outcomes to be evaluated and measured include:
Increased school attendance or employment (system, spatial)
Reduced recidivism (spatial)
Improved neighborhood health (material)
Fewer trips to the emergency room and fewer missed days of work (material)
Housing stability (systemic, meaningful)
Possible Payors include:
City departments covering human services, youth services, housing, safety, health, and the environment
Large local employers
Foundations and philanthropies
To read case studies of PFS examples, please go to the following websites:
This opportunity to access new sources of growth capital is now live! All Detroit human and social service providers with innovative programs at the intersection of housing and health are encouraged to apply.
Download the RFP and application
[Links to published articles, blogs, the press release, and details of upcoming webinars