Strong Families Fund to Finance Decade-long Pilot Pairing Affordable Housing, Intensive Social Services Coordination for Low-Income Families

Strong Families Fund to Finance Decade-long Pilot Pairing Affordable Housing, Intensive Social Services Coordination for Low-Income Families

Kresge Foundation, Robert Wood Johnson Foundation, KeyBank and Goldman Sachs Launch Largest Pay-for-Performance Project To Date
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.@KeyBank partners to finance "Strong Housing," affordable housing w/intensive social services for #LMI families. http://3bl.me/yp2p73

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The Deborah Strong Housing project in Ypsilanti, Michigan is the first to be built by the Strong Families Fund. The Fund is the largest pilot pay-for-performance project to finance social services coordination and quality, affordable housing for low-income families in the United States. As the country experiences an affordable housing crisis, KeyBank expands its affordable housing offerings from 12 to 50 states.

Friday, September 25, 2015 - 11:00am

CAMPAIGN: Serving the Underserved

CONTENT: Article

A number of banks and philanthropic partners, led by The Kresge Foundation, the Robert Wood Johnson Foundation, KeyBank and Goldman Sachs, have committed more than $70 million to launch the Strong Families Fund, the largest pilot pay-for-performance project to finance social services coordination and quality, affordable housing for low-income families.

The Strong Families Fund is expected to finance construction or renovation of 600 to 700 affordable-housing units in the next three years. It will also support on-site access to high quality social services coordination over the next decade.

The first funded project is Deborah Strong Housing, located in Ypsilanti, Michigan. The complex, named in memory of a longtime housing advocate in Ypsilanti, is moving forward with the rehabilitation of 112 units of affordable, family housing.

The Fund combines federal Low Income Housing Tax Credits for capital development with a pay-for-performance model to provide access to up to 10 years of incentive payments to housing developments.

In return, developments must provide on-site, social service coordination targeted to improving resident and property outcome measures in five areas including health and wellness, housing stability and education. Multiple studies speak to the improved outcomes for families and children from high-quality affordable housing with well-defined links to services. Such settings, the research shows, also may ultimately lead to reduction in other public sector costs.

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