Pay for Success

Below are the project summaries developed at the time of the grant award based on each grantee’s anticipated program structure.

The Los Angeles County (BSCC grant award $2,000,000)

The Los Angeles County’s Pay for Success Project is aimed at reducing recidivism and ending homelessness for frequently incarcerated inmates with histories of homelessness. The project will focus on the end-to-end provision of holistic, supportive jail in-reach services and post-release permanent housing interventions for 300 homeless Los Angeles County male inmates who have frequent contact with the criminal justice system and complex physical and behavioral health conditions that contribute to negative housing and criminal justice outcomes. The project brings together the Los Angeles County Department of Health, Los Angeles County Sheriff’s Department, Los Angeles County Chief Executive Office, Corporation for Supportive Housing, Third Sector Capital Partners, and numerous community based housing and service providers.  The intervention consists of two linked components: pre-release in-reach supportive services and immediate interim/permanent supportive housing upon release from jail. The Department of Health Services will provide oversight of the jail in-reach services that will be delivered by intensive case management service providers under contract with their department. The Housing for Health Division will provide oversight of the community-based contracts for housing and support services for participants post release. The budget for the Los Angeles Pay for Success Project is estimated at $23,420,616.

Ventura County (BSCC grant award $1,500,000)

Ventura County’s Pay for Success Project will focus on reducing the number of rearrests among 400 Ventura County medium-to-high risk adult probationers. The program model offers an integrated community-based set of evidence-based practices targeting the specific criminogenic factors most related to recidivism. The project has a public-private partnership that leverages and coordinates the expertise and resources of the County Executive Office, Probation Department, Public Defenders Office, Interface Children and Family Services, Social Finance, and investors. The intervention model used, Core 4 Success, is a community-based case management approach. A customized suite of re-entry evidence-based practices are to be used for each individual participant that could include re-entry case management, Moral Reconation Therapy, parenting and reunification services, trauma treatment and job readiness skills. The budget for the Ventura County Pay for Success Project is estimated at $2,740,782.

Alameda County (BSCC grant award $1, 250,000)

Alameda County’s Pay for Success Project is designed to engage first-time felons sentenced to local jails (i.e., persons sentenced pursuant to Penal Code section1170, subdivision (h)) through peer-based interventions that address: 1) chronic unemployment and poverty; 2) substance abuse; 3) limited access to a variety of supports such as subsidized housing, mental and physical health care and education; 4) lack of positive peer relationships and role models; and 5) criminogenic thinking. Services will include pre-and post-release outreach engagement efforts to ensure participant “buy-in.” Once engaged in the program, 945 participants will receive services from a cross-trained peer-based service team that will deliver 24/7 wraparound services, and counselors who provide access to substance use disorder treatment, employment training, adult education, mental health services, intensive case management and housing assistance. The project is a collaboration between the County Administrator’s Office, District Attorney’s Office, Sheriff’s Office, Probation Department, Health Care Services, Behavioral Health Care Services, Public Defender’s Office, Social Services Agency and numerous community based service providers. The budget for the Alameda County Pay for Success Project is estimated at $10,760,539.

Background The BSCC’s Pay for Success (PFS) program is a pilot project that pays service providers when they successfully achieve recidivism-reduction goals. It is made possible by Assembly Bill 1837 (Atkins, Chapter 802, Stats. 2014). The program, which also is known as Social Innovation Financing, requires investors, local government agencies and service providers to agree on outcome goals for programs that reduce recidivism. Repayment on the private investment is based on reaching those targets.  The BSCC awarded $2 million to Los Angeles County for a program designed to reduce recidivism and end homelessness for frequently incarcerated offenders. Ventura County receives $1.5 million for a program that will focus on reducing recidivism among 400 medium-to-high risk adult probationers. Alameda County receives $1.25 million for a peer-based program that will engage first-time recidivists by addressing chronic unemployment, substance abuse, housing, and mental and physical health.

Counties are required to provide a 100 percent funding match. Additional funding from private investors or philanthropic organizations will pay operating costs of the program, including for service providers.  If targeted outcomes are achieved, those investors earn a return on their money that is paid for with the grant funds.  Local government agencies and project partners will enter into a multi-year contract that defines outcomes, evaluation methods and repayment terms based on achieving desired goals. An independent evaluator will determine whether the goals are met.

According to the legislation, the grants are to encourage innovation in addressing intractable societal problems: “Social innovation financing and the use of performance-based contracting can serve as an effective tool for addressing social and community development challenges where private sector innovations may be useful and multiple approaches may be appropriate.” The project will run from June 1, 2016 to December 31, 2021.

Project Development Information

PFS Request for Proposals – PDF
PFS Executive Steering Committee – PDF
PFS Bidders’ Conference Agenda – PDF
Bidders’ Conference Presenstion I – PDF
Bidders’ Conference Presenstion II – PDF

Assembly Bill  1837 – PDF


Pay For Success Learning Glossary – PDF
Social Innovation Financing Program - Draft Model  – PDF


The Nonprofit Finance Fund Pay for Success Learning Hub ( )

Third Sector Finance (

Social Finance US (

Strategic Innovation at Nonprofit Finance Fund (

National Council on Crime and Delinquency (

Colleen Stoner, Field Representative: (916) 324-9385, new email
Melynda Gillies, Fiscal Analyst:  (916)  323-6156, new email