In Practice Paper
In Practice: Program Related Investments for Sustained Impact
Since 1994, the Conrad N. Hilton Foundation has made over $40 million in Program Related Investments (PRIs) to complement and enhance our grant activity. These investments, or loans, can be an incredibly catalytic force in helping to scale the work of our partners and are made for the primary purpose of generating a social impact. One example of using PRIs to effectively enhance our grantmaking is in the area of chronic homelessness.
Program Related Investments (PRIs) can be a powerful complement to a foundation’s grantmaking— enabling mission-driven organizations to expand their impact and influence. A recently completed In Practice paper examines a series of PRIs that the Conrad N. Hilton Foundation provided to the Corporation for Supportive Housing (CSH) between 2004-2016 as part of a broad program to end chronic homelessness in Los Angeles County. These PRIs have had demonstrable impact, contributing to the creation and growth of a robust pipeline of Permanent Supportive Housing (PSH).
The Corporation for Supportive Housing (CSH) is one of the Foundation’s longest-term partners, receiving a total of more than $50 million in grants and PRIs since 1992. CSH has used $8 million in PRI funds from the Foundation to help create thousands of PSH units. Over the years, these PRIs have met significant needs and increased the access and availability of capital to organizations in order to maintain momentum in PSH development. In this time, CSH has also developed particular expertise in providing loans combined with customized training and technical assistance to build organizations’ capacity to develop PSH.
The results are clear and measurable: Over a 13-year period, CSH leveraged $8 million in Hilton Foundation PRI lending into over $1 billion in permanent capital for PSH development. This leverage facilitated the production of 2,354 units of supportive housing plus an additional 1,014 units of conventional affordable housing.
The Hilton Foundation and CSH have built a replicable model for how deep, flexible, long-term lending partnerships can advance innovative and timely solutions to difficult social problems. We are pleased to share this model andlessons learned through this In Practice paper. It examines a series of PRIs that we have provided to CSH as part of a broad program to end chronic homelessness in Los Angeles.