State seeks 'social bonds' to aid homeless (AP)

BOSTON (AP) — State officials hope to leverage private-sector funding to help reduce the number of chronically homeless people in Massachusetts.

Gov. Deval Patrick plans to unveil the initiative on Monday. Known as Social Impact Bonds or Pay for Success contracts, they rely on upfront funding from private capital investments and charitable donations. Investors are repaid only if an outside evaluator determines the program has achieved a goal that benefits society and saves taxpayer dollars.

Patrick says the program aims to help up to 800 of the estimated 1,500 chronically homeless individuals in the state.

The announcement is scheduled to be made at the South Middlesex Opportunity Council in Framingham.