Oregon Governor Kate Brown released a proposal that would invest $400 million from the state’s General Fund in affordable housing and homelessness programs. More than 80% of these resources would be dedicated to the preservation and construction of affordable homes. Rather than establishing new programs, the governor’s package proposes increased investments in existing programs that need additional funding, which will ensure that agencies and partners have the capacity to employ new resources efficiently. The legislature will consider the proposal in a 35-day session that begins on Tuesday, February 1.
The governor’s proposal came as welcome progress to advocates in Oregon. “A safe and stable home is a basic human need,” said Alison McIntosh of the Oregon Housing Alliance, an NLIHC state partner. “Oregon must continue to invest in housing solutions for communities across our state. We appreciate Governor Brown’s leadership to bring forward a critical package of investments and now look to the Legislature to pass these investments.” The Oregon Housing Alliance includes more than 90 organizations from across the state, including housing and service providers, faith-based organizations, cities, counties, and residents of affordable housing.
More than $339 million of the proposed $400 million would be invested in increasing and preserving Oregon’s affordable housing supply. The package includes $170 million to preserve affordable housing, address operating cost increases, improve living conditions with new resources for cooling systems, and extend affordability periods. In recent years, summer temperatures in Oregon have soared, and many tenants with low incomes continue to live without air-conditioning. An additional $29.5 million would be used to acquire manufactured home parks – an important source of affordable housing – that are at risk of being sold and converted to other uses.
The package proposes $35 million in competitive funding to build small affordable rental home developments, which would provide up to 175 new one-bedroom units for low-income renters. These resources have been critical for building smaller affordable housing projects in rural communities. The proposal also includes a $25 million increase in funding for the Land Acquisition Program – which helps local governments, housing authorities, nonprofits, tribes, and other entities purchase land for affordable housing development – and would allow funding recipients to secure their land when it is available. The overall package will help address the complications resulting from Oregon reaching its cap on Private Activity Bonds.
An additional $50 million would fill pricing and construction gaps for affordable housing developers that were awarded funds within the past three years but have since faced increased project costs that threaten their ability to complete construction.
Robust housing investments are urgently needed in Oregon. For every 100 extremely low-income Oregonians, there are only 25 affordable and available rental homes – the third most severe shortage of any state, following Nevada and California. Oregon’s Regional Housing Needs Analysis found that Oregon must build more than 140,000 affordable homes over the next 20 years while also preserving the entirety of the existing affordable housing stock to meet the state’s anticipated housing needs.
The governor’s proposal also includes $500,000 to support homelessness response infrastructure. This modest investment would fund the implementation of some of the strategies recommended by the Task Force on Homelessness and Racial Disparities, established by the legislature in 2021. The funding would support the hiring of a homeless policy advisor to lead statewide homelessness response efforts, as well as the facilitation of the Task Force and the establishment of a Statewide Interagency Council on Homelessness. Some of these resources would also be directed towards Oregon Housing and Community Services engagement with the Built for Zero Collaborative, a public-private partnership that supports communities with the goal of ending homelessness.
In addition to resources for affordable rental housing and homelessness response, the package includes $25 million to support homeowners at risk of foreclosure and meet the needs of manufactured homeowners. The proposal would also invest $35 million in the Individual Development Account program, which is a matched savings program that supports financial literacy and asset building for low-income Oregonians.
According to Governor Brown, the legislature has an estimated $2 billion surplus from unexpected tax revenue and federal pandemic relief. Alongside the $400 million housing and homelessness package, the legislature will consider proposals to invest some of the surplus in job training, childcare, healthcare workforce development, and other priorities when it convenes on February 1. Advocates in Oregon also plan to bring forward other policy proposals, including proposals to help preserve existing affordable housing.