Multnomah County Homelessness Spending

Recently we shared an update about the lack of local action to combat rampant drug use and access to behavioral health services in Portland. Well, the news is even worse than we reported, since we now know that Multnomah County has more than $100 MILLION of unspent money from the Metro supportive housing services (SHS) measure. 

During what is, unquestionably, a public health and safety crisis, the Joint Office of Homelessness Services (JOHS) has underspent its budget by $58.4 million dollars. This isn't new news....underspending was reported in March of 2023 and yet the situation got worse, not better.  We now add another $50.3 M is coming in from further tax collections. The SHS measure, you may recall, is meant to address chronic homelessness in the tri-county area, and was approved by voters in 2020.  Metro is the agency that collects the tax and distributes the funds to the counties and they are responsible for oversight of how the money is spent and how effectively it is used to resolve homelessness.

The Multnomah County Commission has been informed that the situation is so dire that Metro has put the County under a Corrective Action Plan in order to monitor public funds for appropriate use. And Willamette Week has revealed that the County has resisted Metro's efforts to monitor and clarify the situation. The figure below shows how much their budget has increased since 2019.

Metro is so concerned about this fiscal lack of urgency, that they are now making the JOHS Office report monthly on their SHS spending.  Commissioners are showing concern and asking questions.  Commissioner Julia Brim-Edwards has asked some tough questions but also productively encouraged greater coordination with the City of Portland toward solutions. 

Given that all this money is available, why aren't we seeing greater progress on our streets?  How has it been spent?  What programs or projects been effective or ineffective? We don't have clear answers on any of these questions.  And...now we have to ask how will this $100 million be spent?  

In the coming weeks, the Commission will be debating what to do with these one-time funds aiming toward a vote on August 24th. 

RPC has long advocated that we need a SAVE Portland plan:

S - Shelter beds, safe rest villages, and additional beds at the Oregon State Hospital in sufficient numbers to meet the needs of the entire homeless population;

A - Addiction treatment, mental health counseling, vocational training and all other services necessary to help the homeless;

V - Verification and tracking of individuals' progress using data-driven, "by name" list methodologies; and 

E - Enforcement of applicable statutes and local codes as humanely as possible, using systems such as diversion programs and drug courts, with criminal prosecution as the last resort.

RPC has long stated that all efforts should be laser-focused on reducing homelessness with a continuum of shelter and services. Yet, while we face an addiction crisis and a mental health crisis…we find ourselves in a government crisis over if we can do it.

Instead of giving out tents, we should not be satisfied until no one lives in inhumane conditions on our streets. To quote the Oregonian: “without leadership, a sound strategy and commitment to outcomes, we will be stuck in the same housing emergency” for years to come.

We will keep you informed as this story develops.

Update on Rent Control Bill - SB 611

Update: 4/14/23

SB 611, the 2023 Oregon rent control bill has passed out of the Senate Housing Committee and is sitting on the President’s desk.  As of right now, there are not the votes to pass this bill, but that could certainly change.  

The -4 amendment is 5% + CPI with a cap of 10%.  It is certainly accurate to say that the -4 amendment is better than the initial bill.  However, most economists agree that any rent control is bad public economic policy.  There remains a lot of time before sine die and the discussions continue.

SB 611 - "Rent Control 2.0" - which adds new provisions to rent control that will further inhibit investment in Oregon.  Establishes a 3% + CPI cap on rent increases, triples the relocation assistance payment, & cuts down 15-year exemption for new construction to 3 years.

OPPOSED by member Multi-Family Northwest.

For more, please see original post on this legislation.

SB 611 - Rent Control 2.0

SB 611 - "Rent Control 2.0" - which adds new provisions to rent control that will further inhibit investment in Oregon.  Establishes a 3% + CPI cap on rent increases, triples the relocation assistance payment, & cuts down 15-year exemption for new construction to 3 years.

OPPOSED by member Multi-Family Northwest.

Update: 4/14/23

SB 611 has passed out of the Senate Housing Committee and is sitting on the President’s desk.  As of right now, there are not the votes to pass this bill, but that could certainly change.  

The -4 amendment is 5% + CPI with a cap of 10%.  It is certainly accurate to say that the -4 amendment is better than the initial bill.  However, most economists agree that any rent control is bad public economic policy.  There remains a lot of time before sine die and the discussions continue.

First public hearing on Monday, March 27 at 8 a.m.  

Submit Written Testimony

Register to Testify

From Multifamily NW:

It’s official: SB 611 – which establishes a 3% + CPI cap on rent increases, triples the relocation assistance payment, and cuts down the 15-year exemption for new construction down to 3 years – is scheduled for its first public hearing in Salem on Monday, March 27 at 8 a.m.

We are so grateful to the more than 400 advocates who have sent emails to the legislative committee so far. It’s been making a big difference. 

But now that there’s a hearing scheduled, we need your help TODAY to flood the public record with opposition.

If it’s helpful, here are some general talking points to help with your testimony. Be sure to add in your own experiences and stories to illustrate why this bill would be a disaster for rental housing in your community.

• My name is [FIRST + LAST] and I live in [CITY]. I have worked in the rental housing industry for [MONTHS/YEARS]. Please vote NO on SB 611.
  
  
• It's clear that rent control isn't working in Portland or around the state. Most of our cities are growing more unaffordable by the day. This bill will make things even worse and doesn’t address the root cause of housing instability.
  
  
• Housing Oregonians at the sole expense of those providing their housing is not sound public policy and is not a sustainable way to address housing instability. We need to focus on permanent rent assistance and increasing supply.
  
  
• If the state wants to achieve the goal of 36,000 new housing units per year, we cannot pass this bill. More rent control will only disincentivize new development and ownership of rental units. This bill leads us further away from our housing goals.
  
  
• SB 611 will drive small and large rental owners out of the market and hamstring much needed multifamily developments. Lack of housing supply makes it harder for businesses to grow, for local governments to have a solid tax base, and for Oregonians to stay in their own communities.
  
  
• Rent prices are set by several factors like rising utility and insurance costs, inflation, increases in the cost of maintenance and payroll, and local tax burdens. All of these costs are only increasing.

It’s also CRITICAL to show up for the hearing next Monday. Strength in numbers will be key. If you want to join us in Salem and read your testimony for the record, we would love to see you there.

Thank you in advance for your help defeating this terrible proposal. If you plan to join us in Salem next week, reach out to jonny@multifamilynw.org and we will coordinate with you.

Multifamily NW is at the table with decisionmakers nearly every day, and your actions right now can strengthen our position immeasurably.

Sincerely,

Deborah Imse
Executive Director
Multifamily NW