Metro proposes $50 million affordable housing fund amid tax rate changes for Tri-County cities

The Washington County Board of Commissioners held a work session on December 10, 2024, focusing on budget allocations and funding scenarios proposed by Metro. The meeting highlighted the active use of funds for construction and development, emphasizing that no funds are idle but are instead committed to various projects, including transitional housing and access centers.

Commissioners discussed the current status of funding, noting that while $50 million was earmarked for transitional housing, the actual commitment was slightly less. They expressed hopes of securing a permanent site for housing pods, which are intended to be relocated every two years. The remaining funds could potentially be used to support community-based organizations and mitigate disruptions for individuals transitioning into housing.

The session transitioned to Metro's proposed funding scenarios, which aim to reallocate revenue streams. Two scenarios were presented: one starting with $250 million and another with $225 million allocated to counties, with Washington County expected to receive about one-third of the total. The proposals included caps on funding for affordable housing and city allocations, with $50 million designated for affordable housing regionally and $15 million for all cities combined.

Commissioners raised concerns about the implications of these funding scenarios, particularly regarding the anticipated tax rate changes. The proposed tax rate for individuals is set to start at 0.9% in fiscal year 2026-27, with a further reduction to 0.75% by fiscal year 2030. However, these changes could result in an overall revenue reduction of $84 million by 2030, raising questions about the sustainability of funding for essential services.

The meeting concluded with a commitment to further discussions in the following week, as commissioners seek to clarify the impact of these funding scenarios on local investments and services. The outcomes of these discussions will be crucial for planning future budgets and ensuring that community needs are met effectively.