Committee backs Housing and Community Services budget with larger shelter spending, critics press for more production

The Joint Committee on Ways and Means on June 17 recommended House Bill 5011, the budget bill for the Housing and Community Services Department (HCSD), as amended, approving a total-funds biennial budget of $2.7 billion and 478 positions. The Transportation and Economic Development Subcommittee reported the bill out with the dash-2 amendment "due pass as amended."

The budget includes major general-fund investments the subcommittee flagged in its report: $204.9 million to support a statewide shelter system (about $102.5 million of which is assumed ongoing), $50.3 million for rehousing (about $25.2 million ongoing), $33.6 million for eviction prevention ongoing, $87.4 million one-time for up to 24 months of long-term rental assistance, $10 million for housing initiatives for Oregon’s nine federally recognized tribes (with $5 million ongoing), and a range of one-time funds for down-payment assistance, housing counseling and manufactured-home repair and replacement. The subcommittee also recommended $176.4 million and 42 positions tied to administration of disaster recovery and resilience programs funded largely by federal community development block grant disaster recovery dollars from the 2020 wildfires.

Why it matters: Lawmakers who support the bill said the package reflects difficult trade-offs in a constrained budget environment; some members said the balance skewed toward emergency response rather than increasing long-term housing supply. Senator Anderson said, "I have a blue tarp with a sign that says ‘blue tarps are not housing,'" to emphasize frustration that increased shelter funding does not replace new housing production. Representative Levy and others put a marker down for restoring down-payment assistance and other production-oriented investments when resources allow.

Subcommittee directions and accountability measures in the budget include two budget notes directing HCSD to return to Ways and Means in February with recommendations on shelter funding and on eviction and homeless-prevention program design. The subcommittee report also authorizes reestablishing and making permanent certain positions for shelter, rehousing and central services that had been phased out of the current service level, and it includes 16 positions tied to an agency operations assessment.

Lawmakers raised implementation concerns. Representative Kate said she could not support the package as drafted because she questioned results: "When you really run the numbers between what we're spending and how many people are being served ... the numbers per person are huge." Senator Campos and Representative Ruiz praised bipartisan work and urged prioritizing homelessness prevention services, including emergency rent assistance and tenant support services. Several members pressed for clearer program designs and outcome metrics.

The subcommittee report recommends making the disaster-recovery administration permanent enough positions to administer federal funds and retains ongoing investments in eviction prevention and rehousing. The measure was reported out "due pass as amended." The committee recorded no roll-call tally in the transcript for the recommendation; the chair declared the motion passed after the discussion.

What the bill does not yet resolve: The budget invests substantially in shelters and operating supports while some members asked for more funding steered toward new housing production and down-payment assistance. The budget includes one-time and ongoing funding mixes and triggers further review; it does not, in this action, change statutory housing programs or create new permanent programs beyond the positions and funding described. HCSD was directed to return with program design recommendations in February.

Next steps: The subcommittee-recommended dash-2 amendment and the due-pass recommendation moves HB 5011 forward in the Ways and Means process; HCSD is required by budget note to return with shelter and eviction-prevention program designs.