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Housing and Community Services reports $190.5 million allocated for shelter and rehousing; lawmakers question cost-effectiveness
Summary
The Housing and Community Services Department told the committee that $190.5 million has been allocated for shelter and rehousing, with portions expended and rehousing and bed-creation numbers reported; several lawmakers said the state should measure cost-effectiveness and focus more on permanent housing.
On March 11 the Transportation and Economic Development Subcommittee reported to the Joint Committee on Ways and Means on the Housing and Community Services Department’s shelter and rehousing investments. The department presented data through September–October 2024 as part of a budget-note-directed series of quarterly reports on investments tied to the governor’s homelessness emergency declaration (executive order 23-02).
The department reported that $190,500,000 for shelter and rehousing efforts has been allocated to multi-agency coordinating groups in regions designated by the executive order. The report stated that 1,426 households have been rehoused and that 1,047 shelter beds have been created statewide. In the 26 rural counties that were added to the rural continuum, the department reported 387 shelter beds created versus a goal of 100 beds; the transcript also notes variability across counties with 10 of the 26 reporting zero beds created.
The department also reported a range of spending figures for homelessness prevention and long-term rental assistance: $122,600,000 allocated for homelessness prevention with $108,600,000 expended and a combined total of 14,843 households served; long-term rental assistance funds were described as serving 1,137 households for up to 24 months (amounts and household counts as presented in the subcommittee materials cited in the transcript).
Committee members raised concerns about per-bed costs, the proportion of funds spent on low-barrier shelters, and the pace of spending. Representative Kate said the state appears not to be getting the expected results for the dollars spent and said she would vote no on acknowledging the report to continue pressing the agency on efficiency. Representative Tracy said the approach emphasizes low-barrier beds and that many people in recovery have limited options, and also indicated she would vote no. Representative Gomberg and other members said the report illustrates the scale of the challenge and urged continued focus on permanent housing rather than temporary shelters. The committee ultimately acknowledged receipt of the report; the transcript records both supportive and critical remarks.
