Metro outlines possible extension and reforms to regional homelessness funding amid council concern

Metro Councilor Christine Lewis and Metro staff outlined a draft proposal to extend and reshape the region's funding for housing and homelessness services during a presentation to the Lake Oswego City Council on Jan. 7.

The presentation reviewed work done under the 2018 affordable housing bond and the 2020 Regional Supportive Housing Services measure (SHS), summarized program outcomes to date, and described a draft package that would extend the SHS taxes and allow those revenues to pay for affordable and permanent supportive housing while changing oversight and funding rules.

"There is no denying that these dollars have made significant impact on keeping people off the streets," Councilor Christine Lewis said, pointing to placements, eviction-prevention payments and shelter expansions funded by the program. Lewis, who represents Metro District 2, told the council Metro staff and stakeholder groups have been meeting for more than a year to develop revisions and that Metro councilors are considering whether to refer a measure to voters as early as this spring.

Why it matters: The SHS package is a central regional effort to pair affordable housing construction with rental assistance and wraparound services. The 2018 bond produced deeply affordable units; SHS funds pay for rental subsidies, shelter and services. Lewis said the current SHS taxes were designed to sunset in 2030 and warned that, "if we do nothing," funding would lapse in five years, risking the programs that now keep people housed.

What Metro proposed (draft elements described by Lewis and staff) - Extend SHS-related taxes beyond the planned 2030 sunset and allow tax revenues to be used for affordable housing and permanent supportive housing in addition to services. Lewis said the draft would also include cities as implementation partners. - Create a predictable base level of funding to reduce volatility for core services while enabling additional spending in stronger revenue years and holding reserves centrally at Metro. - Consolidate and strengthen oversight: combine existing citizen oversight and the Tri-County planning body into a single body that would include nonprofit providers, business representatives and a panel of elected officials to track outcomes and standardize regional metrics. - Index the high-earner threshold for the personal-income portion of the tax and consider rate adjustments designed to reduce the burden on middle-income households.

Council reaction and questions Lake Oswego councilors generally said they support continued funding but raised repeated concerns about the presentation’s lack of readily accessible performance data and public polling that shows declining support as people learn program details. Several councilors urged Metro to produce clearer, comparable regional metrics showing how many people the program helps relative to total need, what the costs per outcome are, and how counties and cities are using funds. One councilor cited Clackamas County’s reported 65 percent reduction in unsheltered homelessness as a model of measurable progress; Lewis and staff welcomed using positive examples to inform a regional approach.

Councilors also expressed concern about the timing and scale of any ballot measure. Some said a 20-year extension would be a large ask and recommended allowing more time to build public trust and clearer evidence that reforms and oversight changes will improve results. Lewis said that acting sooner would provide time to stabilize programs and avoid having to start a ramp-down while seeking voter authority again.

What was not decided: Metro presented the draft elements and solicited feedback; the city council did not take a formal vote on a referral or on specific policy language. Lewis said Metro Council may consider a referral in spring 2025 but did not announce a final decision.

Bottom line: Metro is seeking to convert a decade-long, revenue-stream-limited program into a longer-term funding structure that pairs housing production with services and stronger regional oversight. Lake Oswego councilors told Metro they support continuing the work but want clearer outcome metrics, stronger data-sharing and more time to build public trust before a ballot ask.

Ending: Lewis and Metro staff asked for feedback and said they will continue stakeholder meetings and county consultations before any formal referral decision.