Washington County commissioners press Metro for clarity on SHS reform; seek delay, warning on allocations and reporting burdens

Washington County commissioners used a work-session briefing to press Metro Council'drafters of a proposed reform to the Supportive Housing Services (SHS) measure for clearer language, more time for review and assurances about fiscal impacts and administrative burdens.

Erin Doyers, Washington County government relations manager, presented a section-by-section summary of two draft Metro ordinances that would (1) refer a reform measure to voters and (2) establish transition rules if voters approve the referral. The drafts, Doyers said, would allow SHS revenues to be used for a wider set of "affordable housing" activities, extend the authorized collection through tax year 2050, create a new regional advisory body (referred to in the drafts as an H2PAC or HPAC), and add new annual reporting, monitoring and audit requirements for counties and service providers.

Why it matters: commissioners said the changes could affect how much revenue counties receive, how local contracts are funded and the administrative workload for county staff and service providers. Several commissioners warned the draft leaves open a path for Metro to lower the tax rate in future years and for Metro-level allocation decisions that could disrupt long-term contracts and the county'run "essential system" of services. Commissioners also raised concerns that new reporting and data-sharing requirements would duplicate existing federal and state reporting and add substantial staff time.

Key points from the briefing

- Affordable housing uses and carryforward: Doyers said the referral would explicitly allow SHS-collected funds to be used for affordable housing, including development, preservation, purchase and related activities. The draft also states that previously collected Metro carryforward funds could be used for affordable housing if permitted under the new language.

- Extension and tax-rate ceiling: The draft would extend collection through tax year 2050 and sets a process that could reduce the maximum tax rate; the ordinance as drafted includes blanks for the new ceiling and the timing of any reductions. Commissioners said the possibility of a lowered ceiling complicates long-term budgeting and contract commitments.

- Governance and H2PAC: The drafts would terminate the existing SHS oversight committee and Tri-County planning body and replace them with a regional advisory body (H2PAC) that would recommend an allocation structure and regional plan; Metro Council would adopt final rules. Doyers said Metro intends to appoint H2PAC members no later than September 2025 if the measure passes.

- Local implementation plans, reporting and data sharing: Drafts would require counties to submit annual implementation plans or work plans tied to Metro performance metrics, and to provide federal, state, regional and local funding budgeted and actuals by a specified deadline (draft language references Sept. 30 reporting and fiscal-year labels that commissioners said may be in error). Commissioners urged Metro to accept existing federal and state reports rather than create duplicative data requests.

- Monitoring and audits: The ordinance authorizes Metro to monitor implementing partners, request records "upon reasonable notice," and require annual financial audits and performance audits by regional elected auditors. Commissioners warned that both monitoring and expanded audits could impose substantial new administrative burdens on counties and service providers and may require additional allowable administrative funding.

Commissioners' concerns and requests

Commissioners asked Metro to provide clearer definitions and timelines, including: an explicit definition of "housing crisis" and shared regional metrics; written intentions for transition timing (rather than only verbal assurances); clarification of whether Metro or H2PAC recommendations would be binding; and public disclosure of fiscal models showing the impact of any tax-rate reductions. Several commissioners proposed that any change to the tax rate include a long lead time (one suggested three years, another suggested five years) so counties can adjust contracts and services.

Concerns also included the potential for Metro to reallocate county carryforward or distributions, the scale of new reporting (including federal and state funding flows), and the operational feasibility of annual plan approvals timed to budget calendars. Commissioners recommended that Metro use existing state and federal reporting where available and avoid duplicative reporting demands.

County letter and next steps

The board discussed a draft letter to Metro Council that asks Metro to slow the referral process, clarify key provisions and publish fiscal and operational impacts before a voter referral and campaign. Commissioners indicated support for sending a finalized, signed letter from the full board rather than a single signature; staff said they would circulate a final signed copy. Commissioners also requested a follow-up, more detailed technical comment on the working draft ordinances in the coming week.

Formal action recorded: at the end of the public session the board voted unanimously to move into executive session to discuss labor negotiations. The motion to move into executive session pursuant to ORS 192.660(2)(d) carried 5'0to'0 (the transcript records the outcome as "carried unanimously 5 to 0" but does not list roll-call votes).

What Metro has scheduled: Doyers said Metro planned additional hearings and that Metro Council President Lynn Peterson indicated Metro may allow additional time for information gathering; Doyers said Metro scheduled an item for January 30 and that Metro Councilors would continue discussion on Thursday following the drafts presented last week.

What to watch for: commissioners asked for clearer fiscal modeling from Metro, specific language about who decides allocations, a public timeline for H2PAC appointments (the draft targets no later than September 2025), and a narrower, less duplicative reporting requirement that relies on existing federal and state reports where possible.

Proper names mentioned in the meeting: Metro Council; Metro Council President Lynn Peterson; Supportive Housing Services (SHS); H2PAC/HPAC (named in draft ordinances); Measure 26-210 (referenced in the drafts' purpose language).