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As the state faces soaring levels of evictions, the Legislature’s budget-writing committee yesterday moved ahead with a budget for Oregon Housing and Community Services that includes large cuts for two key services: eviction prevention and homelessness prevention.
Documents show that the 2023–25 budget included a combined $130.2 million for those two services. But the OHCS budget approved June 10 by the Joint Ways and Means Subcommittee on Transportation and Economic Development cut that number to $33.6 million—a 74.2% decrease. Advocates knew the budget might be difficult, but they say the depth of cuts came as an unpleasant jolt.
“We were completely shell-shocked,” says Cameron Herrington, director of policy and advocacy for the Oregon Housing Alliance. “We didn’t have any indication that these most fundamental safety-net services that have been preventing thousands of families from becoming homeless would be completely gutted.”
“We had no warning,” adds Kim McCarty, executive director of the Community Alliance of Tenants.
McCarty says the effect on Oregonians of being evicted, which can include job loss, impaired credit ratings, health impacts and trauma, is high relative to the budget savings. “The cost of rehousing is very expensive,” McCarty says. “We have the data to prove that. The vast majority of people only need help once.”
“It’s probably going to hurt the whole state and rural areas hardest because there are fewer housing options in rural communities,” she adds.
Meanwhile, according to the Evicted in Oregon project at Portland State University, eviction filings have trended upward since the pandemic (when they were mostly prohibited), reaching an all-time high in January of this year.
Lawmakers say they are pained by the cuts.
State Rep. David Gomberg (D-Otis), a co-chair of the budget panel, says the budget cuts reflect the weaker-than-expected revenue forecast in May and a gloomier economic outlook.
“We have a very, very difficult revenue forecast, and we have to make some difficult decisions,” Gomberg says.
State Rep. Pam Marsh (D-Ashland), chair of the House Committee on Housing and Homelessness, says she also is unhappy.
“I don’t think cuts in eviction services have anything to do with the worthiness of the cause,” Marsh says. “Rather, this is a lean budget, and we are going to see the impact of that in every corner. We always knew this was going to be a challenging year, and the unstable economic environment resulting from federal actions has put more stress on the budget.”
Also cut in the OHCS budget: rehousing services for people who are already homeless. That line item is set to decline from $151 million to $50.3 million in the next biennium.
But even as the amount of money budgeted for eviction and homelessness relief is set to decline sharply, the line item for shelters is set to increase, from $189.7 million in 2023–25 to $204.9 million in 2025–27.
“We are grateful the bill funds the shelters,” Herrington says, “but gutting rent assistance and homeless prevention is going to put far more pressure on the shelter system.”
The Oregon Housing and Community Services budget bill, HB 5011, now goes back to the full Ways and Means Committee for a work session before proceeding to the House and Senate floors for votes.