Multnomah County is bracing for a significant surge in homelessness due to impending federal policy changes. Approximately 800 households face imminent risk of losing their homes if adjustments to federal funding proceed as anticipated.
Impact of Federal Funding Cuts
At a recent county board hearing, Chair Jessica Vega Pederson expressed grave concerns. “This is a horrible thing to have to face as a community,” she stated, referring to the potential loss of over $25 million from the U.S. Department of Housing and Urban Development (HUD).
The situation is stark, with homelessness prevalence across the county already reaching alarming levels. These federal cuts are linked to an overhaul of HUD’s Continuum of Care program, which provides crucial grants to combat homelessness.
Changes to Housing Programs
- The HUD funding cuts target permanent supportive housing programs.
- These programs assist individuals who are unable to live independently due to mental illness or disabilities.
- Services include on-site treatment and job training.
New requirements imposed by HUD mandate participation in substance abuse treatment and restrict specific program types. These changes contradict Multnomah County’s policies, which aim for equity and inclusivity.
Legal Challenges and Uncertain Future
In response to these federal directives, Oregon, along with 18 other states, has initiated a legal challenge. Though HUD temporarily withdrew its policy revisions to reassess feedback, it remains committed to the fundamental reforms.
County officials fear the worst, with projections indicating a potential loss of $25.3 million in funding. This loss could threaten housing for over a thousand individuals.
To mitigate the impacts, Multnomah County is exploring alternative funding sources. They anticipate generating approximately $137 million from Metro’s Supportive Housing Services fund next year.
Concerns from Local Leaders
County officials are concerned about the likelihood of federal funding, given their public dissent against certain policies from the current administration. “Do we have concerns that locations that have resisted the Trump administration’s policies are less likely to get funding?” questioned Commissioner Meghan Moyer.
As a preventative measure, the county has paused plans to open 200 new permanent housing units. This funding was intended for the current budget year but may now be redirected to assist those who risk losing their housing.
Broader Context of Funding Challenges
Multnomah County is not alone in facing challenges; Home Forward, the county’s public housing authority, recently announced a $35 million budget shortfall due to HUD cuts, impacting low-income rent subsidies and extending existing waiting lists.
In an attempt to buffer the financial loss, city councilors are considering resolutions to allocate approximately $9 million of unspent city funds. County staff emphasize the urgency of the situation, pursuing various strategies to safeguard housing programs amid these federal policy changes.
