News

ARTICLE
Date ArticleType
4/23/2024 Member News

Metro Considers Paring SHS Tax Funds, Reallocating Portion to New Housing Construction


HBA has been working with several industry and housing groups to shape negotiations that could re-appropriate how Metro’s Supportive Housing Services (SHS) tax funds are spent. Metro and a taskforce of two dozen individuals and organizations are evaluating whether to spend surplus revenues on new housing production given that the 2018 Affordable Housing Bond is nearing its conclusion after having created over 4,800 new affordable homes across the region.

At the core of the issue is an anticipated $1 billion, 10-year surplus that the SHS tax is expected to generate, on top of the projected collection of more than $250 million per year for county-directed homeless services. Many involved in the stakeholder table believe that the overall tax rate should decrease, offering tax-relief to Portland area residents, while redirecting surplus funding to programs that have a detailed track-record of success.

While there are ideological differences of opinion on the matter, some, including Governor Kotek have weighed in with support for potentially using some funds for the construction of new housing. At any rate, it is clear that counties have struggled to deploy taxpayer dollars effectively, ending up with hundreds of millions sitting in county bank accounts. HBA and several of our members have a seat at the table and will work to ensure that precious public resources are spent responsibly, and leveraged in a way that incentivizes housing production across the region.