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Low income earners have been dealt a bitter blow by Oregon lawmakers who have slashed millions from Governor Tina Kotek’s request for $700 million to finance about 7,000 new affordable rental units.
$182 Million Allocated For Affordable For Sale Housing and Homes for the Homeless
Instead, the Joint Committee on Ways and Means has considered Senate Bill 5505 with recommendations for $101 million spent on affordable for-sale housing, and a further $81 million on housing to support the homeless.
Although Kotek requested $700 million, lawmakers are considering allocating $468 million to the Local Innovation and Fast Track (LIFT) rental program that funds new affordable rentals. The allocation would provide about 4,700 new rental properties.
LIFT Program On Steroids in Recent Years
The LIFT program has ‘been on steroids’ in recent years is how House Minority Leader Christine Drazan expressed the sentiments shared by many lawmakers. She was addressing the Joint Committee on Ways and Means Subcommittee on Capital Construction on Tuesday.
Drazan cautioned against relying on LIFT for new housing construction because other state demands on the general fund that pays for debt service on bonds. Her words echoed a bleak revenue forecast received by the Legislature in May, highlighting many other priorities demanding a share of the state’s coffers.
Funding Apartment Buildings in Exchange for Inclusion of Affordable Units
A ray of sunshine on the housing shortage scene is Senate Bill 684. It will offer a ‘revolving’ loan fund to reduce cash shortages for new apartment buildings in exchange for the inclusion of affordable units.
To make the project financially feasible, the bill proposes establishing a fund for apartment developers that offers low-interest ‘gap’ loans to supplement conventional construction loans.
Supporters of SB 684 have requested funding of up to $100 million, however, the bill must first pass both the Senate and the House.
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