If this message isn't displaying properly, Click Here to launch your browser.
Home Page   |   Our Programs   |   Newsreleases   |   About Us   |   Employment Opportunities
OHCS Director's Message

Director's Message
June 26, 2009


To: Employees and Partners of Oregon Housing and Community Services

From: Victor Merced

Re: Director’s Bulletin –

  • Lottery-backed Bonds
  • Housing Opportunity Bill
  • Reductions and the challenges ahead

This week, the Legislature sent HB 5019, the Oregon Housing and Community Services budget, to the Governor.

Thanks to the tremendous support of the governor, legislators – especially the co-chairs of our Ways and Means subcommittee Senator Betsy Johnson and Representative David Edwards – and a remarkable coalition of advocates, Oregon Housing and Community Services came through the session in reasonable shape.

HB 5019 will provide the foundation for OHCS and its partners in the coming biennium. This state action, plus $160 million in new and increased federal resources from expanding federal programs and the economic stimulus legislation, represent our work for the next two years.

Lottery-backed Bonds

Lottery-backed bonds will help keep Oregon’s aging federally subsidized housing affordable and prevent the closure of manufactured dwelling parks. We estimate that $16.3 million for preservation will allow OHCS and its partners to acquire and rehabilitate 1,598 units of existing affordable housing. Preserving these units will generate a substantial economic return for the next 20 years as Oregon retains federal subsidies worth about $115.1 million.

The package dedicates an additional $3.1 million in bond proceeds to preserving parks—a critical and unsubsidized source of affordable housing.

Housing Opportunity Bill

Included in HB 5019 is revenue from the Housing Opportunity Bill, which brings long-sought stability to affordable housing funding. During the next biennium, the new fee will generate a projected $15 million in revenues for four activities.

  • Emergency housing activities - Impacts more than 8,000 people experiencing homelessness
  • Partner capacity building - Preserves capacity and assets of non-profit affordable housing developers.
  • Homeownership - Increases homeownership opportunities for 400 low-income individuals and families. Increases number of minority households served.
  • Affordable rental housing - Develops new units of affordable rental housing. Acquires and rehabilitates units of existing housing.

Six new positions will implement the requirements of the Housing Opportunity Bill.

Federal Stimulus

Federal stimulus dollars will offer relief from the state’s budget woes, providing short-term employment opportunities here at OHCS, and boosting economic prospects across the state. In total, the department will add 19 positions to manage the increased federal dollars. Learn more about the range of programs here.

Reductions and the challenges ahead

Revenue sources that have traditionally supported our operations continue to decline, driven by the changing economy, budget cuts, and other factors.

As a result, the agency originally contemplated the elimination of 17 positions beginning July 1, 2009. The new lottery-backed bonds will allow two of those positions to continue, and the growing energy program provides a spot for three. The Housing Opportunity Bill preserves two others. In the end, the 2009-11 budget cuts 10 positions, or 7 percent of our total workforce.

Since the realities of this budget were apparent last fall, we were able to help most of the affected employees find a safe place to land. The agency will struggle to cope with its shrinking operational funds and staff.

HB 5019 reduces the department’s General Fund budget by 20 percent. Effective July 1, the General Fund will no longer support the Homeownership Assistance program, making homeownership less possible for 160 individuals and families.

The bill also reduces General Fund support of Emergency Housing Assistance by $1.6 million (a 23 percent reduction), and for the State Homelessness Assistance Program by $171,358, or approximately 6 percent of the program budget. The latter will cut basic services for people experiencing homelessness.

While the new document recording fee will offset some of these cuts, the number of Oregonians facing hunger, homelessness, and hardship continues to grow at a frightening pace.

OHCS programs enable hardworking Oregonians and our most vulnerable neighbors to succeed, become self-sufficient, and achieve prosperity. We remain committed to achieving that mission in a changing world.

Cassius:
“Men at some time are masters of their fates;
The fault, dear Brutus, is not in our stars,
But in ourselves …”

Julius Caesar, William Shakespeare

 

Victor Merced, Director
Phone 503.986.2005
Email: victor.merced@hcs.state.or.us
www.ohcs.oregon.gov

–30–

OHCS Director's Message