Lawmakers slash $100 million from budget for eviction prevention, legal aid

The move comes as Central Oregon sees spikes in homeless population, record number of cost-burdened renters and increased eviction filings.

A worker builds a home in a new affordable housing development in Bend. Photo by Joe Kline.

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By DAVID DUDLEY

ForJournalism Lab

Oregon lawmakers passed a bill in June that will cut $100 million from eviction and legal assistance for Oregonians.

Lawmakers said the cuts became necessary after a discouraging revenue forecast suggested the state would have to work with $500 million less than expected.

The forecast accounts for economic factors like imports and exports, taxes, potential for recession, tariffs and trade wars, and Intel's intention to lay off up to 20% of factory workers from its Oregon plants.

In her budget recommendation, Gov. Tina Kotek asked for $173 million to help Oregonians struggling to pay rent. The 2023-25 budget allotted $130 million toward those programs, but the 2025-27 budget will provide only $33.6 million. Gov. Kotek's office did not respond to multiple requests for comment.

The move comes as Oregon landlords filed nearly 28,000 eviction cases in the past year. During that same time, the homeless population in Central Oregon continues to grow. The most recent point in time count, administered by the Homelessness Leadership Coalition, found that the number of homeless people in the area has ballooned from 1,116 to 2,108 since 2021.

Taken together, those numbers indicate that cuts to services couldn't come at a more crucial time.

Tough to see

The Joint Center for Housing Studies at Harvard University recently published a report called The State of the Nation's Housing, 2025. The report found a record number of renters — over 47% — in Bend are cost-burdened. 

A worker moves materials while on the roof of townhouses under construction in Bend. Photo by Joe Kline.

Cost burdened renters are those who spend more than one-third of their discretionary income on housing. When that happens, renters are unable to save money for emergency expenses that come with separations and divorces, vehicle repairs and medical treatment.

With no savings to draw from, they're at higher risk of being evicted when a crisis strikes.

When facing eviction, they can't afford to hire an attorney to represent their cases. Evicted in Oregon found that only 4% of Deschutes County renters facing eviction had an attorney.

Rep. Emerson Levy told FORJournalism that discouraging economic forecasts, lack of federal partnerships and uncertainty around federal funding have led to a number of difficult budget decisions that will impact Oregonians.

"I truly believe when it comes to breaking the cycle of homelessness, we must invest in upstream solutions, such as efforts to prevent housing insecurity for youth and families," said Levy. "These initiatives not only prevent adult homelessness, but can save us millions of dollars in the future.”

Lynne McConnell, executive director of Housing Works, the regional housing authority based in Redmond, agreed. McConnell added that the cuts may create cascading challenges for families who are already struggling financially.

"Rehousing folks who have become homeless is harder, and often more expensive, than keeping them housed in the first place," she said. "The cuts to these services are tough to see."

As cuts to eviction prevention programs will likely push more Oregonians into homelessness, many could seek space in local shelters. Rep. Levy noted the need to act swiftly to maintain Oregon shelters, which were "under threat of closure."

"Shelters are often the last line of defense for communities and we are still hoping to see this funding be restored," said Levy.

McConnell praised the Legislature's approval of funding for shelters.

"Those services are critical for our most vulnerable clients to stabilize, and for us to be able to access them when they are houseless," McConnell said. "I'm also pleased that the Legislature emphasized the development of new rental housing in their budget."

Logjam around the bend

Toward that end, the Legislature approved nearly $470 million for the Local Innovation and Fast Track affordable housing program, which is aimed at building more affordable housing across the state.

Gov. Kotek's office said in a press release that the Housing Accountability and Production Office (HAPO) is open for business. HAPO will work with local governments, state agencies, and developers to meet Kotek's goal to build 36,000 new homes each year. 

But international economic headwinds may hamper efforts where new construction is concerned, creating an environment in which builders get less bang for their buck.

A recent survey by the National Association of Homebuilders found that builders are losing confidence in the market due to tariff-fueled spikes in the price of building materials like wood and steel.

Canada supplies more than 85% of softwood lumber imports, a key building material. President Donald Trump's tariffs on Canadian lumber currently sit at 14.5%, but they're expected to rise to 34.5% later this year, which will drive up the cost of building, and may discourage investors from funding new projects.

The Association’s survey is focused on single-family homes, but it points to buyers' reluctance to enter into the market as prices and mortgage rates remain high. Which means that, whether they're in apartments or rental homes, many potential home-buyers are staying put.

Not enough to go around

Deschutes County Commissioner Phil Chang worries for his constituents, as Bend's housing market contends with ongoing shortages and the attendant high prices.

Workers build a single family home in a new housing development in Bend. Photo by Joe Kline.

"If we don't build new homes, the people who are staying in shelters won't have anywhere to go," Chang added. "We'll be increasing inflow while decreasing outflow. That's not an ideal scenario."

Oregon issued 14,270 new building permits in 2024, the lowest level in 12 years, according to the Office of Policy Development and Research.

Sen. Anthony Broadman told FORJournalism that it's critical to put as much public money as possible into producing affordable housing, keeping people in their homes, and making sure those experiencing homelessness have a warm place to sleep.

"This was a very tough budget cycle with not enough money to go around," said Broadman. "But I am committed to continuing to work toward solving our housing and homelessness crisis."

Homelessness: Real Stories, Real Solutions (realstoriesrealsolutions.org) is a journalism lab funded by Central Oregon Health Council under FORJournalism (forjournalism.org), an Oregon nonprofit dedicated to supporting journalism statewide. Sign up for weekly newsletters to receive updates.