SALEM, OR -- A key piece of Governor Tina Kotek's homelessness reduction plan is moving forward in the Legislature. Two bills would spend $425 million to reduce homelessness.  

Bend Mayor Melanie Kebler says funding for permanent shelters is critical. "With the help of one-time funds we've been able to stand up that shelter and upgrade it to a navigation center, the first to open in the state. At that center we've provided over 100,000 meals, provided over 34,000 bed nights, and moved over 230 people into more permanent housing in the first year." She told lawmakers this week, "Without the funding in this bill we are at risk of closing shelters, including our navigation center, in 2025." Kebler added, "Our gap in Bend is $3.6 million. And again, without this funding we will see hundreds of people living back on the streets and lose that precious progress that we've made."

Caleb Yant, deputy director of Oregon Housing and Community Development, told legislators funding will run out later in the year, "OHCS identified 86 shelters statewide representing 3,669 beds that were at imminent risk of closure. It's important to note that this does not represent the funding gaps generally, but rather sites that would close their doors without immediate support."

The bills include $65 million for shelters, $100 million for shovel-ready affordable housing projects, $18 million to house people in addiction recovery and $10 million to convert existing buildings into affordable housing.

There's also $40 million for rental assistance programs. Jimmy Jones, executive director of Mid-Willamette Valley Community Action, says those programs help stop homelessness from growing, "The need is so extraordinary and without this assistance we're going to have a much larger homeless population than we do right now." He says during the pandemic, homelessness grew 22%; it rose another 12% last year, "Almost all of that is being driven by the affordable housing crisis, the inflation we see in Oregon, the extraordinary housing costs across the spectrum. Almost everybody's first step into homelessness is a result of economic conditions. There are certainly things that go along after that.  It is a very critical need in our communities to make sure this rental assistance continues to be available."

There's also $75 million in loans for cities to finance affordable housing projects.