Kotek says she's working to figure out how much state should give shelters
SALEM, Ore. (KATU) — How much money should the state give each shelter to support their ongoing operations? It's a question Oregon Gov. Tina Kotek says she is working to answer along with Oregon Housing and Community Services (OHCS).
After spending $24 million to keep shelters open last year, the housing agency is set to distribute another $65 million this year.
The money represents the first time OHCS enters into direct funding contracts with shelters statewide, but Kotek says it likely will not be the last.
"It is a change in practice for the state to be having some of these direct contracts for shelter providers," she said. "We are not going to solve our homelessness crisis in two years. We need this system to be out there for the next couple, and we want to make sure it is doing everything it can."
During the pandemic, the state spent millions in one-time funding to stand up new shelters, but now the operations can't stay afloat without the state's help.
It's an issue KATU started covering last spring when shelters began shuttering because of this.
Kotek says figuring out how much each shelter should get will be key because this is a long-term investment.
"We are going to be coming back in 25 and saying we still need this shelter capacity, we understand how it is being spent, we understand the outcome, we are tracking the data differently, because it is a big investment to continue to do this," she said.
Through a records request KATU obtained the executed grant agreements between OHCS and shelters that received some the $24 million in funding. The contract shows some shelters are spending a lot more per bed than others.
Many of the top per-bed costs are going to grantees for hotel voucher programs in areas with few to no congregate shelter options.
For example, executed contracts show one grantee is spending $60,500 a month in hotel vouchers to house 32 people, meaning it's paying $1,890.62 per person per month for the hotel rooms alone.
When asked if this is really the most cost-effective way to spend taxpayer dollars, Kotek said she is still working with the housing agency to figure that out.
"The most cost-effective thing we can do is prevention. I am glad we have additional prevention dollars from the Legislature. That is the cheapest thing to do is keep people housed where they are before they become unsheltered," she said. "We do want to be asking the questions because sometimes it is more cost effective to do one-offs and put someone in a motel."