Witnesses urge $11 million state funding to restore low-income water assistance closed when federal LIHWAP expired

2323702 · February 17, 2025

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Summary

Representatives, agency staff and community providers testified in support of HB 3527 to provide $11 million to bridge a gap left by expiration of federal LIHWAP, citing prior assistance to more than 18,500 households and ongoing unmet need.

House Bill 3527 drew testimony from lawmakers, agency officials and nonprofit partners on Feb. 7 as proponents urged the legislature to fund a state bridge to replace federally funded Low Income Household Water Assistance Program (LIHWAP) resources.

Daniel Malky, chief of staff to Representative Anissa Hartman, said LIHWAP previously provided more than $10.4 million in assistance to over 18,500 Oregon households during its two years of operation and that the program’s expiration left thousands without a critical lifeline. He asked for $11 million in HB 3527 to be appropriated to Oregon Housing and Community Services (OHCS) to prevent disconnections and support households with arrearages.

Andrea Bell, executive director of Oregon Housing and Community Services, described the agency’s role administering LIHWAP federal funds and said the program served only a small fraction of an estimated 500,000 eligible households; she noted federal rules limited assistance in some cases (for example, when utilities are bundled with rent). Paul Rainey of the Community Action Partnership of Oregon and local community action agencies said community action agencies executed hundreds of local contracts with utilities and prevented thousands of disconnections; he said roughly 15% of funds prevented disconnects or re-established service.

Utilities and local governments, including testimony from Mark Landauer (Special Districts Association of Oregon and the Oregon Association of Water Utilities), Councilor Candace Avalos (City of Portland), Michelle Waring (City of Hillsboro) and Michael Martin (League of Oregon Cities), described operational burdens on utilities and said many households pay well above affordability benchmarks for water and wastewater services.

Witnesses asked the committee to consider lessons learned from the federal program (including payment requirements that limited assistance for renters whose utility payments are bundled with rent) and encouraged a state program designed to fill gaps and reach small utilities and rural customers. Committee members closed the hearing without taking a vote; proponents said the request would fill an urgent funding gap left by exhausted federal ARPA/LIHWAP resources.