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Anticipated shelter closures Summer 2026

The Homeless Services Department (HSD) is facing a $67M budget reduction for Fiscal Year 2027.

In an effort to rebalance our system and prioritize keeping people housed and connecting individuals with permanent housing, the department has had to make some difficult decisions, namely the closure of several 24/7 adult shelters. 

Declines in funding means we can no longer afford our current system.

On April 16th, the Chair released the latest budget. In that budget, over one half of the shelters operated by the County must close.  Both HSD and shelter operators will focus on a gradual closing process.  During operations ramp-down, we will focus on next steps.

The extended closing period will be essential for successful planning and coordination.  Currently, shelter operators have begun informing shelter guests of next steps.  The goal is to establish a timeline that prioritizes guests’ well-being.

The transition to a closed shelter will entail coordination.  HSD has informed partner organizations and neighborhood groups of the closing.  We expect this work to evolve as the actual closure dates approach.

Fiscal Year 2027 Proposed Budget
Multnomah County Budget process

Affected Shelters

The transition to a safe space and not to the streets is a high priority.  HSD is coordinating with shelter operators on setting up a successful transition program. Such a program may include any of the following:

  • Housing placement;
  • Transfer to another shelter; or
  • Referral to an appropriate supportive option, such as treatment.

HSD plans to model this transition program on two others.  Both the Market Street and Wy’east shelters closed in early 2026.  Their transition programs have been successful in meeting shelter guests’ needs during closing.

List of HSD-funded shelters

What's next?

There are two HSD-funded shelters that are planned for closure in June 2026, and both operate in a motel setting:

  • Chestnut Tree
  • Eastside Voluntary Isolation Motel (VIMo)

Both sites are the priority for this transition, and both have already begun to slowly but steadily move guests to other locations in an effort to decrease site occupancy.

Chestnut Tree

  • Chestnut Tree has a maximum capacity of 55 units.  Less than half of the rooms are already vacant.  Most former Chestnut Tree guests have been moved to Gresham Women’s Shelter.
  • Chestnut Tree is no longer accepting new guests once rooms become vacant.  While site occupancy is decreasing, the service provider has ensured that guests are leaving with viable options.

The HSD Shelter Development Team has begun working with Chestnut Tree ownership to ensure that vacant rooms are returned to a condition approved by the motel owner. 

The Eastside Voluntary Isolation Motel (VIMo)

  • VIMo is currently below 50% capacity.
  • VIMo offers medically-isolated rooms for up to two weeks for individuals with communicable illnesses or temporary acute health conditions.
  • Currently, Eastside VIMo is still taking intakes from all regular pathways, including hospitals and other shelters, to address the immediate medical needs of new guests. 

HSD is focused on maintaining options for people leaving emergency departments or other medical high risk situations.  To that end, HSD is partnering with a Homelessness Response System workgroup to identify other sites that can safely support the people who would need isolation spaces.