8/12/2024
Oregon – The Economic Equity Investment Program (EEIP) was created by the Oregon legislature through legislation enacted in 2022 and is operated by Business Oregon. A total of $15 million was allocated to the program. In a press release the Oregon Senate Democrats characterized the purpose of the program: “Business Oregon to implement an Economic Equity Investment Program to award grants to qualified organizations that provide culturally responsive services to disadvantaged individuals, families, businesses and communities.” The bill’s Co-Chief Sponsor Senator Kayse Jama (D-Portland) stated in the release: “I am a Co-Chief Sponsor of Senate Bill 1579 because I know creating economic opportunities for all is fundamental to creating a fairer future for Oregonians who have been left behind.” However, information provided by then Senate Republican Leader Tim Knopp raises serious questions about the constitutionality of the program.
Senator Tim Knopp (R-Bend) submitted analysis provided by senior legislative legal counsel as a part of the record. This analysis addresses an inquiry from Senator Knopp regarding potential violation of the 14th Amendment to the U.S. Constitution which addresses equal protection under the law. Legislative counsel stated several ways that this legislation could potentially come under challenge as being at odds with constitutional protections. Counsel specifically states “[w]e believe that the awarding of grant moneys under section 2(s) could give rise to a challenge under both the Equal Protection Clause and Article I, section 20, of the Oregon Constitution.” The letter goes on to note that “This office can’t say whether the racial preference in SB 1579 would be challenged under the Equal Protection Clause in the first place, or whether, if challenged it would be upheld. We strongly believe, however, that courts would consider that the economic equity risk factor based on race makes SB 1579 a race-conscious law subject to strict scrutiny.” Right Now Oregon could not find any indications that these questions of violations of equal protection provisions have been challenged in court.
The program focuses on delivering services and financial assistance to people who fall under the “Economic equity risk factor” criteria. These risk factors listed are: (a) Experience of discrimination because of race or ethnicity; (b) English language proficiency; (c) Citizenship status; (d) Socioeconomic status; or (e) Residence or operation in a rural location. The 2024-2025 Grant Application provides further detail on how these criteria are being administered. “Eligible beneficiaries consist of individuals, families, businesses, and communities whose future is at risk because of any combination of two or more of the following economic equity risk factors, all of which shall be weighted equally.” For the risk factor of experience of discrimination because of race or ethnicity the application specifies that “[b]eneficiaries will be asked to self-attest”, for language proficiency that “a language other than English is spoken within the beneficiary’s home”, and that citizenship status “[r]efers to beneficiaries who are (1) not U.S. Citizens who are currently residing in Oregon or (2) Oregon residents who are citizens of a federally recognized tribe.” This program is not delivered directly by Business Oregon but through various providers who can apply to deliver this program and provide access to the benefits to eligible recipients.
Oregon Citizen reported on one of the providers for this program via a post on X. The requirements listed in the flyer specifically state that one of the eligibility requirements for the program is that people are “non-U.S. citizens”.
What do you think Oregon friends? Should non citizens and undocumented citizens be given $30,000 for down payments to buy a home here in the state of Oregon? Check out the requirements! ⬇️ pic.twitter.com/riGm6AuMGJ
— Oregon Citizen (@oregoncitizen_) August 9, 2024
Hacienda CDC was one of the 2024 EEIP providers. “Hacienda CDC is a culturally specific, Latino-led organization with over thirty years’ experience providing affordable housing and supportive services to low-income individuals and families. This project, in partnership with four Credit Unions, aims to support homeownership for buyers through interest rate buy downs, down payment assistance, or help covering closing costs. ” They received an award of $692,775 from Business Oregon‘s Economic Equity Investment Program.
There are a total of nine projects listed, with Hacienda CDC being one of the nine, for Ownership of Land, Principal Residences, and Other Real Property projects. The total listed awarded amount is $5,335,020. The other providers are Bienestar, CASA of Oregon, Farmworkers Housing Development Corporation, Habitat for Humanity Oregon, Kor Community Land Trust, Native American Youth and Family Center, Umatilla-Morrow Head Start, and Yamhill Community Development Corporation DBA Community Home Builders.
Information on these organizations EEIP programs was not listed on their websites at the time of publication of this article.
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