Two arrested in drug bust at city-run homeless shelter in Portland, police say

PORTLAND Ore. (KPTV) – Police arrested two people last week following a yearlong investigation into suspected drug dealing centered around a city-run shelter village in North Portland.

The Portland Police Bureau announced Tuesday that officers served search warrants at a Safe Rest Village in the 10500 block of North Portland Road and at a home in the 400 block of Northeast 16th Avenue.

Investigators began looking into the operation in September 2025 after receiving reports that someone living at the North Portland Road village was dealing drugs. Over the following months, surveillance uncovered an organized distribution network involving multiple people inside the village and an outside supplier, police said.

Keith Kelly, 36, of Portland, faces charges including felon in possession of a gun, cocaine possession, and dealing cocaine within 1,000 feet of a school…

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