Following House Bill 3414’s failure during the 2023 session, the prospect of the Association of Oregon Counties (AOC)’s community development policy priority — creating a fast-track process for limited urban growth boundary (UGB) expansions that significantly increase affordable and workforce housing in all communities experiencing shortages of buildable land — looked grim. However, immediately following the 2023 session, Governor Kotek and her policy advisors convened a small group of individuals, including AOC staff, to conduct a series of work sessions. Their aim was to revisit the policy items in HB 3414 and craft a bill to address Oregon’s housing supply crisis that could pass in the 2024 session.
After numerous meetings with the governor’s office, AOC staff and county planning department directors provided input and technical assistance on proposed legislation to ensure cities and counties would be able to implement the legislation if enacted. In consideration of the pending legislative concept, the AOC Transportation and Community Development Steering Committee recommended that AOC readopt our 2023 UGB-related priority as a top priority for the 2024 session.
Senate Bill 1537, the Emergency Housing Stabilization and Production Package introduced by Gov. Kotek, was amended many times before eventually becoming law, with AOC actively involved at every stage of the process.
SB 1537 directly addresses AOC’s fast-tracked UGB expansion priority, establishing a one-time UGB expansion tool for cities that need both land supply and affordable housing. The bill requires 30% of all homes to be built as “affordable housing” and ensures the expansion aligns with the preferences and understanding of Oregonians – with a diverse array of housing choices, a mix of densities and services the residents will need, and the necessary infrastructure for long lasting, successful communities. SB 1537 requires the land to not be zoned high-value farm or forest outside of urban reserves already designated and caps the expansion at a specific number of acres based on population (100 net residential acres for cities with a population over 25,000 and a maximum of 50 net residential acres in cities with a population under 25,000; Metro is capped at 300 total net residential acres).
Cities are currently looking over the requirements that must be met to qualify for this fast-track process. With counties serving as a strong partner in this process, planning departments stand ready to work with our local government partners to begin this process when they are ready.
AOC looks forward to working with the Department of Land Conservation and Development, the governor’s office, and stakeholders throughout the state on the next area needed to address the housing supply issues Oregon continues to face.
Contributed by: Legislative Affairs Manager Branden Pursinger