By Armand Resto-Spotts

In 2024, the Oregon State Legislature adopted Senate Bill 1537, which offered new tools for cities to increase housing production.  This included a one-time option to expand the urban growth boundary (UGB) through an expedited process.

In 2025 and 2026, respectively, the legislature adopted Senate Bill 48 and House Bill 4035, which, collectively, revised SB 1537 in certain ways.  Primarily, these bills amended SB 1537 to: 1) remove certain barriers for some cities to more easily qualify for the one-time UGB addition; and 2) increased the acreage allowed for additions.

While some cities have already taken advantage of this expedited process, many are not aware of these recent legislative changes.  We hope this article provides an overview of the general eligibility criteria for a one-time UGB expansion, specifically for non-Metro cities.

In order to proceed with a one-time UGB expansion under the amended SB 1537, a city must demonstrate eligibility by meeting the following criteria:

  1. Demonstrated Need for Additional Land. The city must demonstrate a need for additional land based on the following factors:
  • There have been no UGB expansions for residential use in the previous 20 years; and
  • Within the existing UGB, the city lacks an undeveloped tract zoned for residential use that is larger than 20 net residential acres;

Or

  • If the city has expanded its UGB within the past 20 years, 75% of the area zoned for residential use within the expansion is either developed or subject to an acknowledged comprehensive plan with land use designations in preparation for annexation (and have a public facilities plan).
  1. Demonstrated Need for Affordable Housing. The city must demonstrate that it has a need for affordable housing, either based on having a higher percentage of cost-burdened households than average (based on HUD data) or having at least 25% of renting households considered rent-burdened (as defined ORS 456.602).

If the city can demonstrate compliance with both of the above criteria, its UGB may be expanded, so long as:

  • The site is adjacent to the city’s existing UGB (or separated by only a road);
  • The site is designated urban reserve, non-resource land, or subject to an acknowledged exception to a statewide land use planning goal relating to farmland or forestland;
  • The city has not adopted a one-time UGB expansion yet;
  • The total acreage of the site (for cities less than 25,000) is less than 50 net residential acres; and
  • The city follows the applicable procedures, including application notice, review, public hearing, and conceptual plan development.

Special procedures apply to this one-time UGB expansion process.  The city must declare its intent to include a particular site within its intended UGA expansion via public notice; set a deadline for submittal of applications for site selection; and undertake a review process, which includes a public hearing.  Finally, and most importantly, if the selected site(s) is larger than 15 net residential acres, the city must adopt a binding conceptual plan for the proposed property to be added as an amendment to the city’s comprehensive plan. The conceptual plan must establish: 1) the housing types and sizes, including middle housing, accessible housing, and other needed housing, intended for the site; 2) intended zoning; 3) identified open space, commercial uses, and surrounding housing; 4) transportation networks; and 5) affordability restrictions.  A binding conceptual plan is not required for (non-Metro) UGB expansions of less than 15 net residential acres.

Admittedly, this process entails a lot of work for a one-time UGB expansion. However, ultimately, the criteria and conceptual plan are intended to address the legislature’s primary goal – to increase housing production.

If you have questions about whether your city might qualify for this one-time UGB expansion process or desire a more detailed overview of this process, please contact our office.