74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 746
 
                         Senate Bill 187
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Governor Theodore R.
  Kulongoski for Department of Land Conservation and Development
  and Office of Regulatory Streamlining of Department of Consumer
  and Business Services)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Directs Land Conservation and Development Commission to
encourage local governments to provide land dedicated to
affordable housing. Authorizes commission to establish process to
expedite inclusion within urban growth boundary of land dedicated
to affordable housing.
 
                        A BILL FOR AN ACT
Relating to affordable housing; creating new provisions; and
  amending ORS 197.298 and 197.309.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2007 Act is added to and made
a part of ORS 197.295 to 197.314. + }
  SECTION 2.  { + (1) The Legislative Assembly finds that an
adequate supply of land dedicated to affordable housing and
planned and zoned to protect the land's use for affordable
housing over the long term is necessary for the economic
prosperity of Oregon communities.
  (2) The Land Conservation and Development Commission shall
adopt or amend statewide land use planning goals or rules and
initiate other programs as necessary to:
  (a) Encourage local governments to provide an adequate supply
of land within urban growth boundaries that is dedicated to
affordable housing pursuant to this section;
  (b) Encourage the development of affordable housing on land
dedicated to affordable housing pursuant to this section; and
  (c) Protect land dedicated to affordable housing pursuant to
this section from conversion to other uses before or after the
development of affordable housing.
  (3) Notwithstanding the presence within an urban growth
boundary of a 20-year supply of buildable lands for housing, the
commission by rule may:
  (a) Establish a process for amending urban growth boundaries
that expedites amendments initiated at any time to include land
dedicated to affordable housing pursuant to this section.
 
  (b) Require that land included within an urban growth boundary
pursuant to this section:
  (A) Remain available for affordable housing over the long term;
and
  (B) Be planned and zoned to limit uses that convert affordable
housing to other uses.
  (c) Notwithstanding the priority for inclusion of land under
ORS 197.298, authorize the inclusion within an urban growth
boundary under this section of land dedicated to affordable
housing that is:
  (A) Adjacent to the urban growth boundary; and
  (B) Served, or capable of being served within six months to one
year, by transportation facilities, sewer and water service and
other public facilities that are necessary for the development of
affordable housing.
  (d) Authorize land dedicated to affordable housing pursuant to
this section to be exempt from the 20-year supply of buildable
lands established by ORS 197.296 and the statewide planning goal
pertaining to urbanization.
  (4) A local government may exclude undeveloped land within an
urban growth boundary that is dedicated to affordable housing
pursuant to this section from the buildable lands inventory.
  (5) A local government that amends its urban growth boundary
pursuant to this section to facilitate the development of
affordable housing:
  (a) Shall ensure that housing developed on these lands
continues to be used to provide affordable housing through:
  (A) Zoning restrictions;
  (B) Guaranteed rental rates or sales prices;
  (C) Regulations, provisions or conditions such as those
described in ORS 197.309 (2); or
  (D) Other regulations, provisions or conditions determined by
the local government to be effective in maintaining the
affordability of housing on land dedicated to that purpose
pursuant to this section.
  (b) May authorize a mix of affordable housing and other housing
types on a site, provided the percentage of affordable housing
units developed on the site meets or exceeds a percentage
required by rules of the commission.
  (6) Except under exceptional circumstances determined by rules
of the commission, if land is included within an urban growth
boundary to provide for affordable housing, a local government
may not rezone that land to allow a use other than the use
allowed pursuant to this section.
  (7) The commission shall define 'affordable housing, ' taking
into consideration regional factors and issues including, but not
limited to, the benefits and burdens of rental housing versus
home ownership and issues related to government assisted housing
and mobile home parks.
  (8) This section does not authorize a local government to
convert land within an urban growth boundary that is planned for
needed housing to other uses due to the inclusion of land for
affordable housing pursuant to this section. + }
  SECTION 3. ORS 197.298 is amended to read:
  197.298. (1) In addition to any requirements established by
rule addressing urbanization, land may not be included within an
urban growth boundary except under the following priorities:
  (a) First priority is land that is designated urban reserve
land under ORS 195.145, rule or metropolitan service district
action plan.
  (b) If land under paragraph (a) of this subsection is
inadequate to accommodate the amount of land needed, second
priority is land adjacent to an urban growth boundary that is
identified in an acknowledged comprehensive plan as an exception
area or nonresource land. Second priority may include resource
 
land that is completely surrounded by exception areas unless such
resource land is high-value farmland as described in ORS 215.710.
  (c) If land under paragraphs (a) and (b) of this subsection is
inadequate to accommodate the amount of land needed, third
priority is land designated as marginal land pursuant to ORS
197.247 (1991 Edition).
  (d) If land under paragraphs (a) to (c) of this subsection is
inadequate to accommodate the amount of land needed, fourth
priority is land designated in an acknowledged comprehensive plan
for agriculture or forestry, or both.
  (2) Higher priority shall be given to land of lower capability
as measured by the capability classification system or by cubic
foot site class, whichever is appropriate for the current use.
  (3) Land of lower priority under subsection (1) of this section
may be included in an urban growth boundary if land of higher
priority is found to be inadequate to accommodate the amount of
land estimated in subsection (1) of this section for one or more
of the following reasons:
  (a) Specific types of identified land needs cannot be
  { - reasonably - }  accommodated  { + reasonably + } on higher
priority lands;
  (b) Future urban services could not   { - reasonably - }  be
provided  { +  reasonably + } to the higher priority lands due to
topographical or other physical constraints; or
  (c) Maximum efficiency of land uses within a proposed urban
growth boundary requires inclusion of lower priority lands in
order to include or to provide services to higher priority lands.
   { +  (4) Subsections (1) to (3) of this section do not apply
to limit inclusion in an urban growth boundary of land dedicated
to affordable housing under section 2 of this 2007 Act. + }
  SECTION 4. ORS 197.309 is amended to read:
  197.309. (1) Except as provided in   { - subsection (2) - }
 { + subsections (2) and (3) + } of this section, a   { - city,
county or metropolitan service district - }   { + local
government + } may not adopt a land use regulation or functional
plan provision, or impose as a condition for approving a permit
under ORS 215.427 or 227.178, a requirement that has the effect
of establishing the sales price for a housing unit or residential
building lot or parcel, or that requires a housing unit or
residential building lot or parcel to be designated for sale to
any particular class or group of purchasers.
  (2)   { - Nothing in this section is intended to - }
 { + Subsection (1) of this section does not + } limit the
authority of a   { - city, county or metropolitan service
district - }   { + local government + } to adopt or enforce a
land use regulation, functional plan provision or condition of
approval creating or implementing an incentive, contract
commitment, density bonus or other voluntary regulation,
provision or condition designed to increase the supply of
moderate or lower cost housing units.
   { +  (3) Subsection (1) of this section does not apply to
regulations, provisions or conditions adopted by a local
government that are intended to establish and maintain affordable
housing pursuant to section 2 of this 2007 Act. + }
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