Bill > HB3708

This bill modifies urban growth boundary (UGB) rules for smaller cities, specifically focusing on affordable housing requirements when expanding city boundaries. For cities with populations of 20,000 or fewer, the bill allows a temporary reduction in the percentage of affordable housing units from 30% to 20% when adding land to their urban growth boundary. The bill maintains existing requirements that affordable housing units must be available to households with incomes at or below 80% of the area median income for rentals or 130% for home purchases, with affordability restrictions lasting at least 60 years. Additionally, the bill requires that affordable units be dispersed throughout the development, equally accessible to all residents, and that affordable unit construction begins before the last 15% of market-rate units receive occupancy certificates. Cities are still required to create a comprehensive plan for the expansion, including establishing residential density, providing open spaces, incorporating commercial areas, and ensuring transportation connectivity. The bill includes provisions for cities to potentially offset increased affordability requirements by reducing development costs such as permits, fees, and property taxes. These modifications are set to be in effect until January 2, 2033, after which the provisions will be repealed.

Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3708