One-Time Urban Growth Boundary Expansion

In 2024, the state legislature passed a bill, known as Senate Bill 1537, that provides qualifying local governments a one-time option to add up to 100 acres of net residential land to their urban growth boundary (UGB). The City initiated this process in June 2024, and on December 4, 2024, the City Council selected the Caldera Ranch site as eligible for a future UGB expansion under the bill, solidifying their decision by resolution on December 18, 2024.

More information about the Caldera Ranch proposal, including all application materials, can be found on the City’s website.

The Caldera Ranch site has not yet been added to the UGB. The applicant has submitted an application for a UGB Amendment and Comprehensive Plan Text and Map Amendment. Staff is currently reviewing the submittal. The application and review processes are being conducted similar to the City's typical land use processes, which include future opportunities for public comment. However, under SB 1537, notwithstanding ORS 197.626, the action by the City under this legislation is not a land use decision as defined in ORS 197.015. The UGB Amendment and Comprehensive Plan Text and Map Amendment will be submitted to the Department of Land Conservation and Development (DLCD) for review. Judicial review of their final order may only be initiated by the City or an owner of a proposed site.

Email BreAnne Gale, bgale@bendoregon.gov, to sign up for future updates.

Background

In 2024, the state legislature passed a bill, known as Senate Bill 1537, that provides qualifying local governments a one-time option to add up to 100 acres of net residential land to their urban growth boundary (UGB). Using this bill, cities can go through an abbreviated UGB expansion process to build affordable and market-rate housing more quickly than a typical UGB expansion. Traditional UGB expansions can take many years and first require updates to the City's housing capacity and economic opportunities analyses.

Click here to read the full text of the bill for one-time site additions to UGBs (SB 1537 sections 48-60).

The bill was intended to offer a menu of tools to provide the support needed to ease Oregon’s housing shortage. One of the tools in the bill is the one-time, 100-acre expedited UGB expansion for housing.

Any land added to the city through this process would require 30% of housing units to be affordable. Affordable in this context is based on a household of four making 80% of the area median income (approximately $83,750 annually) if they are renting. It is based on a household of four making 130% of the area median income (approximately $136,110 annually) if they are purchasing a home.

On June 20, 2024, the Bend City Council directed staff to proceed with requesting site applications, including a draft concept plan for the site, from interested and eligible landowners. A link to the Council work session presentation and discussion can be found here.

In the fall of 2024, two site applications were received and an online open house was held for the public to review the site proposals and provide input. On November 20, 2024, the City Council reviewed the site applications at a public work session.

On December 4, 2024, the City Council held a public hearing to review the applications and hear comments from the public. After deliberations and considering public testimony, the Council voted to select the Caldera Ranch site as the site eligible to move forward with a UGB Amendment and Comprehensive Plan Map and Text Amendment, solidifying their decision by resolution on December 18, 2024 at a public City Council meeting.

SB 1537 Banner Timeline

Past Events

August 27, 2024: A Q+A informational session was held at Bend City Hall. A recording of the session may be viewed by selecting this link and entering passcode: gx55S2%1.

October 30, 2024 - December 4, 2024: Online Public Open House

November 20, 2024: City Council work session to review site proposals

December 4, 2024: City Council meeting to select a site, with an opportunity for public testimony

December 18, 2024: City Council meeting to adopt a resolution, formalizing the site selection and providing guidance for future requirements

Detailed City Council agendas, including staff reports and presentations, meeting times and locations, can be found here.

Frequently Asked Questions

Can more than one site be added?

Does the City qualify for a one-time UGB?

Yes, the City currently qualifies for a one-time UGB based on the requirements of the bill. Requirements include demonstrating the need for additional land for market rate and affordable housing, based on the criteria in SB 1537 Section 52(1)(b) and 52(2)(a).

SB 1537 Section 52(2)(a) requires at least 75% of previous UGB expansion lands to be developed or have a comprehensive plan designation in preparation for annexation and a public facilities plan and associated financing plan. Over 82% of Bend’s UGB expansion lands meet these requirements.

Section 52(2)(a) requires that a city must also have “a greater percentage of severely cost-burdened households than the average for this state based on the Comprehensive Housing Affordability Strategy data from the United States Department of Housing and Urban Development.” The City of Bend currently meets this requirement; however, this number is updated annually and therefore it’s possible that the City may become ineligible in the future.

How will a site be selected?

Site applications will be reviewed by City staff for completeness to ensure they meet the minimum application and bill requirements. They will be evaluated based on how well a proposal meets or exceeds the minimum requirements in the bill.

After receiving input from the public on the proposed sites and reviewing the proposals, the City Council may select an application for all or a portion of the site. Once a site is selected by the City Council, the concept plan for the site will be refined and eventually adopted by the City Council as an amendment to the City’s comprehensive plan and UGB.

Following the City’s approval, the state Department of Land Conservation and Development will need to review and approve the concept plan and applicants will be required to apply for an annexation and master plan prior to development.

Applicants are encouraged to watch the City Council discussion from June 20, 2024, on the one-time UGB and consider how their proposal is consistent with the adopted 2023 – 2025 Council Goals and Work Plan.

Does the Council have to choose a site if only one applicant applies or they are not satisfied with any of the proposals?

How can I stay informed?

What are the affordable housing requirements?

The bill requires that at least 30% of the residential units be subject to affordability restrictions as specified under Section 55 (f). These include requirements for deed restricted affordable housing for rental units for households earning up to 80% area median income (AMI) or for purchase units for household up to 130% AMI. This means these units would have to remain affordable for at least 60 years.

There are also requirements for the timing and construction of affordable housing, access to common areas and amenities, and requirements that the developer provide a guarantee that the affordable housing will be built.

What can we expect the added site to include?

The bill requires the site added to the UBG to include:

A diversity of housing types
A minimum of 30% of the housing units as affordable
A minimum density of ten dwelling units per acre
Public recreation and open space lands
Small-scale commercial or mixed-use
A transportation network with connectivity that provides options for biking, walking, rolling, and transit

Full application requirements can be found here.

Contact

Background

Past Events

Frequently Asked Questions