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Committee hears bill to clarify use of local improvement districts inside urban growth boundaries
Summary
Senate Bill 967 would allow cities and counties to enter into agreements to form local improvement districts (LIDs) for unincorporated areas inside a city’s urban growth boundary, a tool supporters say will help finance infrastructure for housing; stakeholders urged an annexation safeguard and the committee held public testimony with no vote.
Senate Bill 967 was the subject of a Feb. 10 public hearing in the Senate Committee on Housing and Development. The measure would authorize local governments to enter into agreements governing local improvement districts for unincorporated areas within a city’s urban growth boundary (UGB), clarifying that cities and counties can cooperatively form LIDs to fund infrastructure such as roads, sewers and stormwater systems for development.
Sen. Broadman, who introduced the bill alongside Sen. Nash, said the change would remove legal uncertainty that slows infrastructure projects needed to support housing. “This bill intends to help fix our state's slow approach to infrastructure projects in unincorporated areas within UGBs,” Broadman said, citing high home prices and the need to prepare sites for abundant housing.
Local officials, builders and housing advocates told the committee the bill would be a practical financing tool. Eric Chancellor, representing the city of Bend, said LIDs allow earlier formation and longer repayment schedules than other tools and described a local example: a 479-acre portion of a 2016 UGB expansion in southeast Bend that has 27 owners and has proven difficult to coordinate for infrastructure without clearer authority for city-county LID agreements. Jenna Jones of the League of Oregon Cities described LIDs’ flexible payment options, noting they typically allow lump-sum payments or a 10-year spread.
Supporters who testified included the cities of Bend and Redmond, Deschutes County, Central Oregon Builders, Habitat for Humanity affiliates, the League of Oregon Cities and the Oregon Home Builders Association. Central Oregon LandWatch supported the bill but requested an amendment requiring that lands served by an LID move toward annexation and timely urbanization to prevent prolonged nonurban use.
Committee members asked whether the bill would allow parties to avoid timely urbanization; sponsors said they would work on clarifying amendments if needed. No vote was taken; the committee closed the public hearing and moved on to the next item.
Votes at this hearing: none — public hearing held on Senate Bill 967; committee did not take a final vote.
