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Cities tell committee infrastructure gaps — drinking water, sewer, streets — are a major barrier to housing
Summary
City officials and the League of Oregon Cities told the Senate committee that local infrastructure shortfalls, and a roughly $12.2 billion estimate, limit housing production and that state partnership and predictable programmatic funding are needed.
Representatives from the League of Oregon Cities and city planning and public works leaders briefed the Senate Committee on Housing and Development on Jan. 27, 2025, saying that local water, wastewater, stormwater and transportation infrastructure shortfalls are a leading constraint on housing production.
"We are in partners, all of us, all local governments in partnership with private sector to build housing," said Nick Snead, community development director for the city of Madras, who warned that housing production in smaller communities is already dropping and urged state investment to reduce barriers to construction.
Michael Martin, a lobbyist for the League of Oregon Cities, presented a statewide estimate drawn from a city survey and planning documents: a $12,200,000,000 infrastructure need related to water, wastewater, stormwater and transportation tied to projected housing demands. Martin said the figure reflects 125 responding cities and long‑range planning requirements such as 20‑year utility plans.
City presenters from Portland, Wilsonville and North Bend described differing challenges between urban infill and greenfield development. Eric Kingstrom, interim director of the Portland Bureau of Planning and Sustainability, said urban infill often requires targeted utility upgrades — for example, water pipes undersized for denser housing and missing sidewalks — that can be cost‑prohibitive under current economic conditions but more cost‑effective than wholesale greenfield construction. "There are thousands of these kind of sites across East Portland with the capacity for additional housing, but the cost of those frontage improvements is prohibitive in the current economy," Kingstrom said.
Wilsonville’s development engineering manager, Amy Pepper, described distinctions between greenfield and infill infrastructure financing: system development charges can fund new capacity in greenfield projects but often cannot be used for relocating or adjusting utilities under existing urban sites. Derek Payne, city planner for North Bend, emphasized limited developable land, wetlands constraints and the growing need to consider vertical construction and pedestrian infrastructure in smaller coastal cities.
Speakers urged the committee to design predictable, programmatic state funding and technical assistance so jurisdictions can sequence infrastructure investments with housing goals. The panel discussion was informational and no legislative action or votes were recorded.
