Staff explains SB 1537 one-time UGB pathway and land-swap alternative to Newberg commissioners
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Summary
Planning staff outlined how Senate Bill 1537 (2024) allows an owner-driven one-time UGB expansion of up to 100 acres with long-term affordability requirements (30% of units for at least 60 years), and described an alternative land-swap approach; staff also noted an adopted employment land need of about 152 acres that could support an employment-focused UGB amendment.
City planning staff explained options the city is considering for expanding the urban growth boundary under Senate Bill 1537 and described an adopted employment-land need that could motivate a UGB amendment.
"Senate bill 15 37 in 2024 was passed by the state legislature to provide avenues for jurisdictions to expand their urban growth boundary or modify it without going through the typical procedures," staff said, summarizing the bill's three pathways: the typical periodic review, the sequential (piecemeal) approach and the one-time simplified/owner-driven option. Under the one-time pathway the city can solicit proposals from property owners for up to 100 net acres of land to be added for affordable housing; the process is owner-driven and includes public-notice and concept-plan requirements for larger sites.
Staff described the bill’s affordability threshold and eligibility criteria: to be eligible a city must demonstrate need for affordable housing (staff cited an extremely rent-burdened-household rate near 28 percent, above the statute’s 25 percent threshold) and qualifying parcels must be adjacent to the existing UGB and meet developability criteria. Staff summarized the affordability requirement: "it requires that at least 30% of the residential units are subject to affordability requirements, not required for a period of not less than 60 years that the units be either available for rent to households with an income of 80 of 80% or less of the area median income or available for purchase by households with an income of a 130%."
Staff also described a land-swap alternative in which a parcel previously added to the UGB (but constrained by floodplain/stream corridors) could be de-annexed and replaced with other developable land. Council would decide whether to proceed with a solicitation or a swap; staff noted the city had conducted preliminary outreach and received interest letters from property owners.
Finally, staff reminded commissioners that the council earlier this fall adopted an Economic Opportunities Analysis that demonstrates an approximate need for 152 acres of employment land; that finding could underpin a separate employment-focused UGB amendment routed through the Newberg Urban Area Management Commission (New MAC) and then to council and Yamhill County for concurrence.
Staff emphasized eligibility and process details remain under review with DLCD and that no formal city decision was made at the meeting.