Portland Rental Law: Urban Growth Boundary Rules Explained

does portland rental law apply in urban growth boundary

Portland's rental laws are influenced by the city's unique approach to urban planning, which includes the implementation of an urban growth boundary (UGB). This boundary controls the expansion of urban areas to protect agricultural lands and natural spaces outside the city. The UGB is a tool used by local governments to guide zoning and land use decisions, aiming to balance the needs of a growing city with the preservation of natural resources. While it is effective in managing urban sprawl, some critics argue that it may contribute to higher housing prices by limiting the supply of developable land. However, supporters of the UGB highlight Portland's relatively affordable housing market compared to other West Coast cities. The city's dedication to sustainable urban development has resulted in a European vibe, friendly streets, and efficient public transportation.

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The purpose of the Urban Growth Boundary (UGB)

The Urban Growth Boundary (UGB) is a regional boundary that aims to control and limit urban sprawl by designating specific areas for urban development and preserving natural spaces and agricultural lands outside of these areas. The UGB is a tool used by local governments to guide zoning and land-use decisions, as well as by infrastructure providers to optimise long-term planning and efficiency.

The UGB separates urban areas from surrounding natural and agricultural lands, often referred to as greenbelts, and acts as a limit on how far a city can expand. This boundary is set with the intention of being in place for a specified period, such as 20 years, and can be adjusted through public vote or legislation when necessary.

The UGB is designed to protect natural and agricultural lands by preventing development in previously untouched areas. It encourages sustainable growth practices and promotes the efficient use of land, public facilities, and services within the boundary.

In the context of Portland, Oregon, the UGB has been instrumental in preserving the surrounding farms and forests. The boundary is managed by the regional government, Metro, which is responsible for ensuring enough land is available within the UGB to accommodate 20 years of growth. This includes reviewing the land supply and growth projections every six years and adjusting the boundary as needed.

The UGB in Portland has been expanded multiple times, with a focus on meeting the needs of the growing population while balancing the preservation of natural spaces. This includes utilising urban infill, converting abandoned lots, and optimising the use of already developed areas to meet housing demands.

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The history of the UGB

The Beginnings of UGB in Portland

In the 1970s, Oregon took a proactive approach to curb the urban sprawl that was prevalent in western cities. Oregonians were concerned about the impact of unchecked growth on the state's natural beauty and wanted to protect their farms, forests, and deserts. As a result, Oregon established a land-use law that limited development outside of established communities. This marked the beginning of the UGB in Portland, with the goal of concentrating growth within existing areas to preserve the surrounding natural landscapes.

The Role of Governor Tom McCall

A key figure in the establishment of the UGB was Oregon Governor Tom McCall, who served from 1967 to 1975. In 1973, Governor McCall successfully persuaded the Oregon Legislature to adopt the nation's first set of statewide land-use planning laws. With the support of farmers and environmentalists, he emphasized the need to protect the state's natural beauty and easy access to nature. This led to the signing of Senate Bill 100, which created the Land Conservation and Development Commission and the Department of Land Conservation and Development.

The Portland Area UGB Takes Shape

The Columbia Region Association of Governments, the predecessor of Metro (the regional government of Portland), proposed an urban growth boundary for the Portland region in 1977. This initial proposal had to accommodate the plans and growth projections of multiple counties, cities, and special service districts. When Metro was established by voters in 1978, it took on the responsibility for managing the Portland metropolitan area's UGB.

Expansion and Refinement

Since its inception, the Portland area UGB has been expanded and refined to meet the changing needs of the region. Most expansions have been small, but there have also been larger expansions to accommodate housing and job growth. One notable expansion occurred in 1998, with the addition of about 3,500 acres. The UGB has also been periodically reviewed and assessed to ensure it aligns with the region's growth and development needs.

Promoting Sustainable Growth

The UGB plays a crucial role in promoting sustainable growth in Portland. By controlling urban expansion, it helps protect farms and forests from sprawl while encouraging the efficient use of land, public facilities, and services within the boundary. Additionally, the UGB encourages the development of a variety of housing types, including apartments, condos, and single-family homes, within existing business districts. This approach helps create vibrant, walkable communities that support small businesses.

Looking Ahead

The UGB in Portland continues to evolve as the region grows and changes. With a focus on sustainability, the city carefully considers the impact of expansions and works to balance the needs of its residents, businesses, and the natural environment. The UGB has played a key role in shaping Portland's unique character and contributing to its reputation as a leader in urban sustainability.

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How the UGB affects rental prices

The UGB, or Urban Growth Boundary, is a law that controls urban growth in Portland, Oregon, and prevents urban sprawl onto farm and forest lands. The UGB affects rental prices in several ways.

Firstly, the UGB influences the availability of land for development. By limiting the expansion of urban areas, the UGB can affect the supply of rental properties. If there is a shortage of land within the UGB, it may result in higher rental prices due to limited supply. However, the UGB is periodically reviewed and expanded to accommodate growth, which can help stabilize rental prices by increasing the supply of land for development.

Secondly, the UGB can impact the cost of development. Developing within the existing urban area may be more costly for builders, as they have to pay "system development charges" to support the construction of necessary infrastructure like pipes and roads. These charges are ultimately passed on to renters, contributing to higher rental prices.

Additionally, the UGB can affect the type and density of housing available. It encourages the development of a variety of housing types, including apartments, condos, and single-family homes, within existing business districts. This mix of housing options can influence rental prices, as different property types cater to varying budgets and preferences.

Furthermore, the UGB's impact on land values cannot be overlooked. While it does cause land values to increase slightly, the overall effect on rental prices is minimal compared to other factors such as construction costs and market demand.

In conclusion, the UGB's influence on rental prices in Portland is multifaceted. It affects the supply of land, development costs, housing density and types, and land values, all of which contribute to the complex dynamics of the rental market in the region.

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The UGB's impact on the environment

Urban growth boundaries (UGBs) are designed to separate urban areas from the surrounding natural and agricultural lands. They are a tool to stop urban sprawl and encourage sustainable growth practices. UGBs are set for a specific period, such as 20 years, and are often approved by voters.

UGBs have two main goals: safeguarding greenbelts from sprawl development and encouraging climate-smart growth. Climate-smart growth creates more mixed-use, walkable, affordable, and thriving neighbourhoods within urban limits. Compact cities and towns tend to be less car-dependent, which is beneficial for the environment and promotes healthier communities.

The environmental benefits of UGBs are clear. By focusing growth inside existing towns and cities, a UGB:

  • Reduces driving and greenhouse gas emissions
  • Saves money on water, sewer, parks, and roads
  • Protects the environment
  • Reduces wildfire risk
  • Allows for various types of housing

UGBs also play a role in wildfire safety. Communities with defined urban boundaries surrounded by greenbelts and farmland are safer and easier to defend during wildfires. Research shows that compact communities have a lower wildfire risk compared to medium-density areas, which are often found in the wildland-urban interface.

In summary, UGBs are an effective tool for managing urban growth and promoting sustainable practices. They help protect the environment, reduce emissions, and encourage the development of mixed-use and affordable neighbourhoods. Additionally, they play a crucial role in wildfire safety by creating defined urban boundaries that can be more easily defended.

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The future of the UGB

Every six years, the Metro Council reviews and reports on the land supply in the Urban Growth Report, forecasting population and employment growth for the next 20 years. If necessary, the boundary is adjusted to meet the growth needs for that period. The UGB has been expanded about three dozen times since it was first drawn, with most expansions being small—20 acres or less.

The UGB is intended to make the region thoughtfully consider growth rather than stop it entirely. It encourages developers to focus on areas within the UGB that are available for development, slowing the conversion of farms to housing and preventing leapfrog developments. While the UGB can be expanded indefinitely in theory, it is unlikely to expand beyond the 23,000 acres of urban reserves around Portland for the next 50 years.

To support growth and limit sprawl, Portland must make the most of existing land. While there may be vacant lots available, it is generally more cost-effective for taxpayers to build on those lots rather than extend infrastructure to new areas. The UGB helps keep the costs of roads, pipes, and other infrastructure in check.

The UGB also plays a role in shaping the type of development that occurs. Oregon land use law favors a mix of development types, including apartments, condos, and single-family homes. The UGB encourages multi-family development in existing business districts, where people can walk to access services and support local businesses.

In summary, the future of the UGB involves a careful balance between accommodating growth and preserving the natural environment. Portland's commitment to sustainable planning, as seen through initiatives like the Living Smart program, will continue to shape the expansion and management of the UGB in the years to come.

Frequently asked questions

An urban growth boundary (UGB) is a regional boundary that controls urban expansion onto farm and forest lands. It mandates that the area inside the boundary be used for urban development and the area outside be preserved in its natural state or used for agriculture.

The purpose of an urban growth boundary is to control urban sprawl and the encroachment of cities upon agricultural and rural land. It is also used as a guide to zoning and land use decisions, and by infrastructure providers to improve efficiency through effective long-term planning.

The Portland metropolitan area’s urban growth boundary is reviewed every six years by the Metro Council, who must report on the land supply in the Urban Growth Report.

If the report indicates that the existing boundary cannot accommodate the forecasted growth, the Metro Council will first work with local governments to determine whether steps can be taken to enhance the efficiency of land inside the existing boundary. If these additional steps are insufficient, the Metro Council will consider boundary expansions.

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