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Affordable Housing Pilot Program

In 2016, the Oregon Legislature passed House Bill 4079 (HB 4079) which formed a pilot program aimed to help cities build affordable housing. The program allows two cities to add new housing units on lands currently outside their urban growth boundaries (UGBs) without going through the normal UGB expansion process.

The law directed the Land Conservation and Development Commission (LCDC) to set up a process to select two pilot projects: one for a city with a population up to 25,000, and one for a city with a population greater than 25,000. The selected cities can use an expedited UGB process if at least 30 percent of the newly built housing is affordable and the newly added land is protected for this use for at least 50 years. LCDC adopted rules that provided the details on the pilot program process and project requirements. See OAR 660-039.

In November 2018, following outreach to the multiple cities and interested stakeholders, and following a review of city proposals, LCDC selected the City of Bend for the pilot program. Note: no cities with a population of less than 25,000 applied to be part of the pilot program.

In 2019, the Legislature amended the original statute by passing HB 2336. This change allowed LCDC to select the City of Redmond’s application for the affordable housing pilot program, in lieu of a city with a population of less than 25,000.

City Process

The selected cities must amend their urban growth boundaries, annex the proposed project sites, and adopt needed regulations. The cities will then issue permits for development to occur.

The selected cities are required to send annual reports to LCDC for the next 10 years with information on development costs, the housing units available, and lessons learned from the project.

Legislative Reports

HB4079 (2016) requires DLCD to submit a report to the Legislature on the implementation of this pilot program during each regular session.

Additional Resources


Gordon Howard
Community Services Division Manager
Phone: 503-856-6935