If a local government determines there is a deficit of housing capacity to accommodate needed housing over the 20-year planning period as determined in OAR 660-008-0100, the local government must consider the effects of land use efficiency measures to increase the housing capacity or reduce the residential land need, or both.

1. (1) A local government outside Metro must demonstrate that the estimated needs cannot reasonably be accommodated on land already inside the urban growth boundary (UGB) prior to expanding the UGB. This includes an analysis of land use efficiency measures to increase the development capacity of land already inside the UGB to accommodate needed housing pursuant to ORS 197A.270.

   1. (a) As part of this analysis, a local government may consider the land need impacts of land use efficiency measures adopted after acknowledgement of the prior housing capacity analysis.
   2. (b) As a safe harbor for residential land use efficiency, a local government may demonstrate that proposed land use efficiency measures, once adopted, are estimated to result in at least a 20 percent increase in the densities that are expected to be achieved over the next 20 years. The analysis should start with the analysis of achieved average density of residential development that has occurred since the last adopted housing capacity analysis. A local government may use an alternative time period if this will provide more accurate, complete, and reliable data related to housing capacity. The local government must clearly describe data sources and the time frame used for this analysis.
2. (2) A local government within Metro is not required to demonstrate that they can accommodate their allocated housing need in its entirety. A city within Metro shall be deemed to have satisfied the requirement under ORS 197A.335 to demonstrably increase the likelihood of development of needed housing if it adopts a housing production strategy under OAR 660‑008‑0200 that includes actions sufficient to meet the city’s housing production target.
3. (3) As provided in ORS 197A.350, Metro may amend the Metro urban growth boundary to include sufficient buildable lands to accommodate housing needs for the next 20 years. Metro must demonstrate that the estimated regional housing needs cannot reasonably be accommodated already within the UGB prior to expanding the Metro UGB. This obligation is separate from the requirements of cities within Metro under section (2).

4. (4) In addition to the provisions described under this rule, as provided in ORS 197A.100, a city described in ORS 197A.015(3) must also meet the requirements described in OAR 660-008-0200 at their adoption of the housing production strategy.

   1. (a) A city must include actions in their housing production strategy to meet the housing production target by affordability bracket and demonstrate that the identified actions collectively support the city’s needed housing types, characteristics, and locations as identified through the contextualized housing need in OAR 660-008-0075.
   2. (b) As provided in OAR 660-008-0200(2), the totality of actions in the housing production strategy must include both land use efficiency measures and actions that are not land use efficiency measures.

5. (5) If necessary to respond to a deficit in the housing capacity analysis or to support a UGB expansion decision:

   1. (a) A local government outside Metro must adopt land use efficiency measures prior to or concurrent with a UGB expansion decision. Cities described in 197A.015(3) outside Metro may adopt land use efficiency measures:

      1. (A) Concurrently with the adoption of a housing capacity analysis according to the schedule in Attachment A;
      2. (B) Concurrently with the adoption of the housing production strategy according to the schedule in Attachment A; or
      3. (C) Within the first half of the housing production cycle, by the midpoint report due date as specified under OAR 660-008-0230.
   2. (b) A local government outside of Metro with a population below 10,000 must adopt land use efficiency measures concurrently with the adoption of the housing capacity analysis or concurrently with a UGB decision.

   3. (c) A city within Metro may adopt land use efficiency measures:

      1. (A) Concurrently with the adoption of the housing production strategy according to the schedule in Attachment A; or
      2. (B) Within the first half of the housing production cycle, by the midpoint report due date as specified under OAR 660-008-0230.
6. (6) If not necessary to respond to a deficit in the housing capacity analysis nor to support a UGB expansion decision, a local government may adopt land use efficiency measures at any time.
7. (7) Land use efficiency measures must be adopted as a comprehensive plan amendment or a land use regulation change consistent with ORS 197.610.
8. (8) Nothing in this rule prohibits a local government from planning for more than 100 percent of the identified housing need through land use efficiency measures.

Statutory/Other Authority

ORS 197.040

Statutes/Other Implemented

ORS 197A.015 - 197A.270

History

LCDD 8-2025, adopt filed 12/23/2025, effective 01/01/2026