Oregon HB 4035: Expanding Options for Urban Growth Boundary Amendments

Hey there, fellow Oregon landlords, property managers, and real estate investors. Christian Bryant here from the Portland Area Rental Owners Association (PAROA). The 2026 session is underway, and House Bill 4035 is one of those land use proposals that could open doors—literally—for more housing development. Introduced at the request of the House Interim Committee on Housing and Homelessness for Representative Pam Marsh, this bill is titled "Relating to land use" and focuses on giving cities and Metro more flexibility to adjust urban growth boundaries (UGBs) under a temporary program.

expanding options for urban growth boundary

https://www.youtube.com/watch?v=PoKUqplu8yI

Mr Portland Landlord reports this article

What the Bill Actually Says

As of early February 2026, HB 4035 is newly introduced and awaiting first reading at the House Desk. No committee referral yet, no amendments, and no hearings scheduled. The full text is concise, available on OLIS (linked below). The core provision expands eligibility for cities and Metro to amend their UGBs through a temporary program, and it authorizes the Land Conservation and Development Commission (LCDC) to adopt related rules.

Oregon's UGB system, established decades ago, draws firm lines around cities to curb sprawl and protect farm/forest land. Amending a UGB is tough—requires proving need, prioritizing inside development first, and jumping through Goal 14 hoops. Temporary programs have popped up before (like pilot projects or housing-specific expansions) to speed things for needed growth. HB 4035 broadens who can use such a program and perhaps eases criteria, though details would come via LCDC rules if passed.

Expanding boundaries: Potential for more housing under Oregon urban growth boundary expansion proposals.

Impacts on Landlords and Property Managers

Direct effects are limited since this targets planning, not day-to-day rentals. Indirectly, though, easier UGB expansions could unlock land for new housing—single-family, multifamily, whatever meets demonstrated need. More supply statewide might cool rent growth in hot spots like Portland metro or Bend, giving you breathing room on vacancies or increases.

In tighter markets, added units (especially if affordable or workforce-focused) could draw tenants from existing stock, pressuring occupancy in older properties. But overall, boosting production aligns with what many of us say we need: more homes to house Oregonians without endless price spirals.

Impacts on Real Estate Investors

For investors, this could mean new opportunities on the edges—land currently outside UGBs becoming buildable faster. If the temporary program prioritizes housing, expect more multifamily or mixed-use sites in growing areas like Salem, Eugene, or Metro fringes. That expands inventory for acquisitions or development plays.

Risk? If expansions favor certain types (e.g., subsidized), market-rate returns might face competition. Timing matters too—rulemaking by LCDC could delay or shape outcomes. Positively, streamlined boundaries reduce entitlement risks, making deals pencil better.

Impacts on Developers

This is where HB 4035 shines brightest for developers. Broader eligibility and potential rule flexibility could shorten the UGB amendment timeline from years to months in qualifying cases. For projects needing that extra acreage—think large master-planned communities or industrial with housing components—it lowers barriers.

Combined with recent housing production laws, it reinforces Oregon's push for more units. Developers partnering with cities (common for infrastructure) might find willing collaborators eager to use the program.

Common Scenarios and Pitfalls

Imagine Metro wants to expand for a major employment hub with housing—under expanded eligibility, they apply via the temporary program, get LCDC approval quicker, and your adjacent investment land skyrockets in value.

Or a mid-sized city like Albany demonstrates need but previously didn't qualify—now they do, adding peripheral sites for rentals you manage.

Pitfall: Rulemaking lag. LCDC adopts rules post-passage, so benefits aren't immediate. Another: Opposition from farm/ environmental groups challenging amendments, tying things in court despite the program.

Rule-making ahead: LCDC's role in Oregon urban growth boundary expansion programs.

Best-Practice Tips

Stay engaged early:

• Monitor LCDC meetings and rule drafts—public comment shapes them.

• Partner with local planners: Cities often signal intent to use such programs.

• Evaluate edge properties: If near a UGB, reassess hold/sell strategies.

• Diversify: Balance urban core with growth-area investments.

• Join coalitions: Groups like Oregon Home Builders Association track land use closely.

• Document needs: If advocating, data on housing shortages strengthens cases.

Related Considerations

UGBs are Oregon's hallmark—protecting ag land while forcing efficient urban development. Critics say they've contributed to shortages and high prices; supporters credit them with livability. Temporary expansions balance growth without permanent overhaul. Ties into broader efforts like HB 2001 (middle housing) or recent production targets—piecemeal but aimed at supply.

Representative Pam Marsh has long focused on housing solutions, and this committee-requested bill fits that priority. Whether it leads to meaningful additions remains to be seen—past pilots added some land but not transformative volumes.

The bill could evolve with specifics on eligibility, criteria, or limits in committee.

Call to Action

HB 4035 touches the foundation of where housing gets built—share your view now.

Track it here: https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/HB4035

Download introduced text here: https://olis.oregonlegislature.gov/liz/2026R1/Downloads/MeasureDocument/HB4035/Introduced

Contact legislators here: https://www.oregonlegislature.gov/FindYourLegislator/leg-district-map.html

Let them know how UGB flexibility affects development feasibility, supply, or investments. Balanced input from providers matters.

More homes mean more opportunities for all of us—stay involved, and PAROA is tracking this.

Sources:

• Oregon Legislative Information System (OLIS) - HB 4035 Overview: https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/HB4035

• OLIS Introduced Text Download: https://olis.oregonlegislature.gov/liz/2026R1/Downloads/MeasureDocument/HB4035/Introduced

• Oregon Land Conservation and Development Commission (LCDC) Overview: https://www.oregon.gov/lcd/pages/index.aspx