Measure 37 bill aimed primarily at rural property
Source: Statesman Journal, by Peter Wong
June 07, 2007
The Legislature has completed its latest attempt to revise Oregon's property-compensation law -- and voters will get to pass on its merits at a special statewide election, likely Nov. 6.
Voters in 2004 passed the original law as Measure 37. It has prompted about 7,000 claims by landowners seeking government payment for losses in property value resulting from land-use regulations or for waivers of those regulations.
Although the Legislature can change Measure 37 on its own, majorities in both chambers have chosen to refer the changes in House Bill 3540 to voters. The election date will be set in another bill.
The bill is aimed primarily at landowners outside cities and their urban growth boundaries who hope to build a few houses on their rural sites.
WHAT HAPPENS NEXT? If voters approve it Nov. 6, the changes take effect Dec. 6, when the results are certified by the secretary of state.
The state Department of Land Conservation and Development then has 120 days to notify landowners who already have filed claims on rural lands. Landowners can choose an "express lane" if they want to build as many as three homes on a site, a "conditional path" if they want between four and 10 homes, and a "vested-rights" path for all other landowners. There is no special consideration for claimants for commercial and industrial development.
Landowners have 90 days after receiving a notice to make their choice (see below).
New claims can be filed after the 2007 Legislature adjourns, but they must claim property-value losses as a result of regulations enacted after Jan. 1, 2007, and the claims have to be filed within five years of those regulations. Governments have 180 days to decide such claims, and may hold public hearings.
EXPRESS-LANE OPTION (one to three houses): About 40 percent of claims fall into this category, according to a Portland State University analysis. Landowners can build as many as three houses, if they could have built them legally when they acquired their land, and they will not have to prove losses in property values resulting from land-use regulations. Any existing house counts against the limit.
DEVELOPMENT RESTRICTIONS: The law defines "high-value farmland" by soil types, irrigation, production of grapes and federal designation of vineyard land. It also defines "high-value forest land" west of the Cascades, and areas already designated by the state with limited groundwater supplies.
In all these areas, landowners could build one house, but not more; if they have an existing house, they could build one more.
Maximum sizes of newly created lots would be two acres on these lands, and 5 acres otherwise.
CONDITIONAL-PATH OPTION (four to 10 houses): About 30 percent of claims fall into this category. Landowners would have to abide by the development restrictions described above, and they would have to demonstrate through certified appraisers their losses resulting from land-use regulations, minus any tax breaks they have received for assessment for farm or forest uses. The cost of an appraisal, as much as $5,000, can be included as part of the losses. Any existing house counts against the limit. Landowners could receive permission for a maximum of 20 houses on two sites.
VESTED RIGHTS OPTION: These claims would proceed as Measure 37 is written with no expedited consideration.
TRANSFER OF DEVELOPMENT RIGHTS: Landowners choosing either of the first two options could sell their land and transfer development rights if the new owners develop within 10 years of the sale or transfer. There was nothing in Measure 37 that addressed the transfer of development rights.
INSIDE URBAN-GROWTH BOUNDARIES: Some landowners could receive local-government approval of houses within urban growth boundaries, but would have 120 days to make this choice. Local governments would have deadlines for a final decision.
