(1) To ensure that the supply of land available for urbanization is maintained:

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(a) Local governments may cooperatively designate lands outside urban growth boundaries as urban reserves subject to ORS § 197.610 to 197.625 and 197.626.

(b) Alternatively, Metro and a county or a city and a county may enter into a written agreement pursuant to ORS § 190.003 to 190.130, 195.025 or 197.652 to 197.658 to designate urban reserves. A process and criteria developed pursuant to this paragraph are an alternative to a process or criteria adopted pursuant to paragraph (a) of this subsection.

(2) The Land Conservation and Development Commission may require a local government to designate urban reserves pursuant to subsection (1)(a) of this section during its periodic review in accordance with the conditions for periodic review under ORS § 197.628.

(3) In carrying out subsections (1) and (2) of this section:

(a) Within an urban reserve, a local government may not prohibit the siting on a legal parcel of a single family dwelling that would otherwise have been allowed under law existing prior to designation as an urban reserve.

(b) The commission shall provide to local governments a list of options, rather than prescribing a single planning technique, to ensure the efficient transition from rural to urban use in urban reserves.

(4) Urban reserves designated under this section must be planned to accommodate population and employment growth for:

(a) At least 40 years and not more than 50 years; or

(b) At least 20 years, and not more than 30 years, after the 20-year period for which the local government has inventoried buildable lands under ORS § 197A.270, 197A.280 or 197A.350.

(5) Urban reserves may be established at any time without regard to a schedule under ORS § 197A.270 (2), 197A.280 (2) or 197A.350 (2).

(6) The designation of urban reserves under subsection (1)(b) of this section must be based upon consideration of factors including, but not limited to, whether land proposed for designation as urban reserves, alone or in conjunction with land inside the urban growth boundary:

(a) Can be developed at urban densities in a way that makes efficient use of existing and future public infrastructure investments;

(b) Includes sufficient development capacity to support a healthy urban economy;

(c) Can be served by public schools and other urban-level public facilities and services efficiently and cost-effectively by appropriate and financially capable service providers;

(d) Can be designed to be walkable and served by a well-connected system of streets by appropriate service providers;

(e) Can be designed to preserve and enhance natural ecological systems; and

(f) Includes sufficient land suitable for a range of housing types.

(7) A county may take an exception under ORS § 197.732 to a statewide land use planning goal to allow the establishment of a transportation facility in an area designated as urban reserve under this section.

(8) The commission shall adopt by goal or by rule a process and criteria for designating urban reserves pursuant to this section. [Formerly 195.145]

Section 34, chapter 13, Oregon Laws 2023, provides:

The amendments to ORS § 195.141 [renumbered 197A.235] and 195.145 [renumbered 197A.245] by sections 32 and 33 of this 2023 Act do not apply to urban reserves or rural reserves that were adopted on or before June 30, 2023. [2023 c.13 § 34]