Staff Report

1 STAFF REPORT FOR COUNCIL MEETING IN CONSIDERATION OF RESOLUTION NO. 26-5633, FOR THE PURPOSE OF AWARDING 2040 PLANNING AND DEVELOPMENT GRANT FUNDS FOR CONCEPT PLANNING Date: August 18, 2026 Department: Community Investments Meeting Date: September 10, 2026 Prepared by: Serah Breakstone, 2040 Grants Program Manager Presenters: Hau Hagedorn, Community Investment Manager, PD&R Serah Breakstone, 2040 Grants Program Manager, PD&R Length: 15 minutes ISSUE STATEMENT This report provides a recommendation for a 2040 Planning & Development Grant award for a concept planning grant to the City of Hillsboro. Concept planning grants fund planning work in areas designated as urban reserves; grant proposals must demonstrate consistency with Title 11 of Metro’s Urban Growth Management Functional Plan. Hillsboro is requesting funding to prepare a concept plan for a portion of the Rosa Reserve urban reserve area (map provided in Attachment A). Hillsboro has identified a need for approximately 130 net acres of additional land for residential development to meet projected housing demand over the next 20 years. The City intends to request an urban growth boundary (UGB) expansion for this concept planning area during the 2027 mid- cycle UGB review period. In order to make that expansion request, a concept plan that meets Title 11 requirements must be submitted to Metro by June of 2027. Concept planning grants are awarded under a different process than grants in the Planning Inside the UGB category. The Grants Screening Committee does not typically evaluate applications for concept planning grants. The process for a concept planning grant is: City letter of intent to Metro (provided June 10) Meetings with Hillsboro and Metro staff to discuss grant parameters and timing considerations (held June and July) City submittal of grant application (July 9) Metro staff evaluation and recommendation (July) Metro Chief Operating Officer endorsement (August 3) Council review and consideration of award (September 10 Council meeting) 2 Hillsboro is requesting $198,000 to complete the concept plan; the full grant application is included in Attachment A. ACTION REQUESTED Staff requests that Council consider approving Resolution No. 26-5633 to award a 2040 Planning and Development Grant to the City of Hillsboro in the amount of $198,000 to complete concept planning for a portion of the Rosa Reserve. This action would authorize expenditure of CET funds and allow staff to work with the grantee to develop final project scopes and execute intergovernmental agreements (IGAs). IDENTIFIED POLICY OUTCOMES The purpose of the 2040 Planning & Development Grants program is to fund planning work in the region that supports Metro’s regional vision for growth. The grants are funded through the construction excise tax (CET) which was established in 2006 with the purpose of funding regional and local planning. The grants are intended to facilitate planning that makes land ready for development, supports economic prosperity, and implements Metro’s long-term plan for livable communities, as outlined in the 2040 Growth Concept. Council’s award of this grant will facilitate much-needed planning in the region. STAFF RECOMMENDATIONS Staff recommends that Council approve Resolution No. 26-5633 to award Hillsboro the requested concept planning grant. STRATEGIC CONTEXT & FRAMING COUNCIL DISCUSSION The proposal recommended for funding support Metro’s goals and strategic priorities in the following ways: Concept planning is a necessary first step to developing land that has been identified as suitable for accommodating urban levels of development. Having urban reserve areas that have been concept planned helps Metro understand where and how the region is ready to grow and supports regional conversations about UGB management. The Rosa Reserve concept plan will be entirely focused on residential development, including approximately 123 net acres for single-family detached housing and townhomes, and 7 net acres for multi-family apartments. Hillsboro is applying additional strategies identified in their Housing Production Strategy (adopted December 2025) focused on production of higher-density housing types, including affordable housing. The Rosa Reserve concept planning effort is intended to complement and supplement those strategies to facilitate a full range of housing types and prices.