Michele Baird, Joseph Oregon Real Estate

..answers by Michele Baird

Oregon's Measure 37, as of January, 2007

This is the topic I am most often asked for more information on.

"My Advice: Use caution when purchasing a parcel created by Measure 37"

Measure 37 claims flooded into the County and State as the Dec 4th, 2006 cut off date came near. 50% of the claims filed that are located in Wallowa County came in on Dec 4th. The window of opportunity to file claims is not closed and measure 37 claims can still be filed. A claimant will just have more steps in the process, as now you must file to develop your parcel with the county first and be denied by them, to then proceed with a M37 claim against the county/state. Measure 37 requires that the County/State must process all claims within 180 days of receipt. The claimant can agree to extend the application response time if they wish but the county state must respond within the 180 days if the claimant will not extend. The most accurate number I could find was that as of Dec 2006, 3182 claims were filed in Oregon. 151 in Eastern Oregon and 51 in Wallowa County. Most of these were for claims in EFU (Exclusive Farm Use) zoning with claims for residential development.

Measure 37 was not clearly written and there are many unanswered questions. The attorney general states that it is a personal right to develop if a claim is granted not a transferable right. So, if you purchased a small acreage created by M37 and it is not developed at the time of purchase, you could potentially have a problem when you do want to start development. You could be at risk if the state decides that it is not a transferable right. The land would not be buildable.

Another potential problem is the designation of the newly created parcel. It is not clear if the parcels will be designated as non-conforming or conditional use. A person could be potentially vulnerable if it is decided that it is a non-conforming use. If you build and there is a fire, will you be able to rebuild? Will a lender loan on a M37 created parcel with a non-conforming use? Will escrow issue title insurance on the parcel? No one has the answers to these questions at this point in time.

Right now there are lawsuits in other counties such as Jefferson and Jackson counties, whose outcome will have influence in how our county will make decisions on M37. Wallowa County commissioner Dan DeBoie would like Wallowa County to require that a parcel be perfected by the developer before it is sold, by improving the property with 2 out of 4 major improvements, such as a developed water source, power, sewer and foundation. This is the manor in which our county handles the perfection of acreage that has a zone permit to build. Once the 2 major improvements are completed the zone permit is perfected and will not expire in the future.

All of the processes to settle the unanswered questions could take a couple of years to finalize. It is viewed by many that there is vulnerability in purchasing a parcel created through Measure 37. It is up to the buyer to decide if it is an acceptable risk for them.

If you have any questions, please feel free to give me a call-

Michele Baird

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These properties are subject to prior sales, price change, correction, or withdrawal.
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