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HomeMy WebLinkAboutStaff Memo 03-04-20 PC Update w-Attach PP 19-0008 MEMORANDUM �REGp� TO: Planning Commission FROM: Erik Olson, Senior Planner SUBJECT: HB 2001 and HB 2003 Rulemaking Update— March 2020 (PP 19-0008) DATE: March 4, 2020 MEETING DATE: March 9, 2020 In late 2019, the City Council requested that staff monitor the State of Oregon's rulemaking process for implementation of House Bill 2001 (referred to below as HB 2001 or the "middle housing" bill) and House Bill 2003 (HB 2003, or the "housing production" bill). The Council expects to be kept informed of the process and for the City to participate in it as needed to ensure that the City's interests are known and can be addressed. The following summary, the third memo prepared for this purpose, highlights some of the key policy and regulatory issues that have been identified to date. Executive Summary In November of 2019, the Oregon Land Conservation and Development Commission (LCDC) initiated rulemaking to begin implementation of HB 2001 and HB 2003. This included establishing a Rulemaking Advisory Committee (RAC) to ensure that a broad group of stakeholders and interested persons is involved in the rulemaking process. The RAC relies on technical advisory committees to develop and refine detailed recommendations, and such committees have been formed regarding the Middle Housing Model Code, Infrastructure-Based Time Extension Request process, and Housing Production Strategies process. As of March 3, 2020, the RAC has met four times, the Middle Housing Model Code Technical Advisory Committee (MCTAC) and the Infrastructure-Based Time Extension Request Technical Advisory Committee (IBTERTAC) have met twice, and the Housing Production Strategies Technical Advisory Committee (HPSTAC) has met once. Staff has attended the most recent meetings of each committee, with plans to attend future rulemaking meetings in coming months. Key issues discussed at recent meetings include: • Definition of"duplex": The RAC discussed the MCTAC's recommendation to define "duplex" as "a building that contains two dwelling units on one lot" at their most recent meeting. This definition would be in the model code, and cities would be allowed to 503.635.0290 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 2 adopt the same or a similar definition to the model code in order to meet minimum compliance. The proposed rules would allow for alternative approaches that consider detached units to be a "duplex" to meet the minimum standard as well. The idea is to allow jurisdictions such as Bend, which have building codes that consider detached units to be "duplexes", to continue to apply their definition of the term without impacting the ability of other jurisdictions to use the more conventional "attached" definition. The RAC has received input from some cities that allowing definitions of duplex to include two detached dwellings on a lot could create confusion, including potential conflicts with building codes. Staff notes that the recommendation is not intended to require that cities adopt a definition that would allow two detached buildings on one lot, but would allow cities to do so if desired. Staff will continue to track this issue. The RAC also discussed whether it was appropriate to allow flexibility in instances where a building can meet both a jurisdiction's definition of a "duplex" and an "accessory dwelling unit" (ADU). The RAC agreed to consider whether jurisdictions would be legally obligated to delineate the difference between an ADU and duplex unit prior to making a formal recommendation. (Lake Oswego would want to maintain the distinction if for no other reason than to continue exempting ADUs from paying SDCs). • Parking requirements: The RAC spent a large portion of the meeting continuing the MCTAC's discussion of the model code and minimum requirements related to parking. Similar to the draft discussed at the last MCTAC meeting, the RAC reviewed draft rules that contained three different options for minimum off-street parking requirements to reach compliance with HB 2001. While each option would place a cap on the amount of parking that jurisdictions can require, none of the options would act as an actual cap on the number of parking spaces that could be proposed for a middle housing development. The RAC continued to recommend that the rules for minimum compliance should not require jurisdictions to allow credit for on-street parking. It remains unclear whether the proposed minimum requirements would preempt any of the City's existing parking standards. Though the current recommendation continues to propose a limit to the amount of spaces that cities are allowed to require for duplex development, the RAC is still tackling the larger question of whether this limit is appropriate. Such a cap on parking, if lower than Lake Oswego's existing standard, may conflict with the City's comprehensive plan, which requires that it maintain regulations requiring adequate levels of parking be provided. Staff will continue to monitor this issue. • Redevelopment assumptions for infrastructure-based time extension requests: The IBTERTAC and the RAC both met in February to discuss and refine a draft of the rules for the infrastructure-based time extension request process. At both meetings, committee 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 3 members discussed the redevelopment assumptions cities may use as a basis for infrastructure-based time extension requests. The IBTERTAC recommended establishing different redevelopment assumptions for existing neighborhoods than for green-fields or undeveloped areas, and clarified how to calculate redevelopment assumptions in each type of area. For green fields or undeveloped areas, the assumed redevelopment rate would be set at 3% - the growth assumption contained within the language of HB 2001. For existing neighborhoods, the IBTERTAC clarified that the 3% growth assumption limit in HB 2001 is intended to be evaluated over a 20-year timespan; using this guidance, the growth assumption in Lake Oswego would be a redevelopment rate of approximately 0.225% over the 1.5-year analysis period. This rate assumes that only a very small fraction of additional housing units would be developed as a result of implementing middle housing provisions. Using these lower redevelopment assumptions for existing neighborhoods will mean that IBTER requests will primarily apply to areas that have existing or looming service capacity issues, and other areas that are not eligible for IBTER could experience infrastructure deficiencies as a result of HB 2001. The proposed redevelopment assumptions limit the ability of cities to project the impacts of implementing middle housing provisions over a longer time horizon for the purposes of IBTER, but do not preclude cities from using other redevelopment assumptions for their own infrastructure master planning efforts. • Infrastructure-based time extension request framework: At the recent IBTERTAC meeting, members discussed a few items in need of clarification related to the infrastructure-based time extension request process: o The current draft of the rules would not allow cities to request an extension based on the need for master planning alone. o The current draft of the rules would allow for extensions of up to five years based on infrastructure deficiencies, and would allow jurisdictions to extend their requests by an additional five years if needed. The combined time extension could not last for more than 10 years. Members were concerned that small jurisdictions would have a lot of difficulty accommodating infrastructure remedies within this time period, as they would need to secure a funding method and potentially arrange for agreements with outside service providers—depending on the circumstance. IBTERTAC members also advised that the rules should consider the impact of the bill with respect to potential moratoriums on development in areas where infrastructure constraints exist. Members cautioned that, without a thorough consideration of the 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 4 interaction between the IBTER process and the declaration of a moratorium, the bill could inadvertently incentivize cities to pursue moratoriums in areas where single- family dwellings are currently permitted. Staff has previously proposed a June/July 2020 check-in with the Planning Commission and City Council to develop a strategy for addressing the IBTER and other critical path decisions under HB 2001. • Draft Waste and Wastewater Rules for IBTER: Committee members also reviewed draft rules for the infrastructure-based time extension request process related to water and sewer systems. While there are still many details that need to be clarified, members were concerned about running into legal issues with the strains on infrastructure that could potentially result from allowing additional density. For instance, the potential for sewer systems to overflow into a river, or over-development in areas with inadequate water pressure for fire protection, could produce a risk to public safety. Though the IBTERTAC covered a lot of ground in this meeting, there are still many unanswered questions regarding how the process will be implemented. Staff will continue to monitor this topic. Summary of Recent Rulemaking Meetings A. State Rulemaking Advisory Committee (RAC) 1. Recent Meeting(s) and key issues discussed: RAC Meeting#4— February 27, 2020 a. Draft Middle Housing Model Code and Minimum Requirements—The RAC was presented with a draft of the Medium Cities Model Code, which had been revised based on the discussion at recent MCTAC Meetings. The RAC reviewed and provided input on this draft, focusing on the following questions: i. Definition of"duplex"—The RAC was asked to consider the MCTAC's recommendation to define "duplex" in the model code and minimum standards as "a building that contains two dwelling units on one lot". The proposed rules would also allow for alternative approaches that consider detached units to be a "duplex" to meet the minimum standard as well. This would allow jurisdictions such as Bend, which have building codes that consider detached units to be "duplexes", to continue to apply their definition of the term without impacting the ability of other jurisdictions to use the more conventional "attached" definition. Further, the RAC discussed whether it was appropriate to allow flexibility in instances where a building can meet both a jurisdiction's definition of a "duplex" and an "accessory dwelling unit" (ADU). While the current proposal would allow an applicant to choose to define the dwelling unit as a duplex or single-family residence with an ADU based on their 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 5 preference, some members of the RAC advocated for a definition that would acknowledge the "accessory" nature of an ADU as fundamentally different than a duplex unit. The RAC agreed to consider whether jurisdictions would be legally obligated to delineate the difference between an ADU and duplex unit prior to making a formal recommendation. Staff will continue to track this issue. ii. Parking—The RAC spent a large portion of the meeting discussing the model code and minimum requirements related to parking. Similar to the draft discussed at the last MCTAC meeting, there were three different options proposed for minimum off-street parking requirements to reach compliance. The first option would not allow jurisdictions to require more than one additional off-street parking space for a duplex, in addition to the minimum spaces required for a single-family dwelling in the zone. The second option would not allow jurisdictions to require more than a minimum of three parking spaces for a duplex, and the third would not allow jurisdictions to require more than a minimum of two parking spaces for a duplex. Staff notes that, though these options could place a cap on the amount of parking that jurisdictions can require, neither of these options would act as an actual cap on the number of parking spaces that could be proposed to accommodate middle housing. Further, the proposed minimum requirement for compliance would not require jurisdictions to allow credit for on-street parking. With respect to the draft model code, the recommendation continues to be for jurisdictions to require a minimum of one off-street parking space per dwelling unit, with the ability to count off-street parking spaces towards this requirement. Under the draft model code, no additional spaces would be required for the conversion of a single-family home to a duplex. Staff notes that the City of Lake Oswego would not be required to adopt the provisions in the model code unless the City fails to adopt regulations that meet minimum compliance by June 30, 2022. RAC members expressed a variety of perspectives about how parking should be handled through the model code and minimum requirements. Many members were supportive of reducing parking requirements, and others thought it could potentially avoid unnecessary conflict if the minimum requirements were silent on parking. One RAC member mentioned that it would also be helpful to define "unreasonable cost or delay" prior to making a recommendation, as parking requirements could be construed as contributing to cost or delay. While the RAC did not reach a consensus at the meeting, members conveyed numerous comments and DLCD indicated that those comments would be considered or addressed prior to the next iteration of the draft. It remains unclear whether the minimum requirements will preempt any 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 6 of the City's existing parking standards,though the current recommendation continues to propose a limit to the amount of spaces that jurisdictions may require for middle housing. Staff will continue to monitor this issue. See the attached Duplex Model Code (Revised Draft)for more detail. b. Draft Rules for Infrastructure-Based Time Extension Requests—Next, the RAC reviewed and provided comment on a draft of the rules for the Infrastructure- Based Time Extension Request, which had been revised based on the discussion at recent IBTERTAC Meetings. The RAC summarized recent decisions regarding the redevelopment assumptions that may be used as a basis for infrastructure-based time extension requests. The group discussed a recent memo from the IBTERTAC, which established different redevelopment assumptions for existing neighborhoods than for green- fields or undeveloped areas. For green-fields or undeveloped areas, the assumed redevelopment rate would continue to be set at 3% -the growth assumption contained within the language of HB 2001. The memo from the IBTERTAC clarified that, unlike green-fields and undeveloped areas, for existing neighborhoods the 3%growth assumption limit in HB 2001 is intended to be evaluated over a 20-year timespan. This means that, for existing neighborhoods, the 3%growth rate assumption would need to be modified to apply to the period of time between the adoption date of middle housing regulations and December 31, 2023. Because Lake Oswego is considered a "large city" under HB 2001, the required adoption date is June 30, 2022, and there would be a 1.5-year time period between this adoption date and December 31, 2023. Thus, because 1.5 years represents 7.5% of the full 20-year timespan, the redevelopment rate for existing neighborhoods in Lake Oswego would be 0.075 x 3%, or 0.225%, using a similar redevelopment assumption. Because the RAC has yet to discuss IBTER rules for large cities, it remains unclear whether the assumed redevelopment rate for large cities would also be rounded up to 1%for existing neighborhoods, as is proposed for medium cities. These rates assume that only a very small fraction of additional housing units would be developed as a result of implementing middle housing provisions. While the rates may seem low, they are based on housing trends and an analysis of cities with "hot" housing markets that have adopted similar middle housing provisions—such as Portland and Vancouver, B.C. Though it may seem logical to assume that density would be doubled when jurisdictions begin allowing 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 7 duplexes in single-family areas, the proposed growth assumptions are intended to present a realistic redevelopment rate that is grounded in precedent. Using lower redevelopment assumptions will mean that IBTER requests will primarily apply to areas that have existing or looming service capacity issues. It also limits the ability of cities to project the impacts of implementing middle housing provisions over a longer time horizon for the purposes of IBTER, but does not preclude cities from using other redevelopment assumptions for their own infrastructure planning efforts. Staff will continue to track this issue. See the attached IBTERTAC Meeting#2 Supplemental Memo for more detail. c. Housing Production Strategies— Lastly, the RAC was provided with an update regarding recent discussions at the Housing Production Strategies TAC, and was offered a chance to ask questions and provide further guidance. While the RAC asked a few questions and made some helpful suggestions, the urgency around this topic was less immediate than some of the other topics— which have more stringent timelines. Because most jurisdictions will not need to tackle their housing production strategies for several years, the RAC did not dedicate as much time to this subject. See the attached HPSTAC Meeting# 1 Summary for more detail. 2. Next RAC Meeting and expected topics to be discussed: RAC Meeting#5—April 2, 2020 a. Continue review of draft medium city rule and code b. Continue review of draft infrastructure deficiency time extension rules c. Review draft housing production strategy rules 3. Does the Planning Commission have any questions or comment? The RAC is still defining issues and topics to be discussed throughout the rulemaking process, and has indicated that they intend to continue their review of draft rules and language at their next meeting. Staff will monitor the April 2nd RAC Meeting#5 to better understand the direction of the draft medium city model code and IBTER rules prior to recommending any comments. 4. City Council direction needed? No direction is needed at this time, as the RAC is still defining issues and topics to be discussed throughout the rulemaking process. B. Model Code Technical Advisory Committee (MCTAC) 1. Recent Meeting(s) and key issues discussed: MCTAC Meeting#2—February 4, 2020 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 8 See last month's HB 2001 and HB 2003 Rulemaking Update (2/6/2020) for a summary of the meeting. 2. Next MCTAC Meeting and expected topics to be discussed: MCTAC Meeting#3—March 5, 2020 a. Consider RAC comments on draft Medium Cities Model Code b. Build out Large Cities Model Code framework c. Begin code graphics discussion d. Review Economic Feasibility Report 3. Does the Planning Commission have any questions or comment? The MCTAC is still working to refine draft rules and language for medium cities based on input from the RAC, and intends to start building out the framework for the model code for large cities at their next meeting. Staff will monitor the March 5th MCTAC Meeting to get more clarity on the direction of the draft medium city model code prior to recommending any comments. 4. City Council direction needed? No direction is needed at this time, as the MCTAC is still working to refine a draft model code for duplexes based on input from the RAC, and intends to start building out the framework for the model code for large cities at their next meeting. C. Infrastructure-Based Time Extension Request Technical Advisory Committee (IBTERTAC) 1. Recent Meeting(s) and key issues discussed: IBTERTAC Meeting#2—February 24, 2020 a. Key Parameters for infrastructure-based time extension requests—The IBTERTAC began by discussing whether any clarification was needed regarding potentially ambiguous language in the proposed rules. Members suggested that a definition is needed to establish a common understanding of"un-urbanized" areas, particularly in order to distinguish between contiguous and non-contiguous "un-urbanized" areas. IBTERTAC members also stressed a need to differentiate between a jurisdiction's willingness to issue a building permit and the existence of an infrastructure "deficiency" in that area —as there could be circumstances where permits are still being issued irrespective of an existing deficiency. b. Establishing a Significant infrastructure deficiency—The IBTERTAC then reviewed a draft framework for establishing a significant infrastructure deficiency and provided guidance on suggested changes. The current draft of the rules would not allow cities to request an extension based on the need for master planning alone. IBTERTAC members expressed that, while they thought this was a reasonable approach, they didn't want to put cities in a 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 9 "hard place" if they were requesting an extension in order to allow more time for infrastructure-related master planning. Though draft rules for water- and sewer-related deficiencies were the intended focus of this meeting, IBTERTAC members began to consider other types of infrastructure as well. It was mentioned that significant deficiencies related to stormwater were different in many ways than other types of infrastructure deficiencies, particularly considering that middle housing produced through the bill could exacerbate impervious area and increase the potential for flooding. IBTERTAC members also advised that the rules should consider the impact of the bill with respect to potential moratoriums on development in areas where infrastructure constraints exist. Members cautioned that, without a thorough consideration of the interaction between the IBTER process and the declaration of a moratorium, the bill could inadvertently incentivize cities to pursue moratoriums in areas where single-family dwellings are currently permitted. c. IBTER Applications and Review Criteria—Next, the IBTERTAC reviewed the proposed application requirements, review process and criteria for the infrastructure-based time extension requests. These rules would allow for extensions of up to five years based on infrastructure deficiencies, and would allow jurisdictions to extend their requests by an additional five years if needed. The combined time extension could not last for more than 10 years. Some members expressed concerns that jurisdictions would continue to request infrastructure extensions, regardless of the proposed time limits. Others were concerned that small jurisdictions would have a lot of difficulty accommodating infrastructure remedies within this time period, as they would need to secure a funding method and potentially arrange for agreements with outside service providers—depending on the circumstance. Certain members mentioned that, even in large cities, it's difficult to expect decision-makers to prioritize infrastructure extensions in anticipation of long-term growth over maintenance backlogs and other investments designed to keep existing systems viable. The IBTERTAC acknowledged that it would be challenging to accommodate the needs of cities with constrained infrastructure while ensuring that the rules work to accomplish the intent of the bill—to produce additional housing units. d. Draft Waste and Wastewater Rules— Lastly, the IBTERTAC reviewed draft rules for the infrastructure-based time extension request process related to water and sewer systems. IBTERTAC members agreed that these systems are the least likely for jurisdictions to deem deficient, though some members did note that they had issues with water pressure capacity in their jurisdictional boundary. Members seemed generally concerned about running into legal issues with the strains on infrastructure that could potentially result from allowing middle housing, 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 10 such as the potential for sewer systems to overflow into a river and produce a risk to public safety. This prompted a discussion of how these types of impacts could be in conflict with other systems protected under Statewide Planning Goals, such as natural or historic resources. Though the IBTERTAC covered a lot of ground in this meeting, there are still many unanswered questions regarding how the process will be implemented. See the attached IBTER Key Parameters Memo for more detail. 2. Next IBTERTAC Meeting and expected topics to be discussed: IBTERTAC Meeting#3— March 16, 2020 a. Transportation draft rules outline b. Additional discussion of water and sewer draft rules 3. Does the Planning Commission have any questions or comment? Many specifics related to the infrastructure-based time extension process have still yet- to-be-determined. Much of the discussion at the second IBTERTAC meeting involved identifying difficult questions that will need to be addressed in future meetings, and members continued to express concerns about the feasibility of the IBTER-related timelines established by HB 2001. Though rules for water and sewer were drafted prior to the meeting and discussed in-depth, the TAC decided to continue the discussion of the draft rules for water and sewer at their next meeting in order to allow sufficient time to discuss the key parameters and application requirements. Staff will monitor the March 16th IBTERTAC Meeting#3 to better understand the direction of the draft IBTER rules for water, sewer and transportation prior to recommending any comments. 4. City Council direction needed? No direction is needed at this time, as the IBTERTAC is still working to refine draft rules related to water and sewer, and will be drafting rules related to transportation prior to their third meeting. D. Housing Production Strategy Technical Advisory Committee (HPSTAC) 1. Recent HPSTAC Meetings and key issues discussed: HPSTAC Meeting#1—February 6, 2020 a. HPSTAC Introductions and Operating Principles, Roles, and Deliverables—The HPSTAC began their first meeting with introductions and a review of the operating principles and guidelines for technical advisory committees. The HPSTAC clarified that their deliverables would consist of a series of requirements outlining what housing production strategies should look like and how DLCD can better support 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 11 those communities. The HPSTAC is aiming to produce a draft set of rules for RAC discussion in time for their August meeting. b. Housing Production Strategy Structure—The HPSTAC then began discussing a series of questions oriented around the proposed structure of the housing production strategy rules. This included a discussion of the data and analysis points that should be used in order to determine housing need, and which data should be measured in order to track the progress of governments in addressing this need. HPSTAC members also considered specific actions, policies, and tools that cities should consider as they address their housing need, with some arguing that housing production strategies should consider more than just the number of units produced in order to gauge success. In particular, there was a desire to incorporate equity and consider the location of planned housing units in relation to their impact on complex issues such as displacement, poverty, access to employment, and other socioeconomic indicators. Another question was focused on how to meaningfully engage the community in the development of these strategies, with HPSTAC members stressing the importance of actively recruiting new voices and avoiding required "box checking" meetings. See the attached HPSTAC Meeting# 1 Summary for more detail. 2. Next HPSTAC Meeting and expected topics to be discussed: HPSTAC Meeting#2— March 11, 2020 a. Centering housing production strategies on vulnerable communities, especially as it relates to homelessness b. Review Specific Elements of a Housing Production Strategy 3. Does the Planning Commission have any questions or comment? Many specifics related to housing production strategies have still yet-to-be-determined. Much of the discussion at the first HPSTAC meeting stayed fairly high-level and was primarily focused on outlining the questions planned for discussion at future meetings. Staff will monitor the March 11th HPSTAC Meeting#2 to better understand the direction of housing production strategy rules prior to recommending any comments. 4. City Council direction needed? No direction is needed at this time, as the HPSTAC is still working to outline topics to be discussed at future meetings. The HPSTAC plans to present a tentative draft of rules for housing production strategies to the RAC at their July meeting. 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 12 ATTACHMENTS A. Duplex Model Code (Revised Draft), 2/18/2020 B. IBERTAC Key Parameters, 2/13/2020 C. IBTERTAC Meeting#2 Supplemental Memo, 2/24/2020 D. HPSTAC Meeting#1 Summary, 2/24/2020 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us A LAND USE PLANNING TRANSPORTATION PLANNING PG PROJECT MANAGEMENT MEMORANDUM Duplex Model Code (REVISED DRAFT) DLCD Middle Housing Model Code DATE February 18, 2020 TO MHMC Technical Advisory Committee FROM Matt Hastie, Cathy Corliss and Kate Rogers,Angelo Planning Group CC Ethan Stuckmayer and Robert Mansolillo, DLCD Project Team Duplexes on Single-Family Lots (Model Code) User's Guide: Oregon House Bill 2001 requires that "Medium Cities" (cities with a population of more than 10,000 and less than 25,000 that are not within Metro's jurisdiction) allow a duplex on each lot or parcel zoned for residential use that allows for the development of detached single-family dwellings. The bill allows local governments to regulate siting and design of duplexes, provided that the regulations do not, individually or cumulatively, discourage duplex development through unreasonable costs or delay. Duplexes provide an opportunity to increase housing supply in developed neighborhoods and can blend in well with detached single-family dwellings. Concerns about neighborhood compatibility and other factors should be considered and balanced against the need to address Oregon's housing shortage by removing barriers to development. Ideally, Medium Cities will develop their own standards in compliance with the requirements of HB2001 and this document is intended to provide guidance toward that end (both in terms of best practiccsuggested approaches and minimum standards for compliance). However, if cities do not adopt the required code amendments by HB2001's June 30, 2021 deadline, they must directly apply the model code to any applicable proposals.Thus, the purpose of this document is threefold, and the following table includes provisions organized into three columns: 1. Model Code—The standards that will apply directly to proposals for duplex development if local governments do not adopt the required code amendments. These standards are intended to be straightforward and implementable by medium- ANGELO PLANNING GROUP angeloplanning.com 921 SW Washington Street,Suite 468 p:503.224.6974 Portland,OR 97205 f:503.227.3679 PP 19-0008 ATTACHMENT A/PAGE 1 OF 15 Page 17 of 160 Duplex Model Code (REVISED DRAFT) 2 of 15 size cities throughout the state.They are consistent with the requirements and intent of HB 2001 and also are meant to achieve a middle ground between minimum requirements and some of the best practices in the second column which go beyond allowing duplexes and ensuring that they are no more difficult to develop than a single-family detached home. 2. Best PracticesSuggested Approaches—Options for local governments to consider in developing their own standards, with the intent of improving outcomes for duplexes developed in single-family areas. Some of the best practicesSuggested approaches include standards that could serve as an incentive for their development. 3. Minimum Compliance—The minimum standards that middle housing development codes must meet in order to comply with the intent of HB2001.These are the standards against which DLCD will compare amended development codes to ensure they comply with state law. Ultimately, the Medium City model code will be adopted by reference into administrative rules; minimum compliance standards will be adopted directly into administrative rules; and best practices will not be incorporated into administrative l rules, but will be provided as guidance to local governments wishing to further facilitate middle housing development. Commentary for MCTAC: The rightmost column of the table also includes commentary explaining the rationale behind the model code, best practice, and minimum compliance provisions and explains why they may be different. Some of this commentary could be incorporated into the final model code document to provide guidance for users. For some provisions, we have provided a few options for your consideration. Where we have a preliminary recommendation, the recommended provision is presented first, and the "Alternative" option is identified as such. Where we do not have a preliminary recommendation, the options are identified as Option A, Option B, etc. Including options in the best practicesSuggested Approaches is encouraged and we are hoping MCTAC members can provide suggestions for other options if possible. However, the model code and minimum compliance columns will need to provide specific direction, so we ultimately will need to arrive at a single recommendation for each of the provisions in those two columns, with input from the MCTAC and RAC. The following draft code provisions should be considered a very preliminary draft and as a starting point for further discussion of potential refinements withwill be further refined based on direction from the RAC and MCTAC. The commentary APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 2 OF 15 Page 18 of 160 Duplex Model Code (REVISED DRAFT) 3 of 15 column indicates where the model code has been substantively revised from the initial draft reviewed at MCTAC meeting 2. APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 3 OF 15 Page 19 of 160 Duplex Model Code (REVISED DRAFT) 4 of 15 Standard Model Code (will apply directly) Best Practise (recommended)Suggested Minimum Compliance Commentary Approaches (optional) A. Purpose The purpose of this model code is to implement Same as model code.N/A Local governments are not required to Purpose statements provide guidance for Oregon House Bill 2001 by providingprovide include a purpose statement specific to applicants and reviewers to help them standards for duplexes developed on lots which provisions needed to implement and understand the intent of development code allow detached single-family dwellings. Duplex comply with HB2001. standards. They help with a code's development is intended to achieve the following: readability, providing insight into the 1. Accommodate incremental growth in jurisdiction's rationale for applying specific neighborhoods while preserving residential quality standards. The purpose statement in the of life; model code includes several statements 2. Provide for a wider variety of housing types identifying the intent of allowing duplexes on that meet the needs of the jurisdiction's diverse single family lots, consistent with the intent of H82001 and the state's requirements for population at all stages of life; provision of needed housing. 3. Allow development of housing that is similar [Update: The model code purpose statement in size and form to detached single family housing; has been revised per direction from the 4. Encourage housing that allows residents to MCTAC to delete the specific statements of remain in their communities and neighborhoods as intent and to reference implementation of their needs change; and H82001./ 5. Facilitate more efficient use of land through smaller housing units, thereby providing more affordable housing options to neighborhood residents. B. Definitions The following definitions shall apply for the purposes -- -- "Unreasonable cost and delay"may will also of this model code, notwithstanding other need to be defined for the minimum definitions in the local jurisdiction's development compliance standards, so the state has some code: sort of metric by which to assess local jurisdictions'siting and design standards. 1. "Duplex" "Duplex" means a building that contains two Same as model code alternative option (jiurisdictions The definition may be the same as or The recommended approach for the model dwelling units on one lot.The units must share a are encouraged to allow duplexes to be either similar to the model code or may define a code is to define duplex as two attached common wall or common floor/ceiling. In instances attached or detachedj. Following is an alternative to duplex as two attached units on one lot. units on a lot. This definition is consistent where a building can meet this definition of a duplex the model code's definition: The definition must distinguish a duplex with the way most jurisdictions currently and also meets the jurisdiction's definition of a "Duplex" means two dwelling units on one lot. The from a combination of a single-family define duplex, and it reflects what most primary dwelling unit with an attached or internal units may be attached (sharing a common wall or detached unit and an ADU for the people think of as a duplex. [Update:the accessory dwelling unit (ADU), the property owner common floor/ceiling) or detached. In instances purpose of specifying off-street parking definition for MCTAC consideration has been has the option of electing whether the entire where a development can meet this definition of a requirements. removed from the model code column, but structure is considered a duplex or a primary duplex and also meets the iurisdiction's definition of retained in the Suggested Approach column.] dwelling unit with an attached or internal ADU. a primary dwelling unit with a detached accessory ALTERNATIVE: "Duplex" m ans two dwelling units dwelling unit (ADU), the property owner has the The Suggested Approach is to provide on one lot. The units may be attached (sharing a option of electing whether the development is additional flexibility by stating that a duplex APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 4 OF 15 Page 20 of 160 Duplex Model Code (REVISED DRAFT) 5 of 15 Standard Model Code (will apply directly) Best Practise (recemmended)Suggested Minimum Compliance Commentary Approaches (optional) common wall or common floor/ceiling) or detached. considered a duplex or a primary dwelling unit with a can be either attached or detached units. In instances where a development can meet this detached ADU. Even if not included in the model code, this definition of a duplex and also meets the additional flexibility should be considered a jurisdiction's definition of a primary dwelling unit best practice. Both these housing types arc with a detached accessory dwelling unit (ADU), the consistent with the intent provided in the property owner has the option of electing whether proposed purpose statement. (Note for the development is considered a duplex or a primary MCTAC. Ifttie alternative model code dwelling unit with a detached ADU. provision is selected, there will be implications for other model code standards, which will need to be addressed.) To complyFor Minimum Compliance with HB2001, local governments would need only to define a duplex as two units on a lot, and may specify whether or not they must be attached. The model code's definitions of duplex are intended to eliminate potential ambiguity between duplexes and ADUs. This distinction is important because state law prohibits off- street parking requirements for ADUs (per ORS 197.312, as amended by SB1051 and HB2001). The proposed definition of duplex would defer to the local jurisdiction's definition of ADU(including limits on maximum size). If a site meets the jurisdiction's ADU definition, the property owner would have an incentive to permit it as an ADU, since they wouldn't have to provide additional parking. (Limiting off- street parking is consistent with the state's housing/climate goals.)Alternatively, it may be advantageous for a property owner to consider it a duplex if the local jurisdiction has strict design standards for ADUs. There are trade-offs either way, and this definition leaves flexibility for the property owner. 2. "Common wall" A wall shared by two or more dwelling units. To Same as model code. Same as model code. Update: This definition has been added to meet the definition of a duplex (per Subsection B.1), clarify the definition of common wall and to APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 5 OF 15 Page 21 of 160 Duplex Model Code (REVISED DRAFT) 6 of 15 Standard Model Code (will apply directly) Rest Practise (recommended►Suggested Minimum Compliance Commentary Approaches (optional) if the units are attached by a common wall,the wall indicate a minimum length and width for must be shared for at least 25% of the length and which the common wall must be shared. 50% of the height of the side of the building of the dwelling units. 23. "Zoned for "Zoned for residential use" means a zoning district in Same as model code. Same as model code. This definition clarifies that the duplex residential use" which residential dwellings are the primary use and requirement only applies in residential zones. which implements a residential Comprehensive Plan This is further clarified in the Applicability map designation. section. 34. "Dwelling unit" "Dwelling unit" means a building, or a portion of a Same as model code. No requirement, as long as definitions The model code's definitions of dwelling unit building, that has independent living facilities ensure consistent application of duplex and detached single-family dwelling are including provisions for sleeping, cooking, and standards. simply provided to remove any ambiguity sanitation, and that is designed for residential about the meaning of these terms as they occupancy by a family or household. Buildings with apply in the context of the model code. more than one set of cooking facilities are considered to contain multiple dwelling units unless the additional cooking facilities are clearly accessory, such as an outdoor grill. 45. "Detached single- "Detached single-family dwelling or structure" Same as model code. No requirement, as long as definitions family dwelling or means a single dwelling/structure on its own ensure consistent application of duplex structure" lot/parcel that does not share a wall with any other standards. dwelling/structure other than an accessory dwelling unit. A detached single-family dwelling/structure may be either site built or a manufactured dwelling. C. Applicability Unless otherwise noted, the standards in this model While local jurisdictions are only required to allow Same as model code. The applicability statement is intended to code apply to the following: duplexes in areas zoned for residential use, they are clearly state where and when the provisions • New duplex units; encouraged to allow duplexes in any zone in which of the model code apply. This clarifies that • Duplexes created through conversion of existing single-family dwellings are permitted. the provisions do not apply in any zones detached single family structures developed on except for residential zones in which lots or parcels (including lots of record) zoned for Jurisdictions should also consider: detached single-family dwellings are residential use that allow for the development of permitted(although allowing duplexes in p • Allowing duplexes to have a detached ADU(or other zones is a suggested approach- -e detached single-family dwellings. ADUs); best practice). It also establishes that The standards in this model code do not allow for • Allowing detached single-family dwellings with duplexes are not required to be allowed via the following, unless otherwise permitted by the an existing detached ADU to be internally conversion of a single-family dwelling when jurisdiction: converted into a duplex; and/or there is already an ADU on-site (which would • Creation of duplexes on lots or parcels on lands • Allowing a lot with a duplex to have additional create three units on a lot). Allowing ADUs that are not zoned for residential use, including units of limited size. with duplexes is also suggested as an lands zoned primarily for commercial, industrial, optional best practice approach. APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 6 OF 15 Page 22 of 160 Duplex Model Code (REVISED DRAFT) 7 of 15 Standard Model Code (will apply directly) Rest Practise (recommended►Suggested Minimum Compliance Commentary Approaches (optional) agricultural,e--public, or mixed uses, even if These options would permit three (or four) units on a The model code applicability statement those zones allow for the development of lot. further clarifies that requirements of HB2001 detached single-family dwellings. do not override local protections for natural • Creation of more than two units on a lot, unless resources, natural hazards, or other otherwise permitted by the jurisdiction. regulatory protections adopted pursuant to Duplexes developed under the provisions of this Statewide Land Use Planning Goals. This model code shall comply with protective measures could mean,for example, limiting building adopted pursuant to statewide land use planning footprints in wetland areas, ensuring goals (e.g., environmental and natural hazard duplexes are reviewed for historic protections). compatibility in historic districts, or limiting building heights within the Willamette Greenway. (Note for MCTAC:DLCD is working to clarify how residential density for middle housing should be regulated within flood hazard areas to comply with FEMA standards. Accordingly, the revised Model Code will include updated language in this section.) [Update: Lots of record were added to the applicability statement.] D. Provisions -- -- -- -- Applicable to Duplexes 1. Conflicts. In the event of a conflict between this model code Local jurisdictions should review their development N/A This section of the model code is intended to and the jurisdiction's standards applicable to the regulations to identify potential conflicts and barriers address how these provisions relate to local proposed duplex, the standards of this model code to duplexes and amend their codes to remove those jurisdictions'existing code sections, shall control. conflicts and barriers. especially related to conflicting standards. 2. Development Duplexes developed under the provisions of this See specific provisions under sections F and G below. N/A Subsection D.2 states that except for the and Design model code are subject to the following standards: model code standards, duplexes must meet all other provisions applicable to detached Standards. • Section F, Development Standards single-family dwellings. The purpose of • Section G, Design Standards stating that "other existing standards • Development and Design Standards of the local applicable only to duplexes shall not apply"is jurisdiction as follows: to prevent local governments from applying o All clear and objective development and standards that make duplexes more difficult design standards that apply to detached to develop than detached single-family single-family structures in the same zone, homes. APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 7 OF 15 Page 23 of 160 Duplex Model Code (REVISED DRAFT) 8 of 15 Standard Model Code (will apply directly) Rest Practise (recommenrled)Suggested Minimum Compliance Commentary Approaches (optional) unless those standards conflict with the If local governments adopt their own code standards of this model code. amendments, they may apply separate o Other standards applicable only to standards to duplexes (to a limited extent), duplexes shall not apply to duplexes as long as those standards do not discourage developed under the provisions of this duplex development through "unreasonable model code. costs or delay." 3. Public Works Exceptions Clear and objective exceptions to public Local jurisdictions should review their public works Same as model code. [Update: "Clear and objective"has been Standards. works standards granted to single-family dwellings standards to identify potential conflicts and barriers added to the model code language, per shall also be granted to duplexes developed under to duplexes and amend their codes to remove those MCTACsuggestion.] the provisions of this model code. However, conflicts and barriers. individual utility service connections to each duplex unit may be required by the local jurisdiction or utility service provider. E. Permitted Uses and Duplexes shall be permitted outright on lots or Same as model code. Same as model code. This section of the model code clarifies that Approval Process parcels zoned for residential use that allow for the duplexes shall be permitted outright on lots development of detached single-family dwellings. where detached single-family dwellings are Duplexes shall be subject to the same approval permitted. It also states that duplexes are process as the local jurisdiction applies to detached subject to the same type of approval process single-family dwellings in the same zone, and shall be as detached single-family dwellings—but subject to only clear and objective standards, only using clear and objective criteria, as approval criteria, conditions, and procedures. required by state law. F. Development -- -- -- In addition to the development standards Standards listed in this section, the minimum compliance rules may also need to address standards such as FAR and lot coverage, to ensure that such provisions in local codes do not discourage duplex development. [Update:It was suggested at MCTAC#2 that lot coverage provisions be added to the model code (e.q., allowing lot coverage for duplexes to exceed single-family). However, for the following reasons, it would be difficult to regulate lot coverage in the model code without creating unintended consequences: 1. Some cities do not regulate maximum lot coverage (instead regulating minimum landscaping); APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 8 OF 15 Page 24 of 160 Duplex Model Code (REVISED DRAFT) 9 of 15 Standard Model Code (will apply directly) Rest Practise (recommended►Suggested Minimum Compliance Commentary Approaches (optional) 2. Cities define lot coverage differently(some include all impervious surfaces, others limit it to roofed structures, etc.); 3. Lot coverage standards often vary by zoning designation and the impact or reasonableness of a lot coverage standard can depend to a large degree on the minimum lot size in a given zone. For these reasons, we do not recommend regulating lot coverage here, but instead recommend deferring to lot coverage standards for single-family detachejj 1. Minimum lot The minimum lot size for a duplex is the same as the Same as model code. Same as model code. H82001 was intended to increase housing size. minimum lot size for a detached single-family supply and housing options, and to provide dwelling in the same zone. opportunities for more affordable housing options in all residential neighborhoods. Allowing development of duplexes on the same size lot as a detached single-family home helps meet this intent by reducing the land cost per unit(thus making the development more affordable). Additionally, as duplexes are required to be permitted on any lot that permits a detached single-family dwelling, subjecting duplexes to a larger minimum lot size would violate H82001. 2. Maximum -Pre-existing density maximums and minimum lot Same as model code. Same as model code. See comments under minimum lot size. Density. sizes for duplexes do not apply to duplexes permitted under this code. 3. Setbacks. Duplexes shall meet the setback standards that apply Setbacks can represent a potential barrier to duplex Duplexes shall not be subject to larger To promote compatibility with single-family to detached single family structures in the same development. In order to encourage duplex setback standards than those applicable neighborhoods, the recommended approach zone. development,jurisdictions should consider reducing to detached single-family structures. for the model code is to require duplexes to ALTERNATIVE: Duplexes shall meet the setback setbacks and allowing increased lot coverage. meet the same setback standards applicable standards that apply to detached single-family If jurisdictions permit two detached units as a duplex, to detached single-family dwellings.- structures in the same zone, except that a front they should consider whether standards for minimum The wee duplex provision, but also to setback of no more than 120 feet}and a rear setback spacing between structures are needed, or whether establishes maximum front and rear and side the Building Code should control minimum spacing. setbacks,—and This is intended to ensure that APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 9 OF 15 Page 25 of 160 Duplex Model Code (REVISED DRAFT) 10 of 15 Standard Model Code (will apply directly) Rest Practise (recommended►Suggested Minimum Compliance Commentary Approaches (optional) of no more than 115 feet}shall apply. No maximum overly large setback standards do not garage setback shall apply. unnecessarily constrain sites and limit feasibility for duplex development. LUpdate: The alternative setback option has replaced the initial recommendation, which did not have maximum setbacks.] Jurisdictions adopting their own standards are encouraged to examine existing setbacks and lot coverage standards for single-family development to identify potential barriers to duplex development. Setbacks should be amended for the whole zone, not only for duplexes. To comply with HB2001,jurisdictions must simply not apply larger setbacks for duplexes than for detached single family, so as not to discourage duplex development. 4. Height. Duplexes shall meet the height standards that apply Jurisdictions should consider adopting a height bonus Duplexes shall not be subject to lower Similar to setbacks, the model code's height to detached single-family structures in the same to encourage duplex development: maximum height standards than those provision is intended to promote zone. Height bonus. Duplexes shall be allowed a height applicable to detached single-family compatibility with single-family bonus of_% above the maximum height applicable structures. neighborhoods. to detached single-family structures in the same Jurisdictions may consider adopting a height zone. bonus to encourage duplex development and to promote this lower-cost housing option in single-family neighborhoods. To comply with HB2001,jurisdictions must not apply lower height standards for duplexes, so as not to discourage duplex development. 5. Parking. -- -- -- -- a. Required Off- A minimum of one (1) off-street parking space shall In addition to the model code standard,jurisdictions OPTION A:Jurisdictions shall require no Providing off-street parking adds to the cost street be required per dwelling unit. A credit for on-street could consider a range of options for parking more than one (1) additional off-street of a development and reduces the area of a Parking. parking shall be granted for some or all the required standards: parking space for a duplex, in addition to site that can be developed with dwelling off-street parking as provided in Subsection F.5.b. No . Treat a duplex as a single dwelling unit for the the minimum spaces required for a units. As such, parking requirements additional parking spaces shall be required for purpose of applying the jurisdiction's existing detached single-family dwelling in the constitute a potential barrier to housing conversion of a single-family detached home to a minimum off-street parking standards. same zone. development and housing affordability. duplex. Many local governments are revisiting their APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 10 OF 15 Page 26 of 160 Duplex Model Code (REVISED DRAFT) 11 of 15 Standard Model Code (will apply directly) Rest Practise (recommended►Suggested Minimum Compliance Commentary Approaches (optional) ALTERNATIVE A:A minimum of 2 off street parking • Require one off-street parking space for the OPTION B:Jurisdictions shall require no minimum parking standards to address this space shall be required for a duplex. No more than whole duplex. more than three (3) minimum off-street potential barrier. one (1) additional off street parking space shall be • Where on-street parking is available, require no parking spaces for a duplex. The model code requires one parking space permitted for the entire site, over and above the minimum off-street parking for a duplex. OPTION C:Jurisdictions shall require no per dwelling unit. Requiring more parking for minimum number of off street parking spaces • Require no minimum off-street parking for a more than two (2) minimum off-street duplexes would unnecessarily constrain sites required for a single family detached home. A credit duplex, regardless of whether on-street parking parking spaces for a duplex (one per and limit feasibility for duplex development. for „n street park„n„ shall be g.-anted for some or aµ U is available. unit). pdate: The initial recommendation of 1 the required off street parking as provided in space per unit has been retained and the • Require no minimum off-street parking for:Subsection F.5.b. other alternatives have been deleted. Note ALTERNATIVE B:Whcrc on street parking is available o Housing serving those at 80% or less of the that none of the Medium Cities identified in and meets the standards of Subsection F.5.b.i iv, no Area Median Income, HB2001 requires fewer than 1 space per minimum off street parking shall be required fora o Duplexes that redevelop an existing building, dwelling unit for duplexes. Most require 1.5-2 duplex. o Housing in historic districts, spaces per unit. The proposed standard is the o Housing within one mile of downtown or same as that included in the DLCD Model Code for Small Cities.] within one-half mile of frequent transit corridors, and/or Jurisdictions are encouraged to consider a o Buildings that have been vacant for 12 or range of optional best practices Suggested more months. Approaches to further reduce off-street parking requirements for duplexes (including requiring no parking at all). Duplexes are Jurisdictions may also want to consider maximum more commonly used for renters than parking standards for duplex and detached single- ownership. Oregon homeowner households family units. own an average of 0.4 more cars than Another option is to add an "unbundled parking" renters, so any parking mandates should be provision (as is done for 4+plexes in Oakland, Santa adjusted down to the reality of renter Monica, San Francisco, Seattle, and Berkeley.) households. Sample language: Jurisdictions could also consider maximum Any off-street parking spaces shall be rented or parking standards to ensure that excessive sold separately from the rental or purchase of off-street parking is not created. dwelling units. A tenant may elect not to rent or lease parking when renting or leasing a unit. Projects with affordable housing units as defined in [Code reference]are exempt from this requirement. b. On-street If on-street parking spaces meet all the standards in Same as model code (unless no off-street parking is No on-street parking credit required. On-street parking is a viable parking option Credit. Subsections i-iv below, they shall be counted toward required). for both single-family and duplex dwellings. the minimum off-street parking requirement. The model code offers a credit toward the minimum off-street parking requirement APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 11 OF 15 Page 27 of 160 Duplex Model Code (REVISED DRAFT) 12 of 15 Standard Model Code (will apply directly) Rest Practise (recommended►Suggested Minimum Compliance Commentary Approaches (optional) i. On-street parking must be allowed on the where on-street parking is available adjacent side of the street where the space is to be to the site. [Update: The minimum length of provided. 22 ft has been retained. The optional model code provision requiring ROWs to be ii. The space must be a minimum of 22 feet improved has been deleted.) long; — iii. The space must be located adjacent to (Ne*e for MCFAC:the project team doesn't necessarily recommend the optional abutting the subject site; and subsection v, which requires that streets be iv. The space must not obstruct a required sight improved to receive the parking credit, but it distance area. is included for your consideration.) OPTION: v. The space must be located along a right of way improved to the jurisdiction's standards. G. Design Standards New duplexes shall meet all clear and objective Jurisdictions could consider establishing pedestrian Local governments may regulate siting The intent of the model code is to apply the design standards (e.g., entry orientation, window friendly design standards for new duplexes, if they and design of duplexes, provided that the same design standards to duplexes that also coverage, articulation, etc.)that apply to detached are not already in the development code. These Any regulations do not, individually or apply to single-family development. Applying single-family structures in the same zone, unless development standards should apply to both cumulatively, discourage the more restrictive design standards would they conflict with the model code. Duplexes created detached single-family and duplex dwellings; f only development of duplexes through unfairly discourage duplex development, and through internal conversion of detached single- applied to duplexes, they could present unnecessary unreasonable costs or delay. Any such therefore would not comply with HB2001. family structures shall not be subject to the barriers to duplex development.JNote, however, that regulations must be clear and objective Meanwhile, local governments that choose jurisdiction's design standards. the intent of this suggestion is not to compel and must be evaluated through a non- to regulate the design of single-family jurisdictions to regulate single-family housing—it is discretionary process. development should be able to apply the simply to suggest equivalent standards for duplexes same or similar standards to duplexes as and single-family dwellings.) Converted duplexes well. should not be subject to design standards. Following In the best practices Suggested Approaches are optional design standards to consider: column are examples of design standards 1. Entry Orientation. At least one (1) main entrance intended to promote attention to detail, must meet the following standards. pedestrian friendly and human-scale design, a. The entrance must be no further than 8 ft and street visibility, and to discourage behind the longest street-facing wall of the garages from dominating street facing building. facades, while affording flexibility to use a b. The entrance must face the street, be at an variety of architectural styles. These are angle of up to 45 degrees from the street, or intended to help guide jurisdictions that open onto a porch. If the entrance opens currently lack—or would like to update— onto a porch, the porch must: design standards for detached single-family dwellings. The standards should be applied to i. Be at least 20 sq ft in area with a both single-family homes and duplexes. Local minimum 4-ft depth. governments cannot create barriers to APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 12 OF 15 Page 28 of 160 Duplex Model Code (REVISED DRAFT) 13 of 15 Standard Model Code (will apply directly) Rest Practise (recommended►Suggested Minimum Compliance Commentary Approaches (optional) ii. Have at least 1 porch entry facing the duplex development by subjecting them to street. much more stringent standards. iii. Be covered by a roof or living space that is a maximum of 12 feet above the floor of the porch. The roof or living space must cover at least 30% of the porch area. c. For properties with more than one frontage, the applicant may choose which frontage to meet the standards in subsections G.3.a and b. 2. Windows. A minimum of 15% of the area of all street-facing facades, excluding alley-facing facades, must include windows or doors. Window area is the aggregate area of the glass within each window, including any interior grids, mullions, or transoms. Door area is the area of the portion of a door other than a garage door that moves and does not include the frame. Half of the window area in the door of an attached garage may count toward meeting this standard. 3. Garages and Carports. An attached garage or carport must meet the following standards, except where vehicle access is taken from an alley. a. A garage door or carport entrance designed for vehicle access must be the same distance or a greater distance from the street property line as the widest street-facing wall along the same street frontage, except as follows: i. A garage door or carport entrance may extend up to 5 feet in front of the widest street-facing wall if there is a covered front porch and the garage door or carport entrance does not extend beyond the front of the porch. APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 13 OF 15 Page 29 of 160 Duplex Model Code (REVISED DRAFT) 14 of 15 Standard Model Code (will apply directly) Rest Practise (recommended►Suggested Minimum Compliance Commentary Approaches (optional) ii. A garage door or carport entrance may extend up to 5 feet in front of the widest street-facing wall where the garage or carport is part of a 2-story building and there is a window on the second story above the garage or carport that faces the street with a minimum area of 12 square feet. b. The total maximum width of all garage doors or carport entrances is 12 feet or 50 percent of the total width of the street-facing facade, whichever is greater. The width of a garage door is measured from inside the garage door frame. Where more than one garage door is proposed, the width of each garage door is measured separately. 4. Driveway Approach. Duplexes may have a maximum of two driveway approaches in compliance with the following: a. The total width of all driveway approaches must not exceed 32 feet per frontage. For lots or parcels with more than one frontage, see subsection G.8.c. b. Driveway approaches may be separated when located on a local street. If approaches are separated, they must be separated by a minimum of seven feet. c. In addition, lots or parcels with more than one frontage must comply with the following: i. Lots or parcels must access the street with the lowest classification. ii. Lots or parcels with frontages only on collectors and/or arterial streets may have one driveway approach. The City Engineer will determine which frontage may have one driveway approach when APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 14 OF 15 Page 30 of 160 Duplex Model Code (REVISED DRAFT) 15 of 15 Standard Model Code (will apply directly) Rest Practise (recommended►Suggested Minimum Compliance Commentary Approaches (optional) lots or parcels only have frontages on collector streets or only on arterial streets. iii. Duplexes on lots or parcels with frontages only on local streets may have two driveway approaches not exceeding 32 feet in total width on one frontage or one maximum 16-foot-wide driveway approach per frontage. d. Clear vision standards do not apply between driveway approaches for duplexes on local streets. H. Nonconforming Conversion of an existing legal non-conforming Local jurisdictions should review their development Same as model code. This model code provision allows duplexes to Development detached single-family structure to a duplex is regulations regarding non-conforming development be created from existing nonconforming allowed, provided that the conversion does not to identify potential conflicts and barriers to duplexes detached single-family structures. The code move the duplex further out of conformance with and amend their codes to remove those conflicts and does not require converted duplexes to applicable clear and objective standards. barriers. become fully compliant with all development standards, instead it requires that they not move further out of compliance. APG DLCD Middle Housing Model Code February 18,2020 PP 19-0008 ATTACHMENT A/PAGE 15 OF 15 Page 31 of 160 Otak Technical Memorandum To: Kevin Young and Ethan Stuckmayer, DLCD IBTER Technical Advisory Committee From: Serah Breakstone, AICP Date: February 13, 2020 Subject: IBTER Key Parameters Project No.: 19501 This memo is intended to propose an overall framework for the IBTER rules and highlight key parameters for extension requests. While the framework is intended to provide some consistency in the way information is presented, there may be some variation or special considerations to account for the individual characteristics of the four infrastructure types that are included (water, sewer, stormwater and transportation). This framework has been created to be consistent with the language and requirements imbedded within HB2001, and reflects guidance received from DLCD staff. 1. Establishing a Significant Infrastructure Deficiency a. An existing significant deficiency occurs when a local government or service provider(if outside the local government jurisdiction) is unable to provide acceptable levels of service within a developed, or developing, affected area. b. An anticipated significant deficiency occurs when a local government or service provider will be unable to provide acceptable levels of service within a developed affected area with 0.125% growth in dwelling units by December 31, 2023. For undeveloped (greenfield) areas, a significant deficiency would occur when existing "downstream" or planned infrastructure would be unable to provide an acceptable service level within the affected area (by December 31, 2023)with the addition of 0.125% more dwelling units than were originally anticipated in the growth area. c. General parameters: i. If the local government or service provider would allow construction of new single-family dwellings within an affected area, then middle housing must also be accommodated. ii. Infrastructure deficiencies do not include improvements/extensions that would typically be provided in conjunction with residential development. For example, lack of a water connection at a site's frontage is not a significant deficiency because a local government typically requires service extensions as part of development. iii. Un-urbanized areas which are not yet served by the four urban services, but for which infrastructure plans are in place, and where the local government has an expectation of extending services to the area over time, do not require time extensions. iv. Un-urbanized areas where a single-family dwelling would be permitted are only eligible for an extension if a significant deficiency can be demonstrated. v. Outdated or insufficient infrastructure master plans will not, in themselves, be considered adequate justification for an extension. A local government must still demonstrate that a deficiency exists, or will exist by December 31, 2023, regardless of the status of master planning documents. c:luserslcbonnotldesktoplibtertac#2libter key parameters.docx 808 SW Third Avenue, Suite 800, Portland, OR 97204 • Phone (503) 287-6825 Fax (503)415-2304 otak.com PP 19-0008 ATTACHMENT B/PAGE 1 OF 4 Page 25 of 66 Page 2 IBTER Draft Rule Outline—Key Parameters February 13, 2020 2. Parameters specific to water and sewer infrastructure [pull from Grayling's memo] 3. Parameters specific to transportation infrastructure [placeholder] 4. Parameters specific to stormwater infrastructure [placeholder] 5. Time limits for infrastructure-based extensions: a. At the time of submittal of an IBTER application, the local government must specify the length of the extension requested in order to remedy deficiencies and implement middle housing. In no case will the length of the extension request exceed five years. b. Upon or prior to the expiration date of an extension, the local government must implement middle housing within the extension boundary or submit to DLCD an application for further extension. If the local government fails to adopt its own middle housing code or to apply for a further extension beyond the initial five year period, the applicable middle housing model code will apply directly in the area subject to the initial time extension. Scenarios that may justify further extension include: i. Funding to pay for needed infrastructure improvements is contingent on local system development charges that have not yet been collected. ii. Needed infrastructure improvements are outside the jurisdiction of the local government (for example, an improvement to an ODOT facility) iii. Similar unanticipated delays or complications. c. Applications for further extension must include all information required under this rule. d. Local governments may request one additional extension, with a total combined time extension not to exceed 10 years. 6. IBTER Application Requirements. A complete application for an infrastructure-based extension must include the following: a. A narrative describing the identified deficiency. At a minimum, the narrative must contain the following: i. A description of the nature of the deficiency. For each infrastructure type where a deficiency is identified, a description of how the deficiency is consistent with the parameters established in Section 1. ii. If the local government believes the deficiency impacts middle housing but no other types of development within the impacted area, the local government must provide a description of how existing infrastructure can continue to meet the needs of other types of development but not middle housing. iii. Service provider, if other than the requesting local government. Submittal must include a signed agreement between local government and service provider to collaboratively address middle housing infrastructure needs. iv. Vicinity map showing the boundary of the impacted areas for which the extension is requested. If more than one infrastructure deficiency is identified (sewer and transportation, for example), the map should show the boundary of each deficiency separately and any areas of overlap. v. A summary of the parcels within the extension boundary including occupied and vacant parcels, zoning and goal-protected areas. vi. A regional map, if applicable, showing the infrastructure that otherwise provides service to the area where an extension is being requested. c:luserslcbonnotldesktoplibtertac#2libter key parameters.docx PP 19-0008 ATTACHMENT B/PAGE 2 OF 4 Page 26 of 66 Page 3 IBTER Draft Rule Outline—Key Parameters February 13, 2020 b. A remediation plan containing the following information: i. A description of the proposed infrastructure improvement(s) intended to remedy the service deficiency so that middle housing may be implemented. For each infrastructure improvement project, the description should include, at a minimum: 1. Explanation of how the improvement project will provide adequate service to anticipated middle housing 2. Anticipated funding source(s) and schedule for project completion 3. Area within the extension boundary that will be remedied by the project ii. Proposed timeline and associated mapping to demonstrate any phasing of the remediation plan where there are several improvement projects identified. For example, a smaller improvement project may take two years and will remedy one portion of the extension boundary but not the entire area. A second project may be larger, take longer, and remedy a larger area within the extension boundary. iii. A vicinity map of areas within the local government where middle housing will be implemented. iv. Infrastructure improvement projects that would require voter approval of a bond measure must include an alternative funding source if the desired bond measure fails. 7. IBTER Process and Review Criteria a. IBTER applications must be filed with DLCD by: i. December 31, 2020 for medium cities ii. June 30, 2021 for large cities b. Incomplete applications. Upon receipt of an IBTER application, DLCD will conduct a preliminary completeness review within 30 days of receipt and notify the local government of any additional materials that are required to make a complete application. The local government must submit all requested materials within 30 days of receipt of request for additional materials. If requested completeness materials are not submitted within the 30-day period, the application will be decided based on the information provided. c. Once a complete application has been filed, DLCD will grant or deny the request as follows: i. Within 90 days of receipt of a complete application for medium cities ii. Within 120 days of receipt of a complete application for large cities d. For additional IBTER requests, the following timelines will apply: i. A request for further extension must be submitted to DLCD on or prior to the expiration date identified in the original extension approval. ii. DLCD will grant or deny the request for further extension within 90 days of receipt of a complete application. e. In reviewing IBTER applications, DLCD will consider the following criteria: i. The identified deficiencies have been adequately described, are reasonable and are consistent with the parameters established in Section 1. ii. The proposed remediation plan adequately plans for improvement projects to be funded and built in a reasonable amount of time. c:luserslcbonnotldesktoplibtertac#2libter key parameters.docx PP 19-0008 ATTACHMENT B/PAGE 3 OF 4 Page 27 of 66 Page 4 IBTER Draft Rule Outline—Key Parameters February 13, 2020 iii. The proposed remediation plan will facilitate implementation of middle housing as quickly as possible. f. DLCD may establish reasonable conditions of approval for IBTER approvals if deemed necessary to comply with decision criteria. c:luserslcbonnotldesktoplibtertac#2libter key parameters.docx PP 19-0008 ATTACHMENT B/PAGE 4 OF 4 Page 28 of 66 INFRASTRUCTURE-BASED TIME EXTENSION REQUEST TECHNICAL ADVISORY COMMITTEE DLCD ( IBTERTAC) SUPPLEMENTAL MEMO FOR MEETING #2 TO: IBTER Technical Advisory Committee Members FROM: Kevin Young, Senior Urban Planner; Ethan Stuckmayer, Senior Housing Planner SUBJECT: Development and Redevelopment Rate Assumptions--Corrections and Clarifications This memo is intended to provide corrections and clarifications related to development and redevelopment assumptions included in the IBTER Key Parameters memorandum (pp. 25 —28) that was included in your packets (dated February 18, 2020) for IBTERTAC Meeting#2. Specifically,this memo will explain and correct the proposed 0.125%growth assumption referenced in the Key Parameters memo. Thanks to TAC member Jeff Blaine, who has raised these questions and prompted this clarification.Jeff has also provided some analysis and suggestions regarding development and redevelopment rate assumptions in a memo, which is attached to this correction. The rate of redevelopment and rate of increase for new development that will result from the allowance for middle housing types in low density residential zones in Oregon cities is unknown at this time. Anecdotally, staff have heard that cities that have adopted similar provisions in low density residential zones have seen a gradual increase in dwelling units produced per acre, not a sudden increase. To date, staff have been unable to obtain definitive data on this question. However, some direction regarding development rates is included in Section 5 of HB 2001. That section states, in the context of a housing needs analysis (HNA), that, "The density expectations may not project an increase in residential capacity above achieved density by more than three percent without quantifiable validation of such departures." Typically, the planning period for an HNA is 20 years. Consequently, we propose utilizing the three percent rate as a benchmark. Following are some of the key assumptions based on the parameters provided in HB 2001. Development and Redevelopment Rates IBTERTAC Mtg. 2 P a g a 11 PP 19-0008 ATTACHMENT C/PAGE 1 OF 7 Key Assumptions • HB 2001 limits growth assumptions from middle housing code adoption to 3%in the context of an HNA,which is typically evaluated over a 20-year span. The bill says, "The density expectations may not project an increase in residential capacity above achieved density by more than three percent without quantifiable validation of such departures." • In the context of an HNA, here's an example of how the 3% assumption would be applied for a city's developed low density residential zone: For a city that has 10,000 single family dwellings in fully developed low density zones,the 3% assumption would mean that middle housing redevelopment (conversion of existing single family to duplex, etc.) would increase the number of units by 3%, or an additional 300 units over a 20 year span (10,000 X 1.03 = 10,300). • However, for IBTER requests, anticipated development and redevelopment is limited to a much shorter span of time. For medium cities that span of time will be the time from th. required adoption of middle housing codes on June 30, 2021 to December 31, 2023. This is roughly 2.5 years out of the full 20 year planning period.Two and one-half years represents one eighth, or 12.5% of the full 20 year time span. • Consequently, redevelopment assumptions in developed areas over the shorter time span would be less. Specifically, the bill asks local governments to consider the additional housing units produced by development and redevelopment of middle housing from the date of adoption of middle housing allowances to December 31, 2023. Given the 3% limitation,the problem is to determine the fraction of the 3% redevelopment assumption that would occur within the first 2.5 years. Mathematically, that result would be 1/8 X 3%, or 0.125 X 0.03=0.00375.This is the number that should have been included in the key parameters memo, rather than 0.125%.The result is a very small increase in housing units. For a city with 10,000 single detached dwellings,the additional middle housing produced would be 37.5 units by December 31, 2023 (10,000 X 1.00375 = 10,037.5). • As you can see,this is a very small fraction,which practically speaking, may be within the margin of error for the capacity of most infrastructure systems. This may mean that this type of IBTER request will apply largely to areas that have existing or looming service capacity issues. • House Bill 2003 does allow for local governments to consider development and redevelopment rates above 3%if a "quantifiable validation" can be made for a different rate. For non-Metro cities,that means the local government must show that greater housing capacity has been achieved in areas zoned similarly, or within similarly zoned areas elsewhere in the region. For Metro cities,the region is defined as the Metro region. Consequently, it would be reasonable to allow for the same "quantifiable Development and Redevelopment Rates IBTERTAC Mtg. 2 page 1 2 PP 19-0008 ATTACHMENT C/PAGE 2 OF 7 validation" as a reasonable departure from the assumed rate above 3% as part of a city's IBTER application. • Lastly, it is realistic to assume that greenfield development will respond differently to middle housing allowances than redevelopment within existing single detached dwelling neighborhoods. For our purposes, "greenfield development" is new development that occurs in previously undeveloped or underdeveloped areas following the adoption of middle housing codes. Since these areas will be planned and developed all at once, it is more likely that they will incorporate middle housing to a greater extent. Because of this, it is reasonable to apply the three percent growth rate when anticipating additional dwelling units that would be produced in these areas. Balancing this is the understanding that only greenfield sites that are contiguous to existing urban services will likely develop within the 2.5 year period ending on December 31, 2023. Sample Calculations Given these considerations, here are two hypothetical examples of how IBTER standards might be applied in existing neighborhoods and in greenfield areas: Existing neighborhood—100 acre area containing 800 single family homes. Applying the multiplier for a developed neighborhood would yield the following: 800 units X 1.00375 =803 units, an increase of 3 units in this area. If this rate were simplified to 1%, as proposed by Jeff Blaine, the results would not be significantly different: 800 units X 1.01 =808 units, an increase of 8 units in this area. Greenfield neighborhood— 100 acre area in a single family zone that now allows middle housing. Average densities within this zone prior to middle housing allowance produced 800 units/100 acres. Applying the "greenfield multiplier," the results would be as follows: 800 units X 1.03 (3%) = 824 units, an increase of 24 units within this area Conclusion Development and Redevelopment Rates IBTERTAC Mtg. 2 P g e 13 PP 19-0008 ATTACHMENT C/PAGE 3 OF 7 We hope this memo has clarified our collective thinking about how growth rate assumptions may be applied in the IBTER process. Please consider this analysis and the proposed rates for our discussion at meeting#2 on February 24, 2020. Development and Redevelopment Rates IBTERTAC Mtg.2 Page 1 4 PP 19-0008 ATTACHMENT C/PAGE 4 OF 7 Growth Rate Analysis and Suggestions from Jeff Blaine: Please note this memo was written to assist staff in framing this issue for the TAC. DLCD staff have prepared a separate memo to clarify some key assumptions about development and redevelopment rate assumptions,Jeff's memo below provides an important perspective and may provide additional clarifications and questions that will be helpful to the IBTERTAC. A significant portion of our next meeting will focus on the draft Key Parameters presented in the OTAK memorandum. A critical part of the IBTER process revolves around identifying significant infrastructure deficiencies that currently exist or are anticipated to exist by December 31, 2023. Of critical importance to the IBTER process is identifying how much additional growth to anticipate as a result of implementing HB2001. There is only 2.5 years of growth to consider between when middle housing codes must be adopted and the end of the allowed IBTER evaluation window, December 31, 2023. The IBTER Key Parameters memo provided in your TAC packet includes draft growth assumptions for your consideration. These assumptions were provided by DLCD staff to OTAK as a starting point for conversation. However,as we have prepared for our meeting, we have realized that the numbers provided in the memorandum don't reflect out intended approach. I am referring specifically to Section 1.b. of the memo (See page 25 of your packet.). In order to have a more productive meeting, I thought it best to clarify our intent in advance and avoid any confusion created by the current language. This memo is intended to provide that clarity. It's important that, as part of the IBTER process, DLCD provide guidance on growth assumptions (and therefore additional system demands)that result from implementing HB2001 as compared to traditional single-family residential (SFR) development. In a typical master planning process, a community would look to zoning for identifying maximum impacts and then truth that against what has been experienced in real life development on similarly zoned parcels in town. In this effort,we know that it is not reasonable to assume that every lot will have a 4-plex, and we also know that most communities won't have real life data to use for middle housing impacts in SFR zones. Hence the need to provide guidance in the IBTER rules. HB2001 provides very little guidance on growth rate assumptions except for in relation to a Housing Needs Analysis (H NA). In that context,the bill states that agencies can't assume more than three percent(3%) more capacity being provided though middle housing provisions than would be realized through standard SFR development. While this is a system wide value,it does give us a starting point when there is no other data available. We also think we can reasonably expect to see more (expressed as percentage) middle housing incorporated into new development projects vs. redevelopment of currently developed land. Our intended approach is to recognize that belief and identify two different growth assumptions,one for new development(greenfield)and one for redevelopment. Using the HNA value as guidance,we would suggest assuming that in greenfield areas communities could assume up to three percent (3%) additional growth over the planning window as a result of PP 19-0008 ATTACHMENT C/PAGE 5 OF 7 • HB2001. However, in already developed areas, we would recommend using one percent (1%) as the estimated additional growth through redevelopment and implementation of middle housing. We recognize that collectively,over the entire system, this will result in less than the allowed three percent (3%)total in the HNA process. We anticipate robust discussion on that issue. How the impact of each of these is quantified would need to follow slightly different procedures. Two examples are provided below to help describe how these values would be applied in practice. The examples calculate the maximum number of additional units that could be considered as result of implementing HB2001 over the 2.5 year evaluation window. The demands created by those units would need to be added to existing system demands, and otherwise anticipated growth over the planning window,in order to identify the total demand to be considered in the IBTER process. EXAMPLE 1—Existing Developed SFR Area with 12,000 Homes HNA's are associated with a 20-year planning window. Therefore, regardless of the percentage assumed for additional capacity created through redevelopment in already developed areas, it first has to be considered over the entire planning widow. So if there 12,000 homes, and we expect an increase of 1% over 20 years. we would expect an additional 17n units created through middle housing provisions over that 20 years. However, because we are restricted in our evaluation window to growth impacts through December 31,2023,we can only consider the additional demand created by a fraction of those additional units. Remember that there is only 2.5 years between when the model code must be adopted and the end of the evaluation window. Those 2.5 years represent 12.5% of the total 20-year window of which units will be produced. 12.5%of the additional units provided over 20-years is 15 units. This means that this community can only consider an additional 15 units of demand in this area above and beyond what would be projected for standard SFR development in this area through December 31, 2023. EXAMPLE 2—Greenfield Development Area As noted in the prior example, when calculating the impacts of middle housing for IBTER we are limited to 2.5 years of anticipated growth. If a community's growth rate typically results in 150 new SFR home starts a year,and we use the 3%cap,they would estimate the number of additional units provided through implementation of HB2001 by taking 150 SFR/Yr*2.5 yrs*3%,which equals an additional 11 units beyond what would have otherwise been realized. Additional Considerations As you prepare for the meeting and consider this draft guidance,we would encourage you to also consider these additional questions. 1) The HNA process allows communities to use values other than 3% when there is applicable data available to support it. Should communities be allowed that same flexibility in the IBTER process? 2) Several communities have identified that, by selecting "areas" for plexes, cottage clusters, etc., when evaluating infrastructure serving those areas, it may be appropriate for a community to assume a higher percentage of growth in that area. Should communities have the flexibility to PP 19-0008 ATTACHMENT C/PAGE 6 OF 7 identify those pockets of higher growth and use it for the IBTER as long as they can demonstrate they aren't assuming more growth than allowed across the entire system (3% or other data supported value)? 3) Is it appropriate to assume different rates between already developed areas(redevelopment)and greenfield sites? If yes, does it matter what those rates are as long as the resulting number of units assumed across the entire system doesn't exceed what is allowed (3% or other data supported value)? PP 19-0008 ATTACHMENT C/PAGE 7 OF 7 Housing Production Strategy Technical Advisory Committee(HPSTAC) Meeting#1 February 6, 2020; 9am—12pm Zoom Virtual Meeting Key Insights Ensuring adequate data availability to meet community needs—The collection and availability of accurate and consistent housing data will be essential to provide jurisdictions a clear assessment of their housing needs. Data will need to extend beyond units produced and cost—other factors such as quality of housing and transportation costs will be important to get a more comprehensive assessment of housing needs. It will be important to align data collection with other efforts and balance data collection needs with the limited capacity of small jurisdictions to collect data.Additionally, providing guidance on evaluating strategies will be important to determine how effective adopted strategies were in producing needed housing. Ensuring an equitable distribution of housing—One concern expressed by committee members is cities using existing housing patterns as a justification for future housing patterns (such as a high-income community using that pattern to estimate a low need for affordable housing). Housing production strategies will need to carefully consider communities who have been historically excluded from past production. Assessing workforce and other methods to determine who is locked out of a housing market will also be an important consideration. Looking beyond housing production— Members noted that housing represents much more than shelter; it is an asset provides access (or lack thereof)to opportunity. Housing production strategies will need to extend beyond simply housing production and consider where housing is needed and who it serves. Strategies will also need to provide investment in areas without exacerbating displacement. Comprehensively assessing factors affecting housing availability—There are many factors beyond land use regulation that affects the feasibility of housing development (e.g. land availability/ownership, federal/state regulations, extension of infrastructure) and availability(e.g. retention of older housing stock and naturally-occurring affordable housing)that need closer consideration by jurisdictions. Honing recommended specific actions, policies, and tools—Developing a clear, easily communicable set of recommended strategies that provide cities flexibility in developing strategies that work for their communities will be important. Additionally, enforcement procedures and safe harbors that clearly define expectations for jurisdictions and support for jurisdictions from state and market actors will be important for the successful implementation of housing production strategies. Meaningful community engagement—Past requirements for community engagement have been considered by TAC members to be over prescriptive and have failed to yield meaningful outcomes. Members recommend implementing an outcome-based engagement approach that describes what engagement occurred,which communities it reached, what was learned, and how engagement affected strategies as a significantly more productive framework than "check box" meetings.The framework should encourage outreach to a diverse group of stakeholders, emphasize education about housing production and strategies, and provide sufficient flexibility to align with existing outreach efforts by a given jurisdiction. Simultaneously, it should provide safe harbors for jurisdictions to clearly define a minimum requirement for compliance. HPSTAC1 Meeting Summary RAC Mtg. 4 Page 1 of 6 PP 19-0008 ATTACHMENT D/PAGE 1 OF 6 Page 107 of 160 Introduction • Deliverables for TAC: Series of requirements outlining what an HPS should look like & How DLCD can better support these communities—tracking/assistance • Revised monthly schedule: o Aug 6th—HPSTAC 7—Draft set of rules ready to present to RAC at end of meeting o Sept 3rd—Use comments from RAC and LCDC to refine draft rules—75%of draft rules done o Oct 12th—Final rules for RAC o Nov LCDC meeting—Adoption Discussion Question#1:Are the data and analysis points outlined in HB2003 Section 4(3) sufficient to fully outline and contextualize a city's housing need? If not,what other data and analysis would help local governments better understand and measure the housing needs of their communities? • As policy maker, less [audio broke off] Looking at existing supply and where they're located o Important to highlight range and median cost • Track the development process from pre-app to construction o Pre-application conference, may or may not result in project ■ Start there to determine how many units by type • Question about intent: Milwaukie HNA—looking within city limits, missed people by focusing in on existing income levels and housing—relying on point in time count underestimates homelessness o If city has few residents—by focusing on current income levels, does this mean housing affordable to those levels aren't needed? o Look at the workforce required to support that community ■ People who would live closer if they could afford it o Linking housing with wages and types of jobs available in city is important • Question of equity—HPS should be more than just producing X units. Question of"where" and how they connect people to opportunity. o Housing is shelter, provides access to an "asset", what it connects you to (or fails to) o Fair housing—Are there areas of concentrated poverty?Are those areas also places where vulnerable or ethnic populations are located? o Two strategies ■ Help people move to better places ■ Improving area without displacement (community development strategy) o Look at demographic shift that is coming ■ Look to aging, disability, etc. • Lot of potentially buildable land under a private contract (CC&R or Easements)—get counted as 'buildable lands' that may or may not be tenable • Ownership and lot configuration patterns—Think about chances of land assembly and likelihood of development o Cities can't develop housing, but builders can't do anything if they can't reach land owners. Many strategies don't consider how to free up land for development HPSTAC1 Meeting Summary RAC Mtg. 4 Page 2 of 6 PP 19-0008 ATTACHMENT D/PAGE 2 OF 6 Page 108 of 160 o Comprehensive land banking approach would help assist jurisdictions provide land opportunities • Potential impediments—some builders have identified conflicting or duplicative requirements from states and local governments o Opportunity to identify these conflicting requirements o E.g.—DEQ and stormwater regulations • Identifying fed/state regulations that"tie hands" of local governments • Condition of existing housing and new production—Overall stock of housing is important to maintain as aging provides significant housing o Don't miss efforts to preserve existing housing o Avoid redirecting resources solely to new production o Want local jurisdictions to receive credit for retaining housing o Data for when affordable housing tracts expire? • Opportunity to encourage strategic direction for cities—more proactive than reactive; great to have a more standardized strategic vision centered around meeting need rather than just "production" • Don't miss out on linking jurisdictions to non-profits o Strengthen partnerships • Data on migration patterns especially in context of climate change • Look at the data we already have—last 3-5 years, rather than collecting repeatedly o Collecting information should be to fill in gaps o Aligned data efforts would be helpful—comp plan and fair housing data Discussion Question#2:We are looking to the HPSTAC to advise on the suggested "buckets"of specific actions, policies, and tools future housing production strategies should consider.Are the above mentioned "buckets"sufficient to categorize the tools available to cities to increase housing production?Will they need to be more broad or specific? How can we categorize actions in a way that is inclusive of the entire range of tools that can be employed,while ensuring that cities compare the costs and benefits of each action? • Neighborhood/organized opposition— It's a factor • Reducing financial and regulatory impediments o Financial impediment—infrastructure ■ Bend: land zoned for housing, reliable procedures, but projects delayed to wait for CIP; project would be underwater trying to build ■ Water and sewer primarily ■ More flexibility for roads • Milwaukie: Revenue raising for affordable housing o CET utilized for Milwaukie • Advocate for 'honing in' on the three buckets and creating depth—we know these three things are needed to increase production o Other two buckets fit "under" resources bucket • Increase production for those who have been historically excluded from past production o Preference policies are incredibly complicated and narrow due to fair housing laws o Best way to achieve results: lens of affordability and size of units HPSTAC1 Meeting Summary RAC Mtg. 4 Page 3 of 6 PP 19-0008 ATTACHMENT D/PAGE 3 OF 6 Page 109 of 160 ■ Incorporate into the first three buckets o Ultimately what we need are resources for people o Different than what will actually be produced, so much is dependent on market ■ How to hold cities accountable when they don't have the resources? • Providing guidance on prioritization of tools to allow cities to hone in on desired strategies o How cities evaluate based on types of housing desired • How to demonstrate that strategies meet certain groups of people or types of housing • Springfield market analysis—types of incentive that could be provided for multi-family housing; found that in their market,the only kind of market that is potentially possible are apartment townhomes (only local developers due to risk), higher density are not feasible. o Developers struggle to meet minimum density standards in low density zones o Understand that not all production strategies will work in each jurisdiction and scenario ■ Staff: Intent to provide "menu of options" • It's an HPS but we need to look at the total picture o We are not producing housing for the lower end of the market—input costs are too expensive ■ Get at analysis of relief provided through new market construction • Look at rent and prices in community and subareas to determine trends of existing stock o OR office of economic analysis study: how housing costs filter over time ■ Taking this into account in 20 year analysis, especially when increasing over time o If you capture understanding pricing at a certain time, important consideration • A lot of effort to increase local and state funding—never going to build subsidized affordable housing without significant subsidy o City policies must support this o Developer capacity o Everybody needs to bring pieces to the table • Include information about current and projected homeless housing needs—shelters and transitional housing • Market conditions are a few years out, so important but shouldn't fully drive jurisdiction action o Policy can "set the table"to make land available and support future development ■ Especially redevelopment sites—e.g. strip malls and other commercial lands • Location of housing:Transportation is often the most expensive part of housing costs— proximity can make living more affordable • Prioritization of affordable housing—e.g. areas adjacent to transit, it can often result in de facto segregation Discussion Question#3:What equity questions can be asked throughout HPS reporting in order to shed light on the benefits/burdens facing communities with limited infrastructure, resources, and staff capacity?What tools can the State use to evaluate individual communities'strategies in order to minimize burdens on historically marginalized or under-served communities? • Keep in mind that access to information varies significantly between communities across the state o May be difficult for smaller jurisdictions to do similar analysis to larger jurisdictions o Look to reliable state data for consistency/certainty HPSTAC1 Meeting Summary RAC Mtg. 4 Page 4 of 6 PP 19-0008 ATTACHMENT D/PAGE 4 OF 6 Page 110 of 160 • SDC impacts—Cities don't always control SDCs o SDC waiver—consider the cost shifting from development to rate payers ■ What's the alternative funding for the SDC waiver • New requirements will be significant burden for almost all jurisdictions—limited staff capacity and revenue sources o How to match the expectation with access to resources? o Look to other planning efforts—e.g. transportation o Find opportunities for"parallel support" • Reference to "number of units created by an action" o With code and policy changes, challenging to estimate impacts o Real estate analyst: Difficult for them to determine due to variables • Where a community's greatest needs are, data on households, spending on housing, and condition of housing o Situation—people spending significant income on substandard housing Discussion Question#4:What will meaningful community engagement look like at the local level for an HPS? What minimum engagement efforts can be incorporated into HB 2003 rulemaking to ensure that the housing needs of the most housing-insecure communities are identified?What efforts can be incorporated to describe capacity of communities to work with public and private partners to provide housing and associated infrastructure and social services identified in the Housing Needs Analysis? • Need to ensure "active" vs "passive"form of action—public forum, open house, etc. are important, but also have efforts to actively go to people to avoid having the same people and perspectives o Recruiting, research,going out to communities, etc • Forest Grove: Works with community groups to serve as "liaisons". Has been very effective • Often community engagement is to one specific issue o Standards are often burdensome and duplicative o Look instead to outcomes • Avoid required box checking meetings o Describe what engagement occurred, who/how it reached communities,what was learned, how strategies were modified o Considers HB 4006 requirements "box checking" o A requirement for citizen involvement is important, but what works is different city-to- city—flexibility is important ■ E.g. recent town center project—public involvement strategy changed to accommodate different perspectives ■ Was able to answer questions/framework above ■ Process was extremely expensive (Metro matched city dollars) o Requirements must be associated with resources o Frame it more as "what cities are doing"with information from communities ■ Engagement is only meaningful if city does something with input o How does the outreach support those strategies ■ Not just meetings, but specific outreach needed to meet needs of community ■ Especially effective for marginalized communities—going to them HPSTAC1 Meeting Summary RAC Mtg. 4 Page 5 of 6 PP 19-0008 ATTACHMENT D/PAGE 5 OF 6 Page 111 of 160 o "Will this work?"—many strategies won't be effective for stakeholders ■ Go out and ask specific groups o Generic public meetings yield generic audiences • Process needs to include required outreach to public works, private utility, special districts, school districts, and transit providers o What areas might need improvements o Think about how to align equity goals for underserved communities • Envisioning HPS is similar process to land use process?To PC and Council? o Getting credit for other housing conversations city is having • Role of government and partners about educating what makes housing expensive and why strategies are necessary Discussion Question#5:What measurable data points would be useful to track the progress of local governments as they fulfill their housing needs? How frequently should they be collected? How can we define "satisfactory progress"towards meeting a housing goal, and what accountability measures should the rules include to evaluate progress? • Efforts of jurisdiction and considering unmet housing need o Severe rent burden: Corvallis and Eugene—attributable to large college population ■ Think contextually about these numbers • Think about"safe harbors" showing enough effort to meet minimum compliance Discussion Question#6:What other criteria should DLCD consider in determining to provide additional enforcement for a city's implementation of their Housing Production Strategy?Should there be tiers of enhanced enforcement by DLCD? If so, how might DLCD differentiate those tiers? What constitutes "unmet housing need"? • What type of"enforcement" would LCDC be seeking to ensure a City is allowing the production of housing in their jurisdiction • Section 4.2 is somewhat general—what about smaller communities who will need to access a lot of different data resources? o They aren't receiving resources, including funding and existing data o Going to evaluate on different types of documentation required? o Going to provide information about resources to smaller communities? Discussion Question#7: Should future Housing Production Strategies include a section analyzing the actions identified in a previously adopted HPS? If so,what new information might this section provide that is not already included in an annual HPS progress survey? • It is a challenge to tie specific permits to outlined strategies—poses a barrier to evaluation o Works for some programs, less well for other incentives HPSTAC1 Meeting Summary RAC Mtg. 4 Page 6 of 6 PP 19-0008 ATTACHMENT D/PAGE 6 OF 6 Page 112 of 160