HomeMy WebLinkAboutStaff Memo 06-12-20 PC-Update 06-22-20 Afford Housing w-Attach PP 19-0008 MEMORANDUM
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TO: Planning Commission
FROM: Erik Olson, Senior Planner
SUBJECT: Housing Policy Update (PP 19-0008)
DATE: June 12, 2020 MEETING DATE: June 22, 2020
ACTION
Receive an update on ongoing and recently-completed housing policy initiatives, consider
existing housing needs in Lake Oswego, and identify policy issues for further consideration.
EXECUTIVE SUMMARY
This memo provides an update on 2020 City Council initiatives related to affordable housing,
including progress with ongoing work to comply with House Bills 2001 (HB 2001) and 2003 (HB
2003) as well as general information on prospective rezoning proposals intended to facilitate
affordable housing development within the City. The memo also provides an overview of
existing housing needs in Lake Oswego and a recap of related housing policy initiatives
completed in recent years. At this time, staff is seeking input from the Planning Commission on
policy issues/housing needs only, not on the prospective rezoning applications that are to come
before the Commission separately for quasi-judicial review and public hearings.
HOUSING POLICY UPDATE
The City Council has set a goal for 2020 to "Plan for future population and business growth to
conserve the community's character and quality of life". In order to accomplish this goal, the
Council established 2020 initiatives to both "begin work to comply with HB 2001 and 2003" and
"begin work to construct at least one new affordable housing project by rezoning the Boones
Ferry Road staging area to allow for an affordable housing development".
These initiatives are components of a broader, multi-pronged approach that the Council has
taken towards housing policy in recent years, beginning with the adoption of ordinances in
2018 to streamline standards for accessory dwelling units (ADUs) (Ordinance 2784) and to
waive systems development charges (SDCs) for ADUs and affordable multi-family housing
developments (Ordinance 2810).
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HB 2001 Grant Application
In late April of this year, the City applied for a state grant from the Department of Land
Conservation and Development (DLCD) to support its work towards reaching compliance with
HB 2001 (see Attachment A). This work is intended to result in the adoption of Comprehensive
Plan and Community Development Code (CDC) amendments that comply with the bill not later
than June 30, 2022, the point at which the State Model Code for Middle Housing would apply
directly to the City if it does not adopt a compliant code. The grant application materials outline
a two-phased work plan for 2020-2022 intended to produce the following:
• Existing Conditions Technical Memo—quantitative analysis of existing neighborhood
conditions in Lake Oswego, including characteristics of existing middle housing;
• Lake Oswego Neighborhood Pattern Book—qualitative analysis of development
patterns, character and architectural history of Lake Oswego neighborhoods;
• Comprehensive Plan Audit Report—identification of Comprehensive Plan provisions that
should be updated to implement HB 2001;
• Community Development Code Audit Report—identification of CDC sections that should
be updated to implement HB 2001; and
• Middle Housing Opportunities Report— recommend concepts and alternatives for
amending the Comprehensive Plan and CDC for middle housing, consistent with HB
2001, including case studies.
At their meeting on May 19, 2020, the City Council authorized the Mayor to sign a letter
supporting the City's grant application to DLCD for work on HB 2001 (see Attachment B). On
June 5, 2020, staff received a letter from DLCD indicating that the City's application had been
approved (see Attachment C). As of the date of this report the City is awaiting a draft grant
agreement from the State.
In addition to this work plan, staff is continuing to track the State of Oregon's rulemaking
process, including the development of minimum requirements and a model code to implement
HB 2001. Monthly summaries of this activity can be found here:
https://www.ci.oswego.or.us/planning/pp-19-0008-house-bills-2001-and-2003.
Forthcoming Rezoning Initiatives
At the same May 19, 2020 meeting, the City Council also moved to initiate comprehensive plan
and zoning changes for multi-family affordable housing at the Boones Ferry Road staging site,
and for staff to assist the Sisters of the Holy Names (property owner) in filing a rezoning
application for construction of affordable workforce housing on a portion of their property at
the former Marylhurst University campus. This work builds upon a 2019 City Council Goal to
work with Clackamas County on the development of Metro housing bond projects in Lake
Oswego, which staff has pursued through ongoing discussions with Metro and the Housing
Authority of Clackamas County (HACC) that have continued through this year. Staff anticipates
an application for the Marylhurst property coming before the Planning Commission this fall.
Before applying to rezone the Boones Ferry Road site, the City will conduct public outreach. For
503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us
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both proposals, public notice will be provided as required by City code for quasi-judicial
rezoning applications.
At this time, staff is seeking input from the Planning Commission on policy issues/housing needs
only, not on the prospective rezoning applications, in order to avoid creating ex parte contacts
with the Commission or commissioners.
Comprehensive Plan Housing Goals and Policies
The Complete Neighborhoods and Housing chapter of Lake Oswego's Comprehensive Plan
outlines a number of goals and policies specific to housing options and affordability (starting
with page 85 of Attachment D). Relevant Comprehensive Plan goals from this chapter include:
1. Provide the opportunity for a wide variety of housing types in locations and
environments to meet the needs and preferences of current and future households.
2. Provide opportunities for housing at price and rent levels commensurate with the needs
of current and anticipated residents.
4. Provide opportunity for needed housing while using land and public facilities as
efficiently as possible and facilitating greater walking, biking and transit use.
The Land Use Planning chapter of the Comprehensive Plan contains policies on residential
density and rezoning (starting with page 26 of Attachment D). Relevant policies are excerpted
below:
A-5. Allow mixed-use commercial and residential development within commercial zones.
A-6. Require that residential densities and allowed land uses within the Lake Oswego
Urban Services Boundary not exceed the capacity of planned public facilities and
services.
D-1. Coordinate the development and amendment of City plans and actions related to
land use with other affected agencies, including county, state, Metro,federal agencies
and special districts.
D-7. Allow quasi-judicial Comprehensive Plan Amendments to be submitted at any time.
E-1. Ensure that amendments to the Comprehensive Plan Map (Figure 2) and Zoning
Map are subject to specific locational criteria and other standards, including:
a. Location in relation to arterial or collector streets;
b. Capacity of public facilities and services;
c. Consistency with adjacent land use patterns or ability to buffer, screen and blend
dissimilar land uses;
d. Conformance with Comprehensive Plan goals and policies, applicable and
adopted neighborhood plans and applicable land use regulations;
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e. Effect on overall land supply, and the Metro Housing Rule (OAR 660-07-000);
f. Demonstration of public need for the change and that the proposed amendment
will best meet identified public need versus other available alternatives; and,
g. Other criteria determined necessary to ensure conformance with the
Comprehensive Plan.
E-2. Maintain residential neighborhoods at existing zone and plan density designations,
except where changes to higher residential density designations:
b. An applicant demonstrates that a proposed zone/plan density change complies
with the following criteria:
i. If the property is subject to an adopted neighborhood plan, the zone/plan
change complies with applicable density change criteria as contained in
the neighborhood plan; and
ii. The zone/plan change complies with all applicable Comprehensive Plan
Policies and Goals, including the Housing Density policies contained in the
Complete Neighborhoods and Housing chapter, and all of the following:
(A) A proposed zone/plan density change shall not allow development
that would exceed the capacity of planned public facilities and
services and shall be appropriately related to the capacity of such
public facilities, especially residential streets;
(B) A proposed plan/map density change shall be appropriately
located in relation to the functional classification of the access
streets;
(C) Density changes shall be consistent with adjacent land uses or can
be made compatible through the ability to buffer, screen and
blend dissimilar land uses;
(D)A proposed plan/map density change shall address the effect of
the change on overall land supply and shall comply with the Metro
Housing Rule (OAR 666-07-000);
(E) The applicant shall demonstrate a public need for the proposed
plan/map density change and that the pro-posed change will best
meet the need when compared to alternatives;
(F) The applicant shall demonstrate that the proposed density is
appropriate for the location given public facilities, natural
resources and hazards, road or transit access and proximity to
commercial areas and employment concentrations; and,
(G) The applicant shall demonstrate that development allowed by the
proposed zone/map residential density change will be compatible
with the surrounding neighborhood, or can be made compatible
pursuant to development review of an individual application
pursuant to the criteria contained in the Community Development
Code.
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E-3. Applications for a Comprehensive Plan Map (Figure 2) amendment or Zoning Map
amendment to change the designation of an area from residential to commercial or
industrial shall be governed by the following procedures and criteria:
b. In order to obtain approval, the applicant shall demonstrate compliance with the
policies and standards of an adopted Neighborhood Plan of an affected
neighborhood. If more than one neighborhood plan is applicable and the policies
conflict, the conflicting policies shall be balanced as provided in the Introduction
to the Comprehensive Plan.
c. In addition to compliance with any applicable neighborhood planning policies as
provided in subsection (b), the applicant shall demonstrate compliance with all
Comprehensive Plan Goals and Policies applicable to industrial and/or
commercial plan/zone map amendments. Such applicable Goals and Policies
include, but are not limited to, the following:
i. Location in relation to arterial or collector streets; consistency with
adjacent land use patterns or ability to buffer, screen and blend dissimilar
land uses;
ii. Capacity of public facilities and services;
iii. Encourage land use patterns that are also compatible with existing
neighborhoods;
iv. Separate noise sensitive and noise-producing land uses; minimize noise
impacts on surrounding properties and protect and maintain the quiet
character of those areas of the community unaffected by major noise
sources, and locate, design and buffer noise producing land uses to
protect noise sensitive land uses;
xv. The full range of public facilities and services shall be available to serve
development allowed by a Comprehensive Plan/Zone Map amendment;
xvi. Proposed Comprehensive Plan/Zone Map amendments shall be evaluated
to determine their effect on the overall land supply and compliance with
the Metro Housing Rule (OAR 660-07-000);
xvii. Proposed Comprehensive Plan/Zone Map amendments shall demonstrate
public need for the change and that the proposed amendment will best
meet identified public need versus other available alternatives;
xx. The applicant shall demonstrate that development allowed by the
proposed Comprehensive Plan/Zone Map amendment will: be compatible
with surrounding residential neighborhoods;preserve natural resources;
protect water quality;provide for protection from natural hazards; and
provide for efficient transportation and land use relationships including
the accommodation of alternative transportation modes, or that these
criteria can be accomplished pursuant to the criteria contained in the
Community Development Code;
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xxi. The applicant shall demonstrate consistency with Metro's Urban Growth
Functional Plan and compliance with the Oregon Transportation Planning
Rule (Chapter 660, Division 12).
Recommended Action Measure I within the Land Use Planning chapter provides criteria to
evaluate concurrent with Comprehensive Plan updates, which include the following:
i. Consistency among the Plan, implementing City regulations, adopted
neighborhood plans, state and federal law and administrative rules, and
Metro requirements;
ii. ii. Past and ongoing City actions to determine if the intent of the Plan is
being achieved; and,
iii. iii. Reliability and timeliness of Plan information
The Complete Neighborhoods and Housing chapter includes policies intended to be used to
evaluate requests for residential zone changes in Policy A-1. Subsection (a) of this policy states
that, "High-Density Residential may be applied to areas that are currently developed at high
residential densities, and areas within the boundaries of a Town Center, Employment Center, or
Neighborhood Business/Commercial district". Elsewhere within this chapter, Recommended
Action Measure G reinforces this policy: "Work with property owners, business interests, and
neighborhood organizations to develop and implement housing in the City's Town Centers,
Employment Centers, and Neighborhood Commercial/Business districts".
With respect to land use regulations that impact housing options and affordability, Policy B-1
calls for the city to, "Provide and maintain zoning and development regulations that allow the
opportunity to develop an adequate supply and variety of housing types, and that
accommodate the needs of existing and future Lake Oswego residents." Recommended Action
Measure C charges the City to "Work with Metro and the Clackamas County Housing Authority
(CCHA) to establish realistic targets for development and preservation of affordable/workforce
housing in Lake Oswego."
Additionally, the City would apply all applicable neighborhood plans and special district plans in
reviewing any proposed legislative or quasi-judicial Comprehensive Plan or Zoning
Map/Community Development Code amendment. These applications must also address
applicable Statewide Planning Goals, Statutes, and Metro Code requirements.
Again, this is only background to provide context for the Planning Commission's discussion
housing needs; the Commission should refrain from discussing any prospective rezoning
application, in order to avoid creating ex parte contacts.
EXISTING HOUSING NEED
The Comprehensive Plan contains the City's current Housing Needs Analysis (HNA), for
purposes of land use planning and zoning. The HNA includes a projection of anticipated
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population increase and links that growth to anticipated housing needs by housing type and
income level (see Attachment E).
The HNA estimates that the Lake Oswego Urban Services Boundary (the City Limits, plus the
unincorporated areas subject to the City of Lake Oswego-Clackamas County Urban Growth
Management Agreement) had a population of 43,094 in 2010, which was projected to rise by
approximately 8,000 residents to a total of 51,000 by the year 2035. The HNA states that the
City's largest need is for multi-family housing units, comprising approximately 37% of the total
anticipated housing need within that time period, as compared to 34.8%for detached single-
family housing, 10.4%for duplexes and triplexes, and 21.2% attached/townhome units. Due to
a noted lack of large, vacant parcels in areas of the City zoned for this multi-family housing, the
buildable lands inventory projects that the majority of multi-family housing need will be
accommodated through the redevelopment of properties in existing Town Centers, such as
Downtown and the Lake Grove Village Center.
The HNA concludes that approximately 2,300 new dwellings in high-density residential zoning
districts would be needed in order to meet anticipated population forecast and attainability
levels. The HNA also estimates that approximately 45% of new rental housing in Lake Oswego
would need to be available to individuals earning 80% or less of area median income (AMI) in
order to meet the anticipated housing needs for renters. The majority of the need for renters in
this income range is expected to be provided through housing types such as apartments, plexes
and government-assisted units.
DLCD has established timelines for updating local HNAs for all local jurisdictions that are subject
to HB 2003's requirements for Housing Needs and Housing Production, and that schedule
establishes a 2023 deadline for Lake Oswego to update its HNA. The timing is synchronized with
a statewide HNA, a new planning tool that the Oregon Department of Housing and Community
Services is now preparing under HB 2003. Staff anticipates applying for a state grant and
beginning work on our next HNA update in 2022.
Does the Commission have any questions about the City's housing policies or current housing
initiatives, generally? (A separate agenda item is provided specifically for our work on HB 2001.)
ATTACHMENTS
A. HB 2001 Grant Application Narrative, 4/29/2020
B. City Council HB 2001 Grant Letter of Support, 5/19/2020
C. DLCD Grant Award Letter, 6/5/2020
D. City of Lake Oswego Comprehensive Plan Vol 1— Part I, 3/18/2014 (due to size, only online
link is provided)
E. City of Lake Oswego Housing Needs Analysis, 3/19/2013 (due to size, only online link is
provided)
503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us
E MEMORANDUM
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GREGO�
TO: Oregon Department of Land Conservation and Development
635 Capitol Street NE, Suite 150
Salem, OR 97301
DCLD.GFgrant@state.or.us
FROM: Erik Olson, Senior Planner
Department of Planning & Building Services
SUBJECT: 2019-2021 DLCD Planning Assistance Direct Grant Application Narrative
DATE: April 30, 2020
The City of Lake Oswego is submitting the following information to supplement the application
form for the 2019-2021 DLCD Planning Assistance Direct Grant. Considering the scope and scale
of the updates required by the bill, and the existing framework of neighborhood plans and
overlay zones in Lake Oswego, the City could strongly benefit from consultant assistance as we
work towards implementation of HB 2001.
We are requesting a direct grant from DLCD that would allow the City to select a consultant
with experience in development code writing, comprehensive planning and urban design. The
City would do this through a competitive, qualifications-based procurement process, consistent
with our public contracting rules.
Though we acknowledge that Lake Oswego is considered a "large city" for the purposes of
House Bill 2001, and thus does not have first priority for these grants, we nonetheless wanted
to indicate our request for financial assistance because we believe that other jurisdictions may
look to Lake Oswego as model for innovative planning.
A. Goals and Objectives
House Bill 2001 —Middle Housing Code Update
The primary goal of the project is to prepare recommendations for amendments to the Lake
Oswego Comprehensive Plan and Community Development Code (CDC) to comply with the
provisions of HB 2001 regarding middle housing. Additional goals or overall purposes of the
project include ensuring that recommendations sufficiently reflect the varying
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neighborhood conditions in Lake Oswego through an in-depth study of middle housing
opportunities.
Specific objectives the community hopes to accomplish include:
• Understand the full range of existing conditions and development patterns in Lake
Oswego neighborhoods;
• Determine which sections of Lake Oswego's Comprehensive Plan and CDC will need to
be amended for compliance with HB 2001 minimum requirements;
• Develop concepts to guide Comprehensive Plan and CDC amendments; and
• Recommend a list of concepts/alternatives appropriate to various neighborhoods.
This work is proposed as part of a longer multi-year program to implement middle housing
provisions in Lake Oswego to comply with House Bill 2001.
The City Council has pursued goals related to expanding housing options for several years,
beginning with the City's 2013 Housing Needs Analysis and adoption of Clear and Objective
Housing Standards, and most recently resulting in the adoption of ordinances to streamline
standards for accessory dwelling units (ADUs) (Ordinance 2784) and to waive systems
development charges (SDCs) for ADUs and below-market multifamily housing developments
(Ordinance 2810).
For the past three years, the City Council has prioritized development of affordable housing,
and in 2019, the Planning Commission commenced work on CDC incentives for affordable
housing. However, this discussion was postponed until adjournment of the 2019 Oregon
Legislature so that the City could consider any new housing legislation that might impact
local land use regulations.
Staff received direction from the City Council in December 2019 to observe the Rulemaking
process for HB 2001 and work towards compliance with the bill's requirements once the
parameters are known. Recent work has included providing monthly written updates to the
Lake Oswego City Council and Planning Commission regarding the HB 2001 Rulemaking
process.
The City anticipates that the information and recommendations developed through the
grant-funded process will be presented to the public for discussion through a community
engagement process appropriate to the scale of the effort, and this will provide a solid
foundation for the CDC and Comprehensive Plan amendments that follow. This process will
ultimately result in "adoption-ready" Comprehensive Plan and CDC amendments that
incorporate community input as well as the initial recommendations. See the timeline
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below for more information on steps proposed both as a part of this project and as a part of
future efforts expected to occur after the anticipated project completion date.
The Planning Department has tentatively set aside $20,000 for outside services to assist
with compliance with HB 2001. These funds comprise the City's additional contribution
towards the initial round of assistance. See the Payment Schedule below for more
information.
B. Products and Outcomes
Product(s) and outcome(s) expected from the proposed project include:
• Existing Conditions Technical Memo —quantitative analysis of existing
neighborhood conditions in Lake Oswego, including characteristics of existing middle
housing;
• Lake Oswego Neighborhood Pattern Book—qualitative analysis of development
patterns, character and architectural history of Lake Oswego neighborhoods;
• Comprehensive Plan Audit Report—identification of Comprehensive Plan provisions
that should be updated to implement HB 2001;
• Community Development Code Audit Report— identification of CDC sections that
should be updated to implement HB 2001; and
• Middle Housing Opportunities Report—recommend concepts and alternatives for
amending the Comprehensive Plan and CDC for middle housing, consistent with HB
2001.
Completion of these work products will help to thoughtfully and carefully implement middle
housing provisions in Lake Oswego, to ensure that new duplexes, triplexes, quadplexes,
cottage clusters and townhouses can be successfully integrated into Lake Oswego's low
density (primarily single-family) residential neighborhoods in a manner that maintains the
character and livability of these distinct residential areas. Adopting middle housing
regulations that respect existing conditions and maintain the distinct character of Lake
Oswego neighborhoods will help facilitate the provision of expanded housing options
throughout the City. Successful implementation of the project could improve access to
housing for underrepresented or socioeconomically diverse populations in an area of
regional economic opportunity.
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C. Work Program, Timeline & Payment
1. Tasks and Products:
Task#1: Perform a quantitative analysis of existing conditions in Lake Oswego
neighborhoods.
• Subtasks:July—September 2020
a) Gather quantitative data related to existing physical conditions in Lake
Oswego neighborhoods, including data points such as lot size, setbacks, lot
coverage, building height, year built, floor area, adjacency to sensitive lands,
and other relevant information;
b) Gather quantitative data related to the existing demographic characteristics
of Lake Oswego neighborhoods, including data points such as income level,
race, age, household size and other relevant socioeconomic indicators;
c) Compare/ contrast existing conditions with applicable zoning requirements;
d) Link to qualitative patterns and support with appropriate data; and
e) Organize and summarize information at a neighborhood-level geography.
• Meetings: Three Project Management Team (PMT) meetings, including project
Kick-off meeting'
• Work Product: Existing Conditions Technical Memo
o Initial draft:August 2020
o Completion date: September 2020
• Cost: $11,000 [$7,500 from grant, $3,500 from City of Lake Oswego]
Task#2: Perform a qualitative analysis of development patterns in Lake Oswego
neighborhoods.
• Subtasks:July—November 2020
a) Research the history of Lake Oswego neighborhoods and identify key factors
in how they developed;
b) Consider Neighborhood Plans and PDs/ PUDs;
c) Research the history of lending patterns in Lake Oswego's single family
neighborhoods, and consider the racial and socioeconomic impacts of
mortgage redlining and exclusionary development covenants on Lake
Oswego neighborhoods;
d) Identify dominant materials, architectural styles, urban design principles, and
other distinctive characteristics of individual neighborhoods;
e) Gather photographs/ imagery to represent or depict neighborhood
characteristics; and
f) Consider pros and cons of existing building and site designs—What existing
patterns or principles should be preserved/replicated? What could be
improved?
'All PMT and Planning Commission meetings may be teleconferences, in-person meetings,or a combination,as
needed in response to COVID-19 restrictions.
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• Meetings: Community Tour, and same PMT meetings as for Task 1
• Work Product: Lake Oswego Neighborhood "Pattern Book"
o Initial draft: September2020
o Completion date: November 2020
• Cost: $11,000 [$7,500 from grant, $3,500 from City of Lake Oswego]
Task#3: Determine which sections of Lake Oswego's Comprehensive Plan need to be
amended for consistency with HB 2001.
• Subtasks: October 2020—December 2020
a) Analyze administrative rules and minimum requirements adopted by LCDC
for large and metro cities; and
b) Identify elements of the Comprehensive Plan that conflict with applicable
rules and requirements.
• Meetings: Two PMT meetings
• Work product: Comprehensive Plan Audit Report
o Initial draft: November2020
o Completion date: December2020
• Cost: $11,000 [$7,500 from grant, $3,500 from City of Lake Oswego]
Task#4: Determine which sections of Lake Oswego's Community Development Code
(CDC) need to be amended for consistency with HB 2001.
• Subtasks: November 2020—January 2021
a) Analyze administrative rules and minimum requirements adopted by LCDC
for large and metro cities; and
b) Identify requirements/language in the CDC that conflict with applicable rules
and requirements.
• Meetings: Two PMT meetings
• Work product: Community Development Code Audit Report
o Initial draft:January 2021
o Completion date:January 2021
• Cost: $11,000 [$7,500 from grant, $3,500 from City of Lake Oswego]
Task#5: Recommend guiding principles for the city as a whole and code concepts/
alternatives appropriate to individual neighborhoods to guide Comprehensive Plan and
CDC amendments.
• Subtasks:January 2020—April 2021
a) Develop recommendations for implementing HB 2001 for the city as a whole
(guiding principles), including code concepts and alternatives for each
neighborhood based upon the findings in the Neighborhood Pattern Book;
b) Include both Comprehensive Plan and CDC recommendations;
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c) Draw heavily from previous work to inform recommendations that consider
the equity impacts and opportunities of middle housing in Lake Oswego's
single-family neighborhoods; and
d) Include recommendations intended to avoid the displacement of
underrepresented or disadvantaged communities.
• Meetings: Three PMT meetings, and one Planning Commission meeting to
present the Middle Housing Opportunities Report
• Work product: Middle Housing Opportunities Report
o Initial draft: March 2021
o Completion date:April 2021
• Cost: $21,000 [$15,000 from grant, $6,000 from City of Lake Oswego]
Tasks to be completed after the grant-funded project timeline has ended:
Task#6 [expected]: Scoping for community engagement process with
Commission for Citizen Involvement/ Planning Commission [April — May 2021]
Task#7 [expected]: Community engagement/outreach [June—October 2021]
o Community engagement process to refine and inform prioritization of
concepts/ alternatives to bring to Planning Commission
Task#8 [expected]: Finalize Comprehensive Plan and CDC amendments [June—
September 2021]
o Ensure that final recommendations are consistent with findings and
recommendations of the Comprehensive Plan and CDC audits prepared in
Phase 1, prior to Planning Commission Hearing(s)
Task#9 [expected]: Planning Commission hearings and approval [September—
December 2021]
Task#10 [expected]: City Council hearings and adoption [January— March 2022]
2. Timeline:
• Tentative start date after the contract is signed:July 20, 2020
• Task completion dates: see above
• Project completion date:April 15, 2021
Please see the City of Lake Oswego DLCD Grant Work Plan Schedule attachment and
the Tasks and Products section, above, for more information about the proposed
project timeline.
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After the final report has been developed, the City will begin scoping a community
engagement/outreach process appropriate to the scale of the project. This process will
eventually result in "adoption-ready" Comprehensive Plan and CDC amendments that
incorporate community input as well as prior recommendations.
The Planning Department has budgeted $20,000 for outside services to assist with
compliance with HB 2001. This amount is the City's additional contribution towards the
initial round of assistance.
3. Payment Schedule:
Payment 1: November 2020
• Products: Existing Conditions Technical Memo and Lake Oswego Neighborhood
Pattern Book
• Amount: $22,000
o Grant contribution: $15,000
o City contribution: $7,000
Payment 2:January 2021
• Products: Comprehensive Plan Audit Report and Community Development Code
Audit Report
• Amount: $22,000
o Grant contribution: $15,000
o City contribution: $7,000
Payment 3: March 2021
• Products: Middle Housing Opportunities Report
• Amount: $21,000
o Grant contribution: $15,000
o City contribution: $6,000
D. Evaluation Criteria.
1. Project Objectives. Project objectives have been stated as clearly as possible in the Goals
and Objectives section above, with the intent of addressing the problem, need,
opportunity, and issues relevant to the project. Expected tasks and outcomes are
directly linked to these objectives, with more information available in the Work
Program,Timeline and Payment section above.
2. Program Priorities. The project will directly address DLCD Planning Assistance Grant
program priorities by preparing recommendations for comprehensive plan and
development code amendments to comply with the provisions of House Bill 2001 (2019
Legislative Session) regarding middle housing. Because Lake Oswego is among the cities
and cities and counties within the Portland Metro service district, compliance with the
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provisions of HB 2001 is required by June 30, 2022. We acknowledge that, despite the
deadline for these local governments, all funded work must be completed by June 30,
2021, due to the end of the biennial budget period. The proposal outlined in the Work
Program, Timeline and Payment section above anticipates that the proposed project
would be completed by March 15, 2021. Staff expects to bring adoption-ready
Comprehensive Plan and CDC amendments to City Council as early as January 2022.
3. Project Description. The approach, budget, products, and timing are defined for every
task in the Work Program,Timeline and Payment section above. We consider the
proposal to be reasonable considering the benefits of the project, and the work
proposed is reasonably likely to achieve the project objectives.
4. Grantee Capacity. The City of Lake Oswego has demonstrated the local capability and
staff capacity to successfully manage grant-funded projects through previous work with
numerous state and regional governmental departments.
In 2013, the City received an award from Metro's Community Planning and
Development grant program to develop a plan for Lake Oswego's Southwest
Employment Area, one of three areas in Lake Oswego designated by the Comprehensive
Plan as an Employment Center. Amendments to the Comprehensive Plan and CDC were
adopted in 2016 in order to codify a plan for the future of the light industrial and
commercial areas at the southwest corner of Lake Oswego. The project was successful
in enhancing opportunities for redevelopment and high-quality job creation by setting a
framework for district improvements intended to benefit property owners, businesses,
surrounding neighborhoods, and the community.
In 2016, the City successfully completed a project to develop a Parking Management
Plan for the Lake Grove Village Center (LGVC) through grant funding from the
Transportation and Growth Management Program, a joint program of the Oregon
Department of Transportation and DLCD. The creation of the Parking Plan was one of
the key measures of the LGVC Plan, which was guided by a Stakeholder Advisory
Committee with representatives from the adjacent neighborhoods and Lake Grove
Business Association, as well as Lake Grove business and property owners.
5. Leverage. The City of Lake Oswego is contributing $20,000 in additional funds to
demonstrate a commitment to completing this project. See the Payment Schedule
above for more information.
E. Project Partners.
Though we are only in the exploratory stages of seeking participation of project partners,
the City would be interested in working with higher education (e.g., school of architecture)
or a professional society (e.g., AIA), as well as a not-for-profit housing provider/developer,
as potential partners/advisors in completing this project.
PP 19-0008 ATTACHMENT A/PAGE 8 OF 9
Page 9 of 9
F. Advisory Committees.
This proposed initial phase of work is technical in nature. Therefore, the City does not
expect advisory committees will be formed for work proposed to be completed through the
use of DLCD Planning Assistance Grant funds. The project scope of work includes one
presentation to the Lake Oswego Planning Commission at the conclusion of the project. We
anticipate that presentation will help inform a public engagement strategy for the next
phase of work, which will likely include advisory committees and/or focus groups.
G. Cost-Sharing and Local Contribution.
The City of Lake Oswego is providing $20,000 in additional funds to demonstrate a
commitment to completing this project. These funds will be sourced from the City account
allocated to the Planning Department, Long Range Division, Professional and Technical
Service. See the Payment Schedule above for more information.
H. Local Official Support
A Lake Oswego City Council goal and Planning Department work program for 2020-2021 is
to develop Comprehensive Plan and CDC amendments in compliance with HB 2001. The City
will provide a letter of support to DLCD after the application submittal deadline of April 30,
2020, but before the anticipated date of the grant award (July 20, 2020).
PP 19-0008 ATTACHMENT A/PAGE 9 OF 9
o�lA EOs� CITY COUNCIL
V �_ O
OREG0
May 19, 2020
Gordon Howard, Grant Program Manager
Oregon Department of Land Conservation and Development
635 Capitol Street NE, Suite 150
Salem, OR 97301
Dear Mr. Howard:
The City of Lake Oswego has demonstrated a commitment to expanding housing options and
prioritizing the development of affordable housing in our community for several years now. Our
City Council has set a 2020 Goal to "Plan for future population and business growth to conserve
the community's character and quality of life," with related initiatives to begin work to comply
with HB 2001 & HB 2003 and to initiate City-sponsored affordable housing developments in
areas of the city with access to transportation and jobs.
City staff has observed the State Department of Land Conservation and Development's (DLCD)
Rulemaking process for HB 2001 since its inception, and has kept our council informed on the
key policy and regulatory issues that have been identified through the process. Lake Oswego
intends to take a proactive approach to implementing middle housing to expand housing
choices while at the same time maintaining the character of our residential areas and
preserving quality of life.
Considering the scope and scale of the updates required by the bill, and the existing framework
of neighborhood plans and overlay zones in Lake Oswego, the City could benefit from
consultant assistance as we work towards implementation of HB 2001. Successful
implementation of middle housing could improve access to housing for underrepresented or
socioeconomically diverse populations, in addition to providing more housing options for all
residents.
On behalf of the City Council and staff, we strongly support the City's application to obtain a
Planning Assistance Grant from DLCD, as the grant will help us respectfully and thoughtfully
plan for middle housing in Lake Oswego's existing single-family residential neighborhoods. We
look forward to working with DLCD as we implement middle housing provisions in Lake
Oswego, and ask for your approval of our application for grant assistance.
Sincerely,
—A&O)-t
Kent Studebaker
Mayor
PP 19-0008 ATTACHMENT B/PAGE 1 OF 1
Tel 503.635.0213 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us
F��; a �F' `. •j IIregon Department of Land Conservation and Development
635 Capitol Street NE, Suite 150
Kate Brown,Governor Salem,Oregon 97301-2540
Phone: 503-373-0050
Fax: 503-378-5518
June 5, 2020 www.oregon.gov/LCD
Erik Olson, Senior Planner
City of Lake Oswego
4
380 A Avenue
PO Box 369
Lake Oswego, Oregon 97034 SENT VIA E-MAIL
RE: Notice of DLCD HB 2001 and HB 2003 grant award
Dear Erik:
I am very pleased to offer City of Lake Oswego a Planning Assistance grant award for 2019-2021.
Your application was selected from among many proposals submitted to the Department of Land
Conservation and Development for this biennium. Your proposal aligns well with the priorities
established in the Land Conservation and Development Commission's Grants Allocation Plan,
funding priorities outlined in House Bills 2001 and 2003, and other approval criteria.The
department is prepared to fund the HB 2001 Code Assistance project for$45,000.
Please work with your DLCD Housing Team Staff to complete a scope of work and grant contract.
Once a grant contract is signed by both parties, reimbursable work on the project may begin.
Oregon's current budget provides funding to support the House Bill 2001 (HB 2001) and House Bill
2003 (HB 2003) grant program. Please note, however, in the event of a significant change in state
revenue we may be required to limit a portion of the grant award.
If you have any questions about the award, please contact Robert Mansolillo,your DLCD Housing
Team Staff, at 503-934-0053 or robert.mansolillo@state.or.us, or me at (503) 934-0034 or
gordon.howard@state.or.us.
Thanks for your interest, and compliments on your successful application. We look forward to
working with you on the project.
Yours truly,
Gordon Howard
Community Services Division Manager
cc: Senator Rob Wagner
Representative Andrea Salinas
Raihana Ansary, Regional Solutions Team Coordinator
Robert Mansolillo, DLCD Housing Team Staff
Angela Williamson, DLCD Grants Administrative Specialist
PP 19-0008 ATTACHMENT C/PAGE 1 OF 1