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Home My WebLink AboutAgenda Item - 2020-10-26 - Number 06.1 - Staff Memo 10/21/20 w-Attach (PP 19-0008) (zji-, A os MEMORANDUM �REGp� TO: Planning Commission FROM: Erik Olson, Senior Planner SUBJECT: HB 2001 and HB 2003 Rulemaking Update—October 2020, pt. 2 (PP 19-0008) DATE: October 21, 2020 MEETING DATE: October 26, 2020 REQUESTED ACTION Provide direction to staff on preparing comments to the HB 2001 Rules Advisory Committee (RAC) and the Land Conservation and Development Commission (LCDC) on the issues highlighted in bold, below, and any other priorities with regard to implementing the bill. BACKGROUND In late 2019, City Council requested that staff monitor the State of Oregon's rulemaking process regarding the implementation of HB 2001, with particular attention to how the bill could impact Lake Oswego—which is defined as a "large and metro" city under the bill. Since that time, staff has tracked numerous meetings of the Rulemaking Advisory Committee (RAC) and other technical advisory committees established by the Oregon Department of Land Conservation and Development (DLCD) to develop and refine detailed recommendations on how to implement the middle housing provisions of the bill. These technical advisory committees have been working for several months now to develop recommendations regarding the minimum requirements for jurisdictions to comply with middle housing provisions, the model code that will apply to cities unable to adopt their own compliant housing code, and a reporting and monitoring process related to the Housing Production Strategies elements of HB 2003. Summaries of ongoing state Rulemaking activity can be found here: https://www.ci.oswego.or.us/planning/pp-19-0008-house-bills-2001-and-2003. DISCUSSION On Friday, September 25, 2020, the Land Conservation and Development Commission (LCDC) held the first of two scheduled Hearings on House Bills 2001 and 2003. In early October, the RAC hosted two joint meetings with technical advisory committees—one with the Model Code Technical Advisory Committee (MCTAC) and one with the Housing Production Strategy Technical Advisory Committee (HPSTAC). These two meetings comprised the last advisory committee meetings of the Rulemaking process. 503.635.0290 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 2 The second and final Hearing on the draft rules is now scheduled for November 12-13, 2020, during which LCDC is expected to issue a decision regarding the proposed rules. Staff has provided a summary of key issues and the status of associated decision-making processes below. Defining "In Areas" Though the Rulemaking process has nearly concluded, the question of which "areas" will need to allow "higher" middle housing—including triplexes, quadplexes, townhouses, and cottage clusters—is still being explored by DLCD staff. At the joint meeting of the MCTAC and the RAC held on October 8, 2020, DLCD mentioned that —at the direction of LCDC—they had been conducting a case study analysis of the cities of Beaverton and Albany in order to gain a better understanding of how the proposed percentage thresholds in the performance metric approach could be applied in realistic settings. DLCD staff indicated that, though they were not able to discuss it at either of their October meetings, they were working to finalize case study analyses of the performance metric approach in time for the November LCDC Hearing packet that will be distributed on October 29, 2020. Though DLCD staff was able to provide some technical clarifications during Rulemaking meetings in early October, it does not appear likely that their latest input will change the ultimate direction of the final proposal. The proposed technical fixes outlined in Attachment A were explained by DLCD staff, including those related to statewide planning goal protections and how they would apply under the performance metric approach. Despite these attempted clarifications, staff notes that there is still a lack of clarity regarding the extent to which middle housing can be regulated on goal-protected lands (e.g., sensitive lands and areas with natural hazards), and how, specifically, lots or parcels can be exempted from performance metric calculations based on the presence of various different goal- protected resources. Staff notes that any letter of comment from the City of Lake Oswego, as may be requested by the Planning Commission, should include a recommendation that the Rules provide more clarity on how goal-protected lands should be treated for the purposes of performance metric calculations. Infrastructure-Constrained Lands The RAC spent a good amount of time discussing proposed clarifications related to infrastructure-constrained lands (see Attachment A), stressing that they saw infrastructure constrained areas as having issues that were not "solvable" by local jurisdictions, whereas the term infrastructure deficiencies would be used to describe areas with "solvable" issues eligible for the infrastructure-based time extension request (IBTER) process. DLCD staff clarified that 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 3 neither infrastructure constraints nor infrastructure deficiencies should involve the types of public improvements that would be expected to accompany a middle housing development, such as street frontage improvements that could be required as a condition of minor development approval. DLCD staff noted that they were hoping to avoid a "one size fits all" approach, so they felt it was appropriate that the burden of proof for an infrastructure constraint be placed upon the local jurisdiction. They acknowledged that the determination of an infrastructure constraint was likely to involve some discretion, and clarified that jurisdictions would not have to apply for an IBTER (time extension) and be denied in order to prove that they have an area with infrastructure constraints. Members of the RAC noted the difficulty of predicting the exact types of public improvements that could be expected to be provided by individual developments through typical exaction processes, and that it would be overly cumbersome to perform a proportionality test for such exactions on every lot where middle housing will be allowed within a jurisdiction. DCLD staff responded that they simply intended to provide some "sideboards" around the larger types of infrastructure system fixes that may be needed to accommodate middle housing, but that cities would be expected to show that it's beyond their ability to provide infrastructure in a particular area in order to "whittle" it out of the performance metric calculations. DLCD added that, if cities wish to claim that an area is "infrastructure constrained",they should expect to perform a relatively extensive level of infrastructure analysis when they amend their development codes for compliance with HB 2001. Members of the RAC noted that they thought this would be helpful in preventing cities from deliberately not providing infrastructure in order to get out of middle housing requirements. However, when DLCD was asked if their case study analyses would include an assessment of infrastructure constraints for the performance metric calculation, they mentioned that they would not have the time nor resources to perform the analysis at that level of detail prior to the November LCDC Hearing. Staff notes that it will be necessary to identify any lands that would potentially meet either the definition of"infrastructure-constrained" or "infrastructure-deficient" based on sound engineering principles as provided in the current draft of the proposed middle housing rules. Though the IBTER process would necessitate commitments from the City regarding infrastructure investments to correct existing deficiencies, it may be worth exploring whether there are any areas in the City that would appropriate for an IBTER application given that this will be one of many variables that will determine the number of lots that will be eligible for middle housing under the performance metric approach. Refining the Performance Metric Approach Members of both the RAC and technical advisory committees expressed concerns regarding the need for additional flexibility with the performance metric approach, pointing out that more 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 4 analysis of local context is necessary to get a realistic sense of whether the proposed percentages are truly achievable. Committee members stated that the percentages in the performance metric approach should be tailored more to local conditions, and should provide the ability to address the potential displacement of existing affordable units that may be vulnerable to demolition. DLCD staff briefly mentioned the possibility that the calculations for the performance metric approach could draw on the universe of lots where various "higher" middle housing types are permitted and be based on minimum lot size and other applicable regulations. For example, the percentage of lots where triplexes are allowed would be based on the number of lots above 5,000 sf in size—the highest permitted minimum lot size for triplexes as proposed in the current draft of the Administrative Rules. Staff notes that it will be essential to fully consider the potential displacement of lower income residents as existing affordable housing is displaced by middle housing developments; this could be one of many unintended consequences of the implementation of House Bill 2001 under any approach. As mentioned previously, DLCD staff is considering different metrics that could be used to identify locations vulnerable to displacement, which could then be subject to a "partial whittle" from the areas where middle housing is required. If the Planning Commission concurs, staff recommends that the City propose to DLCD that such a metric be included in the performance metric approach, in advance of the final hearing before DLCD. Housing Production Strategies At the joint meeting of the RAC and the HPSTAC, committee members discussed the proposed draft rules related to the creation of local Housing Production Strategies required under House Bill 2003 (see Attachment B). The development of these rules has been one of the lower-profile elements of the implementation of House Bills 2001 and 2003, but the development of local Housing Production Strategies will nonetheless be an important process that encourages a more robust connection between identified housing need and policy outcomes. As mentioned in previous updates, HB 2003 requires cities to develop and adopt a "housing production strategy" no later than one year after the adoption of their next Housing Needs Analysis (HNA)—which is also sometimes referred to as a "housing capacity analysis". Lake Oswego will be required to update its HNA by 2023, and thus will be required to adopt a Housing Production Strategy by 2024. To provide a bit of review, Housing Production Strategies are required to include a list of specific actions the City will undertake to promote development to address the housing needs identified for the 20-year analysis period covered by the preceding HNA. These actions could include, but are not limited to, revising regulations, providing financial incentives, reducing regulatory barriers, and developing key partnerships for future housing development. Cities will 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 5 also be expected to contextualize the housing needs identified in their HNA within their associated Housing Production Strategy, and jurisdictions are being encouraged to determine which strategies are most appropriate for their jurisdiction based on local conditions and context. Regional Housing Needs Analysis As another part of HB 2003, the Oregon Housing and Community Services (OHCS) Department was directed to conduct a pilot Regional Housing Needs Analysis (RHNA) project to calculate housing needs on a regional level. This is intended to provide additional context for cities as they work to develop their Housing Production Strategies and HNAs, though it's still unclear how a potential RHNA would be implemented or utilized statewide. DLCD has been working in conjunction with OHCS to develop a methodology for conducting RHNAs for all regions in the state of Oregon, with DLCD expected to report a set of recommendations related to the RHNA program to the Oregon state legislature by March of 2021. OHCS prepared a Technical Report to analyze the RHNA pilot project in August of this year, and since then they have been working to survey members of the public and local governments for feedback on the results and recommendations. Though the draft rules for Housing Production Strategies do not contain language specifically related to the RHNA project, DLCD has been working to frame a serious of questions to stakeholders regarding how a RHNA could successfully be implemented — including questions related to how the RHNA can specifically inform HNAs and Housing Production Strategies (see Attachment C). DLCD has also posed questions on how to best contextualize the need for housing and make consistent comparisons between jurisdictions in the absence of an RHNA process. Staff notes that it is still unclear what DLCD will recommend to the LCDC regarding statewide implementation of an RHNA process. Technical Fixes and Redlines The RAC and HPSTAC also discussed several proposed technical edits to the Administrative Rules for Housing Production Strategies based on direction from at the first LCDC Hearing, as outlined in Attachment B. These technical changes include the addition of a section that requires local jurisdictions to directly address equity within their proposed Housing Production Strategy report, in order to ensure that the proposed strategies will achieve more equitable housing outcomes. Committee members agreed that House Bills 2001 and 2003 were clearly intended to reverse exclusionary patterns of segregation and wealth disparity between white communities and communities of color, and that Housing Production Strategy reporting is an appropriate process for cities to reflect on the history of zoning and land use regulations being used to reinforce racial and economic segregation. 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 6 Even though HB 2003 places new responsibilities on cities to better plan for and encourage the development of needed housing, DLCD staff clarified that they understood that cities were only one out of many participating actors that contribute to the development of housing. They acknowledged that smaller cities may need additional resources in order to conduct this work, and stressed that there would be a need for the state to provide outreach and education to ensure that jurisdictions were fully aware of the resources available to them as they work to complete their Housing Production Strategies. Though staff does not have any recommendations related to rulemaking for Housing Production Strategies or HB 2003, the creation of Housing Production Strategies will provide an opportunity for the City to address the potential for the demolition of existing affordable housing related to middle housing development. It will be important to ensure that the Housing Production Strategies that are eventually adopted by the City are coordinated and work in tandem with other decisions regarding the local implementation of middle housing regulations. As mentioned above, staff remains concerned about the potential for unintended consequences to result from the performance metric approach related to the demolition of exiting affordable housing, and strongly recommends a performance metric that is more rational or based on outcomes related to housing needs or production. CONCLUSION AND RECOMMENDATION Though staff will continue to monitor the forthcoming DLCD analysis of how the performance metric approach could be adopted in different cities, we recommend the City provide a letter of comment prior to October 29th—the date the analysis is expected to be complete. The Planning Commission should be prepared to issue direction on providing comments to the RAC and LCDC (on the above highlighted issues, especially) when you meet on October 26th ATTACHMENTS A. OAR 660-046 Middle Housing Redlines with Commentary, 10/2/2020 B. Division 8 Housing Production Strategy Redlines with Commentary, 10/6/2020 C. Regional Housing Needs Analysis Context Memorandum, 9/28/2020 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Division 46 Middle Housing 660-046-0000 Purpose The purpose of this division is to prescribe standards guiding the development of Middle Housing types as provided in Oregon Laws 2019,chapter 639.OAR 660-046-0010 to OAR 660-046-0235 establish standards related to the siting and design of Middle Housing types in urban growth boundaries.OAR 660-046-0300 to OAR 660-046- 0370 establish the form and substance of an application and review process to delay the enactment of standards related to the siting and design of Middle Housing types in areas with significant infrastructure capacity deficiencies. 660-046-0010 Applicability 1. A local government that is a Medium City or Large City must comply with this division. 2. Notwithstanding section(1),a local government need not comply with this division for: a. Lands that are not zoned for residential use,including but not limited to lands zoned primarily for commercial,industrial,agricultural,or public uses; b. Residentially zoned lands that do not allow for the development of a detached single-family home;or c. Lands that are not incorporated and that are zoned under an interim zoning designation that maintains the land's potential for planned urban development. 3. Local governments may regulate Middle Housing to comply with protective measures(including plans, policies,and regulations)adopted and acknowledged pursuant to statewide land use planning goals. Where local governments have adopted,or shall adopt,regulations implementing the following statewide planning goals,the following provisions provide direction as to how those regulations shall be implemented in relation to Middle Housing,as required by OAR 660-046-0010. a. Goal 5:Natural Resources,Scenic,and Historic Areas-Pursuant to OAR chapter 660,division 23, local governments must adopt land use regulations to protect identified resources under Goal 5, including regulations to comply with protective measures(including plans,policies,and regulations)applicable to Middle Housing. A. Goal 5 Riparian Areas,Wetlands,and Wildlife Habitat—Pursuant to OAR 660-023-0050 through 660-023-0110,local governments must adopt land use regulations to protect water quality,aquatic habitat,and the habitat of threatened,endangered and sensitive species.This includes regulations applicable to Middle Housing to comply with protective measures adopted pursuant to Goal 5. i. Local governments may apply regulations to duplexes that apply to detached single-family dwellings in the same zone; Commented[Al]:Rationale:This standard allows local jurisdictions to ii. Local governments may limit the development of Middle Housing other than limit additional development pressure in areas with sensitive Goal 5 natural duplexes in areas that apply land use regulations as described in OAR 660-023- resources. 0050 through OAR 660-023-0110;Iand iii. llf a local government has not adopted land use regulations as provided in OAR Commented[An Rationale:Our Goal 5 expert,raised that there are 660-023-0050 through 660-023-0110,it must apply a 100-foot setback to several jurisdictions that have not adopted Goal 5 protections and the Middle Housing developed along a riparian corridor;... regulatory mechanism that enforced Division 023(i.e.Periodic Review)is defunct. B. Goal 5:Historic Resources—Pursuant to OAR 660-023-0200(7),local governments must adopt land use regulations to protect locally significant historic resources.This includes This provision sets a backstop to ensure housing development does not regulations applicable to Middle Housing to comply with protective measures as it degrade riparian areas in local jurisdictions without Goal 5 regulations.This relates to the integrity of a historic resource or district.Protective measures shall be standard will not pre-empt existing/adopted Goal 5 regulations. adopted and applied as provided in OAR 660-023-0200.Local governments may apply regulations to Middle Housing that apply to detached single-family dwellings in the Note:this standard would not apply to SFD development and thus avoids a same zone,except as provided below. If a local government has not adopted land use possible regulatory taking. regulations to protect nationally significant historic resources,lit'must apply protective Commented[A3]:Consistency edit. PP 19-0008 ATTACHMENT A/PAGE 1 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 1 of 14 Page 38 of 51 measures to Middle Housing as provided in OAR 660-023-0200(8)(a)until the local government adopts land use regulations in compliance with OAR 660-023-0200.Local governments may not apply the following types of regulations specific to Middle Housing: i. !Use,density,and occupancy restrictions that prohibit the development of Middle Housing on historic properties or districts that otherwise permit the development of detached single-family dwellingslor Commented[A4]:Note:This provision is particularly important to ii. Standards that prohibit the development of Middle Housing on historic prevent the weaponization of historic districts by neighborhoods that seek properties or districts that otherwise permit the development of detached to entrench patterns of exclusion.The preservationists I have worked with single-family dwellings. (Kim Fitzgerald,SHPO staff,Carrie Richter,and others)indicated that these b. Goal!6:Air,Water and Land Resources Quality—OAR 660 015 0000(6)allows local governments standards do not relate to the historic integrity of a structure—the facade, to limit development within a UGB in order to support attainment of federal and state air,water form,and design of structures and district are the elements that relate to and land quality requirements.Local governments may apply regulations adopted pursuant to historic integrity. Goal 6 to the development of Middle Housing. While these districts will need to allow Middle Housing uses,they will still f}c_Goal 7:Areas Subject to Natural Hazards—Pursuant to OAR 660-015-0000(7),local governments be able to apply the same form and design standards used to ensure must adopt comprehensive plans(inventories,policies,and implementing measures)to reduce historic integrity of a resource/district is maintained. risk to people and property from natural hazards.Such protective measures adopted pursuant to Goal 7 apply to Middle Housing,including,but not limited to,restrictions on use,density,and Commented[AS]:These edits come from our Goal 5 expert.The occupancy in the following areas: rationale provided: A. Special Flood Hazard Areas as identified on the applicable FEMA Flood Insurance Rate "Local standards cannot override state and federal laws/rules so no need Map(FIRM);and for the rule to give LGs permission to apply them.Local governments don't B. Other hazard areas identified in an adopted comprehensive plan or development code; generally apply state and federal standards.The exception is if they assume provided the development of Middle Housing presents a greater risk to life or property responsibility to do so,but this is only possible for some regulations(NPDES than the development of detached single-family dwellings.Greater risk includes but is stormwater permitting for example)" not limited to actions or effects such as: i. Increasing the number of people exposed to a hazard; ii. Increasing risk of damage to property,built,or natural infrastructure;and iii. Exacerbating the risk by altering the natural landscape,hydraulics,or hydrology. d. Goal 91:Pursuant to OAR 660 009 0025,cities and counties must adopt measures adequate to Commented[A6]:Rationale:This was added at the suggestion of implement industrial and other employment development policies,including comprehensive Portland.It's a narrow exception designed to prevent residential plan designations.Local governments may limit the development of Middle Housing on lands development of lands that will ultimately be rezoned for zoned for residential use designated for future industrial or employment uses. industrial/employment uses. Fe_Goal 15:Willamette Greenway—Pursuant to OAR 660-015-0005,cities and counties must review intensifications,changes of use or developments to insure their compatibility with the A good example is in Portland north of N Columbia Blvd in which there are Willamette River Greenway.Local governments may regulate Middle Housing to comply with various R-10 zoned lands that will ultimately be redesignated for Goal 15 protective measures that apply to detached single-family dwellings in the same zone. ndustrial/employment uses(as identified by Metro's Industrial/employment regional designations).Redeveloping these lands 4 f. Goal 16:Estuarine Resources—Pursuant to OAR 660-015-0010(1)and OAR chapter 660,division with Middle Housing would complicate this redeisgnation. 17,local governments must apply land use regulations that protect the estuarine ecosystem, including its natural biological productivity,habitat,diversity,unique features and water quality. Local governments may prohibit Middle Housing in areas regulated to protect estuarine resources under Goal 16. e:gGoal 17:Coastal Shorelands—Pursuant to OAR 660-015-0010(2)and OAR 660-037-0080,local governments must apply land use regulations that protect shorelands for water-dependent recreational,commercial,and industrial uses. This includes regulations applicable to Middle Housing to comply with protective measures adopted pursuant to Goal 17.Local governments may apply regulations to Middle Housing that apply to detached single-family dwellings in the same zone. f`h_Goal 18:Beaches and Dunes—Pursuant to OAR 660-015-0010(3),local governments must apply land use regulations to residential developments to mitigate hazards to life,public and private property,and the natural environment in areas identified as Beaches and Dunes.This includes regulations applicable to Middle Housing to comply with protective measures adopted pursuant to Goal 18 including but not limited to restrictions on use,density,and occupancy;provided the PP 19-0008 ATTACHMENT A/PAGE 2 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 2 of 14 Page 39 of 51 development of Middle Housing presents a greater risk to life or property than development of detached single-family dwellings.Greater risk includes but is not limited to actions or effects such as: A. Increasing the number of people exposed to a hazard; B. Increasing risk of damage to property,built or natural infrastructure;and C. Exacerbating the risk by altering the natural landscape,hydraulics,or hydrology. 4. For the purposes of assisting local jurisdictions in adopting reasonable siting and design standards for Middle Housing,the Commission adopts the following model Middle Housing Model Codes.The applicable Model Code adopted by reference in this section will be applied to Medium and Large Cities who have not acted to comply with the provisions of ORS 197.758 and this division and completely replaces and pre-empts any provisions of that local jurisdictions development code that conflict with the Model Code: a. The Medium City Model Code as provided in Exhibit A;and b. The Large City Model Code as provided in Exhibit B. 5. This division does not prohibit local governments from allowing: a. Single-family dwellings in areas zoned to allow for single-family dwellings;or b. Middle Housing in areas not required under this division. 660-046-0020 Definitions As used in this division,the definitions in ORS 197.015 and ORS 197.758 et seq apply,unless the context requires otherwise. In addition: 1. "A Local Government That Has Not Acted"means a local government that has not adopted acknowledged land use regulations that are in compliance with ORS 197.758 and this division. 2. "Cottage Cluster"'means a grouping of no fewer than four detached dwelling units per acre with a Commented[A7]:Rationale:Refined to match definition in HB 2001 and footprint of less than 900 square feet each and that include a common courtyard.Units may be located on better clarify that they can be provided on one lot or parcel or individual a single Lot or Parcel,or on individual Lots or Parcels. lots or parcels. 3. "Department"means the Department of Land Conservation and Development. 4. "Design'standard"means a standard related to the arrangement,orientation,materials,appearance, — Commented[A8]:Rationale:There has been extensive conversation on articulation,or aesthetic of a dwelling unit or other elements on a site.Design standards include,but are how to structure rules to provide jurisdictions more options than solely the not limited to,standards that regulate entry and dwelling orientation,facade materials and appearance, Model Code to apply design standards.Staff has developed an approach window coverage,driveway access,parking configuration,pedestrian access,screening,landscaping,and that gives jurisdictions more flexibility in how to apply design standards private,open,shared,community,or courtyard spaces without causing unreasonable cost or delay,but a consequence of that 5. "Detached single-family dwelling"means a detached structure on a Lot or Parcel that is comprised of a flexibility is needing more clarification as what is a"siting"vs a"design" single dwelling unit,either site built or a manufactured dwelling. standard,as each is regulated differently in the rules. 6. "Duplex"means two attached dwelling units on a Lot or Parcel.A local government may define a Duplex This is an attempt to better distinguish a design standard from a siting to include two detached dwelling units on a Lot or Parcel. standard,and it includes a list standards that we address in rule and the 7. "Goal Protected Lands"means lands protected or designated pursuant to any one of the following Model Code to provide clear examples of what is a design standard. statewide planning goals: a. Goal 5 Natural Resources,Scenic and Historic Areas,and Open Spaces; b. Goal 6 Air,Water and Land Resource Quality: c. Goal 7 Areas Subject to Natural Hazards; d. Goal 15 Willamette River Greenway; e. Goal 16 Estuarine Resources; f. Goal 17 Coastal Shorelands;or g. Goal 18 Beaches and Dunes. 8. "Infrastructure Constrained Lands"means lands where it is not feasible to provide acceptable water, sewer,storm drainage,or transportation services to serve new Triplexes,Quadplexes,Townhouses,or Cottage Cluster development;where the local government is not able to correct the infrastructure limitation by utilizing the process outlined in OAR 660-046-0300 through OAR 660-046-0370 due to cost, jurisdictional,or other limitations;and which cannot be remedied by future development of Middle Housing on the subject Lot or Parcel. PP 19-0008 ATTACHMENT A/PAGE 3 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 3 of 14 Page 40 of 51 9. "Large City"means each city with a certified Portland State University Population Research Center estimated population of 25,000 or more or city with a population over 1,000 within a metropolitan service district.This also includes unincorporated areas of counties within a metropolitan service district that are provided withJsufficient urban services as defined in ORS 195.065.Sufficient urban services means areas Commented[A9]:Rationale:Adding a definition of"sufficient". that are within a urban service district boundary. 10. "Lot or Parcel"means any legally created unit of land. 11. '(Master Planned CommunityY'means a site that is any one of the following: Commented[A1O]:Rationale:edits to clarify what exactly is a Master a. Greater than 20 acres in size within a Large City or adjacent to the Large City within the urban Planned Community or similar. growth boundary that is zoned for or proposed to be zoned for residential development,and which is not currently developed with urban residential uses,for which a Large City proposes to adopt,by ordinance,a master plan or a plan that functions in the same manner as a master plan; b. Greater than 20 acres in size within a Large City or adjacent to the Large City within the urban growth boundary for which a Large City adopted,by ordinance,a master plan or a plan that functions in the same manner as a master planafter the site was incorporated into the urban growth boundary;or c. Added to the Large City's urban growth boundary after January 1,2021 for which the Large City proposes to adopt,by ordinance,a master plan or a plan that functions in the same manner as a master plan. 12. "Medium City"means each city with a certified Portland State University Population Research Center estimated population more than 10,000 and less than 25,000 and not within a metropolitan service district. 13. "Middle Housing"means Duplexes,Triplexes,Quadplexes,Cottage Clusters,and Townhouses. 14. "Model Code"means the applicable model code developed by the Department contained in OAR 660- 046-0010(4). 15. "Quadplex"means four attached dwelling units on a Lot or Parcel.A local government may define a Quadplex to include any configuration of four detached or attached dwelling units on one Lot or Parcel. 16. "Siting standard"means a standard related to the position,scale,and form of a structure or a standard Commented[Al I]:Rationale:As mentioned above,this definition is that makes land suitable for development.Siting standards include,but are not limited to,standards that necessary to better clarify a siting from a design standard as each is regulate perimeter setbacks,dimensions,bulk,scale,coverage,minimum and maximum parking regulated differently in the rules. requirements,utilities,and public facilities. 4617. "Townhouse"means a dwelling unit that is part of a row of two or more attached units,where This definition,like for"design standard"above,includes a list of siting each unit is located on an individual Lot or Parcel and shares at least one common wall with an adjacent standards addressed in rule. unit. "Triplex"means three attached dwelling units on a Lot or Parcel.A local government may define a Triplex to include any configuration of three detached or attached dwelling units on one Lot or Parcel. 4&19. "Zoned for residential use"means a zoning district in which residential dwellings are the primary use and which implements a residential comprehensive plan map designation.) Commented[Al2]:City of Portland distinguishing whether RF zoning is applicable 660-046-0030 Implementation of Middle Housing Ordinances 1. Before a local government amends an acknowledged comprehensive plan or a land use regulation to allow Middle Housing,the local government must submit the proposed change to the Department for review and comment pursuant to OAR chapter 660,division 18. 2. In adopting or amending regulations or amending a comprehensive plan to allow Middle Housing,a local government must include findings demonstrating consideration,as part of the post-acknowledgement plan amendment process,of methods to increase the affordability of Middle Housing through ordinances or policies that include but are not limited to: a. Waiving or deferring system development charges; b. Adopting or amending criteria for property tax exemptions under ORS 307.515 to ORS 307.523, ORS 307.540 to ORS 307.548 or ORS 307.651 to ORS 307.687 or property tax freezes under ORS 308.450 to ORS 308.481;and c. Assessing a construction tax under ORS 320.192 and ORS 320.195. PP 19-0008 ATTACHMENT A/PAGE 4 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 4 of 14 Page 41 of 51 3. When a local government amends its comprehensive plan or land use regulations to allow Middle Housing,the local government is not required to consider whether the amendments significantly affect an existing or planned transportation facility. 660-046-0040 Compliance 1. A local government may adopt land use regulations or amend its comprehensive plan to comply with ORS 197.758 et seq and the provisions of this division. 2. A local government may request from the Department an extension of the time allowed to complete the action under subsection(1)pursuant to the applicable sections of OAR 660-046-0300 through OAR 660- 046-0370. 3. A Medium City which is A Local Government That Has Not Acted by June 30,2021 or within one year of qualifying as a Medium City pursuant to OAR 660-046-0050 and has not received an extension under section(2),shall directly apply the applicable Model Code contained in OAR 660-046-0010(4)in its entirety to all proposed Middle Housing development applications until such time as the local government has adopted provisions under section(1). 4. A Large City which is A Local Government That Has Not Acted by June 30,2022 or within two years of qualifying as a Large City pursuant to OAR 660-046-0050 and has not received an extension under section (2),shall directly apply the applicable Model Code contained in OAR 660-046-0010(4)for the specific Middle Housing type that is not in compliance with the relevant rules in this division to all proposed development applications for that specific Middle Housing type until such time as the local government has adopted provisions under section(1). 5. If a local government has adopted land use regulations or amended its comprehensive plan by the date provided under sections(3)and(4)and the city's land use regulations or comprehensive plan changes are subsequently remanded by the Land Use Board of Appeals or an appellate court solely on procedural grounds,the local government is deemed to have acted.Accordingly,the local government may continue to apply its own land use regulations and comprehensive plan as they existed prior to the adoption of land use regulations or comprehensive plan amendments that were the subject of procedural remand until the first of the two options: a. The local government has adopted land use regulations or amended its comprehensive plan in response to the remand;or b. 120 days after the date of the remand.If the local government has not adopted land use regulations or amended its comprehensive plan within 120 days of the date of the remand,the local government is deemed not to have acted under sections(3)and(4). 6. If a local government has adopted land use regulations or amended its comprehensive plan by the date provided under sections(3)and(4)and the local government's land use regulations or comprehensive plan changes are subsequently remanded by the Land Use Board of Appeals or an appellate court on any substantive grounds,the city is deemed to have not acted under sections(3)and(4). 7. If a local government acknowledged to be in compliance with this division subsequently amends its land use regulations or comprehensive plan,and those amendments are remanded by the Land Use Board of Appeals or an appellate court,the city shall continue to apply its land use regulations and comprehensive plan as they existed prior to the amendments until the amendments are acknowledged. 8. Where a local government directly applies the Model Code in accordance with sections(3),(4)and(5),the Model Code completely replaces and pre-empts any provisions of that local government's development code that conflict with the applicable sections of the Model Code. 660-046-0050 Eligible Local Governments 1. If a local government was not previously a Medium City and a certified Portland State University Population Research Center population estimate qualifies a it as a Medium City,the local government must comply with this division within one year of its qualification as a Medium City. 2. If a local government was not previously a Large City and a certified Portland State University Population Research Center population estimate qualifies a it as a Large City,the local government must comply with this division within two years of its qualification as a Large City. PP 19-0008 ATTACHMENT A/PAGE 5 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 5 of 14 Page 42 of 51 660-046-0100 Purpose of Middle Housing in Medium Cities OAR 660-046-0105 through OAR 660-046-0130 are intended to measure compliance with ORS 197.758 et seq and Goal 10 Housing for Medium Cities. 660-046-0105 Applicability of Middle Housing in Medium Cities 1. A Medium City must allow for the development of a Duplex,including those Duplexes created through conversion of an existing detached single-family dwelling,on each Lot or Parcel zoned for residential use that allows for the development of detached single-family dwellings. 2. OAR 660-046-0105 through OAR 660-046-0130 do not require a Medium City to allow more than two dwellings units on a Lot or Parcel,including any accessory dwelling units. 660-046-0110 Provisions Applicable to Duplexes in Medium Cities 1. Medium Cities may regulate Duplexes to comply with protective measures,including plans,policies and regulations,as provided in OAR 660-046-0010(3). 2. Medium Cities may regulate siting and design of Duplexes,provided that the regulations; a. Are clear and objective standards,conditions,or procedures consistent with ORS 197.3071 and Commented[A13]:Rationale:Subsection(4)of this statute is a bit too b. Do not,individually or cumulatively,discourage the development of Duplexes through specific and omits important nuances,such as discretionary alternative unreasonable costs or delay. tracks,historic districts,etc.Subsection(4)is struck throughout the 3. Siting and design standards that create unreasonable cost and delay include any standards applied to document. Duplex development that are more restrictive than those applicable to detached single-family dwellings in the same zone. 4. Siting and design standards that do not,individually or cumulatively,discourage the development of Duplexes through unreasonable cost and delay include only the following: a. Regulations to comply with protective measures adopted pursuant to statewide land use planning goals provided in OAR 660-046-0010(3); b. Permitted uses and approval process provided in OAR 660-046-0115; c. Siting standards provided in OAR 660-046-0120; d. Design standards in Medium Cities provided in OAR 660-046-0125; e. Duplex Conversions provided in OAR 660-046-0130;and f. Any siting and design standards contained in the Model Code referenced in section OAR 660-046- 0010(4). 660-046-0115 Permitted Uses and Approval Process Medium Cities must apply the same approval process to Duplexes as detached single-family dwellings in the same zone.Pursuant to OAR 660-007-0015,OAR 660-008-0015,and ORS 197.307,Medium Cities may adopt and apply only clear and objective standards,conditions,and procedures regulating the development of Duplexes.Nothing in this rule prohibits a Medium City from adopting an alternative approval process for applications and permits for Middle Housing based on approval criteria that are not clear and objective as provided in OAR 660-007-0015(2), OAR 660-008-0015(2),and ORS 197.307(6). 660-046-0120 Duplex Siting Standards in Medium Cities The following standards apply to all Duplexes: 1. Minimum Lot or Parcel Size:A Medium City may not require a minimum Lot or Parcel size that is greater than the minimum Lot or Parcel size required for a detached single-family dwelling in the same zone. Additionally,Medium Cities shall allow the development of a Duplex on any property zoned to allow detached single-family dwellings,which was legally created prior to the Medium City's current lot size minimum for detached single-family dwellings in the same zone. 2. Density:If a Medium City applies density maximums in a zone,it may not apply those maximums to the development of Duplexes. PP 19-0008 ATTACHMENT A/PAGE 6 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 6 of 14 Page 43 of 51 3. Setbacks:A Medium City may not require setbacks to be greater than those applicable to detached single- family dwellings in the same zone. 4. Height:A Medium City may not apply lower maximum height standards than those applicable to detached single-family dwellings in the same zone. 5. Parking: a. A Medium City may not require more than a total of two off-street parking spaces for a Duplex. b. Nothing in this section precludes a Medium City from allowing on-street parking credits to satisfy off-street parking requirements. 6. Lot Coverage and Floor Area Ratio:Medium Cities are not required to apply lot coverage or floor area ratio standards to new Duplexes.However,if the Medium City chooses to apply lot coverage or floor area ratio standards,it may not establish a cumulative lot coverage or floor area ratio for a Duplex that is less than established for detached single-family dwelling in the same zone. 7. A Medium City or other utility service provider that grants clear and objective exceptions to public works standards to detached single-family dwelling development must allow the granting of the same exceptions to Duplexes. 660-046-0125 Duplex Design Standards in Medium Cities 1. Medium Cities are not required to apply design standards to new Duplexes.However,if the Medium City chooses to apply design standards to new Duplexes,it may only apply the same clear and objective design standards that the Medium City applies to detached single-family structures in the same zone. 2. A Medium City may not apply design standards to Duplexes created as provided in OAR 660-046-0130. 660-046-0130 Duplex Conversions Additions to or conversion of an existing detached single-family dwelling to a Duplex is allowed,pursuant to OAR 660-046-0105(2),provided that the conversion does not increase nonconformance with applicable clear and objective standards in the Medium City's development code. 660-046-0200 Purpose of Middle Housing in Large Cities OAR 660-046-0205 through OAR 660-046-0235 are intended to measure compliance with ORS 197.758 et seq and Goal 10 Housing for Large Cities. 660-046-0205 Applicability of Middle Housing in Large Cities 1. A Large City must allow for the development Duplexes in the same manner as required by Medium Cities in OAR 660-046-0100 through OAR 660-046-0130. 2. A Large City must allow for the development of Triplexes,Quadplexes,Townhouses,and Cottage Clusters, including those created through conversion of existing detached single-family dwellings,in areas zoned for residential use that allow for the development of detached single-family dwellings.A Large City may regulate or limit development of these types of Middle Housing on the following types of lands: a. Goal-Protected Lands:Large Cities may regulate Middle Housing other than Duplexes on Goal- Protected Lands as provided in OAR 660-046-0010(3); b. Infrastructure Constrained Lands:Large Cities may limit the development of Middle Housing other than Duplexes on Infrastructure Constrained Lands.In order to demonstrate that an area is an Infrastructure Constrained Land,the Large City must adopt findings in conjunction with the adoption of required Middle Housing allowances that demonstrate that the infrastructure limitation is consistent with the definition provided in OAR 660-046-0020,could not be addressed through the process provided OAR 660-046-0300,and could not be addressed with required improvements that would be expected with Middle Housing development.The Large City may not consider an area to be infrastructure constrained based on any lack of improvements beyond those listed in OAR 660-046-0340; c. Master Planned Communities:Large Cities may regulate or limit the development of Middle Housing other than Duplexes in Master Planned Communities as follows: PP 19-0008 ATTACHMENT A/PAGE 7 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 7 of 14 Page 44 of 51 A. IIfl a Large City has adopted a master plan or a plan that functions in the same manner as Commented[A14]:Proposed re-write provide by the City of Wilsonville: a master plan after January 1,2021,it may not limit the development of any Middle Housing type on lands where single-family detached dwellings are also allowed,but may If a Large City has adopted a master plan or a plan that functions in the limit overall net residential density within the master plan area provided that the same manner as a master plan after January 1,2021 with a net density of at allowed net residential density is least 15 dwelling units per acre.A Large City may least 15 units per acre,it does not need to allow all middle housing types on designate areas within the master plan exclusively for other housing types,such as all lots zoned for single family and duplex dwellings during initial build out multi-family residential structures of five units or more or manufactured home parks.A and development,but must allow for all Middle Housing types in the master Large City may not limit future conversion or redevelopment of already constructed plan area.A Large City may not limit future conversion or redevelopment of already constructed residential units to any Middle Housing type. single-family detached or middle housing residential units to any Middle Housing type. Exemptions to density maximums for middle housing or alternative density calculations for middle housing expressed elsewhere in these rules do not B. If a Large City has adopted a master plan or a plan that functions in the same manner as apply to the initial development and future redevelopment of Master a master plan before January 1,2021,it may limit the development of Middle Housing Planned Communities complying with this subsection." other than Duplexes provided it authorizes in the entire master plan area a net residential density of at least eight dwelling units per acre and allows all residential units,at minimum,to be detached single-family dwellings or Duplexes.A local government may only apply this restriction to portions of the area not developed as of January 1,2021,and may not apply this restriction after the initial development of any area of the master plan or a plan that functions in the same manner as a master plan. d. Impacted by State or Federal ILaw":A Large City must demonstrate that regulations or limitations Commented[A15]:Rationale:A title was needed here so that this of Middle Housing other than Duplexes are necessary to implement or comply with an section reads the same as a—c,and not as an additional requirement that is established state or federal law or regulation on these types of lands. required in addition to a,b,or c. 3. A Large City may: a. Allow for the development of Triplexes,Quadplexes,Townhouses,and Cottage Clusters, including those created through conversion of existing detached single-family dwellings,in areas zoned for residential use that allow for the development of detached single-family dwellings as provided in OAR 660-046-0205 through OAR 660-046-0235;or b. IApplyl separate minimum lot size and maximum density provisions than what is provided in Commented[A16]:2 Performance Metric options proposed by the city OAR 660-046-0220,provided that Middle Housing other than Duplexes is allowed on the of Beaverton.The first combines percentages and lot sizes.The second following percentage of Lots and Parcels zoning for residential use that allow for the focuses on percentages of one or more middle housing allowed on lots. development of detached single-family dwellings,excluding lands described in subsection(2): A.Percentage adjustments method 1: A. Triplexes—Must be allowed on 80%of Lots and Parcels; *Triplexes:60 percent of all lots B. Quadplexes-Must be allowed on 70%of Lots and Parcels; •Quadplexes:60 percent of lots 7,000 square feet or greater C. Townhouses-Must be allowed on 60%of Lots and Parcels; •Townhouses:60 percent of all lots D. Cottage Clusters—Must be allowed on 50%of Lots and Parcels. •Cottage Clusters:60 percent of lots 7,000 square feet or greater E. A Middle Housing type is"allowed"on a Lot or Parcel when the following criteria are B.Percentage adjustments method 2: •At least 75 percent of lots citywide must allow one of the four met: housing types. i. The Middle Housing type is a permitted use on that Lot or Parcel under the •At least 30 percent of lots citywide must allow at least two same administrative process as a single-family detached dwelling in the housing types. same zone; C.Citywide,triplexes and townhouses must be allowed on 50 ii. The Lot or Parcel has sufficient square footage to allow the Middle Housing percent of citywide lots and quadplexes and cottage cluster must be type within the applicable minimum lot size requirement; allowed on at least 33 percent of lots. iii. Maximum'density"requirements do not prohibit the development of the Middle Housing type on the subject Lot or Parcel;and City of Springfield had a similar proposal for cottage clusters:50%of lots iv. The applicable siting or design standards do not individually or over 7,000 sf. cumulatively cause unreasonable cost or delay to the development of that These proposals would reduce the amount of middle housing allowed in Middle Housing type as provided in OAR 660-046-0210(3). Large Cities F. [Ai Large City must ensure the equitable distribution of Middle Housing by allowing,as defined in subsection(3)(b)(E)above,at least one Middle Housing type other than Commented[A17]:Rationale:Less specific,since it covers all Duplexes on 75 percent of all lots and parcels zoned for residential use that allow for the contingencies as written. development of detached single-family dwellings within each census block group within Commented[A18]:Rationale:Edits increase clarity as to how the metric a Large City. applies. G. PP 19-0008 ATTACHMENT A/PAGE 8 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 8 of 14 Page 45 of 51 4. Pursuant to OAR 660-046-0205 through OAR 660-046-0230,the following numerical standards related to Middle Housing types apply: a. Duplexes—ILarge Cities'may allow more than two dwellings units on a Lot or Parcel,including any (Commented[A19]:consistency edits accessory dwelling units. b. Triplexes and Quadplexes—Large Cities may allow more than four units on a lot,including any accessory dwelling units. c. Townhouses—ILargel Cities must require at least two attached Townhouse units and must allow Commented[A20]:Proposed language from the City of Beaverton: up to four attached Townhouse units.A Large City may allow five or more attached Townhouse units. "Local governments must require at least two attached Townhouse units d. Cottage Clusters— and must allow up to four attached Townhouse units on sites large enough A. IA Large City is not required to set a minimum number of dwelling units in a Cottage to physically accommodate those units given the local government siting Cluster,but if it chooses to,it may require a minimum of three,four,or five units in a and design standards allowed under this Division." Cottage Cluster.A Large City may allow but may not require greater than five units in a Cottage Cluster. Rationale:This language atttepts to clarify the number of townhouse units allowed by a local jurisdiction. A,B.A Large City must allow up to eight cottages clustered around a common courtyard. Nothing in this section precludes a local government from permitting greater than eight units clustered around a common courtyard. Commented[A21]:Rationale:This edit is an attempt to clarify the intent of the standard.This addresses comments from cities on needing additional clarity. 660-046-0210 Provisions Applicable to Middle Housing in Large Cities What this standard is trying to balance are several points raised by RAC 1. Large Cities may regulate Middle Housing to comply with protective measures,including plans,policies members: and regulations,as provided in OAR 660-046-0010(3). -Some jurisdictions would prefer a clear parity between quadplexes and 2. Large Cities may regulate siting and design of Middle Housing,provided that the regulations; cottage clusters in which cottage clusters have a minimum of five units a. Are clear and objective standards,conditions,or procedures consistent with the requirements of ORS -RAC members note that a cottage cluster could be as few as three units. 197.307;and -Requiring greater than five units would functionally preclude cottage b. Do not,individually or cumulatively,discourage the development of Middle Housing through clusters on smaller lots,as other applicable standards would make it impossible for a development to meet the minimum required number of unreasonable costs or delay. units with the amount of space 3. Siting and design standards that do not,individually or cumulatively,discourage the development of Middle Housing through unreasonable cost and delay include only the following: a. Regulations to comply with protective measures adopted pursuant to statewide land use planning goals provided in OAR 660-046-0010(3); b. Permitted uses and approval processes provided in OAR 660-046-0215; c. Siting standards provided in OAR 660-046-0220; d. Design standards in Large Cities provided in OAR 660-046-0225; e. Middle Housing Conversions provided in OAR 660-046-0230; f. Alternative siting or design standards provided in OAR 660-046-0235;and g. Any siting and design standards contained in the Model Code referenced in section OAR 660-046- 0010(4). 660-046-0215 Permitted Uses and Approval Process Large Cities must apply the same approval process to Middle Housing as detached single-family dwellings in the same zone.Pursuant to OAR 660-008-0015 and ORS 197.307,Large Cities may adopt and apply only clear and objective standards,conditions,and procedures regulating the development of Middle Housing consistent with the requirements of ORS 197.307.Nothing in this rule prohibits a Large City from adopting an alternative approval process for applications and permits for Middle Housing based on approval criteria that are not clear and objective as provided in OAR 660-007-0015(2),OAR 660-008-0015(2),and ORS 197.307(6). 660-046-0220 Middle Housing Siting Standards in Large Cities 1. Large Cities must apply standards to Duplexes as provided in OAR 660-046-0120. 2. The following siting standards apply to Large Cities'regulation of Triplexes and Quadplexes: a. Minimum Lot or Parcel Size: A. For Triplexes: PP 19-0008 ATTACHMENT A/PAGE 9 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 9 of 14 Page 46 of 51 i. If the minimum Lot or Parcel size in the zone for a detached single-family dwelling is 5,000 square feet or less,the minimum Lot or Parcel size for a Triplex may be up to 5,000 square feet. ii. If the minimum Lot or Parcel size in the zone for a detached single-family dwelling is greater than 5,000 square feet,the minimum Lot or Parcel size for a Triplex may not be greater than the minimum Lot or Parcel size for a detached single-family dwelling. B. For Quadplexes: i. If the minimum Lot or Parcel size in the zone for a detached single-family dwelling is 7,000 square feet or less,the minimum Lot or Parcel size for a fourplex may be up to 7,000 square feet. ii. If the minimum Lot or Parcel size in the zone for a detached single-family dwelling is greater than 7,000 square feet,the minimum Lot or Parcel size for a Quadplex may not be greater than the minimum Lot or Parcel size for a detached single-family dwelling. C. A Large City may apply a lesser minimum Lot or Parcel size in any zoning district for a Triplex or Quadplex than provided in paragraphs A.or B. b. IDensith:If a Large City applies density maximums in a zone,it may not apply those maximums to Commented[A221:Proposed edit from Wilsonville:Add"...beyond the the development of Quadplex and Triplexes. first unit on the lot or parcel." c. Setbacks:A Large City may not require setbacks to be greater than those applicable to detached single-family dwellings in the same zone. Rationale:When certain types of middle housing are exempt from density d. Height:A Large City may not apply lower maximum height standards than those applicable to maximums,it makes sense that the first unit on the property still counts detached single-family dwellings in the same zone,except a maximum height may not be less towards the maximum.This is consistent with how ADU's are handled.The than 25 feet or two stories. primary unit counts towards density but the ADU(additional unit)does not. e. Parking: Please provide clear language in the rules that clarifies this point. A. For Triplexes,a local government may require up to the following off-street parking spaces: i. For Lots or Parcels of 3,000 square feet or less:one space in total; ii. For Lots or Parcels greater than 3,000 square feet and less than or equal to 5,000 square feet:two spaces in total;and iii. For Lots or Parcels greater than 5,000 square feet:three spaces in total. B. For Quadplexes,a local government may require up to the following off-street parking spaces: i. For Lots or Parcels of 3,000 square feet or less:one space in total; ii. For Lots or Parcels greater than 3,000 square feet and less than or equal to 5,000 square feet:two spaces in total; iii. For Lots or Parcels greater that 5,000 square feet and less than or equal to 7,000 square feet:three spaces in total;and iv. For Lots or Parcels greater than 7,000 square feet:four spaces in total. C. A Large City may allow on-street parking credits to satisfy off-street parking requirements. D. A Large City may allow but may not require off-street parking to be provided as a garage or carport. E. A Large City must apply the same off-street parking surfacing,dimensional,landscaping, access,and circulation standards that apply to single-family detached dwellings in the same zone. F. A Large City may not apply additional minimum parking requirements to Middle Housing created as provided in OAR 660-046-0230. f. Lot or Parcel Coverage and Floor Area Ratio:Large Cities are not required to apply Lot or Parcel coverage or floor area ratio standards to Triplexes or Quadplexes.However,if the Large City chooses to apply Lot or Parcel coverage or floor area ratio standards,it may not establish a cumulative Lot or Parcel coverage or floor area ratio for Triplexes or Quadplexes that is less than established for detached single-family dwelling in the same zone. PP 19-0008 ATTACHMENT A/PAGE 10 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 10 of 14 Page 47 of 51 3. The following rules apply to Large Cities'regulation of Townhouses: a. Minimum Lot or Parcel Size:A Large City is not required to apply a minimum Lot or Parcel size to Townhouses,but if it chooses to,the average minimum Lot or Parcel size may not be greater than 1,500 square feet.A Large City may apply separate minimum Lot or Parcel sizes for internal, external,and corner Townhouse Lots or Parcels provided that they average 1,500 square feet,or less'. [Commented[A23]:Rationale:Clarifying intent. b. Minimum Street Frontage:A Large City is not required to apply a minimum street frontage standard to Townhouses,but if it chooses to,the minimum street frontage standard must not exceed 20 feet.A Large City may allow frontage on public and private streets or alleys,and shared or common drives.If a Large City allows flag Lots or Parcels,it is not required to allow Townhouses on those Lots or Parcels. c. Density:If a Large City applies density maximums in a zone,it must allow four times the maximum density allowed for detached single-family dwellings in the same zone for the development of Townhouses or 25 units per acre,whichever is less. d. Setbacks:A Large City may not require front,side,or rear setbacks to be greater than those applicable to detached single-family structures in the same zone and must allow zero-foot side setbacks for Lot or Parcel lines where Townhouse units are attached. e. Height:A Large City may not apply lower maximum height standards than those applicable to detached single-family dwellings in the same zone. If local governments mandate'covered or structured'parking,their height standards must allow construction of at least three stories.If Commented[A24]:Rationale:The intent of this standard is to allow local governments do not mandate covered or structured parking,their height standards must jurisdictions to apply a two-story height limitation to townhouses to allow construction of at least two stories. regulate the relative form while preventing scenarios that cause f. Parking: unreasonable cost or delay. A. A Large City may not require more than one off-street parking space per Townhouse unit. It is not feasible to build a two-story townhouse with structured parking, B. Nothing in this section precludes a Large City from allowing on-street parking credits to but it is feasible to build a two-story townhouse with uncovered surface satisfy off-street parking requirements. parking. C. A Large City must apply the same off-street parking surfacing,dimensional,landscaping, access,and circulation standards that apply to single-family detached dwellings in the same zone. g. Bulk and Scale:A Large City is not required to apply standards to control bulk and scale to new Townhouses.However,if a Large City chooses to regulate scale and bulk,including but not limited to provisions including Lot or Parcel coverage,floor area ratio,and maximum unit size, those standards cannot cumulatively or individually limit the bulk and scale of the cumulative Townhouse project greater than that of a single-family detached dwelling. space ar a and dimensions,but if it chooses to,the minimum open space may not exceed 15%of the minimum Lot or Parcel size,and the minimum smallest dimension may not exceed the Lot or Parcel width or 20 ft,whichever is less.A Large City may establish provisions allowing the provision of open space through shared common ar as.I Commented[A25]:Rationale:This is a design standard and does not 4. The following rules apply to Large Cities'regulation of Cottage Clusters: belong in the siting standards section.Originally,this was addressed a. Minimum Lot or Parcel Size:A Large City is not required to apply minimum Lot or Parcel size through the Model Code,but was struck and needed clarification standards to new Cottage Clusters.However,if a Large City chooses to regulate minimum Lot or somewhere in rule to ensure this tool was available for jurisdictions that Parcel size for Cottage Clusters,the following provisions apply: would opt to use it. A. If the minimum Lot or Parcel size in the same zone for a detached single-family dwelling is 7,000 square feet or less,the minimum Lot or Parcel size for a Cottage Cluster may be However,there is now a path for these jurisdictions to apply an Open Space up to 7,000 square feet. standard to townhouses through OAR 660-046-0225 and limitations on numeric standards to prevent unreasonable cost or delay. B. If the minimum Lot or Parcel size in the same zone for a detached single-family dwelling is greater than 7,000 square feet,the minimum Lot or Parcel size for a Cottage Cluster may not be greater than the minimum Lot or Parcel size for a detached single-family dwelling. b. Minimum Lot or Parcel Width:A Large City is not required to apply minimum Lot or Parcel width standards to Cottage Clusters.However,if a Large City chooses to regulate minimum Lot or PP 19-0008 ATTACHMENT A/PAGE 11 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 11 of 14 Page 48 of 51 Parcel width for to Cottage Clusters,it may not require a miniminum Lot or Parcel width that is greater than the standard for a single-family detached dwelling in the same zone. c. Density:A Large City may not apply density maximums to the development of Cottage Clusters.A Cottage Cluster development must meet a minimum density of at least four units per acre. d. Setbacks:A Large City may not require perimeter setbacks to be greater than those applicable to Commented[A26]:The minimum distance between all structures, detached single-family dwellings in the same zone.Additionally,perimeter setbacks applicable to including accessory structures,shall be in accordance with building code cottage cluster units'may not be greater than ten feet.The minimum distance between requirements. structures may not be greater than what is required by applicable building code requirements or 10 feet. . (Commented[A27]:Rationale:Clarifying edit. A I.......C' Cott..,.,.Cl €e_Unit Size:A Large City may limit the minimum or maximum size of dwellings in a Cottage Cluster, Commented[A28]:Rationale:Unnecessary to clarify. but must apply a maximum building footprint of 900 square feet per unit.'A Large City may exempt up to 200 square feet in the calculation of building footprint for an attached garage or carport. A Large City may not include detached garages,carports,or accessory structures in the Commented[A29]:Rationale:Hayden Homes suggested a 400 SF calculation of building footprint. exemption for garages in calculating a building footprint. gf_Parking: A. A Large City may not require more than one off-street parking space per unit in a Adding an exemption would prevent over-incentivizing the use of detached Cottage Cluster. or surface parking,which would be more challenging for people with limited B. A Large City may allow but may not require off-street parking to be provided as a garage mobility to navigate.On the other hand,A cumulative building footprint of or carport. 1300 SF extends beyond what can reasonably be considered a"cottage". C. Nothing in this section precludes a Large City from allowing on-street parking credits to satisfy off-street parking requirements. h-g_Lot or Parcel Coverage and Floor Area Ratio:IA Large City may not apply Lot or Parcel coverage or floor area ratio standards to Cottage Clusters.' Commented[A30]:The rationale behind this standard is that what will i-h_Nothing in this division precludes a Large City from allowing Cottage Cluster units on individual ultimately regulate lot coverage and FAR are: Lots or Parcels within the Cottage Cluster development. -Setbacks -Required Courtyard area 660-046-0225 Middle Housing Design Standards in Large Cities -Required Pedestrian pa -Required Off-Street parkinghs 1. A Large City is not required to apply design standards to Middle Housing.However,if a Large City chooses -Building footprint max of 900 SF to apply design standards to Middle Housing,it may only apply the following: -Any applied height or unit size limitations a. Design standards in the Model Code for Large Cities in OAR 660-046-0010(4)(b); b. Design standards that are less restrictive than the Model Code for Large Cities in OAR 660-046- Layering a lot coverage or FAR standard on top of these other standards 0010(4)(b); would be very difficult for a cottage cluster development to meet. c. The same clear and objective design standards that the Large City applies to detached single- family structures in the same zone.Design standards may not scale by the number of dwelling units or other features that scale with the number of dwelling units,such as primary entrances. Design standards may scale with form-based attributes,including but not limited to floor area, street-facing facade,height,bulk,and scale;or d. Alternative design standards as provided in OAR 660-046-0235. 2. A Large City may not apply design standards to Middle Housing created as provided in OAR 660-046-0230. 660-046-0230 Middle Housing Conversions Commented[A31]:Note:The rationale behind this rule is to both 1. Additions to or conversion of an existing detached single-family dwelling into Middle Housing is allowed in incentivize additional options and incentivize the retention of existing Large Cities pursuant to OAR 660-046-0205(2),provided that the conversion does not increase homes rather than demolition and replacement. nonconformance with applicable clear and objective standards,unless increasing nonconformance is otherwise permitted by the Large City's development code. Additionally,this provision will provide options to mitigate displacement by 2. If Middle Housing is being created through the conversion of an existing single-family detached dwelling,a providing homeowners options to convert existing units to Middle Housing, Large City or other utility service provider that grants clear and objective exceptions to public works nstead of selling and moving elsewhere. standards to detached single-family dwelling development must allow the granting of the same Finally,the Legislature clarified that reasonable siting and design standards exceptions to Middle Housing. applicable to ADUs do not include requirements to construct additional off- 3. A preexisting detached single-family dwelling may remain on a Lot or Parcel with a Cottage Cluster under street parking—we feel this approach is consistent with that intent. the following conditions: PP 19-0008 ATTACHMENT A/PAGE 12 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 12 of 14 Page 49 of 51 a. The preexisting single-family dwelling may be nonconforming with respect to the requirements of the applicable)code; - Commented[A32]:Rationale:This approach was originally derived from b. The preexisting single-family dwelling may be expanded up to the maximum height,footprint,or the Model Code and is intended to incentivize the retention of existing unit size required by the applicable code;however,a preexisting single-family dwelling that homes(instead of demolition and replacement).These are consistency edits exceed the maximum height,footprint,or unit size of the applicable code may not be expanded; to increase clarity. c. The preexisting single-family dwelling shall count as a unit in the Cottage Cluster; d. The floor area of the preexisting single-family dwelling shall not count towards any Cottage Cluster average or Cottage Cluster project average or total unit size limits. e. AlLarge City may apply a time limit on the conversion of a single-family dwelling to a Cottage Commented[A331:Rationale:This is in response to a raised hypothetical Cluster not to exceed five years. scenario in which a SFD is immediately converted to a Cottage Cluster, bypassing footprint limitations for one unit.While staff considers this 1660-046-0235l Alternative Siting or Design Standards scenario unlikely due to the holding costs associated with the strategy, A Large City may adopt siting or design standards not authorized by OAR 660-046-0220 or OAR 660-046-0225 allowing a time limit of five years would preclude this hypothetical without hindering the intended policy outcome of this provision—to incentivize the as allowed under subsection(1)or(2)or(3)below if the city can demonstrate that it meets the applicable retention of existing homes. criteria laid out in either subsection(1)or(2)or(3)below.Siting or design standards do not include minimum Lot or Parcel size and maximum density requirements. Commented[A34]:Note:The FHCO letter suggested adding a provision 1. Existing Alternative Siting or Design Standards)—A Large City must submit to the Department of Land on measuring the equitable distribution of housing via OAR 660-046-0205. Conservation and Development findings and analysis demonstrating that siting or design standards This section,OAR 660-046-0235,will not give jurisdictions the ability to preclude middle housing—it will only apply to siting or design standards adopted prior to the adoption of these rules for Middle Housing types not in compliance with the and will not include minimum lot,maximum density,or use standards. standards provided in OAR 660-046-0220 or OAR 660-046-0225 have resulted in the substantial production of Middle Housing in areas where the standard was applied such that the standards have not, Commented[A35]:The intent of this standard is to avoid penalizing early and will not in the future,individually or cumulatively cause unreasonable cost or delay to the adopters of Middle Housing,provided they can meet a threshold of development of Middle Housing. production in the area where a standard or standards are applied.It is a. Substantial production means: functionally intended to allow jurisdictions to continue application of i. The areas in which the Large City has applied the alternative standard or standards in areas that demonstrate substantial production. standards achieved a three percent or greater production rate of the applicable It also provides additional flexibility for existing design standards,described Middle Housing type over the time frame during which the Large City applied in greater detail below. the standard or standards.At a minimum,the time frame must include two years of housing production data and housing production data from the full time frame in which the Large City applied the standard or standards.The production rate is the ratio of building permits issued for the applicable Middle Housing type in comparison to the total building permits issued for all Middle Housing and detached single-family dwellings over the same time frame;and ii. The areas in which the Large City applied the alternative standard or standards have a sufficient quantity of remaining sites where the Large City can accommodate Middle Housing to ensure a minimum three percent production rate over a twenty year horizon.The production rate is the ratio of building permits issued for the applicable Middle Housing type in comparison to the total building permits issued for all Middle Housing and detached single-family dwellings over the same time frame. b. Ilfd l a Large City applied a design standard or standards that resulted in the substantial Commented[A36]:Rationale:This is a suggested revision from Hillsboro production of Middle Housing in a zone where the standard was applied,the Large City raising that if a local government applies design standards(not siting may apply that standard or standards in other zones,provided that any numerical standards)that currently achieves substantial Middle Housing production, standard that scales by dwelling unit scales proportionally with the minimum Lot or then they should be able to use those design standards in other districts. Parcel size of the zoning district in which it applies;and;and c. IAI Large City may not apply a siting standard or standards to Middle Housing in other The intent of this provision is to allow that flexibility,while ensuring that areas where it did not previously apply. large numeric standards that may work in large lot zones,don't preclude 2. New Alternative Siting or Design Standards—A Large City must submit to the Department of Land middle housing development in small lot zones.Other design standards that scale by form or are non-numeric could be applied without adjustment. Conservation and Development findings and analysis demonstrating that the proposed standard or standards will not,individually or cumulatively,cause unreasonable cost or delay to the development of Commented[A371:This standard is not intended to allow a jurisdiction Middle Housing.To demonstrate that,the Large City must consider how a standard or standards, to apply a siting standard out of compliance with OAR 660-023-0220 citywide.This subsection clarifies that intent. PP 19-0008 ATTACHMENT A/PAGE 13 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 13 of 14 Page 50 of 51 individually and cumulatively,affect the following factors in comparison to what is would otherwise be required under OAR 660-046-0220 or OAR 660-046-0225: a. The total time and cost of construction,including design,labor,and materials; b. The total cost of land; c. The availability and acquisition of land,including areas with existing development; d. The total time and cost of permitting and fees required to make land suitable for development; e. The cumulative livable floor area that can be produced;and f. The proportionality of cumulative time and cost imposed by the proposed standard(s)in relationship to the public need or interest the standard(s)fulfill. PP 19-0008 ATTACHMENT A/PAGE 14 OF 14 OAR 660-046 Redlines Housing RAC/MCTAC#10 Page 14 of 14 Page 51 of 51 OAR 660-008 Amendments Incorporating Housing Production Strategy Requirements Updated:September 30,2020 Note:Definitions provided here will be incorporated into the Definitions section already provided in OAR 660-008 1. "Housing Production Strategy"means a specific tool,action,policy,or measure a city will implement to meet the housing needs described in an adopted Housing Capacity Analysis.A Housing Production Strategy is one component of a Housing Production Strategy Report. 2. "Producers of Needed Housing"means developers,builders,service providers,or other persons or entities providing materials and funding needed to build housing.Producers of Needed Housing may include non-profit organizations(for-profit organizations,lor public entities. Commented[Al]:Staff Response: 3. "Consumers of Needed Housing"means any person who inhabits or is anticipated to inhabit Needed (Clarifying intent. Housing,as described in the definition of"Needed Housing"in ORS 197.303. 4. "Housing Production Strategy Report"means the report cities must adopt within one year of their deadline to complete an updated Housing Capacity Analysis,pursuant to OAR660-008-0050. 5. "Housing Capacity Analysis"means a document,incorporated into a city's comprehensive plan by ordinance,that complies with the provisions of ORS 197.296.A Housing Capacity Analysis is a housing needs analysis or an assessment of housing need and capacity that includes the inventory,determination, and analysis required under ORS 197.296(3). 660-008-0045 Housing Capacity Analysis(Deadline Commented[A2]:Lazo et al •Require that HNA include a racial equity and income equity analysis to Cities described in ORS 197.296(2)(a)(B)and(10)(c)(B)shall demonstrate sufficient buildable lands as scheduled by ensure HPS can address existing inequities the Land Conservation and Development Commission. •Require that individual strategies align with need identified in HNA. 1. The Department of Land Conservation and Development shall publish the calendar of Housing Capacity Ex/specific strategies for extremely low-income,very low-income,low- Analyses deadlines for cities identified under ORS 197.296 2(a)(B)or 10(c)(B)in Exhibit A. income households,etc. 2. The deadline for adoption of a Housing Capacity Analysis in a given year is December 31st. •Require that housing needs of those experiencing homelessness be 3. A city will be considered to have met its obligation to adopt a Housing Capacity Analysis upon adoption of addressed in HNA the Housing Capacity Analysis by ordinance.A subsequent appeal of the Housing Capacity Analysis will not Staff Response: be considered a failure to comply with the deadline provided in ORS 197.296 2(a)or 10(b). Department staff acknowledge that there are long-standing issues with the 4. Upon adoption of a Housing Capacity Analysis,the deadline for a subsequent Housing Capacity Analysis is HNA process and how it does or doesn't respond to the language in Goal 10 as follows: —Housing.However,amendments to the HNA framework are not being a. Eight years for cities that are not within a(metropolitan service district;for revised under this HB 2003 rulemaking.That said,the department,with the b. Six years for cities that are within a metropolitan service district. help of the RAC/HPSTAC,have organized the HPS program such that it 5. If a population estimate developed under ORS 195.033 and OAR 660-032-0020 and OAR 660-032-0030 addresses some of the deficiencies of the local HNAs.The department views the HPS Program as an extension of a city's HNA work.The amendments to results in a city qualifying under ORS 197.296(10)(c),the city must comply with this section within two Division 8 shown here set the stage for future amendments to the HNA years of its qualification or the interval provided in Section 4,whichever is the longer period. process in a way that better meet the intent and letter of Goal 10— Housing. 660-008-0050 Housing Production Strategy Report Structure Commented[A3]:ECONorthwest: •Metro cities have no timing requirement to meet unmet land deficits As provided in ORS 197.290(2),a city with a population of more than 10,000 people must develop and adopt a •25k+pop outside of Metro:concurrent with HCA adoption and Housing Production Strategy Report that includes a list of specific actions,including the adoption of measures and measures to meet unmet land deficits policies that the city shall undertake to promote development within the city to address a housing need identified •10-25k:do they have to concurrently adopt HCA and measures to meet under ORS 197.296(3)or ORS 197.296(10)for the most recent 20-year period described in the city's Housing unmet land deficits(197.296(1))?Do they have 2 years after HCA Capacity Analysis.At a minimum,this Report must include the following components: adoption to meet unmet need through their HPS(660-008-0045(5))? Staff Response: Cities that are"newly"subject to participation in the HPS Program have two years to adopt an HCA and subsequent HPS or 6 or 8 years from the most recent HCA,whichever is greater.Cities 10k—25k are required to adopt an HPS Report one year after the deadline for adopting an HCA.The HPS report may describe measures the city plans to take to remedy a land capacity deficit but does not change the requirement or the timing of the land capacity deficit remedy. PP 19-0008 ATTACHMENT B/PAGE 1 OF 7 1. Contextualized Housing Need—A contextualization and incorporation of information from the most recent Housing Capacity Analysis,which describes current and future housing needs in the context of population and market trends. a. At a minimum,this analysis must include: A. Socio-economic and demographic trends of households living in existing Needed Housing.The analysis must include a disaggregation of households living in existing Needed Housing by race and ethnicity; B. Measures already adopted by the city to promote the development of Needed Housing; C. Market conditions affecting the provision of needed Housing; D. Existing and expected barriers to the development of Needed Housing; E. Other housing needs Ito respond to Department review under ORS 197.293(2)including Aan Commented[A4]:Wilsonville-Phrase"other housing needs"is too estimate the number of people or households experiencing homelessness.Estimates must include, broad,open to various interpretations,and additional requirements as the as available,the following data sources: Department requires after an HCA or HPS is completed by City.Concern for i. An estimate of regional housing need for people experiencing homelessness provided by the cities after they have done all work.Consider starting the sentence at state or a regional or county entity; "Estimate the#of people...:' ii. The applicable Housing and Urban Development Point-in-Time(PIT)count conducted by the Staff Response: Continuum of Care that the city is located within; The intent here is not to leave this section open ended.The list in Hi. The applicable Housing and Urban Development Annual Homelessness Assessment Report subsection(a)is meant to be a comprehensive list of the required elements (AHAR);and of the Contextualized Housing Needs competent of the Housing Production iv. The applicable McKinney-Vento Homeless Student Data for all school districts that overlap with Strategy Report.Whereas subsection(b)includes a list of other data sources or types of information that may be helpful to further contextual a the city. city's housing need.As mentioned in another comment below,the F. Percentage of Rent Burdened Households,as determined in the report described in OAR 813-112- Department and the Commission retain the authority to request 0020(2); consideration of other attributes in the Housing Production Strategy Report G. Housing tenure,including rental and owner households;and but should they choose to exercise that authority in the future,it is likely H. Housing needs for people with disabilities,including hearing,vision,cognitive,ambulatory,self-care that a rulemaking process will need to be initiated. difficulty,and independent living as provided in the applicable American Community Survey and other data sets,as available. b. A city may use the following types and sources of data to further contextualize housing need for the purposes of this section: A. The percentage of housing stock that is market rate compared to the percentage of housing stock that is subsidized to make it affordable; B. Units that the city has permitted but which have not yet been produced; C. Population groups that are not typically accounted for in a Housing Capacity Analysis,including but not limited to college and university students or second homeowners; D. Redevelopment rates that impact the preservation of existing affordable market-rate units;and E. Other types and sources of data to refine housing need for those experiencing homelessness, including: i. Data collected by local coordinated care organizations(CCOs); ii. Data collected by community action agencies; Hi. The capacity of existing emergency shelters; iv. Rental and homeowner vacancy rates; v. Change in gross or net property values or rent over time; vi. Qualitative data that illustrate specific needs of people experiencing homelessness;and vii. Other local houseless population datasets 2. IEngagementl—A Housing Production Strategy Report must include a narrative summary of the process by Commented[A5]:Lazo et al—require jurisdictions to engage which Consumers of Needed Housing and Producers of Needed Housing were engaged,especially engagement meaningfully with BIPOC community members in the development of their of State and Federal protected classes.A city may conduct engagement for a Housing Production Strategy HPS concurrent with other housing planning efforts within the city,including but not limited to a Housing Capacity Analysis,Consolidated Plans for Community Development Block Grant Entitlement Communities,and public Staff Response: Throughout Division 8,the department uses the specific term"State and Federal Protected Classes"which includes BIPOC community members as well as other underrepresented communities.Subsection(2)specifically requires cities to describe their engagement activities,"especially engagement of State and Federal protected classes". PP 19-0008 ATTACHMENT B/PAGE 2 OF 7 engagement for Severely Rent Burdened Communities as described in OAR 813-112-0010.The narrative summary must include the following elements: a. 'A list and description of stakeholders who will be impacted by potential Housing Production Strategies Commented[A6]:League of Women Voters-please include taxpayers as stating who was engaged and why,including Consumers of Needed Housing and Producers of Needed a group to be engaged for HPS. Housing; b. A summary of feedback received from each stakeholder group; Staff Response: c. A description of how the information from stakeholders influenced implementation of Housing The term"stakeholders who will be impacted by potential Housing Production Strategies"is inclusive of taxpayers. Production Strategies adopted by the City as provided in OAR 660-008-0050(3);and d. An evaluation of how to improve engagement practices for future housing engagement efforts conducted by the city. 3. Strategies to Meet Future Housing Need-A Housing Production Strategy Report must identify a list of specific actions,measures,and policies needed to address housing needs identified in the most recent Housing Capacity Analysis.The strategies proposed by a city must collectively address the next 20-year housing need identified within the most recent Housing Capacity Analysis and contextualized within the Report as provided in OAR 660-008-0050(1).A Housing Production Strategy Report may identify strategies including but not limited to strategies listed in the Housing Production Strategy Guidance for Cities published by the Department under Exhibit B.For each identified Strategy,the Housing Production Strategy Report must include: a. A description of the strategy chosen; b. A timeline for adoption; c. A timeline for implementation;and d. An estimated magnitude of impact,including: A. Housing need addressed by the identified strategy by tenure and income; B. An estimate of the number of housing units that are anticipated to be created through Commented[A7]:Lazo et al-include a racial equity analysis explaining implementation of the identified strategy,if possible; how strategies address disproportionate housing needs of BIPOC communities. C. An analysis of the income and demographic populations that are anticipated to receive benefit or burden from the strategy,including: Staff Response: i. Low-income communities; Staff feels the requirements as written address this request sufficiently. ii. Communities of color; Subsection(c)requires cities to provide an analysis for each strategy iii. People with disabilities;and proposed,summarized the expected impact on specific demographic iv. Other state and federal protected classes;and groups including income,race,ability,and other state and federal protected classes. D. A time frame over which the strategy is expected to impact Needed Housing. 4. Achieving Fair and Equitable Housing Outcomes-A Housing Production Strategy Report must include a Commented[AS]:City of Springfield-Possible revision of this sentence narrative summarizing how the selected Housing Production Strategies,in combination with other city actions, to ensure provisions of"compact,mixed-use neighborhoods"is reasonable for cities.:How the city is selecting HPS that help meet statewide will achieve equitable outcomes with regard to the following factors: greenhouse gas emission targets by creating compact,mixed-use, a. (Location of Housing-How the city is selecting Housing Production Strategies that help meet statewide neighborhoods accessible to people of state and federal protected classes. greenhouse gas emission targets found under the provisions of Executive Order No.20-0417 20, by creating compact,mixed-use,neighborhoods accessible f^ ^" ^' ^^ incl "^^ "^^^^ ^ho Staff Response: residcntc belong^^topeople part of state and federal protected classes.' Staff understands that using phrasing such as"...creating compact,mixed- b. Fair Housing-How the city is affirmatively furthering fair housing for all state and federal protected use neighborhoods for all residents..."is unrealistic.The intent of this classes.Affirmatively furthering fair housing means addressing disproportionate housing needs,patterns section is to ensure that all residents have the opportunity or access to these neighborhoods.Change incorporated. of integration and segregation,racially or ethnically concentrated areas of poverty,and disparities in access to housing opportunity; c. Housing Choice-How the city is facilitating access to housing choice for communities of color,low- Commented[A9]:City of Wilsonville-please define"high-quality income communities,people with disabilities,and other Sstate and Ffederal protected classes. community amenities" Housing choice includes access to existing or new housing that is located in neighborhoods!with Staff Response: high-quality community amenities!,schooling,employment and business opportunities,and a Staff feels that further definition here is not necessary.A city will likely healthy and safe environment. already have a clear understanding of what amenities are important to the d. Housing options for residents experiencing homelessness-How the city is advocating for and community. enableing the provision of housing options for residents experiencing homelessness and how the city is partnering with other organizations to promote services that are needed to create permanent Commented WO]:City of Wilsonville-change"creating opportunities" supportive housing(PSH)and other housing options for residents experiencing homelessness; to"supporting opportunities"as cities are not solely responsible for e. Affordable Homeownership and Affordable Rental Housing-How the city is supporting and creating/producing housing (creating opportunities!,through housing production,to connect residents with both rental housing Staff Response: that is affordable and homeownership that builds wealth,'especially for communities people that- Incorporating"supporting and" PP 19-0008 ATTACHMENT B/PAGE 3 OF 7 have been disproportionately impacted by past housing policiecpartof State and Federal protected_... Commented[All]:City of Wilsonville-Consider changing to"including classes;and those part of state and federal protected classes"to be consistent with f. Gentrification,Displacement,and Housing stability—How the city is increasing housing stability for other sections. residents and mitigating the impacts of gentrification,as well as the economic and physical displacement of existing residents resulting from investment or redevelopment. Staff Response: 5. A Housing Production Strategy Report must include the following additional elements: Change incorporated. a. A description of any opportunities,constraints,or negative externalities associated with adoption of the elements of proposed Housing Production Strategies; b. A description of actions necessary that the city and other stakeholders must take to implement the proposed Housing Production Strategies; c. A discussion of how the proposed actions,taken collectively,will increase housing options,particularly for populations with disproportionate housing need; g. If the Housing Production Strategy Report is the first produced under this division,a description of how the city will measure strategy implementation and progress; h. If the Housing Production Strategy Report is not the first produced under this section,a summary of strategies that the city has previously adopted and implemented,and a reflection on the efficacy of each implemented strategy; i. GA copy of the city's most recently completed survey to meet the requirements of Section 1(2),chapter 47, Oregon Laws 2018 and a copy of the ORS 197.178 report which shows all permits applied for and accepted within the year;I Commented[Al2]:Lazo et al—require that HNAs are translated into j. A summary of needs identified in the Housing Capacity Analysis that are not addressed by strategies in the housing production goals by affordability level and track progress towards Report,including a description of other tools,strategies,or policies that were considered or implemented meeting these goals with annual permitting/production data by the city to address that need. Staff Response: 660-008-0055 Review of Housing Production Strategy Reports The underlying framework for the Housing Production Strategy Program is that is not based on housing unit production targets.While this is an 1. No later than 20 days after a city's adoption or amendment of a Housing Production Strategy Report,a important metric to measure to determine progress,cities are not the only actors in the production of housing.The HNA will give cities a general city must submit the adopted Report or amended Report to the Department of Land Conservation and understanding of what their unmet housing need is over a 20 year period Development. and the HPS will identify the actions a city will take to achieve the 2. On the same day the city submits notice of the Housing Production Strategy Report or amended Report to production to meet that need. the Department of Land Conservation and Development,the city must provide a notice to persons that participated in the proceedings that led to the adoption of the Housing Production Strategy Report and requested notice in writing. 3. Within 10 days of receipt of the submission under subsection(1),the Department of Land Conservation and Development must provide notice to persons described under ORS 197.615(3) 4. Notices given under subsections(2)and(3)must state: a. How and where materials described under subsection(2)may be freely obtained; b. That comments on the Housing Production Strategy Report may be submitted to the Department of Land Conservation and Development within 45 days after the department has received the submission;and c. That there is no further right of appeal. 5. The submission under subsection(1)of this section must include copies of: a. The signed decision adopting the Housing Production Strategy Report or amended Report; b. The text of the Housing Production Strategy Report as provided in OAR 660-008-0050 and any amendments to the most recent Report submitted under this section; c. A brief narrative summary of the Housing Production Strategy Report;and PP 19-0008 ATTACHMENT B/PAGE 4 OF 7 d. The information that the city reviewed and considered under subsection(6). 6. The Department of Land Conservation and Development shall review the accuracy and sufficiency of the Housing Production Strategy Report based upon the following: a. !Unmet housing need las described in ORS 197.296(6): Commented[A13]:ECONorthwest—need a more clear and defined b. Unmet housing need in proportion to the city's population: definition for"housing need",as part of the definitions section.Could c. Percentage of households identified as severely rent burdened; unmet housing need be a deficit of land capacity?Or just actual housing? d. Recent housing development; Cities subject to 197.296(i.e.,all cities outside of the Metro UGB)do not e. Recent adoption of a Housing Production Strategy or implementation of actionstherein; need to adopt their HNA and measures to meet housing need concurrently. f. The city's response to address the housing needs of those experiencing homelessness; g. Increased access to housing opportunity including the elimination of barriers to Iflexib4c fair, Helpful to have these timing requirements stated in Division 8 and equitable housing options; h. !Other attributeslthat the Land Conservation and Development Commission considers relevant; Staff Response: "unmet housing need",as described in ORS 197.296(6)is the difference and between a housing need and housing capacity.Said another way,if the i. Recent or frequent failure to address the metrics listed in the criteria in thissubsection. housing need is greater than the housing capacity,there is an unmet 7. The Department of Land Conservation and Development shall,within 120 days after receiving the housing need.If the housing need is not greater than the housing capacity, submission under subsection(1)of this section,: there is no"unmet housing need"under ORS 197.296(6).Department staff a. Approve the Housing Production Strategy Report; defers to the existing language in ORS 197.296 to establish the process through which a city determines its housing needs,housing capacity,and b. Approve the Housing Production Strategy Report,subject to further review and actions ultimately its unmet housing need rather than to introduce an additional recommended by the Department based on its review under subsection(6);or definition in OAR 660-008. c. Remand the Housing Production Strategy Report for further modification as identified by the Department. Commented[A14]:Staff Response: Staff heard a need to clarify what"flexible"housing options means.Staff 8. A determination by the Department of Land Conservation and Development under subsection(7)is not a ,'_. proposes to strike"flexible"because"fair and equitable"fully encapsulates land use decision and is final and not subject to appeal. the sentiment behind this provision. 9. The Department will maintain an annual summary of proposed Housing Production Strategies included in Commented[A75]:Wilsonville—"other attributes"opens up extra Reports submitted under subsection(2)and reports submitted under OAR 660-008-0060. expectations cities may/may not be able to do at Department's discretion 660-008-0060 Reporting on Housing Production Strategy Implementation Staff Response: The Oregon Legislature authorized the Land Conservation and Development 1. Cities required to adopt a Housing Production Strategy Report under ORS 197.209(1),must submit a Commission to,at their discretion,determine if other attributes of housing narrative report to the Department of Land Conservation and Development for review and comment production should be considered as part of the HPS review process.Though based on the following schedule: staff understand the"other attributes"language is open ended,it is a. For cities that are within a metropolitan service district boundary,no later than December 31't three necessary to be agile as housing markets and housing production strategies years after the city adopted a Housing Production Strategy Report;or change in the future.It is likely that if additional attributes are added to the b. For cities that are not within a metropolitan service district boundary,no later than December 31st review process of the HPS program,the department would initiate a public four years after the city adopted a Housing Production Strategy Report. and open rulemaking process to make the necessary amendments. 2. The narrative report a city submits under subsection(1),must include theIfollowingl: Commented[A16]:Lazo et al-Include an opportunity for public to be a. A summary of the actions already taken to implement the Strategies to Meet Future Housing notified and provide comments on other city's mid-term progress,as well as Need adopted in the city's most recent Housing Production Strategy Report.If the city has not a diverse advisory committee to assist staff with mid-term reviews implemented Strategies to Meet Future Housing Need on the schedule adopted in their most recent Housing Production Strategy Report,the city must provide an explanation of the Staff Response: circumstances or factors that posed a barrier to implementation and a plan for addressing the The department is interested in providing the mid-term reports for open identified need that the strategy addressed; source review and reference.How that functionally happens is still in question as the department's staff capacity in future biennia is unknown at b. A reflection of the relative efficacy of implemented Strategies to Meet Future Housing Need this time.Likely,the department would host a"clearinghouse webpage" adopted in the city's most recent Housing Production Strategy Report;and that would not only display past and present HPS Reports but mid-term c. A reflection of the actions taken in response to the questions identified in OAR 660-008-0050(4). reports currently under review.The Department can also use existing 3. Upon submittal of the narrative report developed under subsection(1),the Department will review the GovDelivery notification systems to notify interested parties. report for consistency with the Housing Production Strategy Report approved under criteria provided in OAR 660-008-0055(6).The Department may also consider reporting under Section 1(4),chapter 47, Additionally,the department is open to an ongoing advisory committee Oregon Laws 2018 as part of this review. framework.However,any such committee would not be relied upon to assist the department in reviewing HPS Reports or mid-term reports.The scope of any committee's review would be on the HPS program generally. PP 19-0008 ATTACHMENT B/PAGE 5 OF 7 4. 1Should the Department find the narrative report submitted per subsection(1)does not substantially comply with the criteria in OAR 660-008-0055(3),the Department may take action identified in OAR 660- 008-0070. Commented[All]:Wilsonville/Springfield—consider deleting since concerns cities will be judged too harshly on what hasn't been 1660-008-0065 Non-Compliance lin Adoption of Housing Capacity Analysis or Housing accomplished-a mid-term report should be enough to be deemed Production Strategy Report satisfactory Springfield—consider reducing scope of mid-term report to limit it to just The Department of Land Conservation and Development will review a city's Housing Capacity Analysis for an update,without reflection questions involved. compliance with provisions in ORS 197.296 and its Housing Production Strategy Report for compliance with the applicable portions of this division.If the city does not sufficiently meet the criteria provided in ORS 197.296 or this Staff Response: division,the Department may engage with the city in one or more of the following actions: The criteria mentioned in OAR 660-008-0055(3)is not meant to measure 1. If a city determines that it will be unable to adopt a Housing Capacity Analysis or Housing Production the exact number of units cities have/have not developed since adoption of HP5 Report,but rather,progress in implementing steps towards overall Strategy Report by the prescribed deadline,the city must notify the Department of the expected housing production.As a result,cities will not be judged too harshly on delinquency at least 60 days before the applicable deadline for a Housing Capacity Analysis or Housing what hasn't been accomplished upon review. Production Strategy Report.In response,the department and the city may agree to remediation either through enhanced review of documents,directed technical assistance to overcome the impediment as As for the mid-tem report reflections,these are meant for cities to think available,or other similar measures,and include timelines for completion. critically about how their housing production strategies chosen impact 2. If the city has not submitted a Housing Production Strategy Report for Department of Land Conservation access to housing choice for various demographics over time,and,if and Development review by the deadline provided in OAR 660-008-0050 and has not notified the necessary,to pivot strategies or approaches,in order to ensure equitable department of an expected delinquency,the department shall work with the city and may seek mitigation development going forward.Implementation of Housing Production of the delinquency through an Intergovernmental Agreement outlining specific compliance actions, Strategies is inherently linked to achieving fair and equitable outcomes,if a strategy that addresses one of the outcomes is not implemented,it is timeline of deliverables,and subsequent enforcement actions.The Intergovernmental Agreement may or ' important for the city to identify the steps it plans to take to otherwise may not include directed technical assistance or financial resources. achieve the same outcome. 3. If the department and the city have entered into an Intergovernmental Agreement and the city,at the discretion of the department,has not sufficiently mitigated the identified delinquency,the department Commented[A18]:Lazo et al—for both enforcement tracks DLCD should low- may remove the city from consideration of technical assistance or other financial resourceawards. prioritize cities that underserving BIPOC people and people earning 4. If the citydoes not adopt a HousingCapacity Analysis or HousingProduction StrategyReport as provided incomes. P P Y Y P in this division,does not enter into an Intergovernmental Agreement with the department to remedy the Also,Commission needs to think about what the final"Enforcement Order" deficiency,or does not comply with the terms of an Intergovernmental Agreement to remedy the could entail to deal with non-compliance deficiency,the department may request the Land Conservation and Development Commission to act under ORS197.319 to 197.335 to require the city to comply with ORS 197.295 to 197.314,this division,or Staff Response: statewide land use planning goals related to housing or urbanization. The idea of focusing enforcement on cities who do not address the housing needs of BIPOC households is a good one but one that is difficult to operationalize.The intent of the review of the HPS and HNA is grounded in 660-008-0070 Non-Compliance in Adoption and Implementation of Strategies To Meet Future determining action towards implementing specific strategies to achieve housing production,not the actual production of housing itself. Housing Need Identified in a Housing Production Strategy Report The enforcement framework is setup such that if a city is not progressing on The Department of Land Conservation and Development shall review a city's Housing Production Strategy Report the implementation of any strategy,the city will enter into the enforcement and narrative reports pursuant to OAR 660-008-0060 based upon criteria provided in OAR 660-008-0055.As tiers process.This approach is agnostic to the type of strategy that is provided in OAR 660-008-0055,a Housing Production Strategy Report must include a list of Strategies to Meet delinquent.If the RAC/HPSTAC feel this is not an adequate approach,how, Future Housing Need including an expected timeline for adoption and implementation for each strategy.If there is specifically,should the enforcement process be organized while still focusing the review on the implementation of strategies rather than the a delinquency in the adoption or implementation of an identified strategy,the department will engage with the production of units? city in one or more of the following actions: 1. If circumstances impede a city's ability to implement one or more Strategies to Meet Future Housing Lastly,the enforcement actions that are available to the Land Conservation Need in coherence with the timeline adopted in the city's Housing Production Strategy Report,the city and Development Commission are limited.However,the Commission does must notify the Department of the expected delinquency within 90 days of the end of the timeline to have the authority,as described in HB 2003,to compel cities to act under implement the specific Strategy to Meet Future Housing Need adopted in the city's Housing Production ORS 197.319 to ORS 197.335.This includes a formal withholding of funds Strategy Report.The notice must identify specific actions,or a combination of actions,that the city is and state revenue sharing and instituting actions or remedies in the Circuit Court of the applicable county. currently taking,or will take,to address the delinquency.This may include,but is not required to include, amendments to the adopted Housing Production Strategy Report such that the city identifies a different action,or combination of actions,to address the specific housing need.The department and the city may PP 19-0008 ATTACHMENT B/PAGE 6 OF 7 agree to remediation either through enhanced review of the documents,directed technical assistance to overcome the impediment as available,or other similar agreement. 2. If a city does not take sufficient action to mitigate the identified delinquency,either through a failure to provide notice to the department as provided in subsection(1)or through a failure to implement the specific actions,or combination of actions,by the timeline identified in the notice to the department pursuant to subsection(1),the department shall work with the city and may seek mitigation of the issues through an Intergovernmental Agreement outlining specific compliance actions,a timeline of deliverables, and subsequent enforcement actions.The Intergovernmental Agreement may or may not include directed technical assistance or financial resources. 3. If the department and the city have entered into an Intergovernmental Agreement and the city,at the discretion of the department,has not sufficiently mitigated the identified delinquency,the department may remove the city from consideration of technical assistance or financial resource awards. 4. If the department finds that'the city consistently or routinely does not satisfy the terms of Intergovernmental Agreements and the criteria)provided in OAR 660-008-0055 or this section,the Commented[A19]:Wilsonville—language here is too broad,can it mirror department may petition the Land Conservation and Development Commission to act under ORS 660-008-0065-4,which clarifies the actions that define non-compliance? 197.319 to 197.335 to require the city to comply with ORS 197.295 to 197.314,this division,or statewide land use planning goals related to housing or urbanization. Staff Response: Adding reference to IGA identified in the subsections above better clarifies that subsection 4 is a consequence of continued and routine noncompliance with previous actions.Subsection 4 is not intended to be a standalone compliance measure. PP 19-0008 ATTACHMENT B/PAGE 7 OF 7 OREGON rille)„,„„iiiii Department of Land Conservation & Development Regional Housing Needs Analysis (RHNA) Context Memorandum Legislative Context The Oregon Legislature adopted House Bill 2003 in the 2019 legislative session to address the statewide housing crisis. A key provision charges the Oregon Housing and Community Services (OHCS) Department to develop a regional housing needs analysis (RHNA) and housing shortage analysis that estimates existing housing stock, conducts a housing shortage analysis, and estimates the housing necessary to accommodate growth for each city within each region of the state. This analysis was completed by OHCS on September 1, 2020. The bill also directs the Department of Land Conservation and Development to develop a report to the Legislature that provides an assessment of the RHNA conducted by OHCS, a comparison of a RHNA to the existing statewide housing capacity analyses, and recommendations for how a RHNA could best be incorporated into the existing statewide housing planning framework. There are various elements required in the report outlined by the bill, but fundamentally, the report will address three questions: 1. How the OHCS recommended RHNA methodology compares to the existing statewide housing planning framework. 2. How a RHNA could be best implemented to support the legislative intent of better achieving affordable, fair, and equitable housing outcomes. 3. If a RHNA is not implemented, what alternatives to a RHNA could be implemented that support the legislative intent of better achieving affordable, fair, and equitable housing outcomes. Land Use Regulatory Context Housing capacity analyses, otherwise known as "Housing Needs Analyses" or "HNAs", are the current primary document local jurisdictions use to fulfill statewide planning Goal 10 obligations related to housing. At its core, an HNA consists of a housing projection over a 20-year horizon based on a population forecast, an inventory of lands available for housing, an analysis of the suitability of residential lands to accommodate needed housing, and a list of actions a local jurisdiction may consider to accommodate needed housing if there is an identified deficiency. House Bill 2003 includes a variety of changes to the existing statewide planning context. First, it directs the Land Conservation and Development Commission to adopt a schedule for cities above 10,000 population to update their HNAs, either once every six years for cities within the Metro boundary or once every eight years for cities outside the Metro boundary. Additionally, it creates a new requirement for cities to adopt a Housing Production Strategy report within a year after the deadline for an HNA. The report must list specific actions a city will take— such as revising regulations or providing financial incentives—to promote the development of housing to address all identified housing needs. RHNA Methodology One significant theme in the rulemaking process for Housing Production Strategies is the inadequacy of Housing Needs Analyses in comprehensively identifying housing need over a 20- year planning horizon. Proposed rules address this inadequacy, in part, by including additional requirements for Housing Production Strategy reports to further"contextualize" housing need by 9/28/2020 Department of Land Conservation and Development www.oregon.gov/lcd PP 19-0008 ATTACHMENT C/PAGE 1 OF 4 Irk DepartmentOREGON of ► Land Conservation & Development utilizing additional information on populations with disproportionate housing need, specifically for people experiencing homelessness, people living with disabilities, and communities of color. However, there are still lingering concerns that HNAs remain inadequate to fully satisfy the requirements of Goal 10. A RHNA, if incorporated into the statewide planning framework, could provide a consistent methodology and regional context that more comprehensively defines housing need over a 20- year planning horizon, while leaving policy decisions, such as where and what types of housing to build to accommodate need, up to local jurisdictions. This is depicted in the following illustration. Reflection/Evaluation Defining Need Addressing Need 0 ► General Refined Accommodate Encourage Connecting Need Need Housing Production Housing Production Need to Production A Descriptive , ' ti i p : Housing Needs Contei tualized Driven by data I Projection Housing Need Regional Housing Needs Analysis i c* Buildable Lands Engagement Housing Production Strategy 0 Inventory cu o m G Residential Lands Strategies to Meet Needs Analysis Future Housing Need Prescriptive Driven by policy, Measures to Achieving Fair and Housing Needs Analysis Accommodate Equitable Housing priorities,and values Needed Housing Outcomes Opportunities and Challenges of a RHNA The OHCS recommended RHNA methodology includes provisions to more comprehensively define both market and publicly-supported housing need over a 20-year horizon in consideration of regional factors, current housing underproduction, and disproportionate housing needs for demographic groups that are often overlooked in typical HNAs, such as housing need for people with low income, people over 65, people with disabilities, people with limited English proficiency, and people experiencing homelessness. As many of these factors are now required in the contextualization of housing need in the Housing Production Strategy, a RHNA could serve as a significant resource for local jurisdictions that would otherwise be required to conduct this analysis individually. Additionally, results between cities could be meaningfully compared to one another, which is impossible today because the underlying methodology between HNAs varies drastically. Of course, there are challenges to the successful implementation of a RHNA. One of the largest is data availability and quality in less populated regions, especially for smaller demographic groups. Because this analysis is reliant on existing American Community Survey data, the 9/28/2020 Department of Land Conservation and Development www.oregon.gov/lcd PP 19-0008 ATTACHMENT C/PAGE 2 OF 4 411111JA Department of �► Land ConservationOREGON NIII & Development statistical samples that inform the analysis become less reliable at smaller geographic scales with fewer total people. It may require additional resources to improve the granularity and specificity of housing need in a RHNA. However, one advantage that a RHNA offers is the ability to improve and refine the methodology as better data sources are developed, whereas methodological changes implemented by the state through local jurisdictions must occur through rule, which make further refinement less flexible. Additionally, there are significant policy considerations that are important to consider in the implementation of a RHNA. For example, allocations of housing units will require careful consideration to ensure they are not reinforcing existing patterns of exclusion by extrapolating current conditions into the future. Additionally, House Bill 2003 tasked OHCS to include housing type in the 20-year housing need estimate, but one challenge of that requirement is the absence of a clear state policy on a desired future mix of housing types that may be different than the existing distribution. There should also be consideration as to how the methodology could be structured to accommodate areas with richer sources of data such as the Metro or Rogue Valley Council of Governments. Finally, any RHNA will need to have a system in place for feedback and transparency to ensure the methodology, estimates, allocation, and implementation are responsive to new information and feedback from stakeholders. r 1 Housing Needs Analysis Housing needs projection over 20-year period based on jr2cA population&trends ORS 197.296 r Projected housing ORS t97.303(n) ORS 197.303(3) JaR 660-007 by need and type "Needed Housing' Changes in household: Metro Housing �- -. a 10 02 trn. � a Density& Single-family&muliple Government New dwelling average mix family housing assisted housing Size Demographics Income Minimum density estimates [ I ' m irir or r 611 El Market factors Mobile/manufactured Farmworker 9cer Vacancy Cost New construction mix underproduction homes&parks housingL. J Housing Production Strategy 9-0 Contextualization of 20-year need identified in the Housing Needs Analysis OAR 660-008-0050(1) , Commute sheds III IF ? IS Eil 111- 14 CI • " Rent Race& People facing People with People with limited People Housing by burden Tenure ethnicity homelessness disabilities English proficiency over 55 income 4 I Regional Housing Needs Analysis t t A projection and contextuat}zatton of 20-year housing need based on reulonal I population&trends.Regional estimates aro allocated to cities. Implementation and Accountability The RHNA identifies a substantial number of needed housing units to accommodate growth over a 20-year horizon, compensate for current underproduction of housing, and provide housing for people experiencing homelessness. A clear follow-up question to this identified need is how local jurisdictions would be held accountable for the production of needed housing 9/28/2020 Department of Land Conservation and Development www.oregon.gov/Icd PP 19-0008 ATTACHMENT C/PAGE 3 OF 4 OREGON rilleDepartment of -, Land Conservation & Development units. While they are a key partner in the development of housing, there are many other factors outside of a local jurisdiction's control that can affect housing production, including market trends, readiness of local market rate and affordable housing developers, and availability of state and federal resources. Through rulemaking for Housing Production Strategies (HPS), a similar tension arose regarding how local jurisdictions could be held accountable while recognizing that they are only one actor among many in the development of housing. Through discussion, DLCD ultimately developed an approach that required local jurisdictions to develop strategies that comprehensively address all identified housing needs but would not be required to meet specific numerical thresholds in terms of housing units developed. Similarly, if a strategy fails in its implementation, local jurisdictions are required to ensure that the housing need that the strategy fulfilled is met, either through a new strategy or combination of existing strategies. Such an approach could be adapted for the implementation of the RHNA, where local governments have a responsibility to accommodate and promote the development of housing units identified in the RHNA but are recognized as one of many partners in the development of needed housing units. Outreach Developing a comprehensive legislative report will require extensive dialogue with experts, stakeholders, and other interested persons throughout the state. The complete 2020 RHNA, and related background information, can be reviewed at this website: <https://www.oregon.gov/ohcs/about-us/Pages/housing-needs.aspx>. If you would like to provide written feedback on the RHNA, please send it to Sean Edging at housing.dlcd@state.or.us. More information regarding DLCD's outreach efforts and future opportunities to participate can be found at this website: <https://www.oregon.gov/Icd/UP/Pages/Housing-Needs.aspx> 9/28/2020 Department of Land Conservation and Development www.oregon.gov/lcd PP 19-0008 ATTACHMENT C/PAGE 4 OF 4