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HomeMy WebLinkAbout2022-01-31 Staff Memo PCWS-4 02-14-22 w-Attach PP 19-0008-R MEMORANDUM ¼ wow 4EG1' ( TO: Planning Commission/Commission for Citizen Involvement FROM: Erik Olson, Senior Planner SUBJECT: House Bills 2001 and 2003 Work Session-4 DATE: January 31, 2022 MEETING DATE: February 14, 2022 EXECUTIVE SUMMARY&ACTION REQUESTED This memo provides background on the Commission's upcoming work session scheduled for February 14, 2022, which will include a presentation from staff regarding proposed amendments to the Community Development Code ("development code", or "CDC") to modify existing development review processes for middle housing. These amendments are a necessary part of the City's work to comply with the middle housing requirements of House Bill 2001 (HB 2001), pursuant to the Council initiative to, "Adopt codes that comply with HB 2001 that are consistent with the community's sense of place, neighborhood character, and livability." The Council has directed staff to pursue development code amendments to meet the minimum compliance provisions outlined in the administrative rules for middle housing contained within Division 46 of Chapter 660 of the Oregon Administrative Rules ("Division 46"). An outline of code amendments that will be required to be adopted in order for the City to comply with HB 2001 can be found in Attachment A. The purpose of the February 14 work session is for the Commission to provide guidance to staff on proposed code amendments related to development review processes for middle housing, as discussed below under Development Review Processes, Mitigation and Public Improvements, and Expedited Review of Middle Housing Land Divisions. Staff is seeking the Planning Commission's direction on the development of these concepts into draft code language. BACKGROUND In late 2020, staff and consultant Cascadia Partners initiated work to develop code amendments compliant with HB 2001 that maintain consistency with Lake Oswego's sense of place, neighborhood character, and livability. This work included extensive information gathering, research, analysis, multiple public engagement opportunities, an ad-hoc Advisory 503.635.0290 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 2 Committee, several Planning Commission Work Sessions, and several City Council meetings in order to develop a set of recommendations for compliance with the bill. At a joint meeting of the Planning Commission and City Council held on November 16, 2021, the Council directed staff to pursue a work plan to further develop these recommendations into code language. The Council specified that staff should pursue the recommendations in Attachment B that are required to be adopted by the state-mandated deadline of June 30, 2022. In early December 2021, the City hosted a virtual Community Forum in order to provide information on the City's approach to middle housing and to allow for public input before drafting recommended code changes. This effort included launching an accompanying StoryMap and Survey that were made available to the public until the end of 2021. More recently, the Planning Commission held work sessions on December 13, 2021,January 10, 2022, and January 24, 2022, to discuss remaining policy questions and proposed code amendments for consideration at a Public Hearing, which is necessary for compliance with House Bill 2001. DEVELOPMENT REVIEW PROCESSES As mentioned previously, Division 46 stipulates that middle housing must be subject to the same approval processes as single-family detached dwellings in the same zone. An outline of the City's existing development review processes is provided below. Existing Development Review Processes Under the City's current system, typical single-family development (permits not requiring approval of a variance) is classified as a ministerial decision, and the development of middle housing types other than duplexes is classified as a minor decision that is subject to additional review. (Under the existing code, duplexes are subject to ministerial review.)The review processes for various different types of development are summarized in Table 50.07.001-1, which is included below: Authority R=Recommendation; D=Decision; Pre- Application Neighborhood Public A=Appeal Conference Meeting Notice Hearing City Planning City Type of Decision Code Section Required? Required? Required? Required? Manager Commission DRC HRAB Council Ministerial 50.07.003.13 No No No No D Development Minor Development 50.07.003.14 [2] Subdivision or Planned Development Yes Yes Yes Yes R D A 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 3 TABLE 50.07.001-1:SUMMARY PROCEDURES TABLE Authority R=Recommendation; D=Decision; Pre- A=Appeal Application Neighborhood Public Conference Meeting Notice Hearing City Planning City Type of Decision Code Section Required? Required? Required? Required? Manager Commission DRC HRAB Council Development Review(Ed.Note) Yes [1] Yes Yes[3] R/D D/A A Development in the R-DD Zone Yes [1] Yes Yes R D A Historic Reviews: • Designation or removal of designation of a historic landmark or district; • Modification of a historic No No Yes Yes R D A district; • Demolition or moving of a landmark • Major alterations of a Yes No Yes Yes D[4] D[4] R[4] A landmark • Demolition,relocation,or alteration of landmark on the Yes No Yes Yes D A National Register of Historic Places • Minor alterations of a historic landmark Yes [1] Yes No D A A A • Demolition or moving of a contributing resource Minor Variance 50.08.002 Yes [1] Yes No[2] R/D D/A A Design Variance • R-DD Design 50.08.003.2.a Yes [1] Yes Yes R D A • Downtown 50.08.003.2.b Redevelopment Yes [1] Yes Yes R D A Design District • Foothills Mixed 50.08.003.2.c Yes [1] Yes Yes R D A Use District • Lake Grove 50.08.003.2.d Village Center Yes [1] Yes Yes R D A Overlay District • Residential 50.08.003.2.e Infill Design Yes [1] Yes No[2] R/D D/A A (RID)Review Process Major Variance 50.08.004 Yes [1] Yes Yes R D A All Other Minor Development Yes [1] Yes No[2] R/D D/A A Major Development 50.07.003.15 Mixed Use ODPS 1 Yes Yes 1 Yes 1 Yes I R I D I A 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 4 Authority R=Recommendation; D=Decision; Pre- A=Appeal Application Neighborhood Public Conference Meeting Notice Hearing City Planning City Type of Decision Code Section Required? Required? Required? Required? Manager Commission DRC HRAB Council Single Use ODPS Yes Yes Yes Yes R D A All Other Major Development Yes Yes Yes Yes R D A Legislative 50.07.003.16 No No Yes Yes R R/D Notes: [1]Neighborhood meeting required for a partition and subdivision.The City Manager may require a neighborhood meeting prior to the filing of an application for any other development permit if the City Manager deems neighborhood contact to be beneficial. [2]Per LOC 50.07.003.14.d.i,the City Manager may refer a minor development application directly to a hearing body. [3]Depending on the scope of the proposed development,a decision on an application for development review may be referred to the City Manager.Typically,applications referred to the City Manager involve minor alterations or other small-scale projects. [4]If a major alteration of a landmark or contributing resource is combined with a major or minor(nonhistoric)development application,the combined application shall be reviewed by City Manager or DRC as all other major or minor development applications.HRAB may recommend findings to the reviewing authority on criteria for the major alteration portion of application. [Ed.Note:The italicized text in the Authority column at the end of the row is an editorial note,for the public convenience.They are not adopted code text at this time(4-29-15),but will be included in a future proposal for code amendment.] Ministerial development types permitted under LOC 50.07.003.13.a.ii generally include exterior modifications and construction of single-family dwellings, duplexes, accessory dwelling units, and other accessory structures. As shown above,the City's ministerial development review processes generally do not require Pre-Application Conferences, neighborhood meetings, public notice, or public hearings. These types of applications are typically reviewed by staff for completeness at the building permit stage on an over-the-counter basis or via the State of Oregon's e-permitting system. Once an application has been deemed "complete," staff from the Building, Engineering, and Planning Departments coordinate to review the application materials in more depth to determine consistency with applicable code criteria. This includes extensive review by a staff member from the Planning Department to ensure that the proposed ministerial development complies with applicable zoning regulations, such as design and dimensional standards and other criteria within the Community Development Code. Decision- making authority for ministerial development requests is delegated to the "City Manager," which is a defined term that includes all staff(LOC 50.10.003.2). While most single-family development is classified as ministerial, single-family housing would be classified as minor development if a zoning variance or other discretionary land use approval is requested or required for the dwelling. 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 5 The minor development types outlined in LOC 50.07.003.14.a.ii are permitted through a more discretionary level of review than a ministerial decision. Broadly speaking, minor development includes variances, lot line adjustments, partitions and subdivisions, historic review, changes of use, multi-family residential development, commercial development, industrial development, and development within some overlay districts (including the Downtown Redevelopment Design District, Old Town Neighborhood Design District, West Lake Grove Design District, and Lake Grove Village Center). As shown in the table above, most minor development requires a Pre-Application Conference, and all minor development requires public notice. Many types of minor development also require neighborhood meetings and the opportunity for public hearings. Minor development decisions generally are also subject to appeal to either the Development Review Commission (DRC) or City Council. Under the current code, the development of "attached townhomes" of three or more units requires a minor development decision. Though they are technically not defined under the code today, triplexes and quadplexes contain three-or-more units on the same lot and thus are classified as multi-family residential development, which is considered a minor decision under the City's current development review processes. The development code currently does not allow cottage cluster developments or other forms of detached middle housing. Proposed Amendments to Development Review Process for Middle Housing Per Attachment A, the review procedures detailed in LOC 50.007.003 will need to be amended to treat middle housing the same as single-family housing in order to comply with Division 46. At the work session on December 13, 2021, the Planning Commission concurred with staff's recommendation to develop code amendments that would classify individual triplex, quadplex,townhouse projects, and cottage clusters, as ministerial developments, in order to comply with the bill. In other words, the development of a triplex, quadplex, or cottage cluster would generally not require a Pre-Application Conference, neighborhood meeting, public notice, or a public hearing—as these are not required for typical single-family residential development. The existing ministerial procedure utilized for the review of single-family and duplex dwelling building permit applications would be applied to triplex, quadplex, or cottage cluster applications. This review is primarily managed by the Building Department, but also includes review by staff from the Planning, Engineering, and Fire Departments to ensure compliance with applicable standards. Townhouse development that requires a land division would be still considered a minor development (even for expedited middle housing land divisions, described below under Expedited Middle Housing Land Divisions). However, townhouses allowed under HB 2001 would no longer be subject to the additional design review approval for compliance with the standards in LOC 50.06.001.5, as is currently required. The procedural classification of ministerial v. minor development also impacts the requirements on developers to provide public improvements and take other measures to mitigate the impacts of their approved development. See Mitigation and Public Improvements, below. 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 6 MITIGATION AND PUBLIC IMPROVEMENTS As mentioned above, when the City reviews single-family or duplex dwelling proposals, it is normally through a ministerial development process, which does not require a land use decision. Ministerial development applications are reviewed by staff similar to other building permit applications. This includes extensive review by a staff member from the Planning Department to ensure that the proposed ministerial development complies with applicable clear and objective zoning regulations, including setbacks, lot coverage, floor area, height, building design and other clear and objective standards prescribed by the Community Development Code. Under current code there is currently no opportunity for the City to require mitigations or offsetting public improvements for ministerial development. (All development, whether ministerial, minor or major, are subject to systems development charges (SDCs) and other fees designed to recompense for the development now using the broad public infrastructure of the City and to similarly broadly contribute to future public infrastructure needed in the community, including parks, streets, sanitary sewer, water, and storm drainage systems. These fees are usually collected at the time of the building permit issuance.) For minor development proposals, the City has the authority under LOC 50.007.003.5 to impose "conditions of approval" to further mitigate specific impacts related to the development. Mitigation requirements are based on legal principles and consideration of both policy and site- specific factors; any required public improvements must be roughly proportional to the anticipated impact of the proposed development. Mechanisms mentioned above that apply to ministerial development, such as SDCs and other development fees, are also applied to minor developments at the building permit stage. In addition to the Division 46 requirements that triplexes, quadplexes, and cottage clusters be allowed under the same procedures that apply to single-family dwellings, there are existing code and statutory requirements that the City ministerially permit accessory dwelling units and duplexes. Further, there are existing provisions in ORS 197.307(4) requiring that all residential development be reviewed under clear and objective standards. Staff notes that ORS 197.307(7) preserves the city's authority to impose approval standards for outright permitted housing, or "special conditions" upon approval of a "specific development proposal." In order to ensure that the impact of additional density from middle housing development is mitigated adequately, and to comply with the provisions of ORS 197.307(4), staff recommends the City establish clear and objective mitigation requirements to be applied in the review of all ministerial development applications. This would differ from the City's current minor development process, which requires a case-by-case, rough proportionality analysis for public improvements to mitigate the impacts of development. Clear and objective mitigation requirements necessarily will need to be prescriptive, such that they can apply to the full range of ministerial developments, including single-family dwellings and middle housing. They should also account for previous mitigation measures that may have been required at a given property to offset the impact of previous development proposals. 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 7 Due to the requirement in Division 46 that middle housing be subject to the same processes as single-family housing, under the recommended process change these clear and objective mitigation requirements would be newly-applicable to single-family dwellings (with credit given for mitigation previously given to offset the impact of the single-family dwelling). This represents a relatively significant shift in the way that single-family residential applications are processed internally at the City, but would not necessarily require that single-family dwellings provide more public improvements than would be required under the current process. Staff notes that the ability to impose clear and objective mitigation requirements at the ministerial level will allow for public improvements to be provided at a scale that is more "right- sized" to the level of development permissible under the larger-scale density increases than assumed when the lot was created for single-family development, and that is now required for middle housing implementation. Adopted mitigation requirements based on "rough proportionality" of development would then be known to developers prior to applying for permits, rather than being defined during the review process. Adopted standards for "default" development mitigations based on the level of development may also help present more certainty to the public with regards to what types of public improvements to expect for middle housing, because ministerial approval processes do not include public comment. This is consistent with previous direction provided by the Planning Commission and City Council not to pursue an infrastructure-based time extension request (IBTER) using the process available under Division 46. (As a reminder, the IBTER process developed by DLCD would only allow the City to delay middle housing implementation in a given area based on a lack of sufficient infrastructure if single-family housing development is prohibited in that area for the same reason.) Additionally, at their meeting on April 26, 2021, the Planning Commission concurred with the City Engineer's recommendation not to update Citywide infrastructure planning to accommodate middle housing, but instead to allow for middle housing development proposals to provide the infrastructure necessary to mitigate the proposal on an application-by-application basis. Staff notes that this approach is also consistent with the following direction from DLCD, from Attachment C: Ultimately, the rules are structured such that cities treat middle housing similar to other forms of development in terms of ensuring infrastructure is available, or can be made available, to serve its demand. Just like any other type of urban development, cities should work with developers of proposed middle housing to remedy infrastructure constraints as they arise. The rules do not however, allow cities to categorically remove infrastructure-constrained lands from the middle housing allowances (unless through the IBTER process prescribed in OAR 660-046-0300). The city may require developers of middle housing to provide reasonable and proportionate mitigation of localized infrastructure constraints like is required for any other development proposal. Staff also recommends that an alternative path be provided to the clear and objective mitigation standards, similar to the variance process, in the case that the applicant prefers to 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 8 undergo a discretionary review process to determine an appropriate level of mitigation for their proposal. EXPEDITED REVIEW OF MIDDLE HOUSING LAND DIVISIONS Senate Bill 458 Background In May of 2021, the Oregon legislature adopted Senate Bill 458 (or "SB 458") as a follow-up to HB 2001 in order to facilitate lot divisions for middle housing that enable units to be sold or owned individually (see Attachment D). As stated in Attachment E, "For any city or county subject to the requirements of House Bill 2001, Senate Bill 458 requires those jurisdictions to allow middle housing lot divisions for any HB 2001 middle housing type (duplexes, triplexes, quadplexes, townhouses, and cottage clusters)" built pursuant to the state's minimum requirements for middle housing (ORS 197.758). SB 458 only applies to land divisions permitted on or after June 30, 2022, which is the same date as the state's deadline for compliance with HB 2001. The bill requires that cities process middle housing land division applications using an "expedited land division" procedure, as long as the application includes a plan that: • Complies with applicable middle housing land use regulations and the Oregon Residential Specialty Code; • Provides separate utilities for each dwelling unit; • Provides "Easements necessary for utilities, pedestrian access, common use areas or shared building elements, dedicated driveways/parking, and dedicated common area"; and • Results in no more than one dwelling unit per each resulting lot or parcel. The bill is intended to facilitate land divisions for middle housing where the original or "parent" lot complies with applicable middle housing requirements, in order to make dwelling units in middle housing developments available for individual ownership without requiring condominium approvals. For example, if a lot containing a side by side duplex were divided using the process provided by SB 458, an expedited middle housing land division, each of the two duplex units with the land surrounding them could be purchased separately. This is primarily intended to address the difficulty of making middle housing units available for ownership currently, given that ownership models such as condominiums typically have additional costs associated with insurance and maintenance, including homeowners associations, as compared to dwellings on individual lots. Unlike other partition or subdivision processes contained within the City's code currently, land divisions to facilitate middle housing would not always accompany an increase in the density permitted on a given lot or parcel. Because HB 2001 requires that cities allow an increased number of dwelling units on parcels that meet minimum lot requirements regardless, land division applications are not necessary to develop middle housing with up to four units on parcels currently zoned for single-family residential use. 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 9 As outlined in Attachment E, cities will retain the ability to require or condition the following for middle housing land divisions: • Prohibition of further division of the resulting lots or parcels; • A notation in the final plat indicating approval was provided under SB 458 (later on, this will be the resultant ORS reference); • Street frontage improvements where a lot or parcel abuts a street (consistent with House Bill 2001); and • Right-of-way dedication, if the original parcel did not previously provide a dedication. However, cities are not allowed to apply approval criteria beyond those provided in SB 458 (Attachment C); this means that the City could not require additional driveways, vehicle access, parking, minimum or maximum street frontage, or other requirements inconsistent with HB 2001. Staff notes that, while SB 458 does limit the ability for cities to condition or require such elements, compliance with all applicable middle housing regulations—including those related to vehicular access, parking, frontage width, etc. —would still need to be demonstrated on the "parent" lot prior to a middle housing land division. SB 458 specifies that, in order for a middle housing proposal to be eligible for a land division, it must comply with all of the land use regulations applicable to the original lot or parcel allowed under ORS 197.758 (5) - including the full scope of administrative rules outlined in OAR Chapter 660, Division 046. Comparison to Existing Partition/Subdivision Processes As mentioned above, middle housing land divisions required pursuant to SB 458 must be subject to the "expedited land division" procedure defined in ORS 197.360 through 197.380. This process is similar to the City's existing partition and subdivision processes in some ways, but has some important distinguishing characteristics. The City and State law currently classify land divisions creating three or fewer parcels as "partitions", and land divisions creating more than three parcels as "subdivisions." Both partitions and subdivisions are land use processes that involve the "parent", or "master" lot and the newly created legal "child" lots from the parent lot. The child lots have full development rights. A "middle housing land division" pursuant to SB 458 would, by contrast, allow only for the creation of new lots within a legal "parent lot", or "master lot", solely for the purposes of expanding ownership opportunities. New lots created through the SB 458 "expedited middle housing land division" process would not be granted additional development rights, and must be maintained to meet the standards applicable to the parent/master lot. As described in Attachment F, the statutory expedited land division, first enacted in 1995, differs from the City's existing CDC-based minor development review process for partitions and subdivisions in several ways: 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 10 • Staff would have 21 days to determine if the application materials are complete; the City's non-expedited land use procedure provides a 30-day window. • The City would only need to notify neighbors within 100 feet of the property of the proposed land division; the City's non-expedited land use procedure typically requires that neighbors within a 300-foot radius be notified. o Staff notes that, as a Planning Department policy, the City endeavors to provide courtesy notice beyond the 100 ft. in the manner similar to the City's land use notice requirements. • Decisions are made at the staff-level after a public comment period, and no public hearings are permitted; this is different than our review process for non-expedited subdivisions, which could require a hearing at the Development Review Commission. • Decisions may not be appealed to the Development Review Commission or City Council; this is different than our review process for non-expedited partitions and subdivisions, which may be appealed to City Council. • Staff would have 63 days to decide whether to approve an application once it has been deemed complete; the City's non-expedited land use procedure provides 120 days for staff to issue a decision. • Following the staff decision, there would be a 14-day period to allow for an appeal to a the Council-appointed expedited land division "referee" (or "ELD Referee"); the City's non-expedited land use procedure provides a 14-day period to allow for an appeal to City Council, and an additional 21 days after the Council decision to allow for an appeal to the Oregon Land Use Board of Appeals (LUBA). o Appeals of expedited land division decisions made by the ELD Referee would go to the Oregon Court of Appeals, as opposed to LUBA. The Court of Appeals would then have a limited set of criteria to apply to a potential reversal or remanding of the ELD Referee's decision. See Attachment F for more information on the difference in appeals processes. Development Review Processes for Expedited Middle Housing Land Divisions As noted above, the Planning Commission and City Council have provided direction to comply with the state's middle housing requirements under the minimum compliance track. Consistent with City processes for other expedited land division applications (not related to middle housing), applicants must be given the choice to either utilize the expedited land division track or to "opt out" and instead utilize the typical, non-expedited land division process. Applicants that choose the expedited track would be subject to the expedited land division procedure defined in ORS 197.360 through 197.380, described above under Comparison to Existing Partition /Subdivision Processes. Under this process, expedited middle housing land divisions would still be subject to many of the same requirements as other minor development requests, such as a Pre-Application Conference, neighborhood meeting, mailed notice 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us Page 11 requirement, and a 14-day public comment period. This is the same process available to land divisions today that do not "opt out" of the expedited review process available under state statute. With respect to mitigation, the City will have conditioning authority to require public improvements for both expedited middle housing land division applications and typical, non- expedited land divisions (i.e. partitions and subdivisions). Once adopted, the recommended clear and objective mitigation standards would be applied in the review of land divisions, whether through the expedited middle housing land division review process or not. ATTACHMENTS (LINKS) A. Plan and Code Audit Summary, 5/6/2021, click here B. MHCAC Key Issues Summary Memo, 11/3/2021, click here C. House Bill 2001 FAQ, 8/16/2021 D. Enrolled Senate Bill 458, 5/17/2021 E. DLCD Senate Bill 458 Guidance, 7/8/2021 F. Deputy City Attorney Expedited Land Divisions Memo, 1/11/2022 To view these documents and other documents in the public records file, visit the Planning Project webpage: https://www.ci.oswego.or.us/house-bills-2001-and-2003 503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.ci.oswego.or.us HB 2001 Interpretation and Implementation FAQ Updated August 16, 2021 General Questions Q 1: How is model code applied, and does it pre-empt existing regulations for a jurisdiction? A: If a city is not in compliance, the model code does not necessarily apply in its entirety. If cities are out of compliance for a certain section (i.e., townhouses), the model code would not apply for other sections that are in compliance with Division 46(i.e., plexes). In this scenario, only the townhouse portion of the model code would preempt local codes. Q 2:What happens if a city misses the June 30, 2021/2022 deadline for middle housing codes by only a short time period because of public process requirements? Is model code effective during that time? A: Yes, model code becomes effective July 1, 2021/2022, unless the city has adopted and made effective its own Division 46-compliant code regulating middle housing. The Medium/Large City Model Code would be in effect until such time the city adopts and makes effective its own Division 46 code. Q 3: Can a city apply for a time extension if we are running up against issues in adoption by June? A:HB 2001 included an extension of the enactment of middle housing provisions only in the case of significant infrastructure deficiencies in water, transportation, storm water, and sewer systems. That is not for delaying the enactment of middle housing across entire city. It is for delaying the enactment of localized infrastructure deficiencies. For Medium Cities, the deadline for applying for such an extension was December 31, 2020. For Large Cities, the deadline for applying for such an extension was June 30, 2021. Q 4:Some cities have tree ordinance processes, especially tree preservation, which could clearly come into conflict with middle housing provisions. Do you suspect litigation around this provision? A:If a tree preservation provision applied equally to proposals to develop a single detached dwelling on a lot, then it would equally be applied to middle housing development on the lot, even if it meant a developer couldn't put middle housing development on-site. This is similar to a floodplain or natural resource protection, where development might be limited to a particular footprint. Q 5: Can you elaborate assumption of 3% increase in capacity and what that means? A:Section 5(6)(b)of HB 2001 was introduced by the Oregon Homebuilders Association. The statute applies to how cities can calculate the capacity of buildable land. A city may assume only 3%growth in middle housing as an increased efficiency measure to accommodate an identified housing need. A city only also assume a higher rate of middle housing growth if the city can produce a quantifiable justification. This provision is not related to how a city regulates the siting and design of middle housing and is more related to how cities conduct Buildable Lands Inventories and Housing Needs Analyses. PP 19-0008 ATTACHMENT C/PAGE 1 OF 27 Q 6: If our city adopted a middle housing code a few years ago, before HB 2001 rules were adopted, how can we contend we are compliant with HB 2001? A: While DLCD is not the final decision maker on whether a city is compliant with HB 2001 (the Land Use Board of Appeals or other court will ultimately settle compliance disputes), the department is more than happy to review and comment on city codes that were adopted prior to the HB 2001 rulemaking. Q 7:Are cities required to allow middle housing on small nonconforming lots of record? A:Cities must allow duplexes on every lot and parcel that allows for the development of a single family detached dwelling. For higher levels of middle housing, while the city must allow these housing types in zones that may have nonconforming lots of record, the city can still require that these housing types meet underlying siting standards such as minimum lot size, minimum lot width, building setback requirements, etc. to determine whether or not to approve a building permit. Q 8: Do we need to update comprehensive plan while updating regulatory changes to HB 2001? Does comp plan create consistency with regulatory changes to HB 2001? A:DLCD will not generally be reviewing amendments to local government comprehensive plans to respond to new state laws. The question of whether a city needs to update a comprehensive plan policy is different for each city. While it is advisable that cities go through the update process to conform to state law, the requirements, statutes, and Administrative Rules implementing HB 2001 take legal precedent over local government comprehensive plan policies. In a scenario where a local government has comprehensive plan policies that conflict with the purpose and intent of HB 2001, the rules found in OAR 660-046 will govern the allowance of middle housing. Q 9:When our city applies conditions to dwellings, it is normally through a Type II land division process. When regulating proposals on an existing lot, it is normally through a Type I process—site review, over the counter. Even with a more involved Type I process, a city is not able to write conditions. How we our city apply conditions and make the process for middle housing the same as single family detached? A: The intent of HB 2001 is to remove unreasonable cost and delay to the development of middle housing.Applying a more laborious or onerous review process to middle housing than is applied to single family dwellings, would be in conflict with that intent. Per OAR 660-046-0215, a city must apply the same approval process to middle housing as detached single family dwellings in the same zone. In relation to discretionary reviews for middle housing, ORS 197.307(4)requires that all residential development be reviewed under clear and objective standards.A city may also continue to provide a discretionary path option to applicants. Q 10: Do the requirements of HB 2001 apply to a residential zone that allows middle housing types as permitted outright, but single family detached are conditionally allowed? A:Zoning districts that are primarily residential in nature should not require a conditional use permit for single family detached or any other housing type. Per ORS 197.307(4), all residential PP 19-0008 ATTACHMENT C/PAGE 2 OF 27 developments must be reviewed using clear and objective standards. In this scenario, it is advised that the city first determine whether to 1)allow single family detached in that zoning district outright via a clear and objective path in compliance with ORS 197.307(4)or 2)not allow single family detached all together. If the city chooses option 1, the city must also allow middle housing in that zoning district pursuant to Division 46. If the zoning district in question is not primarily residential in nature, it is not subject to the requirements of HB 2001 or Division 46. Q11:We are a Medium City that only needs to comply with the duplex provision, but we are planning to allow other Middle Housing types as well. Considering that statute allows us to only assume up to a 3% increase in capacity, what is the percentage for this scenario? A: It's important to clarify that the three percent capacity assumption applies to all of the new measures adopted to increase the capacity of residential lands within a UGB, unless the jurisdiction provides a quantifiable validation that demonstrates a higher projected increase. In total, Middle Housing code amendments may result in up to a three percent increased capacity of lands within the UGB. In this particular case, the city may find that a three percent capacity assumption is not appropriate and may assume a higher rate as now allowed under ORS 197.296(6)(b) Q12:Are cities permitted to completely prohibit a middle housing type within a specific geographic area, or is it just lot size and density?As a city prepares findings, should they prepare justification why they approached the performance metric? A: The performance metric allows applying alternative minimum lot sizes and maximum densities than what is provided in Division 046. Because these standards are applied at the zoning district level, it is not a particularly useful tool in terms of designating specific geographies where Middle Housing is or is not permitted.Additionally, the performance metric approach requires that the city show that middle housing types allowances are equitably distributed within a Census Block Group.A city may be challenged to meet the criteria of the performance metric approach if the city were to selectively prohibit middle housing types from a specific location solely on the basis of its geography rather than the underlying minimum lot size or maximum density standards. There is no additional rationale necessary to pursue the performance metric approach. Q13: For building permits, can a jurisdiction continue to require additional application materials be submitted for housing types that include more than two units in a building? A: It depends whether we are discussing materials needed for a building permit or to fulfill land use standards.A building permit, with associated application materials, is primarily intended to review site plans and structures for compliance with building and structural codes. If the building permit submittal requirements are used to review the development proposal beyond regulations specific to building code and include land use standards, that wouldn't necessarily protect the standard from legal challenge. PP 19-0008 ATTACHMENT C/PAGE 3 OF 27 Participant Response: In regard to the question, are you wanting to use the building permit process to approve such things as landscaping?That is not a building permit standard. If it were something like sprinklers then that would be different. Applicability in Mixed-Use Zones Q 14: Does HB 2001 and Division 46 apply in Mixed-Use Zones? A: There are three criteria that need to be met for HB 2001 applicability:1)Residential Comprehensive Plan Designation (this includes both residential comprehensive plan designations and mixed-use comprehensive plan designations as they are both commercial and residential), 2) Primarily Residential Zoning Districts(based on purpose and allowed uses), and 3)allows single- family detached as a permitted use.As an example where HB 2001 would apply is a low-or medium-density residential zoning district that implements a mixed-use comprehensive plan district. Q 15: If a city has a mixed-use district that lists existing single family detached houses as permitted but does not allow any new ones, is that a zone where development of single family detached homes is allowed? Does HB2001 apply to those districts? A:No. Though single family detached homes may be allowed as a legal nonconforming use, the department does not expect cities to allow middle housing as an outright permitted use in these zones unless they so choose. The allowance of middle housing in these particular zones would not be subject to the standards of Division 46. Subdivision vs. Master Planned Community Q 16: How does a city adequately plan infrastructure in new subdivision areas where the subdivision does not meet the definition of a Master Planned Community as described in OAR 660-046-0020 and OAR 660-046-0205? A: This issue was considered as part of planning master planned communities, which allows middle housing types and provides jurisdictions with certainty for infrastructure planning (i.e., 15 units/acre or 20 units/acre within the Portland Metro region). While this doesn't apply to subdivisions, it at least provides guidance to cities on how to approach subdivision planning in relation to new middle housing allowances. At the subdivision stage, it is acceptable for a city to require a developer to identify the intended housing types for the purpose of infrastructure planning. It would be possible for a developer to apply for a building permit for a middle housing type after final plat, but the city retains the ability to require a demonstration that there is sufficient infrastructure to serve the proposed middle housing type. If there was not sufficient planned capacity from the subdivision process to accommodate the proposed middle housing type, the City retains the ability to require a developer to remedy the deficiency before issuing any building permits. Q 17: Can members of DLCD speak on CC&Rs? A:HB 2001 rules did not address existing CC&Rs head-on. Rules prohibit future CC&Rs that prohibit the development of middle housing, but did nothing to alter CC&Rs retroactively. DLCD PP 19-0008 ATTACHMENT C/PAGE 4 OF 27 and the state are not a party to private CC&Rs(nor are local governments). It would be a monumental task for cities to understand where CC&Rs exist, what they prescribe, and whether they are actually enforceable through private legal action by a party to those CC&Rs. For these reasons, DLCD recommends that local governments not consider CC&Rs when formulating zoning code provisions for middle housing, or for any other type of development for that matter. It is an open question as to whether the Oregon Legislature has the authority under the state or federal constitutions to render existing CC&Rs unenforceable, much less for LCDC to take such action through an administrative rule. Affordability Q 18: HB 2001 requires cities to write findings explaining how they have considered increasing the affordability of housing. A construction excise tax indirectly supports affordable housing. For other measures, as well, cities should consider how they apply to middle housing as a broader consideration, but not just do that in context of middle housing. It's not a requirement to adopt a construction excise tax,just a requirement to start the conversation about what adopting one might mean and creates context for a deeper dive as part of the Housing Production Strategy. Is that correct? A:Correct, cities should be thinking of affordability in a much broader sense, especially as they gear up to have conversations regarding their Housing Production Strategy that will develop a more comprehensive local approach to affordability. There is available guidance in administrative rule, OAR 660-008-0050, Exhibit B for cities to consider other approaches. DLCD encourages cities to be proactive in exploring these strategies. Q 19: How should a city prepare Middle Housing Affordability considerations and Goal 10 findings? A:Middle Housing Affordability Considerations House Bill 2001 requires local governments to consider ways to increase the affordability of middle housing, including considerations related to SDCs, property tax exemptions, and construction taxes. Sections 3, chapter 639, Oregon Laws 2019: (4) In adopting regulations or amending a comprehensive plan under this section, a local government shall consider ways to increase the affordability of middle housing by considering ordinances and 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(Definitions for ORS 307.515 to 307.523) to 307.523 (Time for filing application), 307.540(Definitions for ORS 307.540 to 307.548)to 307.548(Termination of exemption)or 307.651 (Definitions for ORS 307.651 to 307.687)to 307.687(Review of denial of application)or property tax freezes under ORS 308.450(Definitions for ORS 308.450 to 308.481)to 308.481 (Extending deadline for completion of rehabilitation project);and PP 19-0008 ATTACHMENT C/PAGE 5 OF 27 (c)Assessing a construction tax under ORS 320.192 (City or county ordinance or resolution to impose tax)and 320.195(Deposit of revenues). Please note that this is not a requirement to adopt these measures, but to consider them and directly address them within the findings. We advise that local governments use this opportunity to consider the myriad of policies that affect middle housing development. The policies outlined within the bill are specific to the subsidization of middle housing development and affordable housing generally. We also advise the consideration of other policies that affect the feasibility and affordability of housing options, such as the provision and finance of public facilities, incentives for regulated affordable housing development, incentives for the retention or conversion of existing affordable housing supply, and incentives and barriers within the development code. Starting these conversations will be helpful for local jurisdictions as they embark on their housing production strategy, a new planning requirement for cities above 10,000 implemented by House Bill 2003 (now ORS 197.290). This document will require cities to identify and develop an implementation schedule for strategies that promote the development of housing. Rulemaking for this new requirement included the compilation of a library of potential strategies local governments could consider as part of a housing production strategy. While this list is not exhaustive, it's a good place to start the conversation. You can access this document as an attachment on the Secretary of State webpage: <https://secure.sos.state.or.us/oard/view.action?ruleNumber=660-008-0050> Goal 10 Findings ORS 197.175(2)(a)requires cities and counties to prepare, adopt, amend and revise comprehensive plans in compliance with Oregon's statewide land use planning goals, including Goal 10. In any plan amendment or adoption of land use regulations, cities and counties must address via findings how the proposed plan amendments affect compliance with each applicable goal. In adopting land use regulations to comply with House Bill 2001, local jurisdictions will need to consider how these regulations will affect their compliance with Goal 10, including how it affects an adopted Buildable Lands Inventory(BLI)and Housing Needs Analysis(HNA), to ensure the sufficient availability of buildable lands to accommodate needed housing types identified in the HNA. House Bill 2001 will enable to development of housing types where they were previously prohibited, increasing the capacity of lands to accommodate identified housing need. However, local jurisdictions will still need to consider how these regulations impact capacity in greater depth. ORS 197.296(6)(b), as amended by House Bill 2001, allows jurisdictions to assume up to a three percent increase in zoned capacity, unless they demonstrate a quantifiable validation that the anticipated capacity will be greater. In developing Goal 10 findings, we recommend that local jurisdictions apply this assumption to the adopted buildable lands inventory.Additionally, we recognize that adopted inventories may be dated and the true development capacity may not be known at the time of adoption. In these cases, we recommend that jurisdictions note that PP 19-0008 ATTACHMENT C/PAGE 6 OF 27 they will further consider the impacts of middle housing ordinances on land capacity in the next Housing Needs Analysis, as required on a regular schedule by House Bill 2003. Goal Protections Q 20: How does a city treat lands subject to natural hazards? A:Cities are allowed to limit density and occupancy in areas subject to natural hazards (e.g., 100-yr.floodplain, landslide hazards) that increases risk to people and property.Areas subject to natural hazards must be inventoried and mapped, and the city should demonstrate in findings that middle housing development in these areas pose risk to people or property. Q 21: Does Goal 7 (Areas Subject to Natural Hazards) protection mean a city can regulate middle housing in these areas differently than they regulate single-family detached housing? A: Yes. Cities can limit housing here if it poses a risk to life and property. This is fairly discretionary and requires a reasonable argument outlined in the findings, as discussed previously. Q 22: How should cities approach standards for development in the FEMA 100-year floodplain? A: OAR 660-046-0010(3)(c)(A)allows local jurisdictions to limit use, density, and occupancy in Special Flood Hazard Areas(i.e. the 100-year floodplain as defined by FEMA). This would allow for restrictions to middle housing within these areas to limit risk to people and property. Q 23: Does Goal 15 (Willamette Greenway) mean that the city can only apply goal 15 clear and objective standards?Will city need to update Goal 15 standards in local code in order to comply? A: This goal reveals an underlying conflict between statute and Goal 15, because Goal 15 outlines a discretionary review process applied to development adjacent to the Willamette Greenway, but ORS 197.307 prevents the application of such a review to housing.Areas around Goal 15(Willamette Greenway) would be well-suited to middle housing, but DLCD understands there is a need for guidance on clear and objective standards which currently does not exist. DLCD hopes to have future guidance on the process using clear and objective standards. Staff recognize it would be unreasonable to fully update adopted Goal 15 code given its breadth and depth of scope in such a short time frame. Therefore, it is not the Department's expectation that cities amend these codes as part of middle housing updates. However, the rule leaves the door open for jurisdictions to consider doing so in the future. Q 24:There are a few scenarios in our city where a discretionary permit review process comes into play. One such scenario is when an applicant requests a discretionary review process that is available to them and the other scenario is when development is proposed in a historic district. ORS 227.173 states that when using a discretionary review process the resulting decision has to be consistent with the Comprehensive Plan. How does the city reconcile findings showing that approval is consistent with the Comprehensive Plan when the Comprehensive Plan includes a specified density limit? A: Regarding discretionary review processes in Goal 5 Historic Resource Areas, ORS 197.307(4) exempts historic preservation standards from the clear and objective requirements. For historic districts or resources, cities can apply discretionary review processes to middle housing but a city PP 19-0008 ATTACHMENT C/PAGE 7 OF 27 cannot deny an application on the fact that the development is middle housing, especially based on standards related to use, occupancy, and density. In terms of reconciling findings so they allow middle housing while also remaining consistent with Comprehensive Plan policies, state statutes, rules, and policies govern allowances for middle housing. Land use law typically favors the "particular overrides the general"arguments to determine which policies prevail in cases of conflict. Q25: Our city has a historic district(Goal 5)that does not see townhouses as compatible,though 2/3/4- plexes designed with a SFR volume would be compatible. Can we not allow townhouses in a historic district but allow all other missing middle? A:OAR 660-046-0010(3)(a)(B)disallows local jurisdictions from applying use, density, and occupancy restrictions that prohibit the development of Middle Housing while otherwise permitting the development of single-family detached dwellings in historic districts.A city would not be able prohibit a townhouse project in those areas solely on the basis of its housing type. However, cities are still permitted to apply historic design standards to townhouses, similar to any residential development in a historic district. Participant Comment:What would be the difference between a quadplex developed to look like row houses, and four attached townhouses? I understand the city's position, but a quadplex can look identical to townhouses, so it muddies the waters that we are going to have these different rules that have these housing types developed in a similar manner. Especially if the expedited land division bill (SB 458) allows the division of the quadplex, into essentially townhomes, after the fact. Participant Comment: In your response to Goal 5 historic resources, if a city applies the performance metric approach,they technically CAN exclude middle housing from historic districts, correct? Staff Response:As discussed in another question, the performance metric approach allows cities to establish alternative minimum lot sizes and maximum density standards, but it does not enable them to specify a geographic area where Middle Housing is excluded. OAR 660-046- 0010(3)(a)(B)states that "cities may not apply...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 dwellings."The OARs do not disallow cities from applying these standards, it only disallows cities from applying those standards that would functionally prohibit middle housing in those districts. Manufactured Dwellings as Middle Housing Q 26: Can cities prohibit manufactured ADUs?What about manufactured dwellings for detached duplexes? A: The relationship between manufactured dwellings and middle housing is still an open question. This is mostly because the statute for manufactured homes was written and adopted in a time where middle housing was not a consideration. In general, DLCD advice is to tread lightly PP 19-0008 ATTACHMENT C/PAGE 8 OF 27 in this regard. It is okay to regulate the siting and design of manufactured AD Us, but we would recommend against prohibiting manufactured ADUs to limit the potential for legal challenge. The same is true for detached duplexes;it is not yet clear whether manufactured homes must be permitted in a-plex configuration, provided that the development standards overall still allow for the development of manufactured homes per ORS 197.314. DLCD has not specified parameters around detached duplex regulations, as it is intended to provide jurisdictions options to increase flexibility of development, and the Department would not want to deter jurisdictions from this path. However, ORS 197.314 does not specify how many manufactured homes must be allowed on a lot(because this was previously assumed to be "one"). We recommend allowing manufactured configurations with appropriate siting and design regulations to prevent undesirable scenarios. Q 27: If a city allows manufactured housing or prefabricated units as cottage clusters, when does an application change from being a cottage cluster to being a manufactured home park? A: This distinction is unclear in statute at the moment. This is an example of inconsistencies in manufactured home statute because of the time the statute was written, which was decades in advance of middle housing statutes. It may be advisable to distinguish the two via some sort of partition or subdivision process that is unique to a manufactured dwelling park. Typically, manufactured homes in manufactured home parks have underlying land ownership models which could distinguish them as something other than middle housing. ORS 446.055 provides an exemption for between four and six manufactured dwellings to be sited on a lot without meeting requirements applicable to manufactured home parks. This may be an option for local jurisdictions to consider in the context of manufactured cottage cluster siting. Q 28: If manufactured dwelling parks were on their own lots that might be a trigger for cottage clusters. Can jurisdictions say that cottage clusters need to be on their own lot and a platted subdivision is required. Is this correct? A:In that case, yes, but that may change if H8 2283 (2021) or similar legislation becomes law. Parking/Access Q 29:Through model code can a city require alley-loaded parking for townhouses in order to save on- street parking and minimize curb cuts? A: Yes, there is an option in model code to provide alley-loaded parking for townhouses, but not a requirement. With OAR 660-046, a city cannot require any parking standard that isn't applied to single detached residence. So if a city requires alley-loaded parking for townhomes, it must also require alley-loaded parking for a single detached residence on the same lot or in the same district. Q 30: Regarding driveway cuts, especially for duplexes/triplexes, a lot of access standards can be somewhat discretionary. For duplexes, can a city only limit one curb cut for a duplex (same as single- family detached)? OR, does there have to be one curb cut/unit for each duplex/triplex/quadplex? PP 19-0008 ATTACHMENT C/PAGE 9 OF 27 A:For higher middle housing types, requiring access for each unit could be difficult to achieve and would be good to avoid.Another option would be to require combined driveways for two or more units, to limit curb cuts and retain on-street parking. Q 31:Can cities require separate access to duplexes, or does it need to be shared between units? A: The model code doesn't address this, but duplex standards can't be more restrictive than single family standards. The city could allow multiple driveways or separate access to duplexes but could not require it if they don't require multiple driveways for single family detached homes in the same zone. Q 32: If there is already existing minimum spacing standards between driveways, would that apply to townhouses that need front access?That would mean that every townhouse in every development would not have its own driveway. A: This creates a risk of appeal, because such a spacing standard could result in preclusion of townhouses, as they couldn't meet the same spacing standards that apply to a single-family dwelling. We would definitely steer cities away from this possibility, but that scenario could hypothetically happen, since not addressed directly by Division 046. One possible remedy is to apply driveway spacing standards but provide an exception to the standards to allow each lot at least one driveway. Another option would be to require combined driveways for two townhomes, to provide more spacing. Q 33:Alternatively, there are three standards in large city model code for driveway access to townhouses. Could a city not permit the third, which is front-loaded driveways?Could model code be modularly adopted? A: Yes, a city could pick parts of model code, and it could also be interspersed with Division 46 compliance. The Department recommends avoiding implementing standards that would be more restrictive than the Model Code, such as only permitting rear-loading alleys for townhouses(and precluding front-access townhouses)in an area where no alleys currently exist or could be designed as part of a larger land division. Q 34: Some cities are looking at a standard whereby narrow lots will have to be alley-loaded due to driveway width standards which will make it harder to do townhouse development. A:Some cities exempt development from driveway spacing requirements to ensure there is one driveway per lot. DLCD recommends cities do not adopt standards that would make development of middle housing more difficult. If a city required in the context of a larger subdivision the use of alley access, it would have to require such access for single detached unit development as well. These types of standards could open cities to legal challenges. Q 35:A city may allow required parking on-street, but have more heartburn over the fact that if they require the space, allow it, and parking space goes away, housing becomes non-conforming. As a result, cities are stuck with the choice to not require parking or will not allow on-street parking in order to not have parking space attached to a house. What are your thoughts on that? A: That is a good policy discussion on the local level. We would advise to include some provision in code written that specifying that the loss of on-street parking via a future action does not PP 19-0008 ATTACHMENT C/PAGE 10 OF 27 make the dwelling unit non-conforming. This shifts the responsibility to the city to consider on- street parking as they do street improvements. Q 36:Some jurisdictions actually require on-street parking in addition to off-street parking.They've been wondering whether they can apply those standards to middle housing. A: The rules don't mention on-street parking except as a possibility for jurisdictions to allow in lieu of off-street parking. If standards are a per-unit standard, it probably would not be permissible. One per lot or development may be permissible as a frontage standard, but generally, DLCD would not recommend requiring it, because it precludes options for flexibility, such as a narrower street width. Q 37: If we have to allow middle housing in the same manner as single family detached dwellings, what happens in an instances where single family detached was allowed with a hammerhead access aisle? Is allowing middle housing in that way okay, even if it will make it into a cul-de-sac? A:It's not an absolute right to develop middle housing. There are still underlying standards, such as fire and emergency access, which have to be met before middle housing development is permitted. This would also hold true for detached homes being converted to duplexes. Q 38: Can DLCD confirm that there is no exemption or special provisions in OAR 660-046 where a city could require additional off-street parking spaces for middle housing if there is no option for on-street parking? A: Yes, confirmed. One thing to note here is that these standards limit the requirement of off- street parking, but don't limit the developer from providing more parking if they so choose. Q 39:There's an OAR provision related to parking that applies to triplexes, quadplexes, and townhouses: "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." Does this include all driveway and access standards?Specifically,the approach grade standards. If a jurisdiction exempts single-family detached homes from certain approach grade requirements, do all triplexes/quadplexes and townhouses also need to be exempt? Or only middle housing that's created through conversion? A: Yes, cities should apply the same approach grade standards to middle housing as they do for single-family detached. Similarly, if the city allows and exemption from these standards for single-family detached, the same exemption should be extended to middle housing. While, the rules do not explicitly address approach grade standards, staff finds it reasonable to assume that these standards are included in the OAR as part of"surfacing, dimensional, landscaping, access, and circulation standards". Duplexes,Generally PP 19-0008 ATTACHMENT C/PAGE 11 OF 27 Q 40:What's the difference between an ADU and a detached duplex? Does city or developer get to define those units? A: Division 46 provides a simple set of definitions for jurisdictions that establish the minimum necessary definitional characteristics(i.e. number of units on lot). The Division 46 definitions also give an additional set of options for cities to define these housing types differently. For example, the Division 46 definition of a duplex is that the units are attached. The rules also allow a city to define a duplex as either attached or detached. ADU allowances may create scenarios where there is little parity between that and a duplex. In a scenario where a property owner is proposing a development that can meet both the definition of a duplex and the definition of an ADU, DLCD recommends that the city allow the property owner to declare which property type it should be reviewed as. Q 41: In Figure 3 and 4 of model code,there are examples of detached duplexes, but still show figures with breezeways and garage in-between. Is that really the intent? A:Figure 3 of the Medium Cities Model Code shows a duplex attached by a side-by-side garage wall. Figure 4 of the Medium Cities Model Code shows a duplex attached by a breezeway. Both of these figures meet the definition of an attached duplex. Figure 5 of the Medium Cities Model Code shows a detached configuration of duplexes that is an option cities can opt into. Q 42:Are there any parameters for what is considered detached? A:No. The Model Code and OARs focus more on defining what is attached, rather than detached. Q 43: Our city's current code only allows for attached duplexes. Does that meet intent of HB 2001? A: Yes. The minimum acceptable definition of a duplex is that it is in an attached configuration. How the city would like to define "attached"is up to the city. The Model Code provides a few examples of attached duplexes but a city is not required to allow all of those attached duplex examples.A Medium Cities can choose to allow duplexes in a detached configuration. Townhouses,Generally Q 44:Townhouses can only happen on every lot through a land division,which can be a barrier to middle housing. How does DLCD anticipate to address these barriers that may arise through land divisions in the future? [Recording Time Stamp:0:54:36] A:Currently, there are two policy directions that could lead to an increase in ownership opportunities for middle housing:1)requirements for local governments to allow land divisions of middle housing developments, and 2)condominium law reform for smaller projects. HB 2283 (2021)may be adopted in this legislative session, which requires local governments to allow land divisions for middle housing development. The definition of"townhomes"set forth in HB 2001 specifies that they are located on individual lots. A townhome-style development without a land division would be considered the equivalent of a "plex"development. Q 45: Requirement for frontage on a street would remain a barrier for fee-simple ownership for many middle housing types. Does the House Bill 2283 address that?[Recording Time Stamp:0:58:28] PP 19-0008 ATTACHMENT C/PAGE 12 OF 27 A:No, it does not. However, H8 2283 or similar legislation may address this issue. Cottage Clusters, Generally Q 46: In model code, the definition of cottage cluster states that a medium/large city may allow cottage cluster units to be located on a single lot/parcel or on individual lots/parcels. What does this mean for cities with how they allow for cottage clusters? Do they need to allow single lot or individual lot? Can it be one or the other? A:Cities can do any of the following. 1)Require cottage clusters allowed on single lot(only) OR 2)cottage clusters allowed on individual lot(only), OR 3)allow both single lot and individual lot cottage clusters. Q 47:What is the maximum number of cottages a city can regulate in a cluster? A: There is nothing in OARs that prohibits a city from putting a maximum number of cottages in a cottage cluster. The middle housing rules in OAR don't speak to a maximum number of cottage cluster as a way to provide maximum flexibility for developers to provide as many cottages as a site could bear, within the bounds of reasonable building permit approval criteria such as storm water mitigation, utility connections, and state building code. Q 48:According to OARs it seems like jurisdictions can have one unit/lot or infinite units/lot, but nothing in-between is possible. It would be helpful for a jurisdiction to know if they can limit clusters on a site. At what point is too much before becoming a small unit subdivision? A: The rule does not prohibit establishing an upper limit on the number of cottages on a lot. The requirement to allow at least eight units in a cluster means that there really is a floor to allow at least eight units within a cottage cluster, but a local jurisdiction may limit the upper threshold of how many units or clusters are allowed in a lot. Q49: Is there anything that prohibits cities from allowing attached cottages?Allowing attached cottage clusters would be more permissive than the minimum standards in Division 46, so it seems like these would be allowed. A: HB 2001 and Division 46 explicitly define a cottage cluster as a collection of detached cottages with smaller building footprints with a common courtyard. It is the only middle housing type that was defined with as much detail. The clear legislative intent is that these types of developments must be allowed.As the question suggests, a city may adopt standards that are more permissive than the rules. Under this logic, allowing attached cottage units is an acceptable outcome because it allows additional housing types and choices above and beyond what is allowed in Division 46. However, an attached cottage development, on its face, does not meet the underlying definition of a cottage cluster in H8 2001 and Division 46(i.e. building footprint is likely greater than 900 SF, are not detached). As such, DLCD encourages a city interested in allowing attached cottages to use a separate and unique definition for the housing type as to not conflate attached cottages with cottage clusters as defined in H8 2001 and Division 46. PP 19-0008 ATTACHMENT C/PAGE 13 OF 27 Q50:We have developers possibly interested in large cottages- like 900 sf footprint but 3 story.There is precedent here for a project like this. I believe we can, but can you confirm whether there is anything in the rules that would preclude us from defining the size of a cottage to be smaller than that? A:Cities retain the ability to set the height and unit size restriction under OAR 660-046-0220. If the city were to define these larger units as a cottage cluster, they must apply a building footprint maximum of less than 900 SF, however. The city could also define these larger units as something entirely different than cottage clusters (see response to Q15 above). Audience Follow up Question: Is Washington County looking to not allow cottage clusters to have them on individual lots at the outset. Participant Response: We are starting by allowing them on one lot, but we may look at individual lots in the future. Q51: Is the HB 2001 "vision" for cottage cluster about having them on the same lot? Or is the vision really aimed at having them on their own lots (ultimately)? I appreciate the background—the "cottage cluster" to be defined as a detached development,whether it's on its own lot or separate lots, but there are so many beautiful examples of cottage developments that don't fit that.This may be related to "redefining density" and how they are rethinking density—I would like to know more on this. A: House Bill 2001 did not specify how the underlying lots are regulated, which is why the OARS are drafted to allow either lot divisions or one lot. With the potential passage of SB 458, which would allow middle housing lot divisions, it could be interpreted as a follow up to enable them to be on their own lot. Q52:Why would you have to have a separate set of provisions for attached cottages? Cities can be more permissive than the rules, so why can't we just include attached as well as detached? Do we "have" to have separate provisions? A:First, see DLCD's recommendation provided in Q49. Second, DLCD does not intend to find a city out of compliance with the Division 46 standards if they define cottage clusters as both attached and detached unless there is no clear and explicit path to approval for a cottage cluster that meets the letter of the definition in Division 46: OAR 660-046-0020(2): "Cottage Cluster"means a grouping of no fewer than four detached dwelling units per acre with a footprint of less than 900 square feet each that includes a common courtyard. However, it should be noted that DLCD's judgment on this issue, while having some legal value, does not guarantee that LUBA or Oregon's appellate courts would uphold a local government code with more permissive cottage cluster code provision as conforming to OAR 660-046. Creation of a separate zoning category for"cottage cluster"units that,for example, exceed the 900 square foot footprint standard or include attached units would eliminate that legal uncertainty. Siting and Design Standards for Middle Housing PP 19-0008 ATTACHMENT C/PAGE 14 OF 27 Q 53:Can a main entry for each townhouse unit be required to face the street (a common requirement for other housing types) or would that be considered an alternative design standard? A: This type of design standards would be acceptable and wouldn't be considered an alternative design standard. The intent is to move from standards that scale by dwelling unit(which disproportionately impact a quadplex as compared to a single family detached dwelling), while still providing a path for jurisdictions that wanted to apply single family design standards to middle housing. DLCD recommends structuring design standards to focus on form, e.g. requiring main entryways that face the street for townhouses. Q 54: Can design standards ever be deemed to cause unreasonable cost or delay for middle housing? A:Division 46 doesn't define what unreasonable cost or delay is. It defines what it isn't. The standards that apply to single-family dwellings are generally much less restrictive than what is traditionally applied to middle housing types. If jurisdictions want to apply higher design standards to middle housing, their options include standards in the Model Code or standards that they demonstrate do not cause unreasonable cost or delay via the allowed Alternative Siting and Design Standards process established in OAR 660-046-0235. Q 55: For large cities, can duplex design standards fall under the provision of OAR 660-046-0225 "Large Cities Design Parameters" allowing the same parameters as other middle housing types? A:No. HB 2001 requires that a duplex be allowed on each lot or parcel that allows for the development of a single-family detached dwelling. Whichever standards a city applies to a detached single family dwelling represents the threshold that may be applied to a duplex in the same zone. Q 56: Cities cannot apply design standards to middle housing related to "Conversions."A city cannot apply design standards to middle housing that is converted from single family detached dwelling to middle housing. What about a triplex created by adding 2 detached units on a lot with an existing single family dwelling?Are those new units considered conversions of or additions to an existing single family dwelling to middle housing, and therefore, exempt from design standards? A: The provisions of OAR 660-046-0230 are primarily intended to provide incentives for the retention, rather than the demolition and replacement, of single-family detached dwellings in conjunction with middle housing. This policy is meant to preserve what is often called naturally- occurring affordable housing. If a property owner were to pursue converting or adding to an existing single family detached dwelling to create a middle housing structure, there may be instances where the existing structure will be out of compliance with middle housing siting and design standards—creating a non-conforming situation. This rule prohibits requiring those existing structures to conform to design standards.Additions to the existing structure, such as adding two detached units to the lot, would be subject to all applicable clear and objective design standards, so as to not increase the non-conformity of the lot beyond any non-conformity already created by the existing structure. Q 57:Cottage clusters created on a lot with an existing single-family dwelling-would cottage cluster development be exempt from design standards? PP 19-0008 ATTACHMENT C/PAGE 15 OF 27 A:Additional cottage units added to a lot with an existing single-family detached dwelling would not be exempt from applicable design standards. The intent is to incentivize the retention of existing dwellings, and to allow the construction of cottages around that. Cities could apply design standards to the remainder of the cluster, including common space provisions. Q 58:Could a standard require that each lot or parcel require an entry facing a street? A: Yes, because this is a form-based approach, and not one that scales with the number of units on a lot, it is allowed. Q 59:The siting and design standards in the model code and in OAR 660-046 are clear and objective standards. Alternatively, can a city provide a discretionary review path with additional siting or design standards? A: Yes, there must be a clear-and-objective path to regulate middle housing. However, there can also be a discretionary alternative path provided for middle housing consistent with ORS 197.307(6), which allows the applicant a choice between clear and objective standards and discretionary standards. Q 60: Our city requires a design review for single family detached homes. It appears that this may be in conflict with what is allowed in the Large Cities Model Code. If cities applied the same design review requirements to middle housing as were applied to single family detached,would they be in compliance? A:As a reminder, the Large Cities Model code is but one way of regulating middle housing. The Large Cities Model Code is a specific selection of standards to regulate middle housing that falls within the range of acceptable reasonable siting/design standards that are established in OAR 660-046. Large Cities are not required to adopt the Model Code design standards or processes. It is offered as a recommended path/guidance and also as an enforcement tool for cities who do not comply with HB 2001 and OAR 660-046 by the June 30, 2022 deadline. To directly answer the question posed above—yes, if a large city applies design review to single- family residences under siting and design criteria that are clear and objective then a city may apply the same standards to duplexes.A city has other options for applying design standards for other forms of middle housing that are set forth in the rules Q 61: Our city is moving towards adding design review standards for all types of housing. Is this acceptable under HB 2001 and Division 46? A: Yes. A city may adopt design standards for all types of housing, as long as those standards are clear and objective(in compliance with ORS 197.307). For middle housing, the city's design standards must comply with the adopted administrative rules in OAR 660-046. These rules generally require that duplexes be subject to the same standards as single-family detached dwellings, and that other forms of middle housing comply with the various standards set forth in the administrative rules. Q 62: For higher middle housing types,there appear to be two different paths for applying siting and design standards: 1) apply standards as outlined in Division 46 or 2) apply alternative siting and design standards as long as the city can provide findings that those standards do not cause unreasonable cost PP 19-0008 ATTACHMENT C/PAGE 16 OF 27 or delay. Our city allows alley access for single family detached. Can our city allow alley access for middle housing only through the Alternative Siting and Design process established in OAR 660-046-0235? A:For siting standards, the analysis of which standard caused unreasonable cost and delay was much more clear and straightforward than measuring the unreasonableness of a particular design standard. This is why the minimum compliance standards in Division 46 are much more defined for siting standards than they are for design standards. For siting standards, the minimum compliance standards clearly identify the range of reasonable middle housing standards (setbacks, building height, off-street parking, etc). In contrast, the minimum compliance standards do not outline specific reasonable design standards. Rather, Division 46 describes how "unreasonableness"is measured. Per OAR 660-046-0225, the city may apply design standards for middle housing (other than duplexes)in one of four ways: 1)apply design standards that are the same as the design standards in the Large Cities Model Code, 2)apply design standards that are less restrictive than the design standards in the Large Cities Model Code, 3)apply the same or less restrictive design standards the city applies to single family detached in the same zone, (note that these standards may not scale by the number of dwelling units. They may scale by form.)or 4)apply design standards approved through the Alternative Siting and Design Standards process as prescribed in OAR 660-046-0235. In the scenario described in this question, because the city allows access from an alley for single family detached homes, the city may also allow alley access for middle housing. The city would not need to provide findings through the Alternative Siting and Design Standards process because the standard in question is not more restrictive than what is applied to single family detached dwellings. Q 63:What options do cities have to differentiate development standards for cottage clusters in different zoning districts? How can a city create parity in development types in say higher density zones versus lower density zones? A: The options for parity between zones are somewhat limited for cottage clusters. One option is to allow a greater minimum number of cottages in a cottage cluster. OAR 660-046-0205(4)(d) allows a Large City to establish a minimum number of cottages in a cottage cluster at either three,four, or five. Other options include allowing more cottages around any single common courtyard, incentivizing smaller cottage units in higher density zones, or reducing off-street parking requirements in areas near transit. Additionally, a Large City may want to reconsider whether or not to allow single family detached homes in their higher density zones as that development type may not be congruent with the underlying intent of a high density zoning district. As a reminder, HB 2001 and OAR 660-046 only apply to zoning districts that are zoned for residential use and allow for the development of single family detached. If a high density zoning district does not allow single family detached then any standards a city applies to cottage clusters allowed in that zoning would not be subject to compliance with OAR 660-046. Q 64: Can our city apply a minimum lot width standard for middle housing that is larger than the current minimum lot width standard for single family detached dwellings in the same zone? PP 19-0008 ATTACHMENT C/PAGE 17 OF 27 A: The minimum compliance standards in OAR 660-046 contemplate the allowance of middle housing on lots of a particular square footage. The minimum compliance standards only consider minimum lot width in relation to cottage clusters because the development type does not lend itself to multistory construction. The department recommends cities do not require greater minimum lot widths for middle housing than what is required for single family detached in the same zone. However, a city may pursue applying a different minimum lot width standard through the OAR 660-046-0235 Alternative Siting and Design Standards process. Q 65:Can the department provide additional clarity on which standards are considered siting and design standards? For example, site access standards and solar setbacks and access standards. A:Per OAR 660-046-0020: "Siting Standard"means a standard related to the position, bulk, scale, or form of a structure or a standard that makes land suitable for development. Siting standards include, but are not limited to, standards that regulate perimeter setbacks, dimensions, bulk, scale, coverage, minimum and maximum parking requirements, utilities, and public facilities." "Design Standard means a standard related to the arrangement, orientation, materials, appearance, articulation, or aesthetic of features on a dwelling unit or accessory elements on a site. Design standards include, but are not limited to, standards that regulate entry and dwelling orientation,façade materials and appearance, window coverage, driveways, parking configuration, pedestrian access, screening, landscaping, and private, open, shared, community, or courtyard spaces." Under these definitions, both site access standards and solar access and setback standards would qualify as siting standards. However, Division 46 does not consider these two standards in the list of middle housing siting standards in OAR 660-046-0225. If a city applies these standards to single family detached homes, they may also apply these same or less restrictive standards to middle housing in the same zone. If a city were interested in applying siting standards such as these to only middle housing, the city must present findings in accordance with OAR 660-046- 0235,Alternative Siting and Design Standards, to show that they do not cause unreasonable cost and delay to the development of middle housing and that the standards achieve and advance a public need or interest proportional to the cumulative cost and delay imposed. Q 66: Can standards a city currently applies to single-family detached homes be considered "unreasonable"? Can these standards also be applied to middle housing? A:Standards currently applied to single family detached homes are not inherently unreasonable as long as they are clear and objective in compliance with ORS 197.307(4). For the purposes of applying standards to middle housing, the "unreasonableness"of a particular standard is the difference in cost and delay incurred by middle housing as compared to the cost and delay incurred by single family detached homes in the same zone. For example, a 50'rear yard standard on small, infill lots may not particularly incentivize the development of any type of residential development(single family detached, middle housing, or PP 19-0008 ATTACHMENT C/PAGE 18 OF 27 otherwise). But if the city applies that same standard across all housing types in the same zone, the standard is no more "unreasonable"for middle housing than it is for single family detached. It should also be noted that ORS 197.304(4)(b)states that cities apply standards that do not have the effect, either in themselves or cumulatively, of discouraging needed housing through unreasonable cost or delay. So it is possible that even in the scenario outlined above, a property owner could challenge the city's 50'rear yard setback as unreasonable for all needed housing, not just for middle housing. Sufficient Infrastructure Q 67:When planning for infrastructure at-large, can we assume a 3% increase for housing and infrastructure for both medium and large cities? A: Yes,for any measure to increase residential capacity in the UGB, you can assume up to a 3% increase in housing. It is okay to use this same assumption for infrastructure planning. Q 68:What are DLCD's thoughts on sufficient infrastructure language around middle housing other than duplexes? May be onerous for individual property owners to be required to provide these analyses. A:Infrastructure was a big consideration during rulemaking. Ultimately, the rules are structured such that cities treat middle housing similar to other forms of development in terms of ensuring infrastructure is available, or can be made available, to serve its demand.Just like any other type of urban development, cities should work with developers of proposed middle housing to remedy infrastructure constraints as they arise. The rules do not however, allow cities to categorically remove infrastructure-constrained lands from the middle housing allowances(unless through the IBTER process prescribed in OAR 660-046-0300). The city may require developers of middle housing to provide reasonable and proportionate mitigation of localized infrastructure constraints like is required for any other development proposal. Q 69:A city must plan infrastructure capacity to accommodate densities at 15 (outside of Portland Metro) and 20 (inside of Portland Metro) units/acre in new master planned communities. Can conditions of approval that limit density run afoul of rules, and do you have any advice of how consultants can approach this problem? A:Before the subdivision stage for master planned communities, cities have to have discuss this issue with developers. Once lots are platted, there is possibility for a developer to increase density, but city can still retain the right to only plan for smaller infrastructure capacity if a higher density triggers an infrastructure constraint. Q 70:According to model code, how do cities both review sufficient infrastructure, but yet not review and not require review of any applicant? How is an individual property owner supposed to evaluate the infrastructure capacity? A: There is a process that can happen from subdivision>building permit stage. It is great for developers to specify what type of housing they will be developing, understanding it is not binding. PP 19-0008 ATTACHMENT C/PAGE 19 OF 27 Analysis of sufficient infrastructure is inherent in that review process, which often involves local government engineers and public works departments. The calculation for differential in capacity is still there. We are not adding additional processes, but reinforcing already-embedded processes. Q 71: How do we square our system development funding methodologies with the capacity assumptions we're being required to make? How do we make sure we don't overcharge/undercharge and ensure we can deliver the infrastructure system? A: This would have to be a conversation between developer, city, and subdivider/future builder to better understand what types of development will actually be built in the initial phase. Future planning and increased capacity need to accommodate demand is also an important part of this conversation. Q 72: How about establishing future SDC rates for future infrastructure?Would you divide the cost between #of units you realistically anticipate to show up, or an ambitious#of units you hope develops in the future? A:A per-unit basis for SDCs encourages infrastructure-inefficient and less affordable land uses. Density increasingly does not correlate with actual intensity of infrastructure usage. In the long- term, the state may need to re-think how local governments approach SDCs, and public facilities financing for housing, which will require consideration of applicable rules/statutes for SDC collection. In the short-term, DLCD encourages local governments to consider charging differential SDCs for different types and sizes of dwelling units depending upon the relative impacts of such units upon public facilities systems(such as through the findings and analyses of these issues required by HB 2001). However, DLCD recognizes that the intent of HB 2001 was not to require jurisdictions to change SDC calculations. Middle housing development will complicate the collection and use of SDCs. SDCs are used to pay for larger city-wide or area improvements to transportation, water, sewer,storm drainage, and parks facilities. Provision of additional dwelling units beyond the traditional "one unit per lot" calculation will increase the need and cost of many such facilities. However, the city will also be collecting additional SDCs from the additional units beyond what was initially expected. Local governments will need to sort out these complications in their planning for public facilities. The rulemaking process concluded with adoption of rules for master planned communities, but with request of staff by commission to do a study if 15 or 20 units/acre are the right numbers by December, 2021. This study will inform the appropriate thresholds for master planned communities and may inform future approaches to public facilities financing. Q 73:Are exemptions to public works standards granted to single family homes that may not also be granted to middle housing. A: The rules require those same exemptions to be granted to duplex development, but not for higher level middle housing. Non-Conforming Lots of Record PP 19-0008 ATTACHMENT C/PAGE 20 OF 27 Q 74: Regarding whether cities are required to allow Middle Housing on small non-conforming lots of records. Certainly duplexes must be allowed on these lots, but are cities required to allow higher middle housing types on non-conforming lots of record that do not meet the minimum lot size requirements for the housing type? A: There is not an expectation that cities permit higher level middle housing on non-conforming lots of record especially those that do not meet the underlying minimum lot size requirements. Q 75: Further clarifying-can a city prohibit certain higher middle housing types based on the lot size, or that it wouldn't be allowed on certain sized lots based on the siting standards? A:Lot size is a siting standard under OAR 660-046-0220. The standard in OAR allows a city to establish certain minimum lot size requirements for higher level middle housing. If a property owner proposes a triplex on a small nonconforming lot of record that does not achieve the minimum lot size requirement for triplexes in the zone, the rules would allow the city to expected to permit the development require that a lot be of a certain size before so the answer would be 'yes'to both. Q 76: I'd like to ask a follow up question to this question and response: Q 28: Do the requirements of HB 2001 apply to a residential zone that allows middle housing types as permitted outright, but single family detached are conditionally allowed? A: Zoning districts that are primarily residential in nature should not require a conditional use permit for single family detached or any other housing type. Per ORS 197.307(4), all residential developments must be reviewed using clear and objective standards. In this scenario, it is advised that the city first determine whether to 1) allow single family detached in that zoning district outright via a clear and objective path in compliance with ORS 197.307(4) or 2) not allow single family detached all together. If the city chooses option 1, the city must also allow middle housing in that zoning district pursuant to Division 46. If the zoning district in question is not primarily residential in nature, it is not subject to the requirements of HB 2001 or Division 46. A:Correct. ORS 197.307 was amended such that clear and objective requirements apply more broadly to "housing', rather than just "needed housing". DLCD is working through the specific interpretation considerations, including zones that allow less desirable use types through a non- clear and objective process(e.g. single family in a high density zone). Gentrification/Displacement Q 77: One of the issues the city has run into is whether Middle Housing allowances lead to displacement in lower-income neighborhoods. Does DLCD staff have guidance to offer on this issue?The effect of adding more housing supply offsets local displacement, but what about situations where the areas where middle housing is functionally allowed are predominately lower income, because higher-income areas have existing CC&Rs that preclude redevelopment. A: This was a significant conversation during the rulemaking process, specifically the "in areas" conversation. Ultimately, the rulemaking process did not go the route of exempting areas from middle housing over fears of displacement. The rationale is that by allowing middle housing in all areas, the associated benefit of increased housing supply offsets the potential displacement risk. PP 19-0008 ATTACHMENT C/PAGE 21 OF 27 Additionally, gentrification and displacement must be addressed as part of comprehensive long- term strategies identified in the housing production strategy(HPS). The department is currently preparing two case studies and a toolkit on gentrification and ant-displacement to provide guidance for cities on how to consider gentrification and displacement in light of an HPS. This guidance will be available in late summer 2021. Middle Housing Conversions Q78: Per OAR 660-046-0225(2), cities cannot apply design standards to middle housing created through conversion of existing SFDs. However, if an overlay zone's existing design standards apply even to single- family remodels would it be ok to apply the design standards to middle housing conversions under the existing remodel language? A: The intent of OAR 660-046-0225(2)is to incentivize the retention and conversion of existing housing over demolition and redevelopment. OAR 660-046-0230 requires cities to allow additions to or conversions of existing single-family dwellings into Middle Housing, provided that it does not increase nonconformance with applicable clear and objective standards(unless otherwise allowed by the City's code). Therefore, a City would be permitted to apply design standards to the portion of a conversion that would increase nonconformance with applicable design standards(e.g. new building facade, entrances, etc.), but not the portions that would not increase nonconformance (e.g. existing façade, entrances, etc.). Q79: On the conversion of a single-family detached dwelling to Middle Housing—is there a difference between duplexes and tri-or quadplexes? A:Similar to tri-and quadplexes, duplex conversions must be allowed if the conversion does not increase nonconformance with applicable clear and objective standards. Duplexes do not have the same restriction on design standards applied to conversions outlined in OAR 660-046- 0225(2), so cities may apply the same design standards to a duplex conversion that would apply to a single-family detached conversion or remodel. Q80: Regarding middle housing conversion standards in OAR 660-46-0230(1), can a city prohibit the conversion of a single family detached home to middle housing (triplexes and quads) if the subject lot doesn't meet the minimum lot size? A: Yes. Conversions of single family detached homes to middle housing should not increase the nonconformity of the development to current code standards. Cities cannot require a conversion of a single family detached homes to middle housing comply with specific design standards. SB 458 Senate Bill 458 requires cities to allow lot divisions for Middle Housing.This bill has passed and has been signed by the Governor. - The bill requires cities to allow middle housing lot divisions for any HB 2001 middle housing type built in accordance with ORS 197.758.A city must allow middle housing lot divisions to be permitted on or after June 30, 2022. - A tentative plan for a middle housing division must include certain things including: PP 19-0008 ATTACHMENT C/PAGE 22 OF 27 o Separate utilities o Easements necessary for utilities, pedestrian access, common use areas or shared building elements, dedicated driveways/parking, and dedicated common area o One dwelling unit per each resulting lot or parcel (except common areas) o Demonstration that the buildings will meet structural code - Cities retain the ability to require or condition certain things, including further division limitations, street frontage improvements, right-of-way dedication (if original parcel did not). They may not require driveway,vehicle access, parking, or min/max street frontage for each lot, or things inconsistent with HB 2001 (including Division 046). Nothing in SB 458 prohibits cities from requiring final plat approval of the lots before approving building permits. Q81: If a jurisdiction wants to incorporate lot division standards now, we would be more lenient than state law in that regard. I am assuming that is okay, but I want to know how that coincides with the department's position with regard to attached cottage clusters. A:A local jurisdiction may incorporate lot division standards for Middle Housing before June 30, 2022. On attached cottage clusters-the department will not object if you have a more lenient position than what is provided in state law, but in speaking with the DOJ, the cottage cluster provisions have two elements that are specified in the definition in statute—that the units are detached and that the building footprints are less than 900 square feet.A city opens themselves to legal ambiguity and challenge adopting a different definition for cottage clusters, which would be easily solved if they had a second category that allowed attached cottage cluster configurations (e.g. "cluster housing"). Q82: On the timing of SB 458—if it applies to housing built after June 30, 2022—Does that mean that cities implementing code should incorporate these standards before the deadline? A:An important point of clarification-SB 458 and the expedited land division process only applies to middle housing lot division that are permitted on or after June 30, 2022. The bill does not specify if the middle housing development must be permitted on or after June 30, 2022. On planning assistance—DLCD will consider jurisdictions that want to incorporate middle housing lot divisions as part of their planning assistance request. However, DLCD's top priority will be funding projects that complete code amendments required to comply with House Bill 2001 (ORS 197.758)and OAR Chapter 660, Division 046. Q83: On SB 458, you mentioned requiring street frontage improvements. We are trying to figure this out for both HB 2001 and this new type of subdivision. If we have to go to a Type I for approval of these, we don't have the ability to do anything discretionary. A: The public works standards, middle housing, and middle housing land divisions intersection will be one that will take some time to think through. SB 458 is fairly prescriptive as to the process by which Middle Housing lot division may happen via the expedited land division process. Please see the guidance document DLCD has prepared and attached to this document for more details on this topic. Q84: Do land divisions required in SB 458 impact the definitions of Middle Housing types, specifically between plexes (i.e. multiple units on one lot or parcel) and townhouses (i.e. attached units on individual lots or parcels). PP 19-0008 ATTACHMENT C/PAGE 23 OF 27 A:SB 458 does not inherently change the definitions of Division 046. Section 2(5)of SB 458 specifies: "The type of middle housing developed on the original parcel is not altered by a middle housing land division." Participant Comment: The definitions in Division 046 do change though, since the definition of a quadplex for example is "four units on a single lot or parcel,"and that won't be true after the middle housing land division. LOC: To provide LOC perspective-the intent on definitions is that a developer will have choice on how to move forward with what type of middle housing development they apply for. If you are applying for a fourplex with four lots, that is what it will be when you apply for a land division and you will have ability to denote this in the record(i.e. those lots cannot cascade into more lot divisions). Q85: Does SB 458 apply to townhomes? A:SB 458 applies to all Middle Housing types allowed under ORS 197.758(2)and(3). This includes townhouses. However, this may be moot as townhouses need to undergo the lot division process as part of the development review process. Participant Comment: However, if a developer chooses to call a townhouse development a plex with a middle housing land division to avoid minimum lot width requirements etc. Staff Response:SB 458 expressly prohibits the application of minimum street frontage requirements as part of the land division process. Planners will need to think carefully about the underlying economic incentives at play. Please see the guidance document DLCD has prepared and attached to this document for more details on this topic. Q86: It would be good for DLCD to think through more the idea that SB 458 applies to townhouses. There are some big implications-again particularly for frontage improvements.With SB 458, every plex will become townhouses, but without the broader land division requirements. A: Please see the guidance document DLCD has prepared and attached to this document for more details on this topic. Participant Comment: It's also interesting to think through whether SB 458 incentivizes side-by- side plexes, leading to multistory construction, with implications for accessibility. Q87:SB 458 seems to require cities to process Middle Housing lot divisions through the Expedited Land Division process in ORS 197.360. Will guidance be provided on this? A: Please see the guidance document DLCD has prepared and attached to this document for more details on this topic. Q88: Some cities want to provide an option for some units to be divided, which is possible under a standard division, but not under an SB 458 land division. A: It is correct that SB 458 requires each unit to be on its own lot, though it may be possible for a jurisdiction to establish an alternative path that allows the lot division configuration described, provided that an SB 458 lot division pathway is available. PP 19-0008 ATTACHMENT C/PAGE 24 OF 27 Q89: On SB 458, and the overlap between detached duplexes and single-family dwellings with a detached ADU. If someone has one, can they call it a duplex and put it on a separate lot. A:If something was approved in the City's records as an ADU, SB 458 would not apply as it only applies to Middle Housing as defined in ORS 197.758 and OAR 660-046. Q90: On the notion of city's adopting middle housing lot divisions for existing middle housing.The way I understand it is we would have to create a different process to do this, because the expedited land division process comes with some protections. A: This appears to be the case—previously existing developments wouldn't necessarily qualify under SB 458 and any potential lot division of that development would not be entitled to the expedited land division process. It may be possible for an existing Middle Housing development to demonstrate substantial compliance with HB 2001, which would qualify it for a lot division under SB 458, but this would be an unlikely scenario. Q91: Regarding SB 458,the bill limits conditions of approval for a land division. How can a jurisdiction condition and require street frontage improvements? Can they withhold final plat? Occupancy? Logistically, how do you see that working? **As a reminder, DLCD's SB 458 guidance was sent out the week prior to this meeting. Feel free to reach out if you haven't received it. It is also posted on the DLCD HB 2001 webpage.** A: The street frontage timing scheme is still being figured out. DLCD has included a more detailed analysis of the street frontage aspect of SB 458 and for middle housing allowances as an attachment to this written response document. In short, the options for land division platting can happen both before, at the same time, or after building permits. Nothing in SB 458 prohibits final plat before building permits are approved. Each city can determine how to structure the timing to make the most sense for their process. Q92: Does an applicant need to build a middle housing type before it is eligible for a land division under SB 458? A:No. The middle housing land division process can also take place concurrent to, or before, building permit approval. Q93: There is a requirement that we apply the same procedural process for middle housing as we do for single family detached. When someone proposes to create a lot for a single-family detached development the land division is completed as part of the platting process. Under the requirements in OAR, someone who proposes to build middle housing on a lot will be reviewed through the signle family detached requirements (i.e., plan check). But the single family detached plan check process doesn't line up with multi-family development. Has there been any further thought on this process? Can someone go back for a land division on lot that created a single family detached house? A:SB 458 only applies to land divisions that will create lots for middle housing development. It does not apply to single family detached related land divisions. Also, the process of reviewing the middle housing development proposal is separate and distinct from reviewing an application for a middle housing land division. It is correct to state that if no land division is proposed, a city is PP 19-0008 ATTACHMENT C/PAGE 25 OF 27 required to apply the same zoning and planning review process to both single family detached and middle housing, whether plan check or otherwise. If a property owner proposes to divide a parent parcel to prepare for middle housing development, the city must use the expedited land division process to review the land division proposal. Still, the planning and zoning review of the actual development most be the same process applied to single family detached. SB 458 allows a local government to require final platting before approving building permits. Q94:To do frontage improvements, the city needs to apply a Type I or II process.You can't just do it with a building permit.Also, for middle housing, treating middle housing the same as single-family might prohibit the planning process because there is none yet. A: The infrastructure guidance provided as an attachment to this document responds to this question in part. Cities that offer public works exemptions to single-family detached developments are required to offer those same exemptions to duplexes. For other middle housing types developed in a non- land division scenario, the city can require that the applicant provide or ensure that there exists "sufficient infrastructure"to support the development. DLCD encourages cities to provide the same public works exemptions offered to infill single-family detached development to infill middle housing development especially if those exemptions are based on factors such as infrastructure impact, square footage,project valuation, rather than the number of units on a lot. If the city requires single-family detached developments to provide frontage improvements in a non-land division scenario, the city is free to utilize this same process for middle housing developments. If an applicant were proposing a middle housing land division, the city could require street frontage improvements as allowed in SB 458. Q95: Is there a way to incorporate an early assistance/pre-application process to work with applicant for middle housing, prior to building permits coming in? A: Yes, DLCD would encourage this, especially if requiring frontage improvements. Q96: In SB 458, does the term "original lot or parcel" refer to the lot or parcel that is being proposed to be divided as a middle housing land division?We ask because the wording of the bill is unclear as to whether the resultant lots or parcels create increases in nonconformity with the original approval. We are trying to determine whether it is necessary to create clear distinctions between the "original" lot and the resultant middle housing lots. A: The term does refer to the lot proposed to be divided for a middle housing land division, not the resultant lots. We agree that the wording of the bill creates a challenge in terms of the distinction between the "original"and "resultant"lots or parcels. Certainly, the middle housing lot division would create nonconformities with standards such as minimum lot size, setbacks, and lot coverage, as they cannot be applied as approval criteria under SB 458. However, we think there are a few approaches a local jurisdiction could consider to make this relationship clearer and avoid inconsistencies, including specifying "parent/original"and"child/resultant"lots or through notation of SB 458 lot divisions in the final plat. PP 19-0008 ATTACHMENT C/PAGE 26 OF 27 Q97: How many jurisdictions are considering amending their codes to incorporate SB 458 versus just referencing the amended ORS?We debated whether to include a reference, but through discussion,we think it would be better to incorporate it into the code. Chat Discussion: Washington County and Eugene will incorporate SB 458 into their lot division code. Chat Discussion:Are any other local governments talking to the county surveyors about what these plats will look like(i.e. parcel naming, etc)?[There were no specific responses to this question] Q98: Senate Bill 458 lists two conditions of approval that cities may add as conditions of approval, including prohibiting further division of resulting lots and requiring notation on the final plat. Are those the only conditions of approval that cities can apply, or are other conditions allowable as long as they don't violate other aspects of SB 458? A: Cities are permitted to apply conditions of approval to satisfy approval criteria related to the SB 458 land division but would not be permitted to functionally apply approval criteria not permitted under SB 458. Follow-up: If State law or County survey rules prohibit placing administrative notation on final plat, what are options for implementing SB 458 condition related to notation on final plat? A: Notation of a SB 458 land division is an option, not a requirement. Q99: If we allow shared laterals for duplexes, does SB 458 allow us to require separate laterals? A: Yes, the bill requires separate utilities for each lot to be eligible for a middle housing land division. Q100: On the frontage improvement question, we've begun getting questions from developers. A: DLCD has published guidance on the confluence of middle housing, SB 458, and frontage improvements in conjunction with the July 2021 Open Forum written responses. Cities that have specific questions not addressed in that guidance should reach out their Regional Representative or DLCD Housing staff. PP 19-0008 ATTACHMENT C/PAGE 27 OF 27 AGENDA ITEM 4 SEPTEMBER 23-24, 2021-LCDC MEETING ATTACHMENT A Senate Bill 458 Guidance (Updated July 8, 2021) Background Senate Bill 458 was adopted by the Oregon Legislature in 2021. The bill is a follow-up to House Bill 2001 - the bill that legalizes middle housing in many cities throughout the state - and allows lot divisions for middle housing that enable them to be sold or owned individually. Senate Bill 458 Summary For any city or county subject to the requirements of House Bill 2001, Senate Bill 458 requires those jurisdictions to allow middle housing lot divisions for any HB 2001 middle housing type (duplexes, triplexes, quadplexes, townhouses, and cottage clusters) built in accordance with ORS 197.758. Senate Bill 458 only applies to middle housing land divisions permitted on or after June 30, 2022. The bill sets forth a series of parameters on how a city must process middle housing lot division applications. The city must apply an "expedited land division" process defined in ORS 197.360 through 197.380, and the applicant must submit a tentative plan for the division including the following: - A proposal for development of middle housing in compliance with the Oregon residential specialty code and applicable middle housing land use regulations, - Separate utilities for each dwelling unit, - Easements necessary for utilities, pedestrian access, common use areas or shared building elements, dedicated driveways/parking, and dedicated common area, - One dwelling unit per each resulting lot or parcel (except common areas), and - Demonstration that the buildings will meet the Oregon residential specialty code. Additionally, cities retain the ability to require or condition certain things, including further division limitations, street frontage improvements, and right-of-way dedication if the original parcel did not make such dedications. They may not subject applications to approval criteria outside of what is provided in the bill, including that a lot or parcel require driveways, vehicle access, parking, or min/max street frontage, or requirements inconsistent with House Bill 2001, including OAR Chapter 660, Division 046. Guidance DLCD staff have received a significant number of questions regarding Senate Bill 458 and how cities or counties can best prepare to comply with the law. Below are answers to commonly asked questions. If you find that you have a question that has not been addressed in this document, please reach out to the Housing Team at housinq.dlcd(@_dlcd.oregon.gov. SB 458 Deadline Question: This bill applies to middle housing lot divisions permitted on or after June 30, 2022. Will cities or counties need to incorporate these standards before this deadline? PP 19-0008 ATTACHMENT D/PAGE 1 OF 5 Answer: It is highly advisable, but not required, for cities or counties to incorporate middle housing lot division standards into their development codes. On the June 30, 2022 deadline, a city or county that has not incorporated lot division standards within their development codes would utilize the bill language directly to process middle housing lot divisions under SB 458. Question: Medium cities need to allow duplexes on lots/parcels that allow single-family detached dwellings by June 30, 2021 (i.e. this year). Are duplexes built between this deadline and the SB 458 deadline eligible for a middle housing lot division? Answer:A duplex built pursuant to ORS 197.758 (i.e. House Bill 2001) during this time period would be eligible to apply for a middle housing land division under SB 458 on June 30, 2022, provided it met the applicable requirements outlined in the bill. Question: Do cities or counties need to allow lot divisions for middle housing built prior to House Bill 2001? Answer: SB 458 requires a middle housing lot division application submit: "A proposal for development of middle housing in compliance with the Oregon residential specialty code and land use regulations applicable to the original lot or parcel allowed under ORS 197.758 (5)". This means that any lot division proposal will need to demonstrate compliance with both applicable building code and HB 2001 middle housing code in order to be eligible for a lot division under SB 458. There is a potential hypothetical scenario in which a pre-HB 2001 middle-housing type could make this demonstration, but 1.) this is an unlikely scenario and 2.) a jurisdiction retains the ability to require the applicant demonstrate the middle housing type complies with applicable building code and middle housing code before approving a middle housing lot division proposal. Applicability, Application Process, and Submittal Requirements Question: What middle housing types are eligible for division under SB 458? Answer: The bill specifies any lot or parcel that allows middle housing under ORS 197.758 (2) or(3) qualifies for a middle housing land division under SB 458. This includes duplexes, triplexes, quadplexes, townhouses, and cottage clusters in applicable cities and unincorporated, urban portions of Metro counties. Accessory dwelling units are not eligible for lot division under SB 458. Question: SB 458 requires cities or counties to apply the expedited land division process. What is this? Answer: The expedited land division process is outlined in ORS 197.360 to 197.380. It is an alternative procedure application intended to streamline the review of land divisions under state law. While typical land use applications must be completed within 120 days (ORS 227.178), an expedited land division must be processed within 63 days or extended by the governing body of a local jurisdiction (not to exceed 120 days). Question: The expedited land division process under ORS 197.360(1)(b) seems to only include divisions of three or fewer parcels. Does this mean that a middle housing land division is limited to three total parcels? PP 19-0008 ATTACHMENT D/PAGE 2 OF 5 Answer: No. First, ORS 197.360(1)(a) allows an expedited land division to be any size, while ORS 197.360(1)(b) clarifies that the expedited land division process is also extended to divisions of three or fewer parcels. Additionally, SB 458 requires that local jurisdictions apply the expedited land division procedure outlined in ORS 197.360 to 197.380, a "middle housing land division"is distinct from an "expedited land division"and may contain more than three parcels, provided that each resultant lot or parcel contains one unit. Question: Can a city or county apply a typical land division process to a middle housing land division application? Answer: SB 458 specifies that a city or county "shall apply the procedures under ORS 197.360 to 197.380". This means that a city or county cannot require a middle housing land division to undergo a standard land division pathway. Question: This bill seems to suggest that the jurisdiction must approve an application for middle housing land division after or concurrent with the issuance of a building permit, which is backwards in comparison to typical subdivisions. Can you clarify when an applicant may submit an application for a middle housing lot division? Answer: Senate Bill 458 does not state that a middle housing land division must occur either before or after the issuance of a building permit. We anticipate that most middle housing land divisions will occur before the application for a building permit, similar to other housing land division processes. However, we also anticipate that there may be circumstances in which an applicant submits a land division application after developing a middle housing type. In both scenarios, the applicant must demonstrate that the proposal meets applicable building code and middle housing code as well as the requirements outlined in SB 458. Additionally, the bill specifies that a city or county may allow the submission of a middle housing land division at the same time as submission of an application for a building permit, but they are not required to. Lot Division Standards and Conditions for Approval Question: SB 458 sets out several requirements that applicants must demonstrate outlined in the summary above. What else are jurisdictions allowed to require or condition? Answer: The bill allows jurisdictions to require or condition the following: - Prohibition of further division of the resulting lots or parcels - Require notation in the final plat indicating approval was provided under SB 458 (later on, this will be the resultant ORS reference) - Require street frontage improvements where a lot or parcel abuts a street (consistent with House Bill 2001) - Require right-of-way dedication if the original parcel did not previously provide a dedication Question: Will jurisdictions be able to require applicants to submit tentative and final plats consistent with local platting standards? PP 19-0008 ATTACHMENT D/PAGE 3 OF 5 Answer: Yes,jurisdictions may require that the applicant submit tentative and final plats in a manner consistent with their applicable platting standards. Question: Can jurisdictions require that easements be submitted in a form approved by the City Attorney and address specific issues like maintenance and repair, cost-sharing, access, notice, damage, disputes, etc.? Answer: Yes, cities are permitted to specify the format and issues an easement addresses, provided that they are specific to the types of easements specified in Section 2(2)(c) of the bill, including: A. Locating, accessing, replacing and servicing all utilities; B. Pedestrian access from each dwelling unit to a private or public road; C. Any common use areas or shared building elements; D. Any dedicated driveways or parking; and E. Any dedicated common area; Question: What requirements are jurisdictions limited in requiring for a middle housing lot division? Answer: The bill specifies that a jurisdiction may not subject a middle housing lot division application to approval criteria except as provided in Section 2 of the bill. The bill specifies that this includes the following: - Require that a lot or parcel provide driveways, vehicle access, parking or minimum or maximum street frontage - Subject an application to procedures, ordinances or regulations adopted under ORS 92.044 or 92.046 that are inconsistent with Section 2 of the bill or ORS 197.360 to 197.380. Question: Does that mean jurisdictions cannot require off-street parking for middle housing? Answer: Jurisdictions are still permitted to require off-street parking and all other land use regulations in accordance with the parameters set forth in administrative rule, OAR Chapter 660, Division 046, but they may not require that each resultant lot or parcel have off-street parking. Such a lot or parcel would be provided access to off-street parking via easement. Question: Cities or counties cannot require street frontage under SB 458, but can they limit how many lots within a land division do not have street frontage? For example, could a city limit the number of cottages in a cottage cluster development that only have street access from an access easement? Answer: The bill states that a city or county "may not subject an application to approval criteria except as provided in this section". The restriction on minimum or maximum frontage is an explicit example of this prohibition. Because there is nothing in this section specifying the number of units that may only have street access from an access easement, a local jurisdiction would not be able to include such a limitation as a standard or condition of approval. PP 19-0008 ATTACHMENT D/PAGE 4 OF 5 Question: Section 2 (4)(b) allows cities or counties to require street frontage improvements. Would this enable them to require frontage improvements that might otherwise be exempted for single-family detached dwellings, which is prohibited in OAR Chapter 660, Division 046? Answer: Yes. This provision would enable a city to require street frontage improvements in situations where it might not otherwise be permitted under administrative rule. We also think this can be a compelling incentive to better address the street frontage deficiencies that persist today in older single-family neighborhoods. Question: Does SB 458 require local jurisdictions to approve vertical divisions (i.e. divisions in which one or more units of middle housing is not on the ground floor) of middle housing in addition to horizontal divisions? Answer: Senate Bill 458 does not speak to vertical divisions of middle housing and requires that each resultant lot or parcel contain exactly one unit. Therefore, cities are not required to allow vertical divisions of middle housing. Townhouses Question: Does SB 458 apply to lot divisions for townhouses allowed under HB 2001? Answer: The bill applies to any lot or parcel that allows middle housing under ORS 197.758, including townhouses. Local jurisdictions must allow townhouse proposals to undergo the lot division process outlined in SB 458, including the application of the procedures outlined in ORS 197.360 through 197.380. Question: The bill restricts cities or counties from applying minimum or maximum frontage requirements to lots or parcels created under SB 458. This seems to conflict with OAR 660-046- 0220(3)(b) regarding minimum street frontages applied to townhouses. Are jurisdictions permitted to apply minimum street frontages to townhouses? Answer: Yes, SB 458 specifies that in order for a middle housing proposal to be eligible for a land division, it must comply with all of the land use regulations applicable to the original lot or parcel allowed under ORS 197.758 (5), which includes the full scope of administrative rules outlined in OAR Chapter 660, Division 046. Therefore, local governments are able to, but are not required to, apply minimum street frontages to townhouses as permitted in OAR 660-046-0220(3)(b). Local governments will not be able to apply minimum street frontage requirements for individual units for plexes and cottage clusters. However, they may apply lot dimensional standards to the parent lot as provided in OAR 660-046-0220. We recommend that local jurisdictions carefully consider the incentives and resulting form for each middle housing type when developing middle housing land use regulations. PP 19-0008 ATTACHMENT D/PAGE 5 OF 5 81st OREGON LEGISLATIVE ASSEMBLY--2021 Regular Session Enrolled Senate Bill 458 Sponsored by Senators FREDERICK, KNOPP; Senators GOLDEN, HANSELL, KENNEMER, PATTERSON, Representatives DEXTER, FAHEY, HUDSON, KROPF, LEIF, MEEK, MOORE-GREEN, NOBLE, SMITH DB, WRIGHT, ZIKA (at the request of Habitat for Humanity) (Presession filed.) CHAPTER AN ACT Relating to land division for residential development; creating new provisions; and amending ORS 93.277, 94.775, 94.776, 197.365, 197.370, 197.375 and 197.380. Be It Enacted by the People of the State of Oregon: SECTION 1. Section 2 of this 2021 Act is added to and made a part of ORS 92.010 to 92.192. SECTION 2. (1) As used in this section, "middle housing land division" means a partition or subdivision of a lot or parcel on which the development of middle housing is allowed under ORS 197.758 (2) or (3). (2) A city or county shall approve a tentative plan for a middle housing land division if the application includes: (a) A proposal for development of middle housing in compliance with the Oregon resi- dential specialty code and land use regulations applicable to the original lot or parcel allowed under ORS 197.758 (5); (b) Separate utilities for each dwelling unit; (c) Proposed easements necessary for each dwelling unit on the plan for: (A) Locating, accessing, replacing and servicing all utilities; (B) Pedestrian access from each dwelling unit to a private or public road; (C) Any common use areas or shared building elements; (D) Any dedicated driveways or parking; and (E) Any dedicated common area; (d) Exactly one dwelling unit on each resulting lot or parcel, except for lots, parcels or tracts used as common areas; and (e) Evidence demonstrating how buildings or structures on a resulting lot or parcel will comply with applicable building codes provisions relating to new property lines and, notwithstanding the creation of new lots or parcels, how structures or buildings located on the newly created lots or parcels will comply with the Oregon residential specialty code. (3) A city or county may add conditions to the approval of a tentative plan for a middle housing land division to: (a) Prohibit the further division of the resulting lots or parcels. (b) Require that a notation appear on the final plat indicating that the approval was given under this section. Enrolled Senate Bill 458 (SB 458-A) Page 1 PP 19-0008 ATTACH E/PAGE 1 OF 6 (4) In reviewing an application for a middle housing land division, a city or county: (a) Shall apply the procedures under ORS 197.360 to 197.380. (b) May require street frontage improvements where a resulting lot or parcel abuts the street consistent with land use regulations implementing ORS 197.758. (c) May not subject an application to approval criteria except as provided in this section, including that a lot or parcel require driveways, vehicle access, parking or minimum or maximum street frontage. (d) May not subject the application to procedures, ordinances or regulations adopted un- der ORS 92.044 or 92.046 that are inconsistent with this section or ORS 197.360 to 197.380. (e) May allow the submission of an application for a middle housing land division at the same time as the submission of an application for building permits for the middle housing. (f) May require the dedication of right of way if the original parcel did not previously provide a dedication. (5) The type of middle housing developed on the original parcel is not altered by a middle housing land division. (6) Notwithstanding ORS 197.312 (5), a city or county is not required to allow an acces- sory dwelling unit on a lot or parcel resulting from a middle housing land division. (7) The tentative approval of a middle housing land division is void if and only if a final subdivision or partition plat is not approved within three years of the tentative approval. Nothing in this section or ORS 197.360 to 197.380 prohibits a city or county from requiring a final plat before issuing building permits. SECTION 2a. Section 2 of this 2021 Act applies only to a middle housing land division permitted on or after July 1, 2022. SECTION 3. ORS 93.277 is amended to read: 93.277. A provision in a recorded instrument affecting real property is not enforceable if: (1) The provision would allow the development of a single-family dwelling on the real property but would prohibit the development of, or the partitioning or subdividing of lands under section 2 of this 2021 Act for: (a) Middle housing, as defined in ORS 197.758; or (b) An accessory dwelling unit allowed under ORS 197.312 (5); and (2) The instrument was executed on or after [August 8, 2019] January 1, 2021. SECTION 4. ORS 94.776 is amended to read: 94.776. (1) A provision in a governing document that is adopted or amended on or after [August 8, 2019] January 1, 2020, is void and unenforceable to the extent that the provision would prohibit or have the effect of unreasonably restricting the development of, or the dividing of lands under section 2 of this 2021 Act for, housing that is otherwise allowable under the maximum density of the zoning for the land. (2) Lots or parcels resulting from the division of land in a planned community are subject to the governing documents of the planned community and are allocated assessments and voting right on the same basis as existing units. SECTION 5. ORS 94.775 is amended to read: 94.775. (1) [Unless the declaration expressly allows the division of lots in a planned community,] Judicial partition by division of a lot in a planned community is not allowed under ORS 105.205[.], unless: (a) The declaration expressly allows the division of lots in a planned community; or (b) The lot may be divided under ORS 94.776. (2) The lot may be partitioned by sale and division of the proceeds under ORS 105.245. [(2)] (3) The restriction specified in subsection (1) of this section does not apply if the home- owners association has removed the property from the provisions of the declaration. SECTION 6. ORS 197.365 is amended to read: 197.365. Unless the applicant requests to use the procedure set forth in a comprehensive plan and land use regulations, a local government shall use the following procedure for an expedited land Enrolled Senate Bill 458 (SB 458-A) Page 2 PP 19-0008 ATTACH E/PAGE 2 OF 6 division, as described in ORS 197.360, or a middle housing land division under section 2 of this 2021 Act: (1)(a) If the application for [expedited] a land division is incomplete, the local government shall notify the applicant of exactly what information is missing within 21 days of receipt of the applica- tion and allow the applicant to submit the missing information. For purposes of computation of time under this section, the application shall be deemed complete on the date the applicant submits the requested information or refuses in writing to submit it. (b) If the application was complete when first submitted or the applicant submits the requested additional information within 180 days of the date the application was first submitted, approval or denial of the application shall be based upon the standards and criteria that were applicable at the time the application was first submitted. (2) The local government shall provide written notice of the receipt of the completed application for [an expedited] a land division to any state agency, local government or special district respon- sible for providing public facilities or services to the development and to owners of property within 100 feet of the entire contiguous site for which the application is made. The notification list shall be compiled from the most recent property tax assessment roll. For purposes of appeal to the referee under ORS 197.375, this requirement shall be deemed met when the local government can provide an affidavit or other certification that such notice was given. Notice shall also be provided to any neighborhood or community planning organization recognized by the governing body and whose boundaries include the site. (3) The notice required under subsection (2) of this section shall: (a) State: (A) The deadline for submitting written comments; (B) That issues that may provide the basis for an appeal to the referee must be raised in writing prior to the expiration of the comment period; and (C) That issues must be raised with sufficient specificity to enable the local government to re- spond to the issue. (b) Set forth, by commonly used citation, the applicable criteria for the decision. (c) Set forth the street address or other easily understood geographical reference to the subject property. (d) State the place, date and time that comments are due. (e) State a time and place where copies of all evidence submitted by the applicant will be available for review. (f) Include the name and telephone number of a local government contact person. (g) Briefly summarize the local decision-making process for the [expedited] land division decision being made. (4) After notice under subsections (2) and (3) of this section, the local government shall: (a) Provide a 14-day period for submission of written comments prior to the decision. (b) Make a decision to approve or deny the application within 63 days of receiving a completed application, based on whether it satisfies the substantive requirements of the [local government's] applicable land use regulations. An approval may include conditions to ensure that the application meets the applicable land use regulations. For applications subject to this section, the local gov- ernment: (A) Shall not hold a hearing on the application; and (B) Shall issue a written determination of compliance or noncompliance with applicable land use regulations that includes a summary statement explaining the determination. The summary state- ment may be in any form reasonably intended to communicate the local government's basis for the determination. (c) Provide notice of the decision to the applicant and to those who received notice under sub- section (2) of this section within 63 days of the date of a completed application. The notice of deci- sion shall include: (A) The summary statement described in paragraph (b)(B) of this subsection; and Enrolled Senate Bill 458 (SB 458-A) Page 3 PP 19-0008 ATTACH E/PAGE 3 OF 6 (B) An explanation of appeal rights under ORS 197.375. SECTION 7. ORS 197.370 is amended to read: 197.370. (1) Except as provided in subsection (2) of this section, if the local government does not make a decision on an expedited land division or a middle housing land division, as defined in section 2 of this 2021 Act, within 63 days after the application is deemed complete, the applicant may apply in the circuit court for the county in which the application was filed for a writ of mandamus to compel the local government to issue the approval. The writ shall be issued unless the local government shows that the approval would violate a substantive provision of the applicable land use regulations or the requirements of ORS 197.360 or section 2 of this 2021 Act. A decision of the circuit court under this section may be appealed only to the Court of Appeals. (2) After seven days' notice to the applicant, the governing body of the local government may, at a regularly scheduled public meeting, take action to extend the 63-day time period to a date certain for one or more applications for an expedited land division or a middle housing land di- vision prior to the expiration of the 63-day period, based on a determination that an unexpected or extraordinary increase in applications makes action within 63 days impracticable. In no case shall an extension be to a date more than 120 days after the application was deemed complete. Upon ap- proval of an extension, the provisions of ORS 197.360 to 197.380 and section 2 of this 2021 Act, including the mandamus remedy provided by subsection (1) of this section, shall remain applicable to the [expedited] land division, except that the extended period shall be substituted for the 63-day period wherever applicable. (3) The decision to approve or not approve an extension under subsection (2) of this section is not a land use decision or limited land use decision. SECTION 8. ORS 197.375 is amended to read: 197.375. (1) An appeal of a decision made under ORS 197.360 and 197.365 or under ORS 197.365 and section 2 of this 2021 Act shall be made as follows: (a) An appeal must be filed with the local government within 14 days of mailing of the notice of the decision under ORS 197.365 (4)[,] and shall be accompanied by a $300 deposit for costs. (b) A decision may be appealed by: (A) The applicant; or (B) Any person or organization who files written comments in the time period established under ORS 197.365. (c) An appeal shall be based solely on allegations: (A) Of violation of the substantive provisions of the applicable land use regulations; (B) Of unconstitutionality of the decision; (C) That the application is not eligible for review under ORS 197.360 to 197.380 or section 2 of this 2021 Act and should be reviewed as a land use decision or limited land use decision; or (D) That the parties' substantive rights have been substantially prejudiced by an error in pro- cedure by the local government. (2) The local government shall appoint a referee to decide the appeal of a decision made under [ORS 197.360 and 197.365] this section. The referee [shall] may not be an employee or official of the local government. However, a local government that has designated a hearings officer under ORS 215.406 or 227.165 may designate the hearings officer as the referee for appeals of a decision made under ORS 197.360 and 197.365. (3) Within seven days of being appointed to decide the appeal, the referee shall notify the ap- plicant, the local government, the appellant if other than the applicant, any person or organization entitled to notice under ORS 197.365 (2) that provided written comments to the local government and all providers of public facilities and services entitled to notice under ORS 197.365 (2) and advise them of the manner in which they may participate in the appeal. A person or organization that provided written comments to the local government but did not file an appeal under subsection (1) of this section may participate only with respect to the issues raised in the written comments sub- mitted by that person or organization. The referee may use any procedure for decision-making con- sistent with the interests of the parties to ensure a fair opportunity to present information and Enrolled Senate Bill 458 (SB 458-A) Page 4 PP 19-0008 ATTACH E/PAGE 4 OF 6 argument. The referee shall provide the local government an opportunity to explain its decision, but is not limited to reviewing the local government decision and may consider information not pre- sented to the local government. (4)(a) The referee shall apply the substantive requirements of the [local government's] applicable land use regulations and ORS 197.360 or section 2 of this 2021 Act. If the referee determines that the application does not qualify as an expedited land division [as described in ORS 197.360] or a middle housing land division, as defined in section 2 of this 2021 Act, the referee shall remand the application for consideration as a land use decision or limited land use decision. In all other cases, the referee shall seek to identify means by which the application can satisfy the applicable requirements. (b) For an expedited land use division, the referee may not reduce the density of the land di- vision application. (c) The referee shall make a written decision approving or denying the application or approving it with conditions designed to ensure that the application satisfies the land use regulations, within 42 days of the filing of an appeal. The referee may not remand the application to the local govern- ment for any reason other than as set forth in this subsection. (5) Unless the governing body of the local government finds exigent circumstances, a referee who fails to issue a written decision within 42 days of the filing of an appeal shall receive no com- pensation for service as referee in the appeal. (6) Notwithstanding any other provision of law, the referee shall order the local government to refund the deposit for costs to an appellant who materially improves his or her position from the decision of the local government. The referee shall assess the cost of the appeal in excess of the deposit for costs, up to a maximum of $500, including the deposit paid under subsection (1) of this section, against an appellant who does not materially improve his or her position from the decision of the local government. The local government shall pay the portion of the costs of the appeal not assessed against the appellant. The costs of the appeal include the compensation paid the referee and costs incurred by the local government, but not the costs of other parties. (7) The Land Use Board of Appeals does not have jurisdiction to consider any decisions, aspects of decisions or actions made under ORS 197.360 to 197.380 or section 2 of this 2021 Act. (8) Any party to a proceeding before a referee under this section may seek judicial review of the referee's decision in the manner provided for review of final orders of the Land Use Board of Appeals under ORS 197.850 and 197.855. The Court of Appeals shall review decisions of the referee in the same manner as provided for review of final orders of the Land Use Board of Appeals in those statutes. However, notwithstanding ORS 197.850 (9) or any other provision of law, the court shall reverse or remand the decision only if the court finds: (a) That the decision does not concern an expedited land division as described in ORS 197.360 or middle housing land division as defined in section 2 of this 2021 Act and the appellant raised this issue in proceedings before the referee; (b) That there is a basis to vacate the decision as described in ORS 36.705 (1)(a) to (d), or a basis for modification or correction of an award as described in ORS 36.710; or (c) That the decision is unconstitutional. SECTION 9. ORS 197.380 is amended to read: 197.380. Each city and county shall establish [an application fee] application fees for an expe- dited land division and a middle housing land division, as defined in section 2 of this 2021 Act. The [fee shall] fees must be set at a level calculated to recover the estimated full cost of processing an application, including the cost of appeals to the referee under ORS 197.375, based on the estimated average cost of such applications. Within one year of establishing [the fee required] a fee under this section, the city or county shall review and revise the fee, if necessary, to reflect actual experience in processing applications under ORS 197.360 to 197.380 and section 2 of this 2021 Act. Enrolled Senate Bill 458 (SB 458-A) Page 5 PP 19-0008 ATTACH E/PAGE 5 OF 6 Passed by Senate April 15, 2021 Received by Governor: M., ,2021 Lori L. Brocker, Secretary of Senate Approved: M., ,2021 Peter Courtney, President of Senate Passed by House May 17, 2021 Kate Brown, Governor Filed in Office of Secretary of State: M., ,2021 Tina Kotek, Speaker of House Shemia Fagan, Secretary of State Enrolled Senate Bill 458 (SB 458-A) Page 6 PP 19-0008 ATTACH E/PAGE 6 OF 6 :-VA D CITY ATTORNEY' S OFFICE U O OREG0: January 11, 2022 Ms. Carole Ockert First Addition Neighbors—Forest Hills Neighborhood Association Via email: fanfh-carole@nwlink.com Re: Middle Housing Land Divisions—SB 458 Dear Ms. Ockert: On behalf of the First Addition Neighbors—Forest Hills (FAN-FH) Neighborhood Association,you ask how SB 4581's middle housing land division procedure will be translated into the procedures of Lake Oswego land use proceedings. For your questions, I think the operative subsection of SB 458 is subsection 4, as it included middle housing land divisions within the Expedited Land Division (ELD) statutes, ORS 197.360 - .380: (4) In reviewing an application for a middle housing land division, a city or county: (a) Shall apply the procedures under ORS 197.360 to 197.380. (d) May not subject the application to procedures, ordinances or regulations adopted under ORS 92.044 or 92.046 that are inconsistent with this section or ORS 197.360 to 197.380. By way of short background, and as you may be familiar,the ELD process is not new. It was first adopted in 1995 as an Opt-in process that applicants for eligible land divisions'could avail themselves, in lieu of proceeding under the City's land use procedure. In 2015, the Legislature changed the ELD process to an Opt-out, meaning that eligible land division applications are required to proceed under the statutory ELD procedures unless the applicant elects to proceed under the City's land use procedures. The City has processed land divisions under the ELD procedures; I don't know how many. The first (and only,to my memory) ELD appeal was filed by the Forest Highlands Neighborhood Association (LU 18-0028). It should be kept in mind that the ELD is an alternative procedure for review and appeals of eligible land divisions. Whether the land division application is reviewed under the City's land use procedures or under the statutory ELD procedures,the criteria for land division approval remains the same. 1 https://olis.oregonlesislature.gov/liz/2021R1/Downloads/MeasureDocument/SB0458/Enrolled 2 In summary: residentially-zoned and residentially-used land, inside the Urban Growth Boundary, not on Goal 5 Historic Lands,Sensitive Lands or Open Spaces, and the land division meets street connectivity requirements and provides either 80%or more of maximum density or provides affordable housing. See ORS 197.360(1)(A-E). 503-635-0225 380 A AVENUE PO Box 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY PP 19-0008 ATTACHMENT F/PAGE 1 OF 15 Page 2 of 6 The ELD procedures under ORS 197.365 et seq. are a statutory alternative to the Lake Oswego land use procedures in LOC Ch. 50, which are based on ORS 197.160 et seq. and ORS 197.763. You call attention to ORS 197.375(1)(a), (2), and (6)(full statute attached), and ask the following questions, which I respond to following each question: Question 1. For LO, would the DRC be our'hearings officer'? The ELD procedures uses the term "referee." ORS 197.375(2). The Development Review Commission is not an appointed ELD referee for the City. The City has an ELD referee,Joseph Turner, under an on-call contract. Mr.Turner was appointed by the City Council as our ELD referee on May 2, 2017. An excerpt of the Council packet is attached, for your information. Question 2. Would our current fee waiver for neighborhood associations cover the maximum of $500? The deposit for costs on appeal is $300. ORS 197.375(1)(a). The "costs" are the referee's fee and other City costs. Upon conclusion of the appeal, if the appellant "materially improves his or her position from the decision," the appellant's $300 deposit"shall be refunded." If the appellant does not materially improve his or her position from the decision,the referee "shall assess" up to$500 costs. Any difference between the assessed costs and the referee's fee and other City costs is borne by the City. ORS 197.375(6). Neither the Master Fees Schedule nor the ELD statute, which supersedes the Community Development code and Master Fee Schedule, authorizes waivers for the appeal deposit for neighborhood association appeals of ELDs. Because the City is unable to require verification of a neighborhood association's valid appeal in for ELDs,the City is not in a position to waive the appeal deposit for neighborhood association appeals of ELDs. In regards to any costs over the$300 deposit and up to the maximum $500 award for costs, whether the City proceeds with efforts to collect that difference is, at present, a decision to be made then by the City Manager. Question 3. And are there other pieces [of the ELD process] that are glaringly important that you could point out to me. The ELD procedure is a statutory alternative procedure to consider land division applications. It is up to the applicant to decide whether to not have their application considered under the ELD process. However, SB 458 specifies that a city or county "shall apply the procedures under ORS 197.360 to 197.380". According to the State Department of Land Conservation and Development's (DLCD's) Senate Bill 458 Guidance (Updated July 8, 2021)3, "This means that a city or county cannot require a middle housing land division to undergo a standard land division pathway". As you can see from ORS 197.375, as compared to the City's land use procedure,with appeals to the Oregon Land Board of Appeals(LUBA)and the Oregon Court of Appeal,there are differences: 3 See the DLCD Fact Sheet at: https://www.oregon.gov/Icd/UP/Documents/SB 458 Guidance.pdf PP 19-0008 ATTACHMENT F/PAGE 2 OF 15 Page 3 of 6 • The time to determine if the application is complete: 21 days v. 30 days. • The mailed notice requirement: 100 ft. v. 300 ft. (however, as a Planning Dept. policy, the City endeavors to provide courtesy notice beyond the 100 ft. in the manner similar to the City's land use notice requirements). • The manner of consideration of the application is staff decision only (no public hearing is permitted); no internal appeal to DRC or Council. • Time for City final (staff) decision: 63 days v. 120 days. • Following the staff decision, the time for appeal is 14 days to an ELD referee, rather than 21 days to LUBA. • On ELD appeal: o The referee notifies the parties within 7 days from the filing of the appeal of the manner in which persons may participate in the proceeding, e.g., whether to provide opportunity for written comment only or whether an in-person hearing will be held. o The scope of appeal is limited in the same manner as an appeal to the Oregon Land Use Board of Appeals,to: • (A) ..violation of the substantive provisions of the applicable land use regulations; • (B) .. unconstitutionality of the decision; • (C) .. the application is not eligible for review under ORS 197.360 to 197.380 and should be reviewed as a land use decision or limited land use decision; or • (D) ..the parties'substantive rights have been substantially prejudiced by an error in procedure by the local government. o The scope of comments by non-appellants is limited only to those issues that they previously raised in their comments. o The referee is strongly incentivized to issue a decision within 42 days from the filing of the appeal to issue a decision: no compensation is paid to the referee if the decision is issued after 42 days. • Appeal of the referee's decision: o Is to the Oregon Court of Appeals, not the Oregon Land Use Board of Appeals. o Reversal or remand by the Court of Appeals is limited: • That the decision does not concern an expedited land division as described in ORS 197.360 and the appellant raised this issue in proceedings before the referee; • That there is a basis to vacate the decision as described in ORS 36.705 (1)(a) to (d)4, or a basis for modification or correction of an award as described in ORS 36.710; or • The decision is unconstitutional. // // 4 httos://www.oregonlegislature.gov/bills laws/ors/ors036.html PP 19-0008 ATTACHMENT F/PAGE 3 OF 15 Page 4 of 6 I cannot give legal advice to non-City entities and thus refrain for characterizing whether any of these are "glaringly important" to the FAN-FH Neighborhood Association or opining further as to the legal requirements and effects of the ELD process on the FAN-FH Neighborhood Association participation in Expedited Land Division procedures. Sincerely, Digitally signed by Evan P.Boone _ DN cr=Evan P.Boone,o=ity of Lake Oswego,ou�ity Attomey's Office, = }' email boone@cl.oswego.or.us,c=US Date:2022.01.11 1735:16.08'00' Evan Boone Deputy City Attorney Enc: May 2, 2017 Agenda Packet(excerpt) cc: Scot Siegel,Community Development Director Jessica Numanoglu, Planning Manager Erik Olson,Senior Planner • PP 19-0008 ATTACHMENT F/PAGE 4 OF 15 Page 5 of 6 ORS 197.375 Appeal of decision on application for expedited land division; notice requirements; standards for review; procedure;costs. (1)An appeal of a decision made under ORS 197.360 and 197.365 shall be made as follows: (a)An appeal must be filed with the local government within 14 days of mailing of the notice of the decision under ORS 197.365 (4), and shall be accompanied by a $300 deposit for costs. (b)A decision may be appealed by: (A)The applicant; or (B) Any person or organization who files written comments in the time period established under ORS 197.365. (c) An appeal shall be based solely on allegations: (A) Of violation of the substantive provisions of the applicable land use regulations; (B) Of unconstitutionality of the decision; (C)That the application is not eligible for review under ORS 197.360 to 197.380 and should be reviewed as a land use decision or limited land use decision; or (D)That the parties' substantive rights have been substantially prejudiced by an error in procedure by the local government. (2)The local government shall appoint a referee to decide the appeal of a decision made under ORS 197.360 and 197.365.The referee shall not be an employee or official of the local government. However, a local government that has designated a hearings officer under ORS 215.406 or 227.165 may designate the hearings officer as the referee for appeals of a decision made under ORS 197.360 and 197.365. (3)Within seven days of being appointed to decide the appeal,the referee shall notify the applicant, the local government,the appellant if other than the applicant, any person or organization entitled to notice under ORS 197.365 (2)that provided written comments to the local government and all providers of public facilities and services entitled to notice under ORS 197.365 (2) and advise them of the manner in which they may participate in the appeal.A person or organization that provided written comments to the local government but did not file an appeal under subsection (1) of this section may participate only with respect to the issues raised in the written comments submitted by that person or organization. The referee may use any procedure for decision-making consistent with the interests of the parties to ensure a fair opportunity to present information and argument.The referee shall provide the local government an opportunity to explain its decision, but is not limited to reviewing the local government decision and may consider information not presented to the local government. (4)(a)The referee shall apply the substantive requirements of the local government's land use regulations and ORS 197.360. If the referee determines that the application does not qualify as an expedited land division as described in ORS 197.360,the referee shall remand the application for consideration as a land use decision or limited land use decision. In all other cases,the referee shall seek to identify means by which the application can satisfy the applicable requirements. (b)The referee may not reduce the density of the land division application.The referee shall make a written decision approving or denying the application or approving it with conditions designed to ensure that the application satisfies the land use regulations,within 42 days of the filing of an appeal.The referee may not remand the application to the local government for any reason other than as set forth in this subsection. (5) Unless the governing body of the local government finds exigent circumstances, a referee who fails to issue a written decision within 42 days of the filing of an appeal shall receive no compensation for service as referee in the appeal. (6) Notwithstanding any other provision of law,the referee shall order the local government to refund the deposit for costs to an appellant who materially improves his or her position from the decision of the local government.The referee shall assess the cost of the appeal in excess of the deposit for costs, PP 19-0008 ATTACHMENT F/PAGE 5 OF 15 Page 6 of 6 up to a maximum of$500, including the deposit paid under subsection (1) of this section, against an appellant who does not materially improve his or her position from the decision of the local government.The local government shall pay the portion of the costs of the appeal not assessed against the appellant.The costs of the appeal include the compensation paid the referee and costs incurred by the local government, but not the costs of other parties. (7)The Land Use Board of Appeals does not have jurisdiction to consider any decisions, aspects of decisions or actions made under ORS 197.360 to 197.380. (8)Any party to a proceeding before a referee under this section may seek judicial review of the referee's decision in the manner provided for review of final orders of the Land Use Board of Appeals under ORS 197.850 and 197.855.The Court of Appeals shall review decisions of the referee in the same manner as provided for review of final orders of the Land Use Board of Appeals in those statutes. However, notwithstanding ORS 197.850 (9) or any other provision of law,the court shall reverse or remand the decision only if the court finds: (a)That the decision does not concern an expedited land division as described in ORS 197.360 and the appellant raised this issue in proceedings before the referee; (b)That there is a basis to vacate the decision as described in ORS 36.705 (1)(a)to (d), or a basis for modification or correction of an award as described in ORS 36.710; or (c)That the decision is unconstitutional. PP 19-0008 ATTACHMENT F/PAGE 6 OF 15 ... ,••'YW_'t..c.'0.(•r:- 'i+.' 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' IV vil•' ' ' -Si - ..e 41191r" ii ' P' 19-0008 • , ..k ,... „, .... . *' e AC - ‘1" /P A GE 7 6 15 / ' • .,' '1) ' . .-y- 1 •..• . 1 • • "e .i...# A.;11:;-'k'*.sli '. 404. 1 - • if . 1 . 'Ir .1n.11111 ..• .... •• • '' '4 .: .":". -14YALiaL. Aiiii • %me n.4.4R'112"414.IrMill' "; _ze _, _ - AGENDA `ram Revised on April 27• CITY COUNCIL MEETING to include item 10.2, v 0— and on April 28 to include May 2, 2017 �o a an Executive Session 6:30 p.m. _ J Council Chambers, City Hall Contact: Anne-Marie Simpson, City Recorder Email: asimpson@lakeoswego.city Phone: 503-534-4225 Also published on the internet at: www.lakeoswego.city. The meeting location is accessible to persons with disabilities.To request accommodations, please contact the City Manager's Office at 503-534-4225 48 hours before the meeting. 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. PRESENTATIONS 4.1 Youth Action Council 4.2 Introduction of the Youth Leadership Council 4.3 Historic Preservation Merit Awards 5. CONSENT AGENDA—Full Council Approval • The consent agenda allows the City Council to consider items that require no discussion. • An item may only be discussed if it is pulled from the consent agenda. • The City Council makes one motion covering all items included in the consent agenda. Motion: Move to adopt the consent agenda. 5.1 Approval of Meeting Minutes 5.1.1 March 21, 2017, Regular Meeting Minutes 5.1.2 April 4, 2017, Regular Meeting Minutes Motion: Move to approve minutes as written. 5.2 Resolution 17-16,A Resolution of the City Council of the City of Lake Oswego Declaring a Public Necessity to Acquire a Permanent Utility Easement at 16463 Boones Ferry Road 503.635.0215 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.lakeoswego.city PP 19-0008 ATTACHMENT F/PAGE 8 OF 15 Page 2 and Exercise the Power of Eminent Domain (Boones Ferry Road Project) Motion: Move to adopt Resolution 17-16. 5.3 Boundary Line Agreement correcting the property line between Hazelia Field/ Luscher Farm and the property to the north. Motion: Move to authorize the City Manager to consent to the property line, as established and corrected by a recent boundary survey, between the proposed south line of the Profile Properties, LLC. property(Tax Lot 02600 and 02700), and the previously established north line of Hazelia Field(Tax Lot 02800)and Luscher Farm (Tax Lot 03001)by Boundary Line Agreement. 6. CONSENT AGENDA—Councilor Approval 6.1 Resolution 17-14,A Resolution of the City Councilors of the City of Lake Oswego Approving Appointments to the Parks, Recreation & Natural Resources Advisory Board Motion:Adopt Resolution 17-14. 6.2 Resolution 17-15,A Resolution of the City Councilors of the City of Lake Oswego Approving an Appointment to the Development Review Commission Motion:Adopt Resolution 17-15. 7. ITEMS REMOVED FROM THE CONSENT AGENDA 8. CITIZEN COMMENT(15 minutes) The purpose of citizen comment is to allow citizens to present information or raise an issue regarding items not on the agenda or regarding agenda items that do not include a public hearing. A time limit of three minutes per individual shall apply. 8.1 Prior Citizen Comment Follow-Up 9. PUBLIC HEARINGS 9.1 Ordinance 2734, An Ordinance of the City of Lake Oswego Adopting the Uplands Neighborhood Plan into the Neighborhood and Special District Plans Volume of the Comprehensive Plan; Amending the Transportation System Plan to Expand a Pathway Project;Amending the Community Development Code to Add the Uplands R-10 Overlay District (LOC 50.05.012); and Adopting Findings (LU17-0001) Motion: Move to approve LU 17-0001, and to enact Ordinance 2734. Public Hearing Process: 1. Review of hearing procedure by David Powell, City Attorney 2. Staff Report by Sarah Selden, Senior Planner 3. Testimony:the following time limits shall be observed, but may be 503.635-0215 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.lakeoswego.city PP 19-0008 ATTACHMENT F/PAGE 9 OF 15 Page 3 changed by the Council: 10 minutes for representatives of recognized neighborhood associations, homeowner associations, government agencies, or other incorporated public interest organizations; 5 minutes per individual 4. Questions of Staff 10. COUNCIL BUSINESS 10.1 Appointment of Expedited Land Division Referee Motion: Move to appoint Joe Turner as a referee for appeals of expedited land division decisions. EXECUTIVE SESSION: Under authority of ORS 192.660 (2)(f)to consider records that are exempt by law from public inspection. 10.2 Stafford Urban Reserve IGA 11. INFORMATION FROM COUNCIL 12. REPORTS OF OFFICERS 13. ADJOURNMENT 503.635-0215 380 A Avenue PO Box 369 Lake Oswego, OR 97034 www.lakeoswego.city PP 19-0008 ATTACHMENT F/PAGE 10 OF 15 10.1 (cc—C—A 4 COUNCIL REPORT Vim- 001r OREGO TO: Kent Studebaker, Mayor Members of the City Council FROM: David Powell, City Attorney Scott Lazenby, City Manager SUBJECT: Appointment of Expedited Land Division Referee DATE: April 24, 2017 ACTION Appoint Joseph Turner as a referee for appeals of expedited land divisions. SUGGESTED MOTION Move to appoint Joseph Turner as a referee for appeals of expedited land division decisions. INTRODUCTION/BACKGROUND Typically, partitions and subdivisions are reviewed and approved under the Community Development Code as follows: • Partitions: staff decision; appeal to DRC/public hearing; appeal to Council. • Subdivisions: DRC public hearing; appeal to Council. Appeals following the Council decision are to the Land Use Board of Appeals, Oregon Court of Appeals, and Oregon Supreme Court. In 1995, the Oregon Legislature mandated an alternative expedited land division review process under ORS 197.360 et seq. for any partition or subdivision that meets the following requirements: "(A) Includes only land that is zoned for residential uses and is within an urban growth boundary. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city PP 19-0008 ATTACHMENT F/PAGE 11 OF 15 Page 2 (B) Is solely for the purposes of residential use, including recreational or open space uses accessory to residential use. (C) Does not provide for dwellings or accessory buildings to be located on [Sensitive Lands or Willamette River Greenway]; (D) Satisfies [the City's] minimum street or other right-of-way connectivity standards ....; (E) Will result in development that either: (i) Creates enough lots or parcels to allow building residential units at 80 percent or more of the maximum net density permitted by the zoning designation of the site; or (ii) Will be sold or rented to households with incomes below 120 percent of the median family income for the county in which the project is built." That process requires staff to make a decision within 63 days from the date the application is complete. Any person challenging the staff decision may file an appeal within 14 days, including a $300 deposit. The appeal must be heard by a referee appointed by the City, instead of being heard by the Development Review Commission. The referee cannot be an employee or official of the City. ORS 197.375(2). The referee must issue a decision within 42 days after the appeal is filed. A public hearing is not required. Instead the process is determined by the referee, who may use "any procedure for decision-making consistent with the interests of the parties to ensure a fair opportunity to present information and argument." ORS 197.375(3). If the appealing party does not improve its position, additional costs of up to $500 may be assessed. If the party improves its position, the deposit must be returned. ORS 197.375(6). An appeal of the referee's decision goes directly to the Oregon Court of Appeals, bypassing the City Council and the Land Use Board of Appeals. ORS 197.375(7), (8). To date, most land division applicants have not elected to use the expedited land division process. The only Lake Oswego expedited land division appeal occurred approximately 10 years ago. However, in 2015, the Oregon Legislature changed the law to require applicants to expressly "opt out" of the expedited land division process. As a result, the expedited process may become more common. DISCUSSION There is a three-lot (with two flag lots) partition application currently pending under the expedited land division process (LU 17-0018). Planning staff expects to issue its decision on May 4th. Staff believes there is potential for an appeal. In light of the timelines required for conducting the appeal, there is a need to promptly designate an expedited land division referee. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city PP 19-0008 ATTACHMENT F/PAGE 12 OF 15 Page 3 The City Attorney's Office asked surrounding jurisdictions to identify persons they use as land use hearings officers. Although not required, all contacted jurisdictions use attorneys for their hearings officers. Given the fact that an appeal from the referee's decision is made directly to the Oregon Court of Appeals, the designation of a person who is skilled in hearing and deciding land use matters, and writing findings of fact and conclusions of law to support the decision is recommended. The City Attorney's Office obtained statements of experience from three persons recommended by other jurisdictions. The City Attorney and City Manager have reviewed the three statements of experience and fee rates and recommend that Joseph Turner be appointed as the City's expedited land division referee. Mr. Turner's practice is limited to acting as a hearings officer. As the attached statement of interest details, he works for numerous jurisdictions in Oregon and Washington. His hourly rate of$190 is the lowest rate among the three attorneys contacted. RECOMMENDATION Appoint Joseph Turner as an expedited land division referee. ATTACHMENT • Joseph Turner's Statement of Experience 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city PP 19-0008 ATTACHMENT F/PAGE 13 OF 15 ATTACHMENT M. JOSEPH TURNER, EsQ. MEMBER OF THE OREGON AND WASHINGTON STATE BARS AND AMERICAN INSTITUTE OF CERTIFIED PLANNERS 30439 S.E. Jackson Rd., Suite 200 • Gresham, Oregon 97080 Telephone (503) 663-7092 • Facsimile (503) 663-7289 • E-mail:jtpc@frontier.com EXPERIENCE Planner and Attorney at Law • JOE TURNER P.C.,MUNICIPAL HEARINGS OFFICIAL, Gresham, OR(2004-current). I serve as a land use and enforcement hearings official for the following jurisdictions in Oregon and Washington. In Oregon: City of Gresham (2000-current) • Washington County (2006-2007) • City of Tigard (2004-current) • City of Sherwood (2009-current) • Clackamas County Animal Control(2009-current) • Clackamas County Sheriff (2009-current) • Clackamas County Land Use (1998-2004, 2006 &Alternate 2009-current) • Metro (2008-current) • City of Hillsboro (2015- current) • Multnomah County (2015-current) • City of Portland (2015-current) • City of Happy Valley(2016-current) • City of Fairview(1997-2002) In Washington: Clark County(2000-current) • City of La Center(2001-current) • City of Vancouver(2001-2010&Alternate 2010-current) • City of Washougal(2003-current) • City of Camas (2006-current) • City of Woodland(2009-current) • City of Ridgefield(2009- current) • City of Battle Ground(2011-current) • City of North Bonneville (2015-current) • City of Stevenson (2015-current)• Skamania County(Alternate 2015-current) LARRY EPSTEIN,PC, Portland, OR(1995 -2004). I represented public and private clients in Oregon and Washington in land use matters as well as serving as hearings official in many of the jurisdictions listed above. EDUCATION Bachelor of Science(Biology) • Oregon State University, Corvallis, OR(1986). Juris Doctor cum laude•Northwestern School of Law of Lewis & Clark College, Portland OR(1993). Master of Urban and Regional Planning• Portland State University(2000). AFFILIATIONS Oregon State Bar Association Washington State Bar Association American Institute of Certified Planners PP 19-0008 ATTACHMENT F/PAGE 14 OF 15 Hearings Conducted by Joe Turner (Through December 2015) Washington Jurisdictions Oregon Jurisdictions to r` YV V U � o -0 to �. u a 3 as H 3 4 Land 38 116 44 22 8 3 3 8 1 16 17 16 29 5 1 Divisions/PUDs CUP 17 24 7 23 3 1 3 1 57 3 25 11 3 1 1 Rezone 5 2 2 2 12 2 2 Temporary 1 14 1 Permit Home 1 9 1 Occupation Design/Site Plan 11 5 3 1 1 2 2 8 9 4 9 1 Review Road Projects 3 Nonconforming 1 1 10 use Agricultural 3 3 dwelling Variance 1 1 2 3 3 1 Lot of Record 6 1 Determination Forest template 1 dwelling Environmental' 15 4 1 11 1 7 4 Post decision 7 7 1 review Interpretation 1 3 Enforcement 932 35 2 2 2 174 Animal Control 17 48 342 Parking Vios 229 Towed Vehs 67 Parks Violations 108 Solid Waste 3 Facilities I I TOTAL 192 252 62 48 14 7 24 13 1 883 44 49 44 9 177 4 1 1 Shoreline,ESRA(Environmentally Sensitive Restoration Areas),Reasonable Use Exception,Tree Removal and Floodplain 2 Not including appeals of fireworks and fire lane parking citations. Resume of Joe Turner Page 2 PP 19-0008 ATTACHMENT F/PAGE 15 OF 15