HomeMy WebLinkAbout24-36 RESOLUTION 24-36
A RESOLUTION OF THE LAKE OSWEGO CITY COUNCIL ADOPTING A HOUSING PRODUCTION STRATEGY
(LU 24-0024).
WHEREAS, pursuant to ORS 197A.335, cities with a population greater than 10,000 are required to prepare and
adopt a Housing Capacity Analysis (HCA) that includes a housing needs projection addressing housing types and
price levels, residential land needs analysis, buildable land needs analysis, and identification of measures for
accommodating needed housing per Oregon Administrative Rule (OAR) Chapter 660, Divisions 7 and 8; and
WHEREAS,the City Council adopted an HCA as a part of the City's Comprehensive Plan on October 17, 2023, by
Ordinance 2934; and
WHEREAS, pursuant to ORS 197A.100, implemented through OAR 660, Division 8, cities with a population greater
than 10,000 are required, within one year of adopting an HCA, to develop a Housing Production Strategy (HPS) to
promote the development of needed housing identified in the adopted HCA; and
WHEREAS,the development of the HCA and the HPS was an approximately two-year process that included
review and input from a twenty-member Housing Production Strategy Task Force, two online surveys,
stakeholder interviews, and work sessions with the City Council and Planning Commission; and
BE IT RESOLVED by the Lake Oswego City Council that that:
Section 1. The City Council hereby adopts the Findings and Conclusions (LU 24-0024), attached as
Attachment 1.
Section 2. The Housing Production Strategy dated November 19, 2024, in Attachment 2 shall be and hereby is
adopted.
Section 3. Effective Date. This Resolution shall be effective immediately upon its adoption by the City
Council.
Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 19th day of
November, 2024.
AYES: Mayor Buck,Wendland,Verdick, Mboup, Rapf, Corrigan, Afghan
NOES: None
EXCUSED: None
ABSTAIN: None
Jos,.ph M. B ck, Mayor
ATTEST:
. �
i
Kari Lind fr, City Recorder
APPROVED AS TO FORM:
Ellen Osoinach, City Attorney
Resolution 24-36 Page 1 of 1(LU 24-0024)
ATTACHMENT 1
LU 24-0024
(Resolution 24-36)
1 BEFORE THE CITY COUNCIL
2 OF THE CITY OF LAKE OSWEGO
3 A REQUEST TO ADOPT A HOUSING LU 24-0024
PRODUCTION STRATEGY FOR THE PURPOSE OF CITY OF LAKE OSWEGO
4 COMPLYING WITH OREGON HOUSE BILL 2003
(2019) AND OAR 660-08-0050, AND ADOPTING FINDINGS AND CONCLUSIONS
5 FINDINGS.
6
NATURE OF PROCEEDINGS
7
This matter came before the Lake Oswego City Council on the recommendation of the
8
Planning Commission for adopt a Housing Production Strategy (HPS) for the purpose of
9
complying with Oregon House Bill 2003 (2019) and OAR 660-08-0050.
10
11
HEARINGS
12
The Planning Commission held a public hearing and considered this application at its
13
meeting on September 23, 2024. The Commission adopted its Findings, Conclusion and Order
14
recommending approval of LU 24-0024 on October 14, 2024.
15
The City Council held a public hearing and considered the Commission's recommendation
16
on November 5, 2024. The following information was presented to the Council at its hearing and
17
added to the record:
18
G-3 Email from C. Krebs, dated November 4, 2024
19
G-4 Letter from the Lake Oswego Sustainability Network, dated November 5, 2024
20
G-5 Email from the Lake Oswego Chamber of Commerce, dated October 24, 2024
21
G-6 Letter from S. Walker, dated November 5, 2024
22
23
CRITERIA AND STANDARDS
24
A. City of Lake Oswego Comprehensive Plan
25 Complete Neighborhoods & Housing, Policy B-1
26 Urbanization, Policy A-1
Palisades Neighborhood Plan, Land Use Policy 4
ATTACHMENT 1/PAGE 1— FINDINGS AND CONCLUSIONS (LU 24-0024)
B. Oregon Statewide Planning Goals
1 Goal 2: Land Use
2 Goal 3: Economic Development
Goal 10: Housing
3 Goal 14: Urbanization
4
C. Interpretation of Goal 10: Housing (OAR Chapter 660, Division 8)
5 OAR 660-008-0050 Housing Production Strategy Report Structure
OAR 660-008-0050 (1) Contextualized Housing Need
6 OAR 660-008-0050 (2) Engagement
7 OAR 660-008-0050 (3) Strategies to Meet Future Housing Need
OAR 660-008-0050 (4) Achieving Fair and Equitable Housing Outcomes
8 OAR 660-008-0050 (5) Housing Production Strategy Report
9 D. ORS Chapter 197 - Comprehensive Land Use Planning
10 ORS 197.296 Analysis of housing capacity and needed housing by
Metro, cities outside of Metro, and smaller cities
11
E. City of Lake Oswego Community Development Code
12 LOC 50.07.003.3.c Notice of Public Hearing
13 LOC 50.07.003.4 Hearings before a Hearings Body
LOC 50.07.003.16.a Legislative Decision Defined (Quasi-judicial Comp. Plan Map,
14 Zone Map, and CDC Amendments to be processed via Major
Developments Procedures)
15 LOC 50.07.003.16.c Required Notice to DLCD
16 LOC 50.07.003.16.d Planning Commission Recommendation Required
LOC 50.07.003.16.e City Council Review and Decision
17
18 E. Metro Urban Growth Management Functional Plan [Metro Code 3.07]
Title 1: Housing Capacity [Metro Code 3.07.110 - .120]]
19 Title 7: Housing Choice [Metro Code 3.07.710 - .740]]
Title 8: Compliance Procedures [Metro Code 3.07.810 - .870]]
20
21 FINDINGS AND REASONS
22 The City Council incorporates the Planning Commission Staff Report dated July 31, 2024
23 (Exhibit D-6), with all exhibits, and the Findings and Conclusions in the Commission's October
24 14, 2024 Findings, Conclusions and Order, for LU 24-0024, as support for the Council's decision.
25
Following are the supplemental findings and conclusions of the Council:
26
1. Removal of Open Space Requirements. The Council received written testimony
ATTACHMENT 1/PAGE 2— FINDINGS AND CONCLUSIONS (LU 24-0024)
1 (Exhibit G-3) expressing opposition to the removal of open space requirements as a
2 strategy to promote housing. No applicable policies were identified in the testimony.
3 The proposed HPS outlines several factors to consider in the implementation of each
4 strategy, including a recommendation to address open space requirements in high-
5 density zones as a part of the Code Audit and Amendments strategy. The Council
6 notes that the adoption of the proposed HPS does not entail the adoption of the
7 individual strategies identified in the HPS, each of which will require its own public
8 engagement and adoption process. Though there are many different issues that may
9 be considered during the implementation of each strategy, this listing of
10 considerations does not bind the City to any specific approach to the
11 implementation of a given strategy. The public engagement and adoption processes
12 for each proposed strategy will allow further discussion of the details relevant to
13 that strategy pursuant to required noticing and public hearing procedures. The
14 Council finds that the considerations outlined for strategies in the proposed HPS are
15 appropriate, and that these considerations do not pre-determine the approach
16 taken to implement an individual strategy.
17
18 CONCLUSION
19 The Council concludes that LU 24-0024/ Res. 24-36, as recommended by the Planning
20 Commission, complies with all applicable criteria and should be approved.
21
22
23
24
25
26
ATTACHMENT 1/PAGE 3— FINDINGS AND CONCLUSIONS (LU 24-0024)
ATTACHMENT 2
f-, 0
c , w 10
diy
HOUSING c
PRODUCTION
STRATEGY
LAKE OSWEGO, OREGON
ADOPTED VERSION - NOVEMBER 19, 2024
. ,.......
. -
-
....; . -1 • . .,.." ...,. ‘,,„,...,...
" 410it*PY44,,:! •-!7'.4 ' :Ilk ' ,,t,'g'' 1...2
- -
''
A' 4. ..1..
46. ....
.":*.fr....,
_
...." ... .,•,-
ii,,n. .-.. --_;,._ :: '..,-'7' 1-••4 . -:-....?,-......•... • . , / .....,',
--
.---- - ;,;•••• 1.;•--- ).:....k .- ---,,• . 7 -.-__ ,---,-...„....:- -,--- ,
If;
, _. le, •.1S".
/ -.F. ,..,./ - ''..... ..- ,
1, ...i.rt '11.'1; -- ..':514iiStZ.. . . A/ '
No‘111
'' '''. ,i- . -1.1§-ar- . '•c•-•-, -- '- .-,. ' -- -; .."-.--,—;".•,;',4,. .. . Y/ ' . /.
'....,.-7 , i --.•:...., _f.,-:" ".. ,....- ...f.i.,.:,'-- -', 0: '
' .:-.tr- --.
-s,i7-qp>'' 09y/t/
,.(— .-i ' -----.44 , :10._ • _,-i•A'', -,-,-.4-','.,4 • -- '''''if
, d. i.
-.
-'1 r. , ..I'
.V' jr,•,Ve 1,--- . '.
_ ., ., ,..i.ii. :
. ,
-;-- 7ciz..4. ' -
.:,
,. • .,,,:, 1 ,,-, ._ it.-;,,,:r...; -----.--:...,--:v..----.
-..,,,.
tw
•
• -- . ,.
- . ay. 4.,.;:::-..• :. r.." , ' -'' '':- .
. • 0-
It-." ' • '*•._,14-4' ,i ----- ,. . .
. -
. - .
Oy
------
.
- . 4 l''
ACKNOWLEDGMENTS
CITY COUNCIL HOUSING PRODUCTION STRATEGY TASK FORCE
Mayor Joseph M. Buck Mayor Joseph M. Buck, City Council Liaison (non-voting)
Ali Afghan Philip Stewart, Planning Commission Liaison (non-voting)
Trudy Corrigan Douglas Corder, 50+Advisory Board Representative
Massene Mboup Kasey Adler,Transportation Advisory Board
Aaron Rapf Representative
Rachel Verdick Bruce Poinsette, Development Review Commission
Representative (builder)
John Wendland
At-large Members:
Sarah Walker(affordable housing developer)
PLANNING COMMISSION
David Tangvald (real estate broker)
Diana Moreno
Phil Bertrand (real estate broker)
Don Mitchell
Kyrsten Baumgart(resident)
Rachel Naujock
Yoko Kinoshita (resident)
Miles Rigby
Logan Bryck(resident)
Dave Schenone
Cara Kao-Young (resident)
Philip Stewart
Rebecca Lane (resident)
James Thwing
John E. Pauley(resident)
Rosalie Nowalk(resident)
CITY STAFF
Pat Ginn (resident)
Erik Olson, Long Range Planning Manager
Diana Howell (resident)
Jessica Numanoglu, Community
Development Director John Turchi (resident)
PROJECT TEAM
Matt Hastie, MIG
Kate Rogers, MIG
Andrew Parish, MIG
Katie Vickers, MIG
Brendan Buckley,Johnson Economics
Lake Oswego Housing Production Strategy
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
PROJECT OVERVIEW 3
Project Purpose and Background 3
Lake Oswego's Housing Needs 4
Engagement Summary 5
STRATEGIES AND ACTIONS 7
1. Code audit and amendments 11
2. Remove or reduce minimum parking requirements 13
3. Rezone land 14
4. Evaluate accessible design incentives or mandates 16
5. Multiple Unit Property Tax Exemption (MUPTE) 20
6. Pre-approved plan sets for ADUs 22
7. Modify System Development Charge (SDC) fee schedule 23
8. Nonprofit Low-Income Housing Tax Exemption 26
9. Low-Income Rental Housing Tax Exemption 27
10. Public-private partnerships for affordable housing 29
11. Use Tax Increment Financing (TIF) to support affordable housing development 30
12. Affordable housing preservation inventory 32
13. Fair Housing policy and education 33
ACHIEVING FAIR AND EQUITABLE HOUSING OUTCOMES 35
MONITORING PROGRESS AND OUTCOMES 39
LIST OF APPENDICES 41
APPENDICES
A. Contextualized Housing Needs Assessment
B. Engagement Summary
C. Pre-HPS Survey Results
Lake Oswego Housing Production Strategy
EXECUTIVE SUMMARY
OVERVIEW
Oregon Statewide Planning Goal 10 requires cities to plan for the housing needs of all community members. As a
city within the Portland Metro area, Lake Oswego must complete a Housing Needs Analysis (HNA) every six
years as well as a Housing Production Strategy (HPS)to implement specific actions that address the identified
needs.
Lake Oswego's Housing Production Strategy outlines a range of strategies the City plans to implement to address
housing needs within the community.The HPS prioritizes current and future housing needs identified in the HNA
and outlines actionable policies, actions, and implementation steps to encourage the production of housing.
These include things like changes to how the City zones land and regulates development of housing,financial
incentives,funding sources, partnerships, and other tools and policies.
This HPS Report includes information about the City's critical housing needs and summarizes public engagement
activities that informed and shaped the housing strategies recommended for implementation.The document
also summarizes how the HPS will help achieve fair and equitable housing outcomes for the Lake Oswego
community—especially for low-income households, communities of color, people with disabilities, and other
state and federal protected classes. Lastly,this document describes how the City of Lake Oswego will monitor
the implementation and progress of the strategies recommended in the HPS.
RECOMMENDED STRATEGIES AND ACTIONS
On the next page is a summary of the strategies and actions recommended as part of Lake Oswego's HPS.The
strategies are organized by the primary housing need that they address. However, some strategies address
housing needs across multiple categories.
Lake Oswego Housing Production Strategy 11
OVERALL HOUSING Increase housing production to meet the City's overall long-term
PRODUCTION AND SUPPLY housing need.
Enable and encourage production of housing that can meet a full
INCREASED HOUSING range of household needs and preferences.This includes a wider
CHOICES variety of housing types and sizes, and housing to meet particular
needs such as aging in place and accessibility.
AFFORDABLE HOUSING
FOR LOWER-INCOME Facilitate development of government-subsidized housing that
meets the needs of low-and moderate-income households.
HOUSEHOLDS
The strategy in this category (Fair Housing policy and education)
OTHER does not easily fit under the other headings, but supports equitable
implementation of all recommended housing strategies.
More details about the implementation time frames and cost/effort estimates in the table below are provided in
the Strategies and Actions section of this report.
Implementation Time Frame
Strategy Begin Complete Cost Effort
Overall Housing Production and Supply
1. Code audit and amendments Near Term Medium Term $$$$ • • •
2. Remove or reduce minimum parking requirements Near Term Near Term $$$$ • 0 0
3. Rezone land Near Term Medium Term $$$$ • • •
Increased Housing Choices
4. Evaluate accessible design incentives or mandates Longer Term Longer Term $$ ,. • •
5. Evaluate Multiple Unit Property Tax Exemption Longer Term Longer Term $$` • •
6. Pre-approved plan sets for ADUs Longer Term Longer Term $$$$ • • •
7. Modify System Development Charge fee schedule Near Term Medium Term $$$$ • • •
Affordable Housing for Lower-Income Households
8. Nonprofit Low-Income Housing Exemption Already Complete $ •
9. Low-Income Rental Housing Tax Exemption Near Term Near Term $$ • •
10. Public-private partnerships for affordable housing Near Term Ongoing $$ • • •
11. Use Tax Increment Financing to support Near Term Longer Term $$$$ • • •
affordable housing development
12. Affordable housing preservation inventory Medium Term Medium Term $ • •
Other
13. Fair Housing policy and education Near Term Medium Term $ • •
Lake Oswego Housing Production Strategy
PROJECT OVERVIEW
PROJECT PURPOSE AND BACKGROUND
Oregon Statewide Planning Goal 10 requires cities to plan for the housing needs of all community members. As a
city within the Portland Metro area, Lake Oswego must complete a Housing Needs Analysis (HNA) every six
years as well as a Housing Production Strategy(HPS) to implement specific actions that address the identified
needs.
The Lake Oswego City Council adopted an updated HNA in October 2023.The HNA looks at the community's 20-
year housing needs and whether there is enough residential land in the city to meet those needs. Under Goal 10,
the City is required to adopt measures that will increase the likelihood that development of needed housing will
occur and to work towards addressing any deficiencies in land capacity necessary to meet its housing needs.As
a Metro jurisdiction, Lake Oswego is also part of a regional process that ensures there is a 20-year supply of land
to accommodate future growth in the region.
The Housing Production Strategy outlines a range of strategies the City of Lake Oswego plans to implement to
address housing needs within the community. The HPS prioritizes current and future housing needs identified in
the HNA and outlines actionable policies, actions, and implementation steps to encourage the production of
needed housing.These include things like changes to
how the City zones land and regulates development of
housing,financial incentives, funding sources, ,
partnerships, and other tools and policies. d ti- .vjT^_ � "
9 S
The HPS process focuses on strategies related to the '" •
I!•• ./fie-' - - y.
production of new housing, recognizing the significant - , � r�C" ri�1`1.1
shortfall of housing produced in Oregon during the last `' b -;
two decades. However, it also will be important for the ►J =
? r
City to work with its community partners to help _' �^
conserve, maintain, and rehabilitate existing housing in a .+ =).
Lake Oswego, particularly where such housing also is -
affordable to people with low and moderate incomes.
Lake Oswego Housing Production Strategy 13
LAKE OSWEGO'S HOUSING NEEDS
The project team used the findings from the HNA, as well as additional information from the Census, other data
sources, and from stakeholders involved in housing production in the city, to put Lake Oswego's housing needs
into context with current demographic and development trends. Below are some key findings from the HNA and
Contextualized Housing Needs Assessment (Appendix A).
Current nmeas
• While Lake Oswego is generally considered an affluent community, not all
households are wealthy. Over 40%of households in the city earn less than
$100k and nearly 20%of households earn less than $50k per year.
O
• Homeownership costs have increased significantly in Lake Oswego,
consistent with national trends. The median home sale price in Lake Oswego
has more than doubled over the past 10 years, from $395k in 2012 to $860k Nearly 20% of
in 2022. households earn less
than $50k per year
et • There is very little existing housing available to
**Ur 1't • '" !*I fr those in lower income segments. Around 2/3 of existing housing units (both rental
er, 1 1;jr�* and ownership units) are unaffordable to those earning less than $100k per year,
• Tt1 • f ritir•*. and over 90% of existing units are unaffordable to those earning less than $50k per
rk' ir•� year.
Nearly half of renters are • Nearly half of renter households in Lake Oswego are considered housing cost
cost burdened burdened, meaning they pay more than 30%of their income for housing.
Future Needs
• Lake Oswego will need nearly 2,000 new housing units by 2043 to meet - •
projected demand. Housing will need to be produced across the income
spectrum to meet these needs. fifr
• A wide range of housing types are needed to meet the range of household
sizes and incomes. The majority of new needed homes (61%) are projected
to be attached housing—this includes 27%as middle housing units 2,000 new housing
(townhomes and "plexes" with two to four units) and 34%as multi-family units needed
housing (e.g., apartments).
•More than 1/3 of new housing units over the next 20 years will be needed by
MIN "low-income" households—those earning at or below 80%of the median family
income (MFI)for Clackamas County.
•The private market will not deliver housing that is needed by low-income
households on its own. Housing that is affordable to those earning below 80%
27% of new needed units MFI typically requires government subsidy and partnerships with affordable
are middle housing housing providers.
Lake Oswego Housing Production Strategy 14
• There is a shortage of buildable residential land across all zone types
(low-to high-density)to meet the 20-year housing need in Lake Oswego Shortage of
(a deficit of 86 total acres,or 642 total units). residential
land
Key Housing Gaps
The following housing types have been identified by stakeholders involved in
local housing production as key gaps in Lake Oswego's housing market.The HPS will work toward meeting these
housing needs and filling these gaps.
• Affordable housing for low-and moderate-income households.
• Greater housing choices within neighborhoods, including middle housing(e.g.,townhomes, duplexes,
cottage clusters).
• Opportunities for aging in place—More than 20%of the population is over 65.
• Options for more attainable homeownership (e.g., condos and middle housing).
• Apartments with family-size units (2-3 bedrooms)—Nearly 1/3 of current households in the city have
children.
• Multi-family housing outside the Town Center.
ENGAGEMENT SUMMARY
The City of Lake Oswego is committed to reaching a broad range of community members to consider all
perspectives related to housing within the city.The City values openness and transparency, recognizing that
successful public engagement leads to better local decisions and outcomes.
The public engagement for the Lake Oswego HPS allowed community members, stakeholders, and interested
parties to share their perspectives and input.This project was developed through a collaborative process among
the community, City staff and decisionmakers, stakeholders, and consultants to ensure that multiple points of
view were considered and understood. Below is a summary of engagement activities and outcomes for the HPS.
More detail is provided in Appendix B.
Public engagement was split into three phases:
Phase 1: HNA Phase 2: HPS Phase 3: HPS
(Dec 2022 - Oct Development
(Oct 2023 -Jul Adoption
2023) 2024) (Aug - Nov 2024)
Lake Oswego Housing Production Strategy 15
OUTREACH METHODS INCLUDED:
O O Housing Production Strategy Task Force.This advisory group included a variety of housing
(^Li^) stakeholders, producers, and consumers.This included realtors, housing development
industry members, homeowners, renters, and representatives of the City's Planning
Commission, City Council, 50+Advisory Board, and Transportation Advisory Board, among
others.
The Task Force was instrumental in shaping the City's approach to the HPS and the
strategies ultimately selected.They reviewed materials created by the project team at
each step of the process and provided important information and feedback.This was
especially beneficial in informing decisions by the Planning Commission and City Council.
O O Stakeholder Interviews.The project team interviewed stakeholders involved in various
ctiV aspects of housing production, including affordable housing producers as well as
developers or designers of market-rate multifamily, middle housing, and single-family
housing.
The feedback received from housing stakeholders influenced the strategies included in the
HPS. For example,the code topics addressed in the Code Audit and Amendments strategy
were refined to address the barriers identified by housing developers and producers. Also,
incentives and other strategies that support affordable housing development (tax
abatements,TIF funding, partnerships)were shaped by these interviews.
Virtual Forums and Surveys.The City hosted two virtual community forums—on April 6,
2023 to discuss housing needs as part of the HNA, and on March 14, 2024 to review the
strategies being considered for the HPS.The HPS forum used live polling to get feedback in
I I real-time to supplement the discussion.The City also hosted two online surveys/online
open houses that corresponded with the virtual forums.
The HPS community forum and online survey were used to gauge community support for
various strategies under consideration for the HPS.
Presentations to Boards and Commissions. City staff presented to the following groups:
Diversity, Equity and Inclusion Advisory Board; 50+Advisory Board; November 2023
Mayor's Roundtable event; and Fall 2023 Kruse Way Economic Forum
O O 0 City Council and Planning Commission meetings. The project team held work sessions
On�' with the City Council and Planning Commission at key points in the project.Adoption
hearings with both bodies were held in fall 2024.
Planning Commission and City Council provided important direction to the project team at
key points in the HPS development. Work sessions with both bodies were used to review,
refine, and prioritize specific strategies included in the HPS. Ultimately,the Planning
Commission and City Council provided direction on which strategies to include in the draft
HPS and approved the final HPS via adoption hearings.
Lake Oswego Housing Production Strategy 16
i. TEGIES AND ACTIONS
The Housing Production Strategy identifies strategies and actions that the City of Lake Oswego and community
partners can take to promote housing development that meets the needs of the community. All strategies
recommended in this report were supported by the HPS Task Force, City Council, and Planning Commission.
The strategies are organized by the primary housing need that they address. However, some strategies address
housing needs across multiple categories.
OVERALL HOUSING Increase housing production to meet the City's overall long-term
PRODUCTION AND SUPPLY housing need.
Enable and encourage production of housing that can meet a full
INCREASED HOUSING range of household needs and preferences.This includes a wider
CHOICES variety of housing types and sizes, and housing to meet particular
needs such as aging in place and accessibility.
AFFORDABLE HOUSING
FOR LOWER-INCOME Facilitate development of government-subsidized housing that
meets the needs of low-and moderate-income households.
HOUSEHOLDS
The strategy in this category (Fair Housing policy and education)
OTHER does not easily fit under the other headings, but supports
equitable implementation of all recommended housing strategies.
4
,.....
. _ ..._, ,_ 4 s ,,
►',: / . 3 II '/'� 5 - III
-- ----,...a,,.. +ey"—'
eLY E11� �c
-
Lake Oswego Housing Production Strategy 17
The HPS report summarizes key information for each of the recommended strategies and identifies steps
needed for implementation.The summary of each housing strategy includes the following information:
Description What is the strategy? How can the strategy work to address identified housing needs in
Lake Oswego?What are potential outcomes?
Considerations What potential options, funding needs, challenges, etc. are applicable to the strategy?
Are there potential trade-offs or negative externalities to consider? How feasible is this
strategy, given other considerations?
Recommendation Identifies specific actions recommended for implementation. (Not applicable to all
strategies).
Anticipated What is the anticipated impact of the strategy?The following types of impacts are
Impact considered:
• Housing need addressed—Housing need identified in the HNA that is addressed by
the strategy
• Populations served by the strategy
• Income levels addressed by the strategy
• Benefits and burdens that"priority populations" may receive from the strategy.
"Priority populations" include low-income households, people of color, people with
disabilities, seniors, and other state or federal protected classes.
• Housing tenure (either owner or renter)
• Magnitude of the action for producing new housing:
Low impact=The strategy is unlikely to meet the relevant housing need. A low
impact strategy does not mean an action is unimportant. Some actions are
necessary or beneficial, but not sufficient on their own to produce new housing.
Moderate impact=The strategy either may have a moderate impact on meeting
the relevant housing need or be designed to target that need.
High impact=The strategy may directly benefit a certain housing need and is
likely to be most effective at meeting that need relative to other strategies.
Time Frame Implementation: When does the City expect to begin implementation, and when will the
action to be adopted and implemented?Strategies are identified as Near Term (1-3
years), Medium Term (within 3-5 years), and Longer Term (>5 years) actions.
Impact: Over what time period will the impact occur?
Implementation What actions will the City and other stakeholders need to take to implement the
Actions strategy?
Lead & Partners Who will be responsible for implementing the strategy?What partnerships might be
necessary or beneficial to the strategy?
Lake Oswego Housing Production Strategy 18
SUMMARY OF STRATEGIES AND IMPLEMENTATION
Strategies are identified as Near Term (1-3 years), Key
Medium Term (within 3-5 years), and Longer Term Cost Effort
(>5 years) implementation time frames. A matrix $ Minimal Investment • 0 Minimal Effort
shows each strategy with the time frames, relative $$ Moderate Investment • • 0 Moderate Effort
cost, and level of effort. $$$ Significant Investment • • • Significant Effort
$$$$ Major Investment
A general implementation timeline follows on the
next page.
Implementation Time Frame
Strategy Begin Complete Cost Effort
Overall Housing Production and Supply
1. Code audit and amendments Near Term Medium Term $$$$ • • •
2. Remove or reduce minimum parking requirements Near Term Near Term $$$$ • 0 0
3. Rezone land Near Term Medium Term $$$$ • • •
Increased Housing Choices
4. Evaluate accessible design incentives or mandates Longer Term Longer Term $$$$ • • o
5. Evaluate Multiple Unit Property Tax Exemption Longer Term Longer Term $$$$ • • o
6. Pre-approved plan sets for ADUs Longer Term Longer Term $$$$ • • •
7. Modify System Development Charge fee schedule Near Term Medium Term $$$$ • • •
Affordable Housing for Lower-Income Households
8. Nonprofit Low-Income Housing Exemption Already Complete $ •
9. Low-Income Rental Housing Tax Exemption Near Term Near Term $$ • •
10. Public-private partnerships for affordable housing Near Term Ongoing $$ • • •
Use Tax Increment Financing to support
11. affordable housing development Near Term Longer Term $$$$ • • •
12. Affordable housing preservation inventory Medium Term Medium Term $ • •
Other
13. Fair Housing policy and education Near Term Medium Term $ • •
Lake Oswego Housing Production Strategy 19
IMPLEMENTATION TIMELINE
2024 2025 2026 2027 2028 2029 2030
1. Code audit and amendments
r
2. Remove or reduce min. Parking requirements
3. Rezone land* Non-Residential Low-Density Res.
4. Evaluate accessible design incentives or mandates
5. Evaluate Multiple Unit Property Tax Exemption
6. Pre-approved plan sets for ADUs
7. Modify SDC fee schedule* cottage SDC Methodology
Cluster
8. Nonprofit Low-Income Housing Exemption Pir
9. Low-Income Rental Housing Tax Exemption
10. Public-private partnerships for affordable housing Ongoing
11. Use TIF to support affordable housing
12. Affordable housing preservation inventory
13. Fair Housing policy and education* Policy Update Education
*Refer to the strategy description for details about phasing.
41 lig ( ,. ...
li ^a n
1,
•
tom- !` - -. SI r.. .tf`3`y Y { 5� i—• rods*.---------....-,-
- f - q'
¢ '/,yam
a =a
Y I
7- I - 11 ors i^ - - - ,,,. 1?"--,,,
,. d`i ...
i
: i '-
rITiEI; I _ Y.. it -- e�'�t 1 ilff "
_ i
rig ,, 1
i� 1F 1
.
STRATEGIES TO BOOST OVERALL HOUSING PRODUCTION AND SUPPLY
The following strategies are intended to increase housing production in Lake Oswego.The HNA indicates that
nearly 2,000 new housing units will be needed by 2043. This includes approximately 950 units for higher-income
households and over 1,000 units for middle-and lower-income households. Increasing housing production will
not only help meet these needs, it can also slow increasing housing costs by helping balance housing supply and
demand.
1. Code audit and amendments
Description Undertake a comprehensive audit of the Community Development Code (CDC)to
identify barriers to housing production and implement code amendments to address
those barriers.
The CDC audit and amendments are recommended to address:
• Barriers to accessory dwelling units (ADUs) and middle housing;
• Ways to facilitate smaller units;
• Procedural requirements that add cost and delay to land use approvals;
• Open space requirements in high-density zones;
• Barriers to residential development within mixed-use districts;
• The impact of neighborhood and design district overlays, restrictive siting
standards, or other regulatory provisions; and
• Other identified Code barriers.
The CDC amendments could also incorporate recent changes to state law related to
affordable housing and lower-cost housing choices.These statutory provisions apply
whether or not the City adopts them locally, but amending the Code could facilitate
easier interpretation by staff and applicants. Recent changes to Oregon Revised Statutes
(ORS) include:
• ORS 197A.445(2) (Senate Bill 8, 2021): Allows affordable housing with density
and height bonuses.
• ORS 197A.445(3) (House Bill 2984, 2023): Allows conversion of commercial
buildings into housing.
• ORS 197A.430 (House Bill 3395, Sections 16-19, 2023):Allows single room
occupancies in all residential zones.
Considerations • This strategy could help reduce or eliminate some of the major code and procedural
barriers identified by housing stakeholders.
• The strategy could be shaped to prioritize housing types identified as most needed in
the city, based on the City's recently adopted HNA and stakeholder input, such as:
o Middle housing (e.g., townhomes, duplexes, and cottage clusters)
o Apartments with family-size units (2-3 bedrooms)
o Multi-family housing (of any size)
o Smaller homes
Lake Oswego Housing Production Strategy 111
• Simply removing code barriers will not lead to housing development.This strategy
should be paired with others that directly influence housing production.
• There may be neighborhood resistance to this strategy, particularly for any code
amendments intended to modify existing neighborhood overlays or neighborhood
planning efforts. Extensive community engagement would be necessary.
Anticipated • Housing need addressed: General need for increased housing production and
Impact increased housing choices.This strategy could also specifically address the needs for
multi-family housing, middle housing, and smaller units such as ADUs.
• Population served: Low to higher-income households
• Income level:All income levels
• Benefits and Burdens:This strategy is broad, and therefore difficult to evaluate in
terms of benefits and burdens for priority populations. However, it does give the
opportunity to target efforts in beneficial areas such as reducing barriers to
affordable development or housing that is more attainable to low-and moderate-
income households(e.g., multi-family and middle housing); facilitating smaller
housing options such as ADUs, which could benefit seniors; and other areas aimed at
helping priority populations. In addition, increasing overall housing supply can help
keep housing costs down by balancing supply and demand,which benefits all
residents, including priority populations.
However, because the strategy is intended to increase housing production overall, it
has the potential to primarily benefit upper income households. Implementation
should include a focus on meeting the needs of housing types that benefit low-and
moderate-income households, seniors, and other priority populations.
• Housing tenure: For rent or sale
• Magnitude: Moderate—This strategy could have a moderate impact on new housing
production given the limited remaining inventory of buildable residential lands.The
low inventory and relatively high land prices in Lake Oswego incentivize making more
intensive use of remaining sites, if the code permits it.
Time Frame Implementation: Begin in Near Term; Complete in Medium Term.
Impact:The action can begin to have impact after it is implemented in the CDC.
However, the impact on housing development is expected to be longer-term.
Implementation • Identify priorities for the code audit,focusing on high-priority housing needs.
Actions • Potentially seek a technical assistance grant from DLCD or other sources to support a
code audit project.
• Conduct a comprehensive CDC audit, potentially with support from a consultant.
• Work with developers/housing stakeholders and residents to vet potential CDC
amendments.
• Work with Lake Oswego's Planning Commission and City Council to adopt code
amendments.
• City Council Action: Legislative CDC text amendments.
Lake Oswego Housing Production Strategy 112
Lead & Partners Lead: Lake Oswego Community Development
Partners: Developer and housing stakeholders
2. Remove or reduce minimum parking requirements
Description As required by the State of Oregon's Climate-Friendly and Equitable
Communities (CFEC) program,the City is currently undertaking Citywide Parking
Reform efforts to develop regulations that comply with the CFEC rules.This
includes requirements to remove parking mandates in certain areas (near
transit, Downtown, and in the Lake Grove Village Center).The City is also
required to take additional steps to reduce parking requirements. For example,
the City could consider removing parking mandates citywide as a part of this
work.
While the CFEC-related parking reform efforts were not initiated as part of the
HPS, reducing parking mandates benefits housing production in several ways. It
provides the opportunity to reduce the amount of lot area used for pavement
and storage of vehicles and provides more space for housing and open space. It
also offers greater flexibility to site housing and reduces costs associated with
providing parking.The City is choosing to recognize the value of this work in
facilitating housing development by including in the HPS.
More information about the Citywide Parking Reform project is available here:
www.ci.oswego.or.us/planning/pp-22-0001-citywide-parking-reform.
Considerations • Parking mandates are often cited as a major barrier for market-rate multi-
dwelling and regulated affordable housing.
• Developers often choose to provide parking, even if not required.
Lenders/investors may require some parking to ensure marketability of
units.
• There could be community opposition to removing all parking mandates, due
to the potential for higher usage of on-street parking and the potential for
parking overflow from commercial areas to residential neighborhoods.
Anticipated • Housing Need Addressed: General need for increased housing production.
Impact This strategy would especially benefit production of multi-family and
government-subsidized affordable housing.
• Population served: Especially beneficial to low-to moderate- income
households
• Income level:All income levels—especially 30-120%AMI
• Benefits and Burdens:This strategy has the potential to benefit low-income
households and people of color by removing parking mandates as a barrier
to development of affordable housing.
Access to convenient parking has been raised as an important need for
people with disabilities;therefore, removing parking mandates could
potentially burden those populations if parking is not provided.The City
could consider encouraging property owners to provide parking for people
Lake Oswego Housing Production Strategy 113
with disabilities and set policy on when on-street parking designated for
people with disabilities is appropriate. On the other hand, some people with
disabilities are unable to drive and could benefit from removing additional
costs associated with parking.
• Housing tenure: For rent or sale
• Magnitude: High—This action is likely to have the most impact on market-
rate multi-family and regulated affordable housing. Parking mandates are
often cited as a major barrier for those types of development. Reduced
parking often allows for greater density(i.e., additional housing) on a site,
improving the financial feasibility via replacing the sunk cost of building and
maintaining the parking area, with additional revenue-generating space.
Reduced parking also allows developers to be more creative with site
planning and design features in general, often improving the aesthetics and
functionality of a property as well.
Time Frame Implementation: Begin and Complete in Near Term
Impact:The action will begin to have impact as soon as the parking mandates
are removed. Impacts to housing production are expected to be longer term.
Implementation • Conduct outreach and education related to parking mandates.
Actions • Work with Lake Oswego's Planning Commission and City Council to adopt
code amendments.
• City Council Action: Adopt Development Code text amendments.
Lead & Partners Lead: Lake Oswego Community Development
Partners: N/A
3. Rezone land
Description This strategy involves rezoning commercial, mixed-use, or other non-residentially
zoned properties for residential uses, especially multi-family housing. It could also
involve updating zoning districts to allow housing where not currently allowed or
rezoning lower-density areas to allow higher-density housing.
The HNA identified a need for additional residential land across all zone types to meet
the 20-year housing need in Lake Oswego (a deficit of 86 total acres, or 642 total
units).As such,there may be a need to add to the city's capacity of residential land to
meet the housing need. Rezoning is one way to help address this issue.
Recommendation Prioritize rezoning in areas with the greatest potential for higher density multifamily
housing—including areas where nonresidential uses are underutilized. Potential zoning
districts to consider for this strategy include the Mixed Commerce District (MC) and
Industrial District (I). Consider a phased approach that first looks at nonresidential
zones,then looks at upzoning lower-density areas in a later phase. Some of this work
could coincide with the Code Audit and Amendments work under Strategy 1.
Lake Oswego Housing Production Strategy 114
Considerations • If nonresidential land is considered for rezoning, it would be important to ensure
there is still adequate land available for employment and commercial/industrial
needs in the city. Lake Oswego's Economic Opportunities Assessment identifies the
city's future employment land needs.
• In considering the most appropriate locations for City-initiated rezoning of land,
the following criteria or factors should be considered:
o Proximity to existing residential and higher-density areas.
o Proximity to services (e.g.,transit, schools, parks, etc.).
o Size and ownership—larger properties will be more attractive for
development.
• There may be neighborhood resistance to rezoning, especially"upzoning" single-
family residential areas.This strategy would need significant community
engagement.
Anticipated • Housing need addressed: Rezoning would address the shortage of land for
Impact housing, and the overall need for housing production in the city. Depending on
how it is implemented,this strategy could also address the shortage of higher-
density land by rezoning lower-density land.
• Population served: Low to higher income households
• Income level: All income levels
• Benefits and Burdens: Rezoning can increase the availability of land zoned for
residential development. Additional capacity for more housing development can
include opportunities for multi-family housing that is generally more affordable to
low-and moderate-income households.
A potential burden from this strategy is the possibility of lower-income households
being displaced if rezoning leads to increased development pressures or increased
property values. Rezoning commercial areas, or impacts of increased property
values, can also lead to commercial displacement of small businesses. Rising
commercial rents or pressures to redevelop for residential uses may have a larger
impact on small-scale entrepreneurs and immigrant or minority-owned businesses.
The characteristics of areas being considered for rezoning should be carefully
considered as part of implementation to avoid displacement impacts.
• Housing tenure: For rent or sale
• Magnitude: Moderate to High—The impact of rezoning might be relatively high
given the limited supply and high demand for buildable residential land in the
community.The effectiveness of rezoning will depend on the physical and
infrastructure characteristics of the rezoned land for residential use.The density of
housing under the new zone will also depend on the physical constraints (e.g.,
steep slopes) that might limit the buildable portion of a site.
Time Frame Implementation:
• Non-Residential Zones: Begin in Near Term, Complete in Medium Term.
• Low-Density Zones: Begin and Complete in Medium Term.
Impact: Land inside city limits will become available for development immediately
after rezoning. Land outside city limits can also be developed, but will need to
Lake Oswego Housing Production Strategy 115
overcome the additional hurdle of annexation. The impact on housing development is
expected to be long-term.
Implementation Initial steps will include outlining the rezoning process, researching potential rezoning
Actions areas, and contacting owners of large properties in those areas to gauge interest.This
will take place in the first year of implementation,with remaining steps taking place in
subsequent years.
• Use the criteria listed above to identify and evaluate potential areas for rezoning.
Prioritize sites with the best potential for housing production and access to
services.
• Consider the demographic characteristics of potential rezoning areas to avoid
potential displacement impacts.
• Engage with property owners as well as the broader community in targeted areas.
• Work with Lake Oswego's Planning Commission and City Council to adopt Zoning
and Comprehensive Plan Map amendments.
• City Council action: Legislative Zoning and Comprehensive Plan Map amendments
and CDC and Comprehensive Plan text amendments.
Lead & Partners Lead: Lake Oswego Community Development
Partners: Property owners
STRATEGIES TO INCREASE HOUSING CHOICES
The following strategies are intended to meet a full range of household needs and preferences.This includes a
wider variety of housing types and sizes, and housing to meet particular needs such as aging place and
accessibility.
4. Evaluate accessible design incentives or mandates
Description This strategy involves evaluating incentives or mandates to increase
development of housing that is accessible for seniors and people with disabilities
or mobility challenges.
Potential incentives could include:
• Bonuses for height, density, lot size, or floor area ratio.
• Tax abatements, e.g., MUPTE (see Strategy 5).
Potential mandates could include:
• Requiring visitability in single-family and middle housing development—
this would ensure that anyone using a wheelchair can visit the subject
homes. Visitability is most relevant for buildings with fewer than four units,
townhouses, and detached homes that aren't subject to ADA requirements.
• Requiring housing that receives public funding to provide more accessible
units or more universal design features than required under federal
standards.This could mean applying the standards to a higher percentage of
Lake Oswego Housing Production Strategy 116
units than would otherwise be required (above 5%) and/or requiring units to
meet higher Universal Design or Lifelong Housing Certification standards.
• Requiring elevators in some or all multi-story buildings. Currently,the
Building Code only requires elevators to reach common spaces (such as
exercise rooms) or units that are federally required to be accessible.
Requiring elevators in one or more multi-family buildings would provide
access to all levels of that building. It would also make all units "covered"
units under the Fair Housing Act, meaning all units would need to have
baseline accessibility features.
Accessibility Standards:
A small number of units in multifamily buildings are already required to have
accessibility features under federal law and Oregon's state building code. This
strategy would go beyond those minimums by either requiring or incentivizing
additional units that provide accessibility features, or targeting housing not
subject to these requirements (e.g., single-family homes and middle housing).'
Potential accessibility standards include:
• Building Code Standards. Oregon's building code provides specifications for
"Accessible Units" (with features such as wider than Type B doorways and
fully accessible bathroom and kitchen facilities), "Type A units" (less
accessible than "Accessible Units" and adaptable for additional accessibility),
and "Type B" units (fewer accessibility features than Type A). Relying on
these existing statewide code standards would be a relatively
straightforward approach.
• Universal Design is a building concept that incorporates design layouts and
characteristics into residences to make them usable by the greatest number
of people and respond to the changing needs of the resident. Universal
Design incorporates standards for features such as hallways, doorways,
bathrooms, and kitchens that make these features usable for people with
disabilities or adaptable for that purpose.'
• Visitability is a design approach for new housing that allows anyone who
uses a wheelchair or other mobility device to visit the home. A visitable
home typically includes:
o A zero-step entrance;
o Wide interior doors; and
o A half bathroom on the main floor.
' Multi-family developments are subject to the Fair Housing Act; for buildings with an elevator, all units must be
Type B units, per the building code; for those without an elevator, all ground floor units must be Type B.At least
2% but not less than one dwelling unit in a multi-family site with more than 20 units must be Type A units.
Housing projects receiving public funding are subject to federal laws (Section 504 of the Rehabilitation Act of
1973 and/or Title II of the ADA),which require 5%of units to be mobility-accessible. Sources: Portland Code
Guide,Accessible Design. https://www.portlandoregon.gov/bds/article/514247; Disability Law Handbook,
Southwest ADA Center. http://www.southwestada.org/html/publications/dlh/housing.html.
2 Universal Design Standards, West Virginia Housing Development Fund. https://tinyurl.com/yx63h792
Lake Oswego Housing Production Strategy 117
Considerations • This strategy would help address housing disparities for people with
disabilities and provide more options for aging in place.
• Strategies to promote accessible housing received support from the Middle
Housing Code Advisory Committee as part of the House Bill 2001 code
updates.
• Accessibility features can add to the cost of construction for a development,
which can make affordable housing projects less financially feasible.
Elevators, in particular, add significant cost to a project.
• While mandates may provide more accessible units,they could prevent
some affordable housing projects from being developed.
• Incentives must be calibrated effectively to be attractive to both a nonprofit
and for-profit developer.The benefit of using the incentive should outweigh
the costs associated with implementing accessible design features.
• A more general strategy to utilize zoning bonuses was not recommended for
inclusion in the HPS due to concerns expressed during project outreach that
additional floor area, height, or lot coverage could conflict with existing
neighborhood character. Zoning bonuses to incent accessible units may be
met with similar opposition.
Anticipated • Housing Need Addressed: Housing for people with physical disabilities and
Impact mobility challenges.The HNA indicates that an estimated 8%of the
population of Lake Oswego, or 3,140 people, report having some form of
disability, including 2.9%with an ambulatory disability. However, the
number of people that would benefit from physical accessibility in housing—
especially amongst the senior population—likely exceeds these numbers.
Also, housing stakeholders identified this as a notable gap in the local
housing market.
• Population served: Seniors; people with disabilities
• Income level:All income levels
• Benefits and Burdens:This strategy is anticipated to benefit seniors and
people with disabilities by increasing the stock of accessible housing units in
the city. However, a potential trade-off of mandating accessibility features—
especially for subsidized housing—is that it would reduce the total number
of units that could be provided in a building (because bathrooms and other
areas would need to be larger). While this may provide more accessible
units, it could make some affordable housing projects less feasible.This
could be a potential burden on low-income households by limiting the
opportunity for production of housing they can afford. Incentive-based
strategies would not carry the same burden.This will be an important
consideration for implementation.
• Housing tenure: For rent or sale
• Magnitude: Moderate—Depending on how the strategy is structured, it
could lead to production of a significant number of new units with
accessibility features. However, the strategy could also have the effect of
deterring housing production if requirements are too onerous.To improve
feasibility, requirements may be applied to some but not all of the units in
Lake Oswego Housing Production Strategy 118
new multi-family development. New elevator requirements may significantly
deter new development, due to high cost.
Time Frame Implementation: Begin and Complete in Longer Term
Impact:The action can begin to have impact after it is implemented in the CDC
or adopted as a financial incentive.The impact on housing production is
expected to be longer-term.
Implementation • Potentially seek a technical assistance grant from AARP or other sources to
Actions support implementation efforts.
• Code bonus.
o Evaluate a potential new height/FAR bonus with input from housing
stakeholders and community members to determine whether—and
how—it should be implemented.
o A potential accessibility bonus should be carefully considered in
conjunction with any other potential incentives for accessible housing
(see Strategy 5).
o Consult with developers and housing providers to determine their level
of interest.
o Work with Lake Oswego's Planning Commission and City Council to
consider potential code approaches, and if directed,to adopt code
amendments.
o City Council Action (if directed): Legislative CDC text amendments.
• Code requirement.
o Evaluate potential new accessibility requirements, working closely with
non-profit and market-rate housing developers to understand how their
projects might be impacted.
o Conduct a pro forma analysis to evaluate potential impacts to project
costs.
o Implement via CDC updates, if directed.
• Financial incentive.
o Evaluate an incentive program (e.g., MUPTE, Strategy 5)to increase the
number of dwelling units designed accessibly.
o Work with developers to gather feedback on program parameters and
interest.
o Implement incentive program through Council action, if directed.
Lead & Partners Lead: Lake Oswego Community Development
Partners: Home Building Association of Greater Portland; Fair Housing Council of
Oregon; AARP; non-profit and for-profit housing developers.
Lake Oswego Housing Production Strategy 119
5. Multiple Unit Property Tax Exemption (MUPTE)
Description This tax exemption can be used to encourage multi-family or middle housing
with particular features or at particular price points by offering qualifying
developments a partial property tax exemption for 10 years (or longer,for
housing subject to affordability agreements). It can be offered to new
development or existing housing that is converted to meet the eligibility criteria.
MUPTE is a flexible tax abatement that can be used in various ways to encourage
needed housing.The City has broad discretion as to how to structure the
program. Eligibility criteria could include requirements for affordability,
accessibility/universal design, unit size, or other desirable features.
The City must designate specific areas where the MUPTE applies, unless
including affordability as a criterion, in which case the whole city could be
eligible.
(Authorized by ORS 307.600-637)
Recommendation Evaluate adoption of the MUPTE program with criteria that would make it
available to housing with either accessible design (see Strategy 4) or moderate-
income units affordable at 80-120%AMI. Also consider using this strategy to
preserve affordability for existing lower-cost housing—i.e.,focus the incentive
on rehabilitation projects. As such,this strategy could follow implementation of
Strategy 12: Affordable housing preservation inventory.
Considerations Applicable to all tax exemption programs:
• Tax exemptions apply only to the tax levy of a governing body that adopts
the exemptions. In order for the full property tax to be exempted,the City
must seek approval from partner jurisdictions that,together with the City,
make up at least 51%of the overall tax levy. Lake Oswego would need to
secure agreement from either the School District or County or both.
• The City and participating taxing districts will lose property tax income for
the duration of any tax exemption, reducing revenue for City services and
revenue for participating taxing districts. Such taxing districts may express
resistance to new tax abatement or exemption programs that involve
reduced revenue, particularly for programs intended to produce market-rate
housing.
Applicable to the MUPTE under consideration:
• The City should consider what income criteria would best fill the gaps in the
local housing market. If the program targets rent levels for households
earning up to 120%AMI, developers may be able to charge market-rate
rents,which may not be more affordable than they would otherwise charge.
A lower income target such as 100%AMI may be more effective at achieving
lower-cost units.The local rental market and household income levels
should be carefully evaluated as part of the City's analysis of this program.
Anticipated • Housing Need Addressed:This strategy has the potential to increase
Impact development of multi-family housing in targeted areas of the city.
Lake Oswego Housing Production Strategy 120
Stakeholders in the HPS process identified a particular need for more multi-
family housing outside the Town Center. Targeting the program to accessible
units would help meet the needs of seniors and people with disabilities (see
Strategy 4 for estimates of total need).Targeting the program to households
earning 80-120%AMI would help meet the needs of moderate-income
households.The HNA indicates that 16%of new needed housing units over
the next 20 years will be needed by those earning 80-120%AMI.
• Population served: Moderate-income households, seniors, and people with
disabilities.
• Income level: Depends on how the program is structured.
• Benefits and Burdens:This strategy has the potential to benefit various
priority populations by encouraging housing needed by those communities
(accessible units, moderate-cost units, etc.).The City could also target a
MUPTE program to specific geographies to target housing development in
neighborhoods where it is most needed.A challenge for the City will be to
determine how best to balance those various needs to determine what
housing types or features are most appropriate to include as criteria for the
MUPTE abatement.This should be considered in the broader context of the
HPS to ensure that the City's actions benefit all priority populations in
equitable ways.
No burdens on priority populations are anticipated for this strategy,
provided it is implemented in the ways described above.
• Housing tenure:Typically for-rent.
• Magnitude: Moderate—This strategy could encourage production of more
multi-family units that meet housing needs not currently being met by the
private market. As noted above, to make this program effective at
encouraging lower-cost units, the City should carefully consider what income
criteria would best fill the gaps in the local housing market.
Time Frame Implementation: Begin and Complete in Longer Term
Impact:The MUPTE can be used once it is adopted, and for as long as the City
offers the exemption.The impact on housing supply is expected to be longer-
term.
Implementation • Further evaluate the various options for structuring the MUPTE program to
Actions determine whether—and how—it should be implemented.
• Consult with developers and housing providers to determine their level of
interest.
• Determine desired eligibility criteria (e.g., affordability, accessibility, etc.).
• Seek input from overlapping taxing districts on their willingness to support
the exemption.
• City Council Action: Adopt tax exemption program by resolution or
ordinance.
Lead & Partners Lead: Lake Oswego Community Development
Partners: Lake Oswego Finance Department; overlapping taxing jurisdictions
Lake Oswego Housing Production Strategy 121
6. Pre-approved plan sets for ADUs
Description Pre-approved (or permit-ready) plan sets have been reviewed in advance for
conformance with zoning and building codes. Permit-ready plan sets can reduce
housing development costs by reducing design and permit process times and
fees.This strategy could be used to encourage more development of accessory
dwelling units (ADUs).
Permit-ready plans can reduce costs in three main ways:
• Streamlining permit processes—Permitting times are frequently cited by
market-rate builders as a major barrier to housing production, as delays
in permitting often translate into increased costs.
• Reducing permit fees—The Building Department may decrease permit
review charges for applicants because of the simplified review.
• Reducing design fees—The builder would pay less in professional
services to architects, etc.
ADUs are a type of housing located on the same lot (and sometimes in the same
structure) as a primary dwelling unit.They are generally smaller in size
compared to the primary home and come in a number of different
configurations. In Lake Oswego,there may be one ADU per primary home.ADUs
offer opportunities for multigenerational living,with family members living on
the same site but in a separate dwelling.ADUs can also be rented out, allowing
the homeowners to supplement their income.
Considerations • This strategy potentially lowers site and building design costs, which could
lead to an increase in new ADU units and increase rental stock.
• There are upfront costs associated with developing the pre-approved plans,
including paying design fees for architects that develop the base plans, and
dedicating staff time for working with the architects and reviewing the plans.
• The City could partner with a university, design institution, or develop a
competition to produce plans. For example,the City of Eugene has
partnered with several design firms to offer low-cost ADU plans, each of
which is available for only$500. Eugene also offers a free ADU plan
developed in-house.'
• ADUs are a good candidate for this type of program due to their small size
and relative simplicity. Also, homeowners wanting to build an ADU may be
especially interested in pre-made designs, as compared to experienced
homebuilders.
Anticipated • Housing Need Addressed: Increased housing choices within existing
Impact neighborhoods. Increased rental opportunities. Options for
multigenerational housing. Opportunities for aging in place. Many of these
were mentioned by stakeholders in the HPS process as a gap in the local
market.
City of Eugene. Pre-Approved Accessory Dwelling Unit Program. https://www.eugene-or.gov/4707/Pre-
Approved-Accessory-Dwelling-Unit-Pro
Lake Oswego Housing Production Strategy 122
• Population served: Moderate to higher-income households; seniors; people
with disabilities; multigenerational households; renters
• Income level: Likely 80%AMI and above
• Benefits and Burdens: ADUs are a popular choice for elders who wish to live
on the same property as their children/grandchildren (ADUs are sometimes
referred to as "granny flats"). As such, this strategy can offer benefits to
seniors and multigenerational households. Because ADUs are often single-
level, small homes, they may also benefit people with disabilities—with the
potential added benefit of enabling family to live nearby for assistance and
support.
No burdens on priority populations are anticipated.
• Housing tenure: For rent
• Magnitude: Moderate—This strategy would likely lead to more
development of ADUs in the city. Pre-approved plans can lower the logistical
barriers for prospective ADU builders, and can be paired with a faster,
cheaper permitting process.This could increase the number of available
rental properties and increase housing choices in existing developed
neighborhoods. However,the strategy would have a limited impact on
overall housing supply.
Time Frame Implementation: Begin and Complete in Longer Term. Could potentially be
implemented sooner if the City can use pre-approved plans that are already
developed.
Impact:The action is expected to have impact over the longer term.
Implementation • Develop ADU plans in collaboration with one of the partners listed below.
Actions • Work with the Building Department to ensure plans meet all City Code
standards, approve the plans, and adopt reduced fees for the plans.
• Work with the Building Department to implement a streamlined review
process.
Lead & Partners Lead: Lake Oswego Community Development(including Building Department)
Partners: Universities, design institutions, and/or design firms
7. Modify System Development Charge (SDC) fee schedule
Description SDCs are one-time charges assessed on new development to pay for the costs of
expanding public facilities to serve new development.The City of Lake Oswego
charges SDCs for water,sewer, parks, and transportation (affordable housing
meeting certain criteria is eligible for an exemption to SDCs).The Lake Oswego
School District also charges a construction excise tax(effectively an SDC)for new
construction in the city(except for affordable housing).
This strategy involves updating the City's SDC fee schedule so it is tied more
directly to dwelling size. Currently,the City charges the same rates for all single-
family homes regardless of size. Each unit of a duplex is also charged the same
Lake Oswego Housing Production Strategy 123
single-family fee. Multi-family housing(3 or more units) is charged a lesser fee
per unit.4 While cottage clusters are currently charged the single-family rate for
each unit, the City is planning to update the SDC fee schedule in the near term so
that cottage clusters are charged a lower rate per unit.
Scaling SDC fees to dwelling size would better match a development's charges to
its actual cost or impact on the system. Smaller housing units, including some
middle housing types, typically have less impact on water, sewer, or
transportation facilities,given the reduced average size and occupancy of these
units.This is not fully reflected in Lake Oswego's current SDC schedule, although
the current schedule does include lower fees for multi-family housing units.
The City could consider charging fees on a per-square-foot basis, rather than
per-unit.'
Considerations • This strategy would reduce barriers to construction of more affordable,
smaller-scale homes, including small single-family homes and middle
housing.
• The City sets its SDC fee schedule based on projected needs for system
construction and improvements. Modifying the SDC methodology would
likely increase fees for larger homes to make up for the reduced fees for
smaller units.
• As part of the current Parks Plan 2040 update project (completion expected
in 2025),the City will consider modifying its Parks SDCs to be scaled by
housing unit size.That could provide a jumping off point and a model for a
larger discussion about SDC schedules and potential future refinements to
SDCs for other services.
Anticipated • Housing need addressed:This strategy will facilitate development of
Impact smaller, more attainable housing units that may be affordable to moderate-
income and smaller households.The HNA indicates that 16%of new needed
housing units over the next 20 years will be needed by those earning 80-
120%AMI.
• Population served: Moderate to higher income households; first-time
homebuyers; single or two-person households; seniors
• Income level: 80%AMI and above
• Benefits and Burdens:This strategy can increase production of smaller and
lower-cost units which may benefit lower-income households, but is more
likely to benefit moderate-or higher-income households. Smaller unit sizes
may be of particular benefit to seniors due to lower maintenance and lower
housing costs.
No burdens on priority populations are anticipated. However, reducing SDCs
for smaller units would likely need to be offset by increased SDCs for larger
Lake Oswego Master Fees and Charges, 2024. https://www.ci.oswego.or.us/finance/master-fees-and-charges
' For example,the City of Newport, Oregon charges SDCs on a per-square-foot basis for single-unit dwellings.
https://newportoregon.gov/dept/cdd/documents/FYE24SDCRates.pdf.The City of Albany, Oregon scales its
sewer and streets SDCs for single-unit dwellings by dwelling size,with thresholds at 1,000 sq ft, 1,250 sq ft, and
3,000 sq ft. https://albanyoregon.gov/images/stories/cd/devicenter/fee guide city of albany oregon.pdf.
Lake Oswego Housing Production Strategy 124
units, the cost of which would be passed onto homebuyers. It is anticipated
that homebuyers that can afford larger units would be less impacted by the
increased cost than moderate to lower income homebuyers.
• Housing tenure: For rent or sale
• Magnitude: Low to Moderate—Given current SDC incentives already
available,this tool may have a low to moderate impact in incentivizing
additional housing units. It may incentivize some projects to produce a
greater number of marginally smaller units,thus increasing density and unit
production somewhat.
Time Frame Implementation:
• Cottage cluster SDCs: Complete in Near Term.
• Overall SDC methodology: Begin and Complete in Medium Term.
Impact:The process of modifying a city's SDC methodology can be lengthy, as it
is necessary to analyze projected needs for system construction and
improvements and ensure that SDC revenues will be adequate to meet projected
needs. Once a new SDC schedule is implemented,the impact to housing
development is expected to be longer-term.
Implementation • Adopt SDC rates adjustments for cottage clusters, working with City Council
Actions and other City departments.
• Work with City Council, other departments (Public Works, Finance, Parks,
etc.), and development stakeholders on policy discussions around modifying
the SDCs.
• Potentially work with a consultant to develop an updated SDC methodology.
• City Council action: Adopt modified SDC schedule by resolution or ordinance.
Lead & Partners Lead: Lake Oswego Engineering
Partners: Development stakeholders
III ,,
I eI
e`iiu.uirN I
7 "NV
r..kl
A i'l irk !. ' A I ,C , ' -Xiw.. _r'_ .`
Rendering of proposed Hacienda CDC affordable housing development in Lake Oswego
Lake Oswego Housing Production Strategy 125
STRATEGIES TO SUPPORT AFFORDABLE HOUSING FOR LOWER-INCOME
HOUSEHOLDS
The strategies below are intended to facilitate development of regulated affordable housing (i.e.,government-
subsidized housing)that meets the needs of low-and moderate-income households.The HPS indicates that over
a quarter of new housing units needed by 2043 will be needed by lower-income households earning 80% or less
of the area median income.
8. Nonprofit Low-Income Housing Tax Exemption
Description This tax exemption benefits low-income residents by alleviating the property tax
burden on those organizations that provide this housing opportunity. In
particular, this strategy reduces ongoing operations costs and supports long-
term stability for affordable housing developments.
Eligible properties must be offered to low-income persons (at or below 60%AMI
for the initial year, and at or below 80%AMI for subsequent years), or held for
the purpose of developing low-income rental housing.The housing may be for
rent or for purchase, and could be new development or existing housing
acquired by a nonprofit for the purpose of converting it to income-restricted
affordable housing.Jurisdictions may adopt additional eligibility criteria for the
exemption, provided they don't conflict with state statutes.
Applicants must renew their tax exemption applications annually. As long as the
housing remains affordable to low-income residents, there is no time limit to the
tax exemption.
(Authorized by ORS 307.540-548)
Lake Oswego City Council chose to fast-track adoption of this strategy to make it
available to affordable housing projects being developed in 2024 (including the
Mercy Greenbrae development at Marylhurst Commons). The tax exemption
was approved by City Council as Ordinance 2945 in May 2024.6
Considerations • By reducing operating income, property tax abatement programs can be a
powerful tool to increase the feasibility of low-income housing, and perhaps
increase the number of units that are feasible in planned projects. Many
affordable housing developers cite abatements such as the Nonprofit
Housing exemption as an essential tool in helping make projects financially
feasible.
• See Strategy 5, MUPTE, for considerations related to all tax exemption
programs.
Anticipated • Housing need addressed: Government-subsidized affordable housing for
Impact low-income households.
• Population served: Low-income households
• Income level: 0-60%AMI (for residents' initial year of tenancy; after the first
year, up to 80%AMI)
6 https://www.ci.oswego.or.us/planning/pp-24-0003-nonprofit-corporation-low-income-housing-tax-exemption
Lake Oswego Housing Production Strategy 126
• Benefits and Burdens:This strategy would primarily benefit low-income
households by increasing the City's capacity to support production of
subsidized affordable housing.
No burdens on priority populations are anticipated.
• Housing tenure: For rent
• Magnitude: High—This abatement can have a large impact on making low-
income affordable housing more feasible to develop.The open-ended
nature of the abatement(as long as the project maintains affordability) can
offer very significant savings to the property manager over time and increase
the viability of offering affordable rents indefinitely.The property tax level in
Lake Oswego is roughly$20,000 per$1M in valuation per year. A mid-to
large apartment complex could expect a valuation of many millions of
dollars, amounting to potentially hundreds of thousands in taxes per year.
An abatement of these taxes is a strong incentive and improves feasibility
considerably.
Time Frame Implementation:Already Complete
Impact:The tax exemption can be used once it is adopted, and for as long as the
City offers the exemption.The impact on supply of affordable housing is
expected to be longer-term.
Implementation City Council action: Adopt tax exemption program by ordinance. (Already
Actions completed.)
Lead & Partners Lead: Lake Oswego Community Development
Partners: Lake Oswego Finance Department; overlapping taxing jurisdictions
9. Low-Income Rental Housing Tax Exemption
Description This is a 20-year tax exemption for any entity that provides income-restricted rental
housing, including nonprofits and for-profit developers. Eligible properties must be
offered for rent to low-income persons or held for the purpose of developing low-
income rental housing.Jurisdictions may adopt additional eligibility criteria for the
exemption, provided they don't conflict with state statutes. (Authorized by ORS
307.515-537)
Comparison of low-income housing tax exemption programs:
While these two exemption programs appear similar,they do have some key
distinctions.
Nonprofit Low-Income Low-Income Rental
Housing Housing
Housing Type Rental housing Rental housing
Income Levels Up to 60%AMI Up to 60%AMI
Eligible Developers Nonprofits only Nonprofit or for-profit
Lake Oswego Housing Production Strategy 127
New vs.Acquired New construction or New construction only
Housing acquisition of existing
housing
Annual Renewal Yes No
Required?
Time Limit No limit 20 years
Recommendation Consider supplementing the adopted Nonprofit Low-Income Housing Tax Exemption
with this additional exemption program to offer more options and flexibility.
Considerations • Key advantages of this abatement are that it is available to more than just non-
profits and it does not require annual renewal. This can significantly reduce an
organization's administrative burden in implementing the exemption.
• However,this abatement has less flexibility compared to the Nonprofit Exemption
because it cannot be used for acquisition of existing housing and is limited to 20
years.
• See Strategy 5, MUPTE, for considerations related to all tax exemption programs.
Anticipated • Housing need addressed: Government-subsidized affordable housing for low-
Impact income households.
• Population served: Low-income households
• Income level: 0-60%AMI (for residents' initial year of tenancy; after the first year,
up to 80%AMI)
• Benefits and Burdens:This strategy would primarily benefit low-income
households by increasing the City's capacity to support production of subsidized
affordable housing.
No burdens on priority populations are anticipated.
• Housing tenure: For rent
• Magnitude: High— Like the Nonprofit Exemption,this abatement can have a large
impact on new affordable housing production.As noted above, an abatement of
property taxes is a strong incentive and improves feasibility considerably. This
abatement is available to for-profit developers and therefore may generate more
new housing than the Non-Profit Exemption. While not open-ended, a 20-year
exemption matches the period in which a property would otherwise undergo
significant depreciation. However, at the end of the 20-year period,this housing
often reverts to market-rate status.
Time Frame Implementation: Begin and Complete in Near Term
Impact:The tax exemption can be used once it is adopted, and for as long as the City
offers the exemption. The impact on supply of affordable housing is expected to be
longer-term.
Implementation • Work with other taxing jurisdictions to gain approval.
Actions • Develop application standards and guidelines.
• City Council action: Adopt tax exemption policy by resolution or ordinance.
Lead & Partners Lead: Lake Oswego Community Development
Partners: Lake Oswego Finance Department; overlapping taxing jurisdictions
Lake Oswego Housing Production Strategy 128
10. Public-private partnerships for affordable housing
Description Public-private partnerships (PPPs) are arrangements between public and private
entities to develop housing, especially affordable housing. PPPs have the capacity to
bring resources to the table that would otherwise not be available if each institution
were to provide housing on its own.
The City could partner with organizations to support their affordable housing efforts
in a variety of ways:
• Acquire land and/or donate city-owned land;
• Provide grants or low-interest loans for specific development or rehabilitation
projects;
• Provide direct funding; and/or
• Leverage federal, state, and regional resources.
Additionally,the City can pursue specific types of PPPs such as:
• Partnering to convert underutilized non-residential properties into housing.
The City could work with landowners to evaluate opportunities for adapting
vacant/underused buildings for new housing or mixed-use development.
• Utilizing surplus land owned by faith-based organizations for affordable
housing.The City could work with faith organizations to utilize their excess
land for affordable housing.
Recommendations The following specific partnership actions are recommended for implementation:
• Consider donating surplus city-owned land for affordable housing as it becomes
available.
• Work with faith organizations to utilize excess or underutilized land for affordable
housing. Assist with favorable zoning, permitting, and financial incentives.
• Continue to leverage federal, state, and regional resources—such as the Metro
Affordable Housing Bond—to fund affordable housing in Lake Oswego.
• If a new TIF district is established (Strategy 11), use TIF funds to support
affordable housing partnerships.This could include addressing infrastructure
deficiencies or contributing funding to affordable housing more directly.
Considerations • The City is pursuing this strategy with several ongoing projects.This includes
partnering with the Sisters of Holy Names of Jesus and Mary and Mercy Housing
NW in facilitating the Mercy Greenbrae at Marylhurst Commons affordable
housing development.
• PPPs are often opportunity-driven and may be spearheaded by the City or by
private developers or partner agencies.
• Cities are often asked to provide land, financial assistance, and/or technical
assistance,with potentially moderate costs. More significant financial assistance
would depend on a new funding source.
Anticipated • Housing Need Addressed: Government-subsidized affordable housing for low-
Impact income households.
Lake Oswego Housing Production Strategy 129
• Population served: Low-income households
• Income level: 0-80%AMI
• Benefits and Burdens:This strategy is intended to benefit low-income
households by increasing the City's involvement in development of affordable
housing.
No burdens on priority populations are anticipated for this strategy.
• Housing tenure: For rent or sale
• Magnitude: High— Partnerships with private developers or non-profit housing
agencies are very often a key component of a City contributing to new housing
production. Few City governments directly build housing.The incentives and
funding offered are aimed at these partners, who undertake the projects often
with a development agreement to ensure the public goals are met. The
magnitude of impact is high, and in a sense these partnerships are necessary for
most successful City-based housing initiatives.
Time Frame Implementation: Begin in Near Term; Ongoing implementation
Impact:Timing of impact depends on the nature of the public/private partnership.
Given availability of funds, impact to housing production would be expected to occur
over the longer term.
Implementation • Work with nonprofit,faith-based, or other organizations to discuss opportunities
Actions in Lake Oswego.
• Take action on partnership models and programs that best benefit the
organization and the City's financial and/or administrative capacity.
• Partnership activities depend on the project, organization, and available
resources.
Lead & Partners Lead: Lake Oswego Community Development
Partners: Possibilities include landowners and organizations with excess land, as well
as nonprofit affordable housing providers.
11. Use Tax Increment Financing (TIF) to support affordable housing
development
Description This strategy involves using TIF funds to support affordable housing development.This
could involve creating one or more new TIF districts and incorporating affordable
housing into new TIF district plans. For example,the City could create a TIF set-aside
for affordable housing development programs within the district.
TIF is a funding mechanism in which future tax revenues in targeted development or
redevelopment areas (TIF districts/urban renewal areas) are diverted to finance
infrastructure improvements and/or development.
At the time of adoption,the tax revenue flowing to each taxing jurisdiction from the
TIF district is frozen at its current level. Any growth in tax revenues in future years, due
to annual tax increase plus new development, is the "tax increment"that goes to the
Lake Oswego Housing Production Strategy 130
district itself to fund projects in that area.TIF is a good tool to use in areas where new
development or redevelopment is anticipated.
While many different types of projects are eligible for TIF funds,for the most part,TIF
funds are used to pay for physical improvements in the district itself.These projects
can include participating in public/private partnerships with developers—including for
affordable,workforce, or market-rate housing—or can be used to complete off-site
public improvements that benefit and encourage new development in the area, or to
acquire key sites.TIF funds also can be used to purchase land.
TIF can be a direct source of funding for projects that meet public goals such as
providing affordable housing, increased density, or mixed-use buildings that might not
otherwise be feasible. In return for some public funding through TIF, private sector or
non-profit developers agree to provide these benefits. Urban Renewal can also be
used to purchase and reserve a key building site in the district to ensure that the
development that takes place there meets public goals.The site can be offered to a
development partner at reduced cost to provide the incentive.
Recommendation Incorporate affordable housing into the Urban Renewal Plan for the Foothills
Neighborhood.The Lake Oswego Redevelopment Agency(LORA) is currently planning
to update the Foothills Refinement Plan, after which a new urban renewal district will
be established.The City must include affordable housing as an approved "project" in
the Urban Renewal Plan in order for it to be eligible for TIF funding.
Considerations • TIF results in foregone tax revenue for the City and any other overlapping taxing
districts for several decades, although it can (and should)grow the tax base in the
long-term by supporting development that would not otherwise have occurred.
• Once a new TIF district is established, it will likely be several years before there
will be sufficient revenue in the district to make significant investment in housing.
• Coordination and agreement with other taxing districts is also important.
Anticipated • Housing Need Addressed: Government-subsidized affordable housing.
Impact • Population served: Low-income households
• Income level: 0-80%AMI
• Benefits and Burdens:This strategy would primarily benefit low-income
households by increasing the City's capacity to support production of subsidized
affordable housing.
An intended outcome of urban renewal is increased property values and
redevelopment within the district. If not balanced by adequate investment in
housing production, urban renewal can lead to displacement of existing residents
facing increased property taxes and development pressures.This can be a burden
on existing low-income residents and should be considered carefully when
designating new TIF districts.
• Housing tenure: For rent or sale
• Magnitude: High—An extended TIF district or new programs focused on housing
have the potential to have a large impact on specific new projects with LORA
partners.The impact of an expanded TIF program on housing production will
depend on the revenue-generating potential of the district in question and the
prioritization of housing projects among the broader range of projects eligible for
urban renewal funding(e.g., general infrastructure projects, beautification,
economic development, etc.). If housing is prioritized for funding, and
development opportunities are available within the district, it can directly bring
about housing production.
Time Frame Implementation: Begin in Near Term; Complete in Longer Term
Impact:Analysis and planning for a new TIF district can take several years. Once a TIF
district is established, it is expected to take several more years before adequate
revenues are accrued to begin spending the urban renewal funds. The impact on
housing production is expected over the medium or longer term.
Implementation • Incorporate affordable housing policies in the update to the Foothills Refinement
Actions Plan.
• Incorporate affordable housing into the Foothills Urban Renewal Plan. Include
affordable housing as an approved "project" in the plan and consider a dedicated
set-aside to use TIF funds for affordable housing.
• City Council to adopt URA boundaries and plan via ordinance.
• Use TIF funds to support partnerships with affordable housing producers (Strategy
10).
Lead & Partners Lead: Lake Oswego Redevelopment Agency
Partners: Community Development Department, Development stakeholders
12. Affordable housing preservation inventory
Description This strategy involves preparing an inventory of subsidized and naturally
occurring affordable housing to support proactive policies intended to preserve
the affordable housing stock.The inventory would be used to target potential
properties for implementation of an affordable housing preservation strategy.
Considerations • This strategy could help offset some of the need for costly new construction.
• The strategy would be a good starting point if the City were to consider
future strategies to preserve affordable housing. Understanding the city's
stock of affordable housing could influence decision-making and
prioritization for a preservation strategy.
• The strategy would require staff time and resources to implement.
Anticipated • Housing Need Addressed: Housing for low-income residents.
Impact • Population served: Low-income households
• Income level: 0-80%AMI
• Benefits and Burdens:This strategy is expected to benefit low-income
residents by evaluating the city's stock of naturally occurring affordable
housing, in support of a low-cost housing preservation strategy.
No burdens on priority populations are anticipated.
• Housing tenure: For sale or rent
Lake Oswego Housing Production Strategy 132
• Magnitude: Low—This strategy will not contribute to new housing
production, but it will contribute to the preservation of existing affordable
housing, and aids in tracking performance metrics.
Time Frame Implementation: Begin and Complete in Medium Term
Impact:This strategy can provide information and influence decision-making
about housing preservation in the shorter term. However, impacts to the city's
housing inventory are expected to be longer term.
Implementation • Use Census data as a starting point.
Actions • Work with property owners to document housing costs.
• Update inventory on a regular basis.
Lead & Partners Lead: Lake Oswego Community Development
Partners: Property owners
OTHER
The strategy in this category does not fit easily under the other headings, but supports equitable
implementation of all recommended housing strategies.
13. Fair Housing policy and education
Description This strategy involves amending the Comprehensive Plan to explicitly make
Affirmatively Furthering Fair Housing a Housing Policy. Fair Housing laws protect
individuals in "protected classes"from housing discrimination. Protected classes
in Oregon include race, color, national origin, religion, disability, sex(includes
pregnancy), sexual orientation, gender identity, age, and marital status.The City
could add additional protected classes, such as ancestry, ethnicity, or
occupation.
The City could also pursue the following types of actions to affirmatively further
fair housing and work to reverse historical patterns of discrimination and
exclusion in Lake Oswego:
• Create an Analysis of Impediments to Fair Housing.
• Conduct fair housing training for Council, Planning Commission, and other
relevant policymakers.
• Provide residents, property owners, property managers, realtors, lenders,
and others involved with real estate transactions with access to fair housing
information and referrals.
• Ensure that City staff know how to identify potential fair housing violations
and make referrals to the Fair Housing Council of Oregon and state and local
enforcement agencies.
In addition, other strategies identified in this list can also generally serve the
purpose of affirmatively furthering fair housing to the extent they expand
housing opportunities or choices for people in protected classes.
Lake Oswego Housing Production Strategy 133
Considerations • This strategy would not necessarily contribute to housing production except
when it is implemented through other strategies described in this document
that result in housing production. However, in all cases it would
demonstrate the City's commitment to working towards fair housing
outcomes.
• Training and education would require staff time and resources to implement.
Anticipated • Housing Need Addressed:This strategy would not directly address identified
Impact housing needs in most cases, but it would help prevent housing
discrimination against protected classes.
• Population served: Protected classes
• Income level:All income levels
• Benefits and Burdens:This strategy is intended to benefit priority
populations by formalizing the City's commitment to fair housing goals,
better understanding fair housing issues in the community, and by educating
City staff, housing stakeholders, and community members about fair housing
laws and residents' rights.
No burdens on priority populations are anticipated.
• Housing tenure: For sale or rent
• Magnitude: Low—Fair housing policy and education will not directly
contribute to housing production, but it could provide additional protections
against housing discrimination. It could also bolster the City's focus on
prioritizing housing equity and affordability in its housing programs and
investments.
Time Frame Implementation:
• Fair Housing Policy: Begin and Complete in Near Term.
• Education and Other Actions: Begin and Complete in Medium Term.
Impact: Impact on community understanding of fair housing can be in the short
term. Impact on fair housing outcomes is expected to be longer term.
Implementation • Policy adoption requires Legislative Comprehensive Plan text amendment.
Actions • Partner with organizations such as the Fair Housing Council of Oregon on
training.
• Develop informational materials.
• Provide training to current staff and new hires.
Lead & Partners Lead: Lake Oswego Community Development
Partners: Fair Housing Council of Oregon
Lake Oswego Housing Production Strategy 134
ACHIEVING FAIR AND
EQUITABLE HOUSING
OUTCOMES
This section summarizes how the housing strategies detailed in this report will help achieve fair and equitable
housing outcomes.As required by OAR 660-008, all the strategies have been evaluated for achieving the
different outcomes identified below. In addition,the City of Lake Oswego is already carrying out a range of
housing measures that support fair and equitable outcomes, as summarized in the Contextualized Housing
Needs Assessment (Appendix A).Those existing measures are also identified below.
Affordable Homeownership and Affordable Rental Housing
Many of the strategies included in the HPS support production of affordable rental housing and the opportunity
for wealth creation via homeownership—especially for low-and moderate-income households that have been
disproportionately impacted by past housing policies.As described in the Contextualized Housing Needs
Assessment(Appendix A), many racial and ethnic minorities statewide are less likely to own the homes they
occupy—meaning that they tend to occupy rental units.These communities face systemic obstacles to home
ownership, including lower generational wealth, less access to capital and financing, and a history of
discrimination in lending and geography(e.g., redlining). The legacy of these barriers continues to hamper home
ownership for many minority households. Prioritizing affordable home ownership can begin to address these
patterns of exclusion. Also, by benefiting low-income households more broadly,these strategies are anticipated
to benefit populations with lower median household incomes — including certain racial and ethnic groups.
Strategies that address these needs include:
5. Multiple Unit Property Tax Exemption—Provided the City includes income as an eligibility criterion.
8. Nonprofit Low-Income Housing Tax Exemption
9. Low-Income Housing Tax Exemption
10. Public-private partnerships for affordable housing
11. Use Tax Increment Financing(TIF)to support affordable housing development
12. Affordable housing preservation inventory
Existing Measures:
• Height/density bonus for affordable developments: Such bonuses are allowed within limited areas.
Lake Oswego Housing Production Strategy 135
• Mandatory affordable housing in limited areas.
• Expedited permitting for affordable housing.
• Waived SDC fees for affordable housing.
• Surplus City-owned land/land banking for affordable housing.
• Utilizing surplus or underutilized land owned by faith-based organization for housing.
By implementing these affordable housing strategies, Lake Oswego can work to ensure equitable outcomes for
people with lower incomes.To further prioritize benefits for communities of color,the City can:
✓ Partner with culturally specific organizations or other organizations that often work with certain groups
(e.g.,faith-based organizations).
✓ Target programs to certain city areas with higher proportions of people of color (e.g.,tax abatements
within certain neighborhoods).
✓ Use equitable engagement strategies to reach diverse communities.
Gentrification, Displacement, and Housing Stability
Many of the actions included in this HPS increase housing stability for residents and mitigate the impacts of
gentrification and displacement.The strategies listed above promote the development of affordable rental and
ownership housing and when targeted to areas that are experiencing—or may experience—gentrification, can
help to counteract displacement. Strategy 1, Code Audit and Amendments, can also help by identifying the
housing types most needed, removing code and procedural barriers, and incorporating new state laws intended
to enable local housing development.
Strategies that work toward preservation of existing low-cost housing, such as Strategy 12 Affordable Housing
Preservation Inventory, can also help prevent displacement. However,the City would also need to focus other
efforts—such as public-private partnerships—towards preservation of existing housing.
It should be noted that some strategies have the potential to increase risks of displacement by enabling denser
or more intensive development in existing residential areas, which could increase redevelopment pressures and
in turn may drive up the value and cost of existing housing to some degree.This could include Strategy 1 Code
Audit and Amendments, Strategy 3 Rezone Land, and Strategy 11 Tax Increment Financing.These strategies can
benefit lower-income populations by supporting development of affordable housing, or more attainable housing
types, in areas of higher opportunity and access to services. However, as part of implementing strategies that
rezone properties or increase allowed development intensity,the City will need to assess potential displacement
risks and ensure that these strategies are paired with the anti-displacement strategies listed above,which
should be specifically targeted at the residents affected by zoning or code changes or increased investments.
Housing Choice
The following strategies will facilitate access to housing choice for communities of color, low-income
communities, people with disabilities, and other state and federal protected classes:
1. Code audit and amendments—Remove barriers to development of needed housing types, such as
multifamily housing, smaller units, ADUs, and middle housing.
2. Remove or reduce minimum parking requirements—Reduce parking mandates as a barrier to housing
development, especially multifamily housing.
4. Evaluate accessible design incentives or mandates—Use requirements or incentives to encourage
housing that is accessible to people with disabilities.
5. Multiple Unit Property Tax Exemption (MUPTE)—Target tax abatements to encourage accessible units
and/or moderate-cost units.
6. Pre-approved plan sets for ADUs—Facilitate ADU development through faster and less costly permitting.
7. Modify System Development(SDC)fee schedule—Encourage smaller housing units by scaling SDCs by
unit size.
Existing measures:
• Increased code flexibility for accessory dwelling units.
• Short-term rental regulations.
• Waived SDC fees for ADUs.
• Lot coverage bonus for housing within limited areas.
A potential trade-off of potential accessibility mandates in Strategy 4—especially for subsidized housing—is that
it could limit the number of units produced or prevent some projects from being developed.This is an important
consideration for implementation. Strategy 5, MUPTE, could help offset these concerns by offering a tax
incentive for projects that include accessible units.
The strategies listed above that promote more attainable homeownership opportunities (smaller units, middle
housing, condos) have the potential to benefit communities that have been disproportionately impacted by past
housing policies, especially communities of color.These strategies encourage a broader range of housing choices
that are more attainable for moderate-income households than typical single-detached housing.
Location of Housing
The strategies listed below can encourage housing in compact, mixed-use neighborhoods, helping to reduce
greenhouse gas emissions and increasing opportunities to live in neighborhoods near needed services and
amenities.
1. Code audit and amendments—Remove barriers to multifamily housing and residential development
within mixed-use districts.
2. Remove or reduce minimum parking requirements—Reduce parking mandates as a barrier to denser
housing.
3. Rezone land—Rezone land in areas that are near existing higher-density or commercial areas, or other
amenities, such as parks and schools, and that have good access to transit and services.
5. Multiple Unit Property Exemption (MUPTE)—Incentivize multi-unit housing in targeted areas.
11. Use TIF to support affordable housing—Support housing development in a new urban renewal district
for the Foothills Neighborhood,just east of Downtown Lake Oswego.
Existing Measures:
• Increased density near transit stations.
• Use of urban renewal funds to support housing near Downtown.
• Conversion of underperforming commercial assets in Downtown.
Lake Oswego Housing Production Strategy 137
These strategies can increase allowances for higher density housing in residential and mixed-use areas that are
located near transit and that are within walking distance of a variety of businesses, services, public facilities, and
other amenities.This is a particular benefit to low-income households and people with disabilities, who are less
likely to own a car and may rely on transit and other modes to get around.The MUPTE program (Strategy 5) can
also be targeted to amenity-and service-rich parts of the city where residents would most benefit from
proximity.
Housing Options for Residents Experiencing Homelessness
The HPS does not include strategies that are specifically aimed at addressing homelessness or reducing the risk
of households becoming homeless. However, several of the HPS strategies that support affordable housing
development could be targeted to benefit extremely low-income households. For example, Strategy 10, Public-
private partnerships for affordable housing, could be targeted to housing that benefits those with incomes
below 30%AMI.This could be supported by regional or state funding sources. Also,the Nonprofit Low-Income
Housing Tax Exemption recently approved by City Council would benefit deeply affordable housing. In addition,
the City could work with Metro and Clackamas County to target some of the regional supportive housing
services funding(via Ballot Measure 26-210)to support services and housing within Lake Oswego.
Fair Housing
This section identifies how the City will use the HPS to affirmatively further fair housing for all state and federal
protected classes.This includes addressing disproportionate housing needs, patterns of integration and
segregation, and disparities in access to housing opportunity. Lake Oswego is committed to furthering fair
housing outcomes by including a fair housing strategy in the HPS (Strategy 13). Adopting a comprehensive plan
policy to Affirmatively Further Fair Housing would demonstrate the City's commitment to working towards fair
housing outcomes in the city and could also bolster the City's focus on prioritizing housing equity and
affordability in its housing programs and investments. Other actions identified in Strategy 13, including fair
housing training for City staff and policymakers and providing information to those involved with real estate
transactions, would also help ensure fair housing outcomes for the local housing market.
In addition, strategies that encourage affordable rental and homeownership housing, increase housing stability,
and increase housing choice are all part of supporting Fair Housing (see above).
Lake Oswego Housing Production Strategy 138
MONITORING PROGRESS
AND OUTCOMES
The City of Lake Oswego is required to monitor the implementation and progress of the strategies
recommended in the HPS and to report on progress to DLCD three (3) years after adoption.That progress report
must include:
• A summary of the actions already taken by the city to implement the strategies adopted in the HPS
Report. If the city has not implemented housing strategies per the schedule adopted in the HPS report,
the city must provide an explanation of the circumstances or factors that posed a barrier to
implementation and a plan for addressing the identified need that the strategy addressed;
• A reflection of the relative efficacy of implemented housing strategies adopted in the HPS; and
• A reflection of the efficiency of the actions taken in response to the Fair and Equitable Housing
Outcomes described previously in this report.
In addition, the City will provide a yearly summary as part of the overall report that details the above listed
items.This is expected to be a simplified version of the required three-year report that includes a more limited
set of key metrics.
PROPOSED MEASURES
Lake Oswego proposes the following measures to monitor the progress and impact of the HPS implementation:
Permitted/Constructed Housing Units
• Monitor and track housing development applications and building permits by housing type,
location/zone, density/lot size, and number of bedrooms. Use this information to estimate the
potential change in the mix and range of different types of housing developed over time.
• Specific tracked housing types should include single-detached,townhouse, duplex, triplex, quadplex,
cottage cluster, multi-dwelling, manufactured housing, accessory dwelling units, and mixed-use
residential developments/units.
• Track the number of new regulated affordable housing units and loss of regulated affordable
housing units.
o If affordable housing developments take advantage of any regulatory or financial incentives,
those should be noted.
Lake Oswego Housing Production Strategy 139
• Track the number of regulated affordable housing units that Lake Oswego contributed funding to,
including the sources of funding or tax exemption.
• Track the number of accessible housing units constructed and/or rehabilitated to enhance
accessibility. Note when those units are built pursuant to adopted City requirements or incentives.
• If MUPTE is adopted,track:
o Number of projects and units that qualify for the program.
o How many units are affordable (if this is a criterion that the City adopts) and at what level.
o Market rents (if possible), and any other features/public benefits they provide as part of
qualifying for the abatement (e.g., accessibility features).
• Identify successful partnership projects that resulted in housing production or housing stability for
identified groups in the HPS; include number of units built, preserved, or rehabilitated and the
number of people served by the partnership(s).
Economic and Demographic Data
• Track changes in the characteristics of Lake Oswego's population including changes in:
o Median household income
o Percent of population of color
o Percent of renters
o Percent of renter and owner households that are cost burdened and severely cost burdened
• Monitor changes in housing prices, median rents and median sales prices
Programs and Adoption Actions
Document the following:
• Successful adoption of Code Amendments related to the strategies identified in the HPS.
• City Council Ordinances related to the HPS strategies (e.g., tax abatement, etc.).
• Achievement of annual city work plan items related to strategies in the HPS.
Outreach
Summarize the following:
• Documented coordination with property owners in efforts to produce needed housing identified in
the HPS.
• Documented consultation with non-profit and market-rate housing developers, and other
community stakeholders to seek input on how implemented HPS strategies are working.
• Summary of continued housing engagement efforts and resulting actions.
The ability to report the progress described above will depend on the City's ability to obtain and evaluate readily
available data and information.Availability or lack thereof may necessitate refinements to monitoring
approaches.
Lake Oswego Housing Production Strategy 140
LIST OF APPENDICES
Appendix A: Contextualized Housing Needs Memorandum
Appendix B: Engagement Summary
Appendix C: Pre-HPS Survey Results
Lake Oswego Housing Production Strategy 141
APPENDIX A: LAKE OSWEGO
CONTEXTUALIZED HOUSI NG
N EE DS ASSESSM ENT
Lake Oswego Housing Production Strategy November 19, 2024
CONTENTS
Executive Summary 2
I. Introduction 7
II. Market Conditions 8
Housing Tenure 8
Market Conditions (For-Sale Housing) 8
Market Conditions (Rental Housing) 10
Ill. Socio-Economic and Demographic Trends Affecting Housing Needs 13
Family Households 14
Group Quarters Population 14
Diversity Trends 16
People with a Disability 18
Income Trends 20
Poverty 21
People Experiencing Homelessness 22
Households Needing Publicly Assisted Housing 23
Agricultural Workers 23
Veterans 23
IV. Barriers to Development of Needed Housing 25
V.Adopted Measures 27
MIG, Inc. I Lake Oswego Housing Production Strategy 1
Contextualized Housing Needs Assessment 11/19/2024
EXECUTIVE SUMMARY
The City of Lake Oswego completed its most recent Housing Needs Analysis (HNA) in the fall of 2023.The
analysis included an inventory of buildable land for residential uses and a projection of future housing
need, consistent with state and regional requirements.The HNA found that, despite a very low assumed
growth rate over the 20-year planning horizon, the City of Lake Oswego has a need for nearly 2,000 new
housing units, including over 1,100 multi-family and middle housing units.According to the HNA, about
half of those units are needed to meet upper income ranges (greater than 120%of the Area Median
Income, or AMI), while the remaining half are needed to meet very low to middle income household
needs.
To advance the City's planning efforts to encourage and allow for development of needed housing,the
City is in the process of creating a Housing Production Strategy(HPS),the purpose of which is to identify
a set of actions that the City of Lake Oswego will take to facilitate housing development that meets the
needs of the community.The HPS focuses on how to fill the gap between the City's housing need and
supply, particularly housing available to low-and moderate-income households—and particularly low-
cost rental housing.
A key step in this process is developing a Contextualized Housing Needs Assessment (CHNA) per OAR
660-008-0050(1).This assessment is intended to build on previous work conducted for the HNA to
describe demographic, housing, and market conditions; housing affordability issues; barriers to meeting
identified housing needs, including the needs of traditionally underserved and disadvantaged
populations; and existing or previous programs implemented to address housing needs.
Data sources for this report include the US decennial census and 5-year American Communities Survey
(ACS)tables, CoStar, Regional Multiple Listing Service (RMLS), and Johnson Economics. Key takeaways
from this report follow.
Summary of Market Conditions
• For-Sale Housing. The median sale price was$860,000,while The average (mean) sale price was
$1,075,000 during the last 12 months. The median square footage was 2,300 sq.ft. Attached
units and condominiums currently make up a significant share of home sales (28%).The median
home sale price in Lake Oswego has more than doubled over the past 10 years, from $395k in
2012 to$860k in 2022. Median price growth has averaged 8% per year over the past decade but
has recently experienced the strongest one-year growth in 2020 (14%) and 2021 (19%).
• Rental Housing.The average effective rent in Lake Oswego is$2,038/mo. In the last decade,
rent growth has been 52%or 4.3% per year. By comparison, inflation has been 31%or 2.7% per
year for the same period. Rents peaked in 2022 and have moderated slightly since.
• Housing Affordability. 75%of recent sales in Lake Oswego were priced at least$600,000.
Homes in this range would be mostly affordable to households earning at least$175,000 per
year.This is well above the median household income of$123,000. In addition, nearly half of
renter households in Lake Oswego are considered housing cost burdened (i.e., pay more than
30%of their income for housing).
MIG, Inc. I Lake Oswego Housing Production Strategy 2
Contextualized Housing Needs Assessment 11/19/2024
• Publicly Assisted Housing.The state tracks three current subsidized affordable housing
properties in Lake Oswego, with a total of 76 units in 2023.The majority(75) of these units are
offered for elderly residents.The Marylhurst Commons will offer an additional 100 affordable
units for families when it is constructed. Upon completion in 2024,the total 176 subsidized units
in Lake Oswego will represent 1%of the local housing stock. The Housing Authority of Clackamas
County administers over 1,600 Section 8 housing choice, some of which are used in Lake
Oswego. No agricultural worker housing exists currently in Lake Oswego.
Figure EX-1. Lake Oswego Home Sales (12 months,July 2022 to July 2023)
Home Sales by Unit Type Home Sales by Price Level
$900,000+ 319
$800,000-$899,000 66
20% $700,000-$799,000 67
$600,000-$699,000 56
8%
$500,000-$599,000 ■ 39
0
0 72% $400,000-$499,000 . 31
$300,000-$399,000 . 47
$200,000-$299,000 ■ 43
$100,000-$199,000 3
Detached Home Manuf. Home <$100,000 0
Attached Home Condo
0 100 200 300 400
Source: RMLS,Johnson Economics
Socio-Economic Information
• Racial Diversity. Lake Oswego is roughly 80%white, 8%Asian, and 9%two or more races.The
City is more diverse today than ten years ago when approximately 90%of the population was
white.
• Disability.There are roughly 3,140 individuals in Lake Oswego with one or more disabilities.
• Veterans.Veterans are 6%of the adult population. 63%are 65 and older. Veterans have lower
than average poverty levels, and 21% have some sort of disability.
MIG, Inc. I Lake Oswego Housing Production Strategy 3
Contextualized Housing Needs Assessment 11/19/2024
Figure EX-6. Population by Race
Share of Population by Race
100% .. •Lake Oswego(2010)
CDO
80% ■Lake Oswego(2020)
60% ■Clackamas Co.
40% Oregon
20% .-e `e
e En
0qi MEM a
OJ C -0 OJ C V Ol w O
(aC > (a u u C
t} _L C CO tD N CO CO N
Q CO m z Q J V
b i Y 73 C O O 2
a; C O E _u A
r .:CQ t CO -TAO CO
c3 ,O p O a"v
N I
N
I
SOURCE: US Census,Johnson Economics LLC; Census Tables: P1, P2 (2010, 2020)
Figure EX-7. Population with Disabilities
Share of Population
Population with a disability 7.8%
Hearing difficulty 2.4%
Vision difficulty 1.7%
Cognitive difficulty 2.7%
Ambulatory difficulty 2.9%
Self-care difficulty 1.1%
Independent living difficulty 2.3%
0% 2% 4% 6% 8% 10%
SOURCE: US Census,Johnson Economics LLC; Census Tables: DP02, (2020 ACS 5-year)
MIG, Inc. I Lake Oswego Housing Production Strategy 4
Contextualized Housing Needs Assessment 11/19/2024
Existing Adopted Housing Measures
The City of Lake Oswego already implements a variety of measures intended to enable or facilitate the
production of needed housing. In combination with the other findings in the Contextualized Housing
Needs report,this list will help the City and community understand where there are gaps in the City's
approach toward meeting its housing needs. Below is a brief summary of the key housing measures
adopted by the City, organized into the categories defined by DLCD.
Zoning Strategies
• Height/density bonus for affordable developments in the West Lake Grove Design District (WLG-
OC) and R-DD zones.
• Increased code flexibility for accessory dwelling units (ADUs) as to occupancy and size limits.
• Regulates short-term rentals to help preserve long-term rental opportunities regulations
• Requires affordable housing in limited areas of the city.
• Allows increased density near transit stations.
• Lot coverage bonus for housing within the Lake Grove Village Center Overlay(LGVCO).
Reducing Regulatory Impediments
• Removed parking mandates near transit.
• Expedites permitting for affordable housing.
Financial Incentives
• Waives system development charges (SDCs) and development review fees for affordable
housing and ADUs.
Financial Resources
• Uses urban renewal funds to support housing (recently with the North Anchor development).
Land Acquisition, Lease, and Partnerships
• Donates surplus City-owned land for affordable housing.
• Engages in public-private partnerships with non-profit organizations to produce affordable
housing units.
• Enables conversion of underperforming commercial assets into housing(recently with the North
Anchor site).
• Utilizing surplus land owned by faith-based organization for housing (recently with the
Marylhurst University Campus).
Barriers to Development of Needed Housing
Numerous factors contribute to the availability of housing in Lake Oswego—market factors, physical
conditions, regulations, public investments, etc. Some of these factors can serve as barriers to the
production of housing that is most needed in the city.To understand the major barriers to developing
needed housing in Lake Oswego,the project team interviewed a number of stakeholders involved in
housing production in the city. Following are some of the key housing needs that the stakeholders
identified as gaps in the market:
MIG, Inc. I Lake Oswego Housing Production Strategy 5
Contextualized Housing Needs Assessment 11/19/2024
• Affordable housing for low-and moderate-income households
• Middle housing (e.g., townhomes, duplexes, and cottage clusters)
• Housing options for seniors and opportunities for aging in place
• Options for more attainable homeownership (e.g., condos and middle housing)
• Apartments with family-size units (2-3 bedrooms)
• Multi-family housing outside the Town Center
Stakeholders identified the following barriers to meeting these housing needs, and to housing
production more generally:
• The high cost of land in Lake Oswego translates to high rental and sale prices, and makes deed-
restricted affordable housing especially challenging to pencil out.
• There are few large,developable sites within the City and urban service boundary to support
multi-family housing and other development types that typically rely on larger parcels of land.
• The City's Development Code can pose barriers to housing development. Stakeholders
identified issues such as highly-prescriptive Overlay and Design District standards,tree
protection/planting standards, and open space standards as particular challenges for housing.
• The City's development review and permitting processes can be lengthy and contribute to
housing costs.
• Neighbor opposition to affordable or higher-density housing can drag out the process and add
to costs.
A focus of the Housing Production Strategy will be to identify tools and strategies to remove or reduce
these barriers or help housing producers overcome them.
MIG, Inc. I Lake Oswego Housing Production Strategy 6
Contextualized Housing Needs Assessment 11/19/2024
I. INTRODUCTION
The City of Lake Oswego completed its most recent Housing Needs Analysis (HNA) in the fall of 2023.The
analysis included an inventory of buildable land for residential uses and a projection of future housing
need, consistent with state and regional requirements. The HNA found that, despite a very low assumed
growth rate over the 20-year planning horizon, the City of Lake Oswego has a need for nearly 2,000 new
housing units, including over 1,100 multi-family and middle housing units.According to the HNA, about
half of those units are needed to meet upper income ranges (greater than 120%of the Area Median
Income, or AMI), while the remaining half are needed to meet very low to middle income household
needs.
To advance the City's planning efforts to encourage and allow for development of needed housing,the
City is in the process of creating a Housing Production Strategy(HPS),the purpose of which is to identify
a set of actions that the City of Lake Oswego will take to facilitate housing development that meets the
needs of the community.The HPS focuses on how to fill the gap between the City's housing need and
supply, particularly housing available to low-and moderate-income households—and particularly low-
cost rental housing.
To provide context to Lake Oswego's housing needs,the memorandum uses data from the 2023 Housing
Needs Analysis, US Census, and other available sources describe in greater detail the context of socio-
economic, demographic trends, and market conditions.This memorandum also incorporates information
obtained though stakeholder engagement meetings with affordable housing producers and consumers,
landowners, and representatives of underrepresented communities, including people experiencing
homelessness, low-income households, renters, and non-profit and governmental organizations serving
those in need of housing.
,.i ` '�j - IP,
"'PI.> , , ,
jeti II ' 4, \ ,r:::...-
;el 41ti --. i ....•>Ck,efteg
.� q , cover... o
,e1 0 ,Ad . ; tA
;•01*." '''' II .'"/- Ir i, il
111 0,71ur . . ,,,,r,
\ -0A di- - . . Ai Ally /
liki /, ..1 , , 11. 0 e , ,
iiir, No, 1 _A,•ellr,*,, ' If; ,-
\.0,7 tp ... :F. -\
PA.
J /
MIG, Inc. I Lake Oswego Housing Production Strategy 7
Contextualized Housing Needs Assessment 11/19/2024
II. MARKET CONDITIONS
The information on housing market conditions provides a look into the way the housing market is or is
not meeting the needs of the residents of Lake Oswego.
Housing Tenure
Lake Oswego has a greater share of homeowner households than renter households.The 2021 ACS
estimates that 71%of occupied units were owner occupied, and only 29% renter occupied.The
ownership rate is little changed since 2000.The estimated ownership rate is higher across Clackamas
County(73%) and lower statewide (63%).
Market Conditions (For-Sale Housing)
This section presents home sales data from the Regional Multiple Listing Service (RMLS)for the prior 12
months(July 2022 to July 2023). There were 671 home sales in Lake Oswego over this period, or an
average of 56 sales/month. Currently, RMLS tracks 181 active listings, or over three months of for-sale
inventory at the average rate of the prior 12 months (see Figure 1). Of these listings:
• The median sale price was$860,000.
• The average (mean) sale price was$1,075,000.
• The average price per square foot was$430/square foot
• The median square footage was 2,300 square feet
• Attached units and condominiums make up a significant share of home sales (28%).
• 48%of sales were priced above$900,000.
• 34%of sales were priced between $500,000 and $899,000.
• Only 18%of sales were priced at less than $500,000.
• Only 7%of sales were priced below$300,000.
As shown in Figure 2,the median home sale price in Lake Oswego has more than doubled over the past
10 years,from $395k in 2012 to$860k in 2022. Median price growth has averaged 8% per year over the
past decade but has recently experienced the strongest one-year growth in 2020 (14%) and 2021 (19%).
Mobility patterns and work-from-home trends during the COVID pandemic were the likely contributors
to this trend, as remote workers from more expensive markets such as California and Seattle were able
to relocate to attractive Oregon communities. Competition for limited housing inventory during those
years also contributed to rising prices.The price increases moderated in 2022, growing by only 2%from
2021.
MIG, Inc. I Lake Oswego Housing Production Strategy 8
Contextualized Housing Needs Assessment 11/19/2024
Figure 1. Lake Oswego Home Sales (72 Months)
Home Sales by Unit Type Home Sales by Price Level
$900,000+ 319
$800,000-$899,000 - 66
20% $700,000-$799,000 - 67
$600,000-$699,000 - 56
8% $500,000-$599,000 ■ 39
0%0 72/ $400,000-$499,000 . 31
$300,000-$399,000 . 47
$200,000-$299,000 ■ 43
$100,000-$199,000 13
Detached Home Manuf. Home <$100,000 0
Attached Home Condo
0 100 200 300 400
Sources: RMLS,JOHNSON ECONOMICS
Figure 2. Median Home Sale Price (2070-2022)
Median Sale Price
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
y0 ' . titi y0) ), yh ti< tit ti( yoi ti0 L'• L',
19'
Sources: RMLS,JOHNSON ECONOMICS
MIG, Inc. I Lake Oswego Housing Production Strategy 9
Contextualized Housing Needs Assessment 11/19/2024
Affordability: As indicated, roughly 75%of recent sales in Lake Oswego were priced at least$600,000.
Homes in this range would be mostly affordable to households earning at least$175,000 per year, which
is well above the median household income of$123,000. Roughly 66%of households earn less than
$175,000 per year, meaning that the bulk of housing supply on the current for-sale market (75%) is likely
too expensive for most of these households.
Market Conditions (Rental Housing)
Lake Oswego has experienced an uneven vacancy rate over the last two decades, according to data from
CoStar.The following figure shows that rental vacancy in the area fell in the prior decade to a low
vacancy of under 4%. By 2017,when new apartment inventory was built in Lake Oswego,vacancy
climbed temporarily and has been moderating ever since (see Figure 3).
Average rents have climbed steadily since 2011 (Figure 4 and Figure 5). The average rent in Lake Oswego
has nearly doubled over that period, increasing to roughly$2.20/square foot, or an average of
$2,050/month according to data from CoStar. Rents peaked in mid-2022 at an average monthly rate of
$2,200/month and an average $2.35/square foot.
Figure 6 presents the average annual rent growth since 2001. Rent growth has remained mostly positive
since the prior recession. After rents fell at the outset of the COVID pandemic, it reversed by 2010 and
growth was positive until the most recent quarters. Since the second quarter of 2023, average rents have
fallen an estimated 5%on a year-over-year basis.
Figure 3. Rental Vacancy In Lake Oswego (2000-2023)
Vacancy Rate
12%
10%
8%
6%
4%
2%
0%
o'y o'l, o''' off` o(o O1 o4i oo) 'c' ,y'L ,y''' yo tio ,'\ ,yob ti) titi 1.1' 0b0-
,yo
Source:Costar,Johnson Economics
MIG, Inc. I Lake Oswego Housing Production Strategy 10
Contextualized Housing Needs Assessment 11/19/2024
Figure 4. Average Rent/Square Foot, Lake Oswego (2000-2023)
Effective Rent Per SF
$2.50
$2.00
$1.50
$1.00 —
$0.50
$0.00
0- on 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- °
o° �N o', o0i oR o� or° 01 09) o0) y0 y`y yA, y3 yR yh yro y� yrb y0 ti0 LN Ll 0)p
do
Source:CoStar,Johnson Economics
Figure 5. Average Monthly Rent, Lake Oswego (2000-2023)
Effective Rent Per Unit
$2,500
$2,000
$1,500
$1,000
$500
$0
oti oti o) o° 0 oA 0 0 N. titi ti� ti° ti`O tiA ti0 do titi titi �o
,yo
Source:CoStar,Johnson Economics
MIG, Inc. I Lake Oswego Housing Production Strategy 11
Contextualized Housing Needs Assessment 11/19/2024
Figure 6. Annual Rent Growth Rate, Lake Oswego (2000-2023)
Effective Rent % Growth/Yr
16%
12%
8%
4%
0%
-4% —
-8%
6) 6', 6', 6'' 6'' 6'' 6) 6, 6', ' 6'' 6'' 6) 6', 6', 6'' 6'' 6', 6') 6, 6'' 6'' •<°
yyo, cc,yoR y°`,y°o y01 °, °o, tiw ti� ,yo ,1>
o oo o o o o 000000000 o o tioyti�o�
1, 1, y 1,
,yo
Source:CoStar,Johnson Economics
Affordability: Figure 7 shows the percentage of household income spent on gross rent'for rental
households. Roughly half of renter households in Lake Oswego spend more than 30%of their income on
rent—meaning that they are housing cost burdened. Further, an estimated 29%of renter households are
spending 50%or more of their income on housing and are considered severely housing cost burdened.
Figure 7. Percentage of Household Income Spent on Gross Rent, Lake Oswego Renter Households
35%
30% 29%
25%
- 25% 22%
0
20%
15% 14%
°i 10% 7%
to
Ln
0%
010 010 010 c%) 010 �¢
01 4- 01 OI OI
y0 LO SO A° c�0o10
_ %of Income to Gross Rent
Sources: US Census,JOHNSON ECONOMICS
Census Table: B25070(2021 ACS S-yr Estimates)
'The Census defines Gross Rent as"the contract rent plus the estimated average monthly cost of utilities(electricity,gas,and water and sewer)
and fuels(oil,coal,kerosene,wood,etc.)if these are paid by the renter(or paid for the renter by someone else)."Housing costs for homeowners
include mortgage,property taxes,insurance,utilities and condo or HOA dues.
MIG, Inc. I Lake Oswego Housing Production Strategy 12
Contextualized Housing Needs Assessment 11/19/2024
III. SOCIO-ECONOMIC AND DEMOGRAPHIC TRENDS
AFFECTING HOUSING NEEDS
The following table (Figure 8) presents a profile of City of Lake Oswego demographics from the 2000 and
2010 Census. It also reflects the estimated population of this area as of 2023 from PSU estimates,
forecasted forward to 2023 using the estimated growth rate between 2010 and 2022.
• Lake Oswego is a City of over 41,500 people located in Clackamas County in the southern-central
area of the Portland metropolitan region.
• Based on estimated population, Lake Oswego is the 13th largest city in the state by population,
similar in size to Oregon City regionally, or Keizer and Grants Pass statewide. Lake Oswego has
about 1.5 times the population of neighboring West Linn or Tualatin, and about 75%of the
population of Tigard.
• Lake Oswego has experienced modest growth,growing roughly 18%since 2000, or less than 1%
per year. In contrast, Clackamas County and the state experienced population growth of 26%
and 25% respectively during the same period. (US Census and PSU Population Research Center)
Figure 8. Lake Oswego Population, Households, and Income
POPULATION, HOUSEHOLDS, FAMILIES,AND YEAR-ROUND HOUSING UNITS
2000 2010 Growth 2023 Growth
(Census) (Census) 00-10 (PSU) 10-23
Population' 35,278 36,619 4% 41,550 13%
Households2 14,824 15,893 7% 17,481 10%
Families3 9,775 10,079 3% 11,842 17%
Housing Units4 15,668 16,995 8% 18,345 8%
Group Quarters Populations 163 222 36% 329 48%
Household Size(non-group) 2.37 2.29 -3% 2.36 3%
Avg.Family Size 2.93 2.88 -2% 2.97 3%
PER CAPITA AND MEDIAN HOUSEHOLD INCOME
2000 2010 Growth 2023 Growth
(Census) (Census) 00-10 (Proj.) 10-23
Per Capita ($) $42,166 $53,652 27% $74,600 39%
Median HH ($) $71,597 $84,186 18% $123,300 46%
SOURCE:Census,Metro Consolidated Forecast,PSU Population Research Center,and Johnson Economics
Census Tables: DP-1(2000,2010);DP-3(2000);S1901;S19301
1 From Census,PSU Population Research Center,growth rate 2010-2022 extended to 2023
2 2023 Households=(2023 population-Group Quarters Population)/2023 HH Size
3 Ratio of 2023 Families to total HH is based on 2021 ACS5-year Estimates
4 2023 housing units are the'20 Census total plus new units permitted from'20 through'22(source: Census,City)
5 2023 Group Quarters Population based on 5-yearACSestimates 2017-2021
MIG, Inc. I Lake Oswego Housing Production Strategy 13
Contextualized Housing Needs Assessment 11/19/2024
Lake Oswego was home to an estimated 17,500 households in 2023, an increase of over 2,650
households since 2000.The percentage of families has increased slightly from 66%of all households in
2000 to 68% in 2023.The city has a similar share of family households to Clackamas County(69%) but
higher than the state (63%).Average household size is estimated to have remained fairly stable during
this period.
Lake Oswego's estimated average household size is 2.4 persons.This is lower than the Clackamas County
average of 2.6 and similar to the statewide average of 2.44. Figure 9 shows the rental/ownership split by
household size in Lake Oswego.
Figure 9. Household Size in Lake Oswego
7-or-more 0% Renter
6-person 1% Owner
2%
5-person 3%
4%
in
- o
2 4-person 11/
a 18%
= 3-person 11%
19%
2-person 35%
38%
1-person 20% 40%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Share of Households
Family Households
As of the 2021 ACS, 68%of Lake Oswego households were family households, up from 63.4%of
households in 2010.The total number of family households in Lake Oswego is estimated to have grown
by over 2,060 since 2000.The Census defines family households as two or more persons, related by
marriage, birth or adoption and living together. In 2023,family households in Lake Oswego have an
estimated average size of 2.97 people.
Group Quarters Population
As of the 2020 Census,the City of Lake Oswego had an estimated group quarters population of 0.8%of
the total population, or 329 persons. Group quarters include such shared housing situations as nursing
homes, prisons, dorms, group residences, military housing, or shelters. For the purposes of this analysis,
these residents are removed from the estimated population total, before determining the number of
MIG, Inc. I Lake Oswego Housing Production Strategy 14
Contextualized Housing Needs Assessment 11/19/2024
other types of housing that are needed for non-group households. In Lake Oswego, nearly 90%of the
group quarters population is found in assisted living facilities.
Age
Figure 10 shows the share of the population falling in different age cohorts between the 2000 Census
and the most recent 5-year American Community Survey estimates. There is a general trend for middle
age and young cohorts to fall as share of total population, while older cohorts have grown in share.This
is in keeping with the national trend caused by the aging of the Baby Boom generation. Overall, Lake
Oswego has an older population than the county, with a similar share of children, but a smaller share of
those aged 25 to 44 years.The cohorts which grew the most in share during this period were those aged
55 to 74 years. Still, an estimated 79%of the population is under 65 years of age. In the 2021 ACS,the
local median age was an estimated 46 years, compared to 40 years in Oregon, and 39 years nationally.
Figure 10. Age Cohort Trends, 2000-2021
25%
Lake Oswego(2000)
c-1
o N Lake Oswego(2021)
20%
-, ^ o o Clack.Co.(2021)
ti
o 0
15% ti m v
ti o
N N N
o , o c-I , o c-1
c-I O ci c •--I
10% O,
koo 0 0
o\'\' � Ln
5% dTr
o N N
c-I
0% ■
aiy 7). aty 'bCc'. any 'bCc'. any X
'b. 5
be' co �o ,co ,coo ,co ,co 4)
SOURCE:US Census,JOHNSON ECONOMICS LLC;Census Tables:QT-P1(2000);S0101(2021 ACS 5-yr Estimates)
The cohorts which grew the most in share during this period were those aged 55 to 74 years. Still, an
estimated 79%of the population is under 65 years of age. In the 2021 ACS,the local median age was an
estimated 46 years, compared to 40 years in Oregon,and 39 years nationally.
Figure 11 presents the share of households with children, and the share of population over 65 years for
comparison. Compared to state and national averages, Lake Oswego has a similar share of households
with children. However, at 21%, the share of population over 65 is higher than the state and national
figures.
MIG, Inc. I Lake Oswego Housing Production Strategy 15
Contextualized Housing Needs Assessment 11/19/2024
Figure 11. Share of Households with Children/Population over 65 Years (Lake Oswego)
Share of Households with Children Share of Population Over 65 Years
40% 40%
31% 31%
30% 28% 30%
21%
20% 20% 18% 16%
10% 10%
0% 0%
Lake Oswego Oregon USA Lake Oswego Oregon USA
SOURCE:US Census,JOHNSON ECONOMICS LLC;Census Tables:B11005;S0101(2021 ACS 5-yr Estimates)
Diversity Trends
Figure 12 presents the distribution of Lake Oswego's population by race and Hispanic ethnicity.The
community grew more diverse between the 2010 and 2020 Census, with the population's white (non-
Hispanic) share falling from 90%to 80%. The Asian population makes up 8%of the population, and the
Hispanic or Latino population makes up 5%of residents. 9%of residents identify as two or more races.
Figure 12. Racial and Ethnic Diversity, 2010—2020 (Lake Oswego)
100% Share of Population by Race
o Lake Oswego(2010)
co
80% •Lake Oswego(2020)
60% •Clackamas Co.
40% Oregon
20% o o co e o c. o
0% �— ` — ME
W C -O Q1 C al 2 o
a: C > ns 'O u cc O c
LE u
w 3 C Q C ra N Jro Q)
ra ZLJ
Y E v H
Q Q E n---
m o
VI
SOURCE:US Census,JOHNSON ECONOMICS LLC;Census Tables:P1,P2(2010,2020)
In comparison,the share of the population identifying as white is also 80% in Clackamas County, and
75%statewide.The share of Lake Oswego's population identifying as Hispanic or Latino is 5%of the
population, indicating over 2,100 people as of the 2020 Census.This is lower than the 14%share
statewide.
MIG, Inc. I Lake Oswego Housing Production Strategy 16
Contextualized Housing Needs Assessment 11/19/2024
Figure 13. Average Number of Persons per Household by Racial and Ethnic Category(Oregon)
Average Household Size by Race& Ethnicity(Oregon)
All Households 2.5
White alone 2.4
Black or African American alone 2.5
American Indian and Alaska Native alone 2.8
Asian alone 2.8
Native Hawaiian and Pacific Islander 3.5
Hispanic or Latino 3.7
Some Other Race alone 4.0
Two or more races: 2.7
0.0 1.0 2.0 3.0 4.0 5.0
Avg.Number of Persons per Household
SOURCE:US Census,JOHNSON ECONOMICS LLC;Census Tables:P17A-H,(State of Oregon,2020)
*This data is presented on a statewide basis using the most recent Census data available(2010). The data for the Lake Oswego
or Clackamas County geographies feature unusually large margins of error due to the small sample size.
As shown in Figure 13, minority households tend to have a larger average household size than the
average of all households. (This figure presents statewide data due to the high margin of error for local
data in this data set.) Households identifying as "white alone" have the lowest average household size
(2.4 persons), while all other racial and ethnic categories have a larger estimated average household size.
Some of the non-white categories, such as black households and those of two or more races, are still
similar in average size (2.5 and 2.7 persons, respectively). Those with the largest estimated households
are Latinos, Pacific Islanders, and those identifying as "some other race."
Larger average household size indicates a need for units with more bedrooms on average among many
minority households. Each household has its own housing needs in terms of the number of bedrooms
and other factors, based on the specific makeup of each family. Based on voluntary guidelines provided
by HUD for public housing programs, households of between 2 persons generally need a one-bedroom
unit, households with 3 persons might need two bedrooms, and those with 4 persons might need three
bedrooms. Larger households may need four or more bedrooms,which are typically found in single
detached homes.
Based on statewide data, many racial and ethnic minorities are currently less likely to own the homes
they occupy(Figure 14)—meaning that they tend to occupy rental units.These communities face
systemic obstacles to home ownership, including lower generational wealth, less access to capital and
financing, and a history of discrimination in lending and geography (e.g., redlining). While the country
and state try to address explicit discrimination through the law,the legacy of these barriers continues to
hamper home ownership for many minority households. Going forward, many communities would
MIG, Inc. I Lake Oswego Housing Production Strategy 17
Contextualized Housing Needs Assessment 11/19/2024
benefit from more entry-level homebuying opportunities for these households, as well as additional
rental housing for those who are still unready or unable to buy a home.
Figure 14. Home Ownership Rate by Racial and Ethnic Category(Oregon)
Owner-Occupied Households by Race& Ethnicity(Oregon)
All Households 63%
White alone 65%
Black or African American alone 36%
American Indian and Alaska Native alone 48%
Asian alone 63%
Native Hawaiian and Pacific Islander 32%
Hispanic or Latino 45%
Some Other Race alone 43%
Two or more races: 50%
0% 20% 40% 60% 80% 100%
Ownership Rate
SOURCE:US Census,JOHNSON ECONOMICS LLC;Census Tables:B25003A-H,(State of Oregon,2021 ACS 5-year)
*This data is presented on a statewide basis using the most recent Census data available(2020). The data for the Lake Oswego
or Clackamas County geographies feature larger margins of error due to small sample size in some of the racial categories.
Populations from some racial and ethnic minority groups also have lower average incomes and are more
likely to have income below the official poverty level when compared to the total population. Such
income levels are correlated with a greater share of renter households and impact the types of housing
these populations consume, as discussed in further detail below.
People with a Disability
An estimated 8%of the population of Lake Oswego, or 3,140 people, report having some form of
disability.This is lower than the statewide rate of 14%and the Clackamas County rate of 12%of people
with a disability. (The Census reports these statistics for the "non-institutionalized population.")
Figure 15 presents Census estimates of the types of disability reported among Lake Oswego residents.
Any type of disability impacts the type of housing that may be appropriate for a resident, but those with
the greatest impact on needed unit type are generally an ambulatory,self-care, or independent living
disability.Those with an ambulatory disability often need units with expanded access for a wheelchair,
walker, or scooter.Those with self-care or independent living disabilities may require additional safety
precautions around the home to protect a resident who cannot always be directly monitored.
MIG, Inc. I Lake Oswego Housing Production Strategy 18
Contextualized Housing Needs Assessment 11/19/2024
Figure 15. Lake Oswego Share of the Population with Disability, By Type
Share of Population
Population with a disability 7.8%
Hearing difficulty 2.4%
Vision difficulty 1.7%
Cognitive difficulty 2.7%
Ambulatory difficulty 2.9%
Self-care difficulty - 1.1%
Independent living difficulty 2.3%
0% 2% 4% 6% 8% 10%
SOURCE:US Census,JOHNSON ECONOMICS LLC;Census Tables:DP02,(2020 ACS 5-year)
Figure 16. Lake Oswego Population with a Disability, by Age
Share of Population with Disability by Age
Total population 7.8%
Under 18 years . 2.0%
18 to 64 years iii 5.8%
mi
65 years and over 19.5%
0% 5% 10% 15% 20% 25%
SOURCE:US Census,JOHNSON ECONOMICS LLC;Census Tables:DP02,(2020 ACS 5-year)
Older residents are more likely to report a disability, including nearly 20%of those over 65 years. Of
those aged 18 to 64 years, 6%of the local population reports a disability, and 2%of children. Because
Census data tends to undercount the homeless and other vulnerable populations,there are likely more
disabled residents in Lake Oswego than reflected in these data.
MIG, Inc. I Lake Oswego Housing Production Strategy 19
Contextualized Housing Needs Assessment 11/19/2024
Income Trends
As shown in Figure 17, Lake Oswego's estimated median household income was$123,000 in 2023. This is
nearly 40% higher than the Clackamas County median of$88,500, and 75% higher than the statewide
median of$70,000. Lake Oswego's per capita income is roughly$75,000. Median income has grown an
estimated 46% between 2010 and 2023, in real dollars. Inflation was an estimated 34%over this period,
so the local median income has well exceeded inflation. This is not the case in many regions and
nationally, where income growth has not kept pace with inflation.
Figure 17. Income Trends, 2000—2023 (Lake Oswego)
PER CAPITA AND MEDIAN HOUSEHOLD INCOME
2000 2010 Growth 2023 Growth
(Census) (Census) 00-10 (Proj.) 10-23
Per Capita ($) $42,166 $53,652 27% $74,600 39%
Median HH ($) $71,597 $84,186 18% $123,300 46%
SOURCE:Census,Metro Consolidated Forecast,PSU Population Research Center,and Johnson Economics
Census Tables: DP-1(2000,2010);DP-3(2000);S1901;S19301
Figure 18. Household Income Cohorts, 2021 (Lake Oswego)
Household Income Groups
$200,000 or more 27%
$150,000 to$199,999 12%
$100,000 to$149,999 20%
$75,000 to$99,999 11%
$50,000 to$74,999 11%
$35,000 to$49,999 6%
$25,000 to$34,999 4%
$15,000 to$24,999 4%
$10,000 to$14,999 2%
Less than$10,000 3%
0% 5% 10% 15% 20% 25% 30%
SOURCE: US Census,Census Tables:S1901(2021 ACS 5-yr Est.)
Figure 18 presents the estimated distribution of households by income as of 2021.The largest income
cohorts are those households earning between $100k and $200k per year(32%),followed by households
earning over$200k(27%).Approximately 41%of households earn less than $100,000. Roughly 19%of
households earn less than $50k per year.
MIG, Inc. I Lake Oswego Housing Production Strategy 20
Contextualized Housing Needs Assessment 11/19/2024
Poverty
According to the US Census, the official poverty rate in Lake Oswego is an estimated 4%over the most
recent period reported (2021 5-year estimates).2 This is roughly 1,700 individuals in Lake Oswego. In
comparison,the official poverty rate in Clackamas County is 9%, and at the state level is 17%. As shown
in Figure 19, in the 2017-21 period:
• The Lake Oswego poverty rate is low among all groups, but highest among those 65 years and
older at 5%.The rate is 4%among those 18 to 64 years of age.The estimated rate is lowest for
children at 3%.
• For those without a high school diploma,the poverty rate is 11%.
• Among those who are employed the poverty rate is 2%, while it is 7%for those who are
unemployed.
• Information on affordable housing is presented in Section II F of this report.
Figure 19. Poverty Status by Category(Lake Oswego)
Poverty Level of Subgroups
Under 18 years 3%
18 to 64 years 4%
65 years and over 5%
Employed 2%
Unemployed 7%
Less than high school 11%
High school 10%
Some college,associate's 7%
Bachelor's degree or higher 3%
0% 5% 10% 15% 20%
SOURCE: US Census;Census Tables: S1701(2021 ACS 5-yr Est.)
z Census Tables:S1701(2018 ACS 5-yr Estimates);Methodology
The Census Bureau uses a set of income thresholds that vary by family size and composition to determine who is in poverty.There are 48 separate
income thresholds set based on the possible combinations of household composition.
MIG, Inc. I Lake Oswego Housing Production Strategy 21
Contextualized Housing Needs Assessment 11/19/2024
People Experiencing Homelessness
The Census makes a multi-faceted effort to include the unhoused population in the total Decennial
Census count, by attempting to enumerate these individuals at service providers, and in transitory
locations such as RV parks or campgrounds, as of the official Census data (4/1/20). However, it is difficult
to make an accurate count of this population, and it is generally presumed that the unhoused are
undercounted in the Census.
The most recent(January 2023) Point-in-Time count of people experiencing homelessness and
households experiencing homelessness in Clackamas County'found 410 unhoused individuals on the
streets, in shelters, or other temporary and/or precarious housing.This is a 31%decrease from the 597
individuals counted in 2022, which was likewise a decline from the prior count.The estimated 410
unhoused individuals represent 0.1%of the county's total estimated population in 2023.
A detailed breakdown of the data from the 2023 count is not yet available.The following are some
demographic indicators from the 2022 count:
• An estimated 45%of individuals were in some sort of temporary shelter, while 55%were
unsheltered.
• Of those indicating a gender, 60%of those counted identified as men,40%women.
• Five percent of those counted were Hispanic or Latino compared to 9.5% in the general population.
• Approximately 51%, were counted as "chronically homeless".4
While the Point-in-Time count is one of the few systematized efforts to count people experiencing
homelessness across the country in a regular, structured way, it is widely thought to undercount the
population of unhoused individuals and households. People who are doubled up, couch surfing, or
experiencing domestic violence may not always be accurately counted. In addition to the impossibility of
finding all unsheltered individuals experiencing homelessness,the count is conducted in late January,
when homeless counts are likely near their lowest of the year due to inclement weather. It also relies on
self-reporting.
Data on unhoused school-aged children is tracked in keeping with the McKinney-Vento Act.The
Department of Education reports that in the 2021/22 school year,there were 41 enrolled students
experiencing homelessness in Lake Oswego School District, and an estimated 304 children between the
ages of 5 and 17 living in poverty.
The persistence of people experiencing homelessness speaks to the need for continuing to build a full
spectrum of services and housing types to shelter this population,from temporary shelter to subsidized
affordable housing.An analysis of the ability of current and projected housing supply to meet the needs
of low-income people and the potential shortfall is included in the following sections of this report.
Figures are for the entire County
• HUD defines "chronically homeless" as an individual with a disability as defined by the McKinney-Vento Assistance Act, who has been in
uninhabitable conditions for more than 12 mo.or on four separate occasions in the last three years;or has been in institutional care for less than
90 days;or a family with an adult head of household who meets this definition.
MIG, Inc. I Lake Oswego Housing Production Strategy 22
Contextualized Housing Needs Assessment 11/19/2024
Households Needing Publicly Assisted Housing
Oregon Housing and Community Services(OHCS)tracks three currently operating subsidized affordable
housing properties in Lake Oswego, with a total of 76 units.These are properties that are funded
through HUD programs,tax credits and other programs which guarantee subsidized rents for qualified
households.All of these units, save one, are offered for elderly residents.
The Marylhurst Commons, currently under development, is planned to offer 100 affordable units for
families when constructed. Upon completion in 2024, the total 176 subsidized units in Lake Oswego will
represent 1%of the local housing stock. An additional 8 units of 80%AMI housing are also in the pipeline
as part of the North Anchor project.
The Housing Authority of Clackamas County administers over 1,600 Section 8 housing choice vouchers
that allow low-income participants to find rental units anywhere in the county. Under this program,the
renters can find participating landlords and the voucher helps to subsidize the cost of a market-rate
rental unit.The unit does not have to be in a property dedicated to subsidized affordable housing but
can be in any rental property.
The high share of renters still paying over 30%of their income towards housing costs indicates that there
is an ongoing need for rental units at the lowest price points.
Agricultural Workers
Lake Oswego is not currently home to properties dedicated to agricultural workers. This population may
also be served by other available affordable units.
Veterans
This group is called out as a population with specific needs and which is often under-represented in
planning for future needed housing. In general,veterans often may have physical or mental health
disabilities resulting from injuries or stress experienced during their service.They also frequently have
fixed, lower incomes and need access to services provided by the US Veterans Administration or other
service providers. As a result,they share many of the same unmet needs described here for people with
disabilities, low-income households, and in some cases senior residents.
MIG, Inc. I Lake Oswego Housing Production Strategy 23
Contextualized Housing Needs Assessment 11/19/2024
Figure 20. Veterans in Lake Oswego
Individuals
Share of Adult
Population
Total Veterans 1,801 5.7%
Period of Service Share of Veterans
Gulf War(9/2001 or later)veterans 344 19.1%
Gulf War(1990 to 8/2001)veterans 335 18.6%
Vietnam era veterans 634 35.2%
Korean War veterans 140 7.8%
World War II veterans 83 4.6%
Other 265 14.7%
Veteran Age Share of Veterans
18 to 34 years 107 5.9%
35 to 54 years 335 18.6%
55 to 64 years 232 12.9%
65 to 74 years 474 26.3%
75 years and over 653 36.3%
Veteran Poverty Status 61 3.4%
Veterans with a Disability 375 20.9%
Source:Table 52101,ACS 2021 5-Year,Johnson Economics
MIG, Inc. I Lake Oswego Housing Production Strategy 24
Contextualized Housing Needs Assessment 11/19/2024
iv. BARRIERS TO DEVELOPMENT OF NEEDED HOUSING
Numerous factors contribute to the availability and/or lack of needed housing in Lake Oswego—market
factors, physical conditions, regulations, public investments, etc. Some of these factors can serve as
barriers to the production of housing that is most needed in the city.To understand the major barriers to
developing needed housing in Lake Oswego,the project team interviewed a number of stakeholders
involved in housing production in the city.These interviews were conducted in September and October
2023 and included market-rate developers and architects with experience in single-family, middle
housing, and multi-family housing production; nonprofit housing providers, including Habitat for
Humanity and Mercy Housing Northwest; and City staff involved in Planning and Redevelopment.
Following are some of the key housing needs that the stakeholders identified as gaps in the market:
• Affordable housing for low-and moderate-income households
• Middle housing (e.g., townhomes, duplexes, and cottage clusters)
• Housing options for seniors and opportunities for aging in place
• Options for more attainable homeownership (e.g., condos and middle housing)
• Apartments with family-size units (2-3 bedrooms)
• Multi-family housing outside the Town Center
In terms of barriers to meeting these needs, and to housing production more generally, some of the
major themes are summarized below.
• High cost of land in Lake Oswego. The city has very high land values, which translates to high
rental and sale prices, and makes deed-restricted affordable housing especially challenging to
pencil out.
• Few large, developable sites.There is limited land within the City and urban service boundary
to support multi-family housing and other development types that typically rely on larger
parcels of land.The Buildable Lands Inventory prepared as part of the Housing Needs Analysis
also supports this notion—finding a deficit of buildable land to meet future housing needs,
including lands zoned for high-density housing.
• Code barriers. Stakeholders identified a range of barriers to housing development in the Lake
Oswego Community Development Code. Stakeholders expressed that the City's code is
especially challenging to work with compared to some other jurisdictions.The following specific
code barriers were identified:
o Overlay and Design District standards are highly prescriptive,which can add to the cost
of development and limit flexibility. Stakeholders pointed to detailed architectural
standards as being a particular challenge—e.g., requirements for specific siding
materials adding to construction costs.
o Tree protection and tree planting and landscaping standards are also very prescriptive
and can be difficult to meet on constrained sites.
o Open space standards for multi-family housing are considered by stakeholders to be
excessive, limit the available space on a site for housing units, and don't necessarily lead
MIG, Inc. I Lake Oswego Housing Production Strategy 25
Contextualized Housing Needs Assessment 11/19/2024
to great outcomes.They note that open spaces can be smaller and more concentrated
while still providing appealing amenities for residents.
o Setbacks and other standards limit middle housing infill opportunities. Stakeholders
shared that siting standards can make it difficult for middle housing such as duplexes
and townhomes to fit on existing lots.
• Process barriers. Stakeholders also noted that Lake Oswego's development review and
permitting processes can be lengthy and contribute to housing costs.A few stakeholders noted
that this limits the number of developers that are interested in building in the city. In particular:
o The design review process in Design Districts adds time and cost.
o Building permit review can also be slow.
o Due to prescriptive standards, applicants often need to apply for multiple variances,
which lengthens the process and adds uncertainty.
o Public improvements (e.g., road improvements and utilities) can be very costly.
• Neighbor opposition. A few stakeholders also noted that neighbor opposition to affordable or
higher-density housing can drag out the process and add to costs.
• Market trends.At the time of this analysis,there are some headwinds to development of new
housing regionally and nationwide.These include inflation in the cost of building inputs such as
labor, materials, and land. Increasing interest rates in recent years that haven't been offset by a
proportionate fall in property prices are another major impediment.
A focus of the Housing Production Strategy will be to identify tools and strategies to remove or reduce
these barriers or help housing producers overcome them.
MIG, Inc. I Lake Oswego Housing Production Strategy 26
Contextualized Housing Needs Assessment 11/19/2024
V. ADOPTED MEASURES
The City of Lake Oswego already implements a variety of measures intended to enable or facilitate the
production of needed housing.The City submitted a "Pre-HPS Survey"to DLCD in 2022, as required by
former subsection 2 of ORS 456.586,which includes an exhaustive list of the housing measures the City
has adopted and implemented. In combination with the other findings in the Contextualized Housing
Needs report,this list will help the City and community understand where there are gaps in the City's
approach toward meeting its housing needs.
Below is a summary of the key housing measures adopted by the City, organized into the categories
defined by DLCD.The full list of adopted measures will be included as an appendix to the HPS Report.
Zoning Strategies
• Height/density bonus for affordable developments—The City allows a limited height or density
bonus for affordable developments in the West Lake Grove Design District (WLG-OC) and R-DD
zones.
• Increased code flexibility for accessory dwelling units—The City removed occupancy
requirements for ADUs and expanded maximum ADU size to 1,000 sq.ft.for internal remodels
of primary dwellings.
• Short-term rental regulations—The City requires that short-term rental is a home occupation
where a resident lives on the lot. Short-term rentals are not permitted in ADUs where the ADU
received a system development charge (SDC)waiver.
• Mandatory affordable housing—City requires affordable housing(affordable to those earning
80%or less of AMI) on a portion of the Marylhurst Special District and a portion of the West
Lake Grove Design District(WLG-OC zone)where multifamily use is allowed.
• Increased density near transit stations—The mixed-use zoning that is in place near transit—
Metro 'town centers'—allows residential use and does not limit density.These areas have
developed/redeveloped with high-density(50-100 units per acre) development in recent years.
• Lot coverage bonus for housing—The City allows a limited lot coverage bonus within the Lake
Grove Village Center Overlay (LGVCO)for developments where housing is provided.
Reducing Regulatory Impediments
• Removed parking mandates near transit—In compliance with the state's Climate-Friendly and
Equitable Communities rules, the City does not apply minimum parking requirements within
1/2-mile of priority transit,which includes the entire Downtown Town Center, and will remove
minimum parking requirements in the City's other climate-friendly area (Lake Grove Village
Center)to comply with CFEC rules.
• Expedites permitting for affordable housing—The City has a practice of expediting the
permitting process for deed-restricted affordable units.
Financial Incentives
• Waives fees for affordable housing and ADUs—The City has adopted regulations to waive SDCs
and development review fees for income restricted affordable housing(80%or less of AMI) and
for accessory dwelling units.The City has exempted $388,073 in SDCs for ADUs since 2019.
MIG, Inc. I Lake Oswego Housing Production Strategy 27
Contextualized Housing Needs Assessment 11/19/2024
Financial Resources
• Uses urban renewal funds to support housing—The Lake Oswego Redevelopment Agency
underwrote some of the costs in the North Anchor development downtown to ensure the
provision of deed-restricted affordable housing units using funds from the City's urban renewal
program.
Land Acquisition, Lease, and Partnerships
• Surplus City-owned land/land banking for affordable housing—The City does this with vacant
or underutilized sites, most recently the 1.4-acre construction staging property for the Boones
Ferry Road Improvement Project. The site will be used to create 50 deed-restricted affordable
housing units, using Metro Affordable Housing Bond funds.
• Public-private partnerships—The City has worked with organizations such as Habitat for
Humanity and Mercy Housing Northwest to produce affordable housing units.
• Conversion of underperforming commercial assets—The Lake Oswego Redevelopment Agency
acquired the North Anchor site to convert this commercial property into a mixed-use
development with affordable and market-rate housing.
• Utilizing surplus land owned by faith-based organization for housing—The City worked
collaboratively with the Sisters of Holy Names of Jesus and Mary (Sisters) when they were
considering reuse of the former Marylhurst University Campus. Ultimately,the Sisters entered
into an agreement with Mercy Housing NW for construction of 100 units of affordable family
housing.
MIG, Inc. I Lake Oswego Housing Production Strategy 28
APPENDIX B : PUBLIC
ENGAGEMENT SUMMARY
Lake Oswego Housing Production Strategy I November 19, 2024
Introduction
This memorandum summarizes public engagement activities that informed Lake Owego's Housing
Production Strategy(HPS).The summary includes the following:
• Summary of engagement during both Housing Needs Analysis and Housing Production
Strategy phases
• What activities took place
• Who participated (which stakeholders and other groups)
• Summary of community and stakeholder input
• How community and stakeholder input influenced the HPS
• Recommendations for future engagement—evaluation of how to improve housing
engagement practices going forward
Housing Needs Analysis Engagement
Winter 2022—Fall 2023
The first phase of this project was the Housing Needs Analysis (HNA),which included preparation of a
Housing Capacity Analysis(HCA) and Buildable Lands Inventory(BLI).The City provided multiple avenues
for engagement activities and events during this phase, as described below.
HNA Public Engagement Opportunities
• Online Open House/Virtual Neighborhood Forum.The City created an Online Open House to
(1) provide a summary of the project's draft findings to date, and (2) ask for feedback on those
materials, as well as participants' opinions and priorities related to housing in Lake Oswego.The
Online Open House was made available for public input from March 31 through April 24, 2023.1
• Neighborhood Forum.The City of Lake Oswego held a virtual neighborhood forum on April 6,
2023 at 5pm.2
• Housing Production Strategy Task Force.The City appointed a Task Force that included a variety
of housing stakeholders, including realtors, housing development industry members,
homeowners, renters, and representatives of the City's Planning Commission, City Council, 50+
1 For detailed survey results,see
https://www.ci.oswego.or.us/WebLink/DocView.aspx?id=8&page=&repo=CityOfLakeOswego.
2 For a meeting summary,see
https://www.ci.oswego.or.us/WebLink/DocView.aspx?id=36&page=&repo=CityOfLakeOswego.
MIG, Inc. I Lake Oswego Housing Production Strategy 1 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Advisory Board, and Transportation Advisory Board, among others. The Task Force discussed the
following topics at their first three meetings:
o December 16, 2022—Project overview and work plan.
o March 24, 2023—Reviewed initial housing needs and BLI findings.
o June 23, 2023—Reviewed summary of engagement; reviewed updates to the BLI and
HCA; introduced the HPS.
• Planning Commission.The Lake Oswego Planning Commission discussed the HNA at work
sessions on January 23 and April 10, 2023.The Planning Commission recommended approval of
the HNA at a public hearing on August 28, 2023.
• City Council.The Lake Oswego City Council discussed the HNA at study sessions on February 21
and April 18, 2023.The City Council recommended approval of the HNA at a public hearing on
October 3, and approved the findings on October 17, 2023.The HNA was adopted via Ordinance
2934,which became effective on November 16, 2023.
HNA Key Themes and Topics of Discussion
Feedback from the HNA activities was incorporated into the HNA documents and also informed the later
HPS work—especially the City's focus on affordable housing strategies. Key themes related to housing
needs and housing production are summarized below.
AFFORDABLE HOUSING
As with many other communities, housing affordability is a key concern in Lake Oswego. "Housing
Affordability" and "Availability of housing for lower incomes" were the two greatest needs identified in
the Online Open House survey. In a separate survey question, "Housing specifically for people with lower
incomes"was the second highest choice for desired housing types. Other opinions heard include:
• Some of the more affordable housing today are older homes that might be considered
redevelopable by the analysis—redevelopment would likely result in more expensive homes in
those locations in comparison to some of the existing homes in those areas.
• The income breakdowns shown in the draft HNA seemed too focused on higher incomes, with
roughly half of new housing units being affordable to those below the highest income brackets.
• Providing large amounts of new affordable housing is not an appropriate role for the City.
• The market will set housing prices and the government should get out of the way.
When asked whether the City should play a strong role in supporting the development of housing for
lower income residents, survey respondents generally said yes.The community provided a variety of
opinions on the topic of what that role should entail, including:
• Multi-unit housing should be concentrated in specific areas, away from single-unit housing and
existing neighborhoods.
• Middle housing and multi-unit housing should be integrated into all neighborhoods.
• Entry-level homeownership units are needed.
• Rent control/tax on house flippers/inclusionary zoning is needed.
• Workforce housing is critical.A diverse community is a strong community.
• Government intervention only makes things worse.
• Consider tree canopy.
MIG, Inc. I Lake Oswego Housing Production Strategy 2 of 27
Public Engagement Summary(DRAFT) 6/14/2024
• Preserving neighborhood character should be the top priority.
• Large single detached homes are being built; this is problematic.
• There are disparate impacts of development and construction across the city.
• The City has taken strides toward more affordable housing recently—keep it up.
AGING IN PLACE
"Availability of housing that supports aging in place"was identified as a key need for Lake Oswego in the
online survey.This generally means housing that has accessibility features for individuals with impaired
mobility, and that is located adjacent to amenities that support a high quality of life and/or provide
needed services.The affordability of housing is also a consideration, as older people who may be on
fixed incomes may find it more difficult to afford to live in the community.
MIDDLE HOUSING
Cottage homes, also known as "cottage cluster" housing, were the most frequently chosen housing type
that respondents would like to see more of in Lake Oswego.
Housing Production Strategy Engagement
Fall 2023—Fall 2024
In fall 2023,the City of Lake Oswego shifted its focus to the HPS process. Similar to the HNA phase,the
City provided multiple avenues for engagement activities and events for the HPS, as described below.
HPS Public Engagement Opportunities
• Housing Production Strategy Task Force.The HPS Task Force met five more times between fall
2023 and summer 2024.The Task Force was instrumental in shaping the strategies and
approaches that are included in the HPS.The Task Force discussed the following topics at these
five meetings:
o October 6, 2023—Reviewed findings from the Contextualized Housing Needs
Assessment and stakeholder interviews; reviewed existing housing measures and
provided input on an initial list of potential housing strategies.
o December 5, 2023—Engaged in group discussions focused on identifying housing
production strategies that could best address high-priority housing needs.
o February 16 and March 1, 2024—Discussed initial recommendations for strategies to
include in the HPS. At the March 1 meeting,the Task Force voted on which strategies to
recommend to the Planning Commission and City Council for inclusion.
o June 21, 2024—Reviewed the Draft HPS Report.
• Stakeholder Interviews. The project team interviewed stakeholders involved in various aspects
of housing production in September and October 2023. See below for the list of stakeholders
and key themes from those interviews.
• Community Forum. On March 14, 2024 at 5 PM,the City hosted a virtual community forum
using the Zoom videoconference platform to review the strategies being considered for the HPS.
A total of 15 attendees participated in the forum. The forum used live polling in Zoom to get
feedback in real-time to supplement the discussion to indicate their level of support. See Results
of Survey and Polling, below,for a summary of survey results.
MIG, Inc. I Lake Oswego Housing Production Strategy 3 of 27
Public Engagement Summary(DRAFT) 6/14/2024
• Online Survey.The City hosted an online survey from March 13—31, 2024 as a companion to
the virtual Community Forum. A total of 134 participants completed the survey.The survey
asked participants to indicate their level of support for various housing strategies being
considered for the HPS. Respondents provided general support for all strategies that ended up in
the final HPS. See Results of Survey and Polling, below,for a summary of survey results.
• Presentations to Boards and Commissions. City staff presented to the following groups:
Diversity, Equity and Inclusion Advisory Board; 50+Advisory Board; Chamber of Commerce
Government Affairs Committee; November 2023 Mayor's Roundtable event; Fall 2023 Kruse Way
Economic Forum.
• Planning Commission.The Lake Oswego Planning Commission discussed the HPS at work
sessions on November 13, 2023 and June 24, 2024, as well as a joint study session with the City
Council on April 2, 2024. See below for a summary of results from straw polls taken at the April 2
joint study session.The Planning Commission recommended approval of the HPS at a public
hearing on September 23, 2024.
• City Council. In addition to the joint study session noted above,the Lake Oswego City Council
discussed the HPS at study sessions on November 7, 2023 and July 16, 2024.The City Council
held a public hearing for adoption of the HPS on November 5, 2024.The HPS was adopted via
Resolution 24-36.
Stakeholder Interviews
Stakeholders interviewed in fall 2023 included the following:
• Market-rate developers and architects—These included local professionals involved in
development of multifamily housing, middle housing, and single-family housing.
o Koble Creative
o Shorenstein Properties
o Keith Abel Design LLC
o Blue Palouse Properties
• Non-profit housing providers—These providers represented both the development community
and the lower-income households that may be served by their housing projects.
o Habitat for Humanity
o Mercy Housing Northwest
• City of Lake Oswego staff
o Community Development Director
o Long Range Planning Manager
o Redevelopment Manager
The project team asked stakeholders about the city's greatest housing needs, barriers to development of
needed housing, gaps in affordable housing, and tools and strategies that would be effective in
producing needed housing. Key themes from the stakeholder's responses are summarized below.
KEY HOUSING NEEDS AND GAPS IN THE MARKET
• Affordable housing for low-and moderate-income households
• Middle housing (e.g.,townhomes, duplexes, cottage clusters)
• Opportunities for aging in place
MIG, Inc. I Lake Oswego Housing Production Strategy 4 of 27
Public Engagement Summary(DRAFT) 6/14/2024
• Options for more attainable homeownership
(e.g., condos and middle housing)
• Apartments with family-size units (2-3 bedrooms)
• Multi-family housing outside the Town Center
MAJOR HOUSING BARRIERS IN LAKE OSWEGO
• High cost of land in Lake Oswego
• Few large sites to support multi-family housing
• Neighbor opposition to affordable or higher-density housing can drag out the process, adding to
costs
• Code barriers:
o Design overlay standards are highly prescriptive—can add to cost, limit flexibility
o Tree protection/tree planting and landscaping standards
o Open space standards for multi-family housing
o Setbacks and other standards limit middle housing feasibility
• Process barriers:
o Design review process in design districts adds time and cost
o Building permit review can also be slow
o Often need multiple variances, lengthens process and adds uncertainty
• Public improvements (roads, utilities) can be very costly
POTENTIALLY EFFECTIVE STRATEGIES
• Density bonuses for providing public benefits, such as affordable housing or developing near
transit
• Code amendments to remove code barriers
• More flexibility for middle housing
• Streamline permitting
• Simplify design standards and guidelines
• Pre-approved plans
• Property tax abatements for affordable housing
• SDC waivers
• Tax Increment Financing to support affordable housing
• Land banking
• Partnerships with nonprofits and faith organizations
STAKEHOLDER IMPACT
The feedback received from stakeholders greatly influenced the strategies included in the Housing
Production Strategy. For example,the code topics addressed in the Code Audit and Amendments
strategy were refined to address the barriers identified by housing developers and producers. Also,
incentives and other strategies that support affordable housing development (tax abatements,TIF
funding, partnerships)were shaped by these interviews.
MIG, Inc. I Lake Oswego Housing Production Strategy 5 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Results of Survey and Polling
In March and April 2024, the City used various survey and polling tools to seek input on the strategies
under consideration for the HPS.This included the online survey,Zoom polling at the virtual Community
Forum, and straw polls taken at the March 1 HPS Task Force meeting and April 2 joint study session with
the Planning Commission and City Council. Input from these groups was based on information provided
in the Initial Strategy Recommendations Memo, and the results of the polls informed the strategies that
were eventually recommended for inclusion in the Draft HPS. A general summary of the results and
detailed online survey results are both included, below.
Strate Survey+ Task City PC Notes/ Follow-up
gy Forum Force Council Actions
Pro-Housing Policies [GENERAL] Support Support - - -
Recommended Strategies
Code Audit and Amendments (Z01) Support Support YES (7:0) YES (3:2) Include all strategies
in Draft HPS.
Property tax exemptions for housing Mild Support
Two
affordable to low-income households Support Commissioners
ong
oners
Public-private partnerships for Support Support
expressed concerns
affordable housing(F04)
about the pre-
Fair Housing Policy and Education (B14) Support Support approved plan sets
Rezone Land (Z02) Mild Support for ADUs strategy
Support
Evaluate accessible design incentives or Strong Support
mandates (A23) Support
Use Tax Increment Financing (TIF)to Split Support
support affordable housing
development (D10)
Affordable Housing Preservation Support Support
Inventory(F19)
Modify System Development (SDC)fee Support Support
schedule (CO2)
Pre-Approved Plan Sets for ADUs (A21) Support Support
Remove or Reduce Minimum Parking - -
Requirements (B01)
MIG, Inc. I Lake Oswego Housing Production Strategy 6 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Strategies Needing Further Discussion
Zoning Incentives for Affordable Housing Mild Mild NO (1:6) NO (1:4) Do not include in
(A03) Oppose Support Draft HPS.
There was no interest
expressed by the PC
or CC in combining
this with the code
audit strategy; only
strategy opposed by
public.
Construction Excise Tax(CET) (D09) Mild Support NO (0:5) NO (0:7) Do not include in
Support Draft HPS.
Vertical Housing Development Zone Tax Mild Oppose NO (0:7) NO (1:4) Do not include in
Abatement (E03) Support Draft HPS.
Multiple Unit Property Tax Exemption Mild Mild NO (3:4) YES (4:1) Include in Draft HPS,
(MUPTE) (E04) Support Support with criteria that
would only make it
available to housing
with either(1)
accessible design or
(2) units affordable at
80-120%AMI.
Pre-Approved Plan Sets for Middle Mild Mild NO (0:7) NO (0:5) Do not include in
Housing Typologies (A20) Support Support Draft HPS.
HPS Task Force only
recommended this if
paired with an
affordability
requirement.
Contingent Strategies
Housing Trust Funds (D03) - - - - Do not include in
Draft HPS.
Low-Interest Loans/Revolving Loan Fund PC/CC did not
(D13)
express interest in
Community Land Trusts (F03) these strategies.
Preserving Low-Cost Rental Housing to
Mitigate Displacement(F05)
Not Recommended
Homebuyer Opportunity Limited Tax - - - - Do not include in
Exemption (HOLTE) Draft HPS. PC/CC
were fine with
excluding this from
the Draft HPS.
MIG, Inc. I Lake Oswego Housing Production Strategy 7 of 27
Public Engagement Summary(DRAFT) 6/14/2024
HOUSING STRATEGY SURVEY RESULTS
This section provides a summary of results from an online survey hosted by the City of Lake Oswego as
part of its Housing Production Strategy(HPS).The online survey was available from March 13—31, 2024
and asked participants to indicate their level of support for various housing strategies being considered
for the HPS. A total of 134 participants completed the survey, and additional participants responded to
portions of the survey.
Respondents provided a general level of support for all strategies that were included in the draft HPS.
1. Strategy: Update the Community Development Code to remove barriers to
housing production
Conduct a comprehensive review and update of the rules that guide housing development (the
Community Development Code),to identify and remove or revise regulations that may constrain housing
production.This strategy would focus on addressing requirements that overly limit flexibility, add to
housing costs, and/or delay project approvals. Potential focus areas include: removing barriers to
accessory dwelling units, middle housing, and multi-family housing; incentivizing smaller units;
streamlining requirements in design overlay districts; and facilitating housing development in mixed-use
areas.
Housing Need Addressed: General need for increased housing production and housing choices.
Magnitude: MODERATE—Could have a moderate, indirect impact on new housing production.
Value Percent Responses
Strongly Oppose 20.3% 29
Oppose 14.0% 20
NeutraL(neither support nor oppose) 14.7% 21
Support 26.6% 38
Strongly Support 24.5% 35
7 _
Totals:143
2. Strategy: Property tax exemptions for housing affordable to low-income
households
This strategy exempts property taxes from housing developments that are affordable to low-income
households(those earning less than 60%to 80%of the median family income for the area). By reducing
operating income, property tax exemptions can be a powerful tool to increase the feasibility of
producing low-income housing, and perhaps increase the number of lower cost units that are feasible
within a development.
Housing Need Addressed: Government-subsidized affordable housing for low-income households.
MIG, Inc. I Lake Oswego Housing Production Strategy 8 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Magnitude: HIGH—Can have a large impact on making low-income affordable housing more feasible to
develop.
Value Percent Responses
Strongly Oppose 217% 31
Oppose 16.8% 24
Neutral(neither support nor oppose) 14.7% 21
Support 23.8% 34
Strongly Support 23.1% 33
Totals:143
3. Strategy: Public-private partnerships for affordable housing
Public-private partnerships are arrangements between public and private entities (such as nonprofit or
for-profit housing developers) to build housing, especially housing affordable to people with lower
incomes or specific needs. Public-private partnerships can bring resources to the table that would
otherwise not be available if each organization were to provide housing on its own.
The City could partner with organizations to support their affordable housing efforts in a variety of ways:
• Acquire land and/or donate city-owned land;
• Provide grants or loans for development or rehabilitation projects;
• Provide direct funding; and/or
• Leverage federal,state, and regional resources.
The City is already pursuing this strategy with several ongoing projects, including partnering with Habitat
for Humanity on a project and also with the Sisters of Holy Names of Jesus and Mary and Mercy Housing
NW in facilitating the Mercy Greenbrae affordable housing development at Marylhurst Commons.
Housing Need Addressed: Government-subsidized affordable housing for low-income households.
Magnitude: HIGH—Partnerships are very often a key component of a city contributing to new housing
production.
Value Percent Responses
Strongly Oppose 15.0°/ 21
Oppose 11.4% 16
Neutral(neither support nor oppose) 12.9% 18
Support 30.0% 42
Strongly Support 30.7% 43
Totals:140
MIG, Inc. I Lake Oswego Housing Production Strategy 9 of 27
Public Engagement Summary(DRAFT) 6/14/2024
4. Strategy: Fair Housing Policy and Education
Amend the Lake Oswego Comprehensive Plan—which guides the long-term development and growth of
the city—to explicitly make Affirmatively Furthering Fair Housing an official City policy. Federal Fair
Housing laws protect individuals in "protected classes" from housing discrimination—in Oregon,
protected classes include race, color, national origin, religion, disability, sex(includes pregnancy), sexual
orientation, gender identity, age, and marital status.Adding this as a policy would demonstrate Lake
Oswego's commitment to reversing discrimination, exclusion, and concentrations of wealth in the city.
The strategy also involves other actions to educate staff and decision makers about fair housing issues,
and to provide fair housing information to residents, property owners, realtors, lenders, and others
involved in real estate transactions.
Housing Need Addressed:This strategy would not directly address identified housing needs in most
cases, but it would help prevent housing discrimination against protected classes.
Magnitude: LOW—Will not directly contribute to housing production but could bolster the City's focus
on equity and affordability in its housing programs and investments.
Value Percent Responses
Strongly Oppose 16.4% 23
Oppose 9.6% 13
Neutral(neither support nor oppose) 17.6% 24
Support 32.4% 44
Strongly Support 23.5% 32
Totals:136
5. Strategy: Rezone selected areas to support residential development
This strategy involves rezoning commercial or other non-residentially zoned properties to allow for
housing development in those areas, especially multi-family housing. It could also involve rezoning
lower-density areas to allow for higher-density housing. Areas to rezone typically would include land that
is close to existing high-density areas and/or existing services, and larger parcels of land. This strategy
addresses the fact that the city faces a shortage of residential land across all zone types to meet long-
term housing needs.
Housing Need Addressed: General need for increased housing production. Could also address the
shortage of higher-density land by rezoning lower-density land.
Magnitude: MODERATE TO HIGH—Might be relatively high given the limited supply and high demand for
buildable residential land in the community.
MIG, Inc. I Lake Oswego Housing Production Strategy 10 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Value Percent Responses
Strongly Oppose 23.1% 31
Oppose 16.4% 22
Neutral(neither support nor oppose) 12.7% 17
Support 24.6% 33
Strongly Support 23.1% 31
Totals:134
6. Strategy: Evaluate accessible design incentives or mandates
This strategy aims to increase development of housing that is accessible for seniors and people with
disabilities or mobility challenges through either incentives or requirements to develop this type of
housing. Potential incentives include height or density bonuses and reduced property taxes. Potential
mandates include requiring a certain number of units in a multi-unit development to have enhanced
accessibility.The City would need to further evaluate the feasibility and trade-offs associated with these
programs before implementing a particular action.
Housing Need Addressed: Housing for people with physical disabilities and mobility challenges, including
seniors.
Magnitude: MODERATE—Depending on how the strategy is structured, it could lead to production of a
significant number of new units with accessibility features.
Value Percent Responses
Strongly Oppose 9.6% 13
Oppose 3.7% 5
■
Neutral(neither support nor oppose) 18.5% 25
Support 42.2% 57
Strongly Support 25.9% 35
Totals:135
7. Strategy: Use Tax Increment Financing to support affordable housing
development
Tax increment financing, or TIF, is a way for the City to pay for projects or improvements within a certain
area (an "urban renewal area" or"TIF district"), like building roads, parks, or housing.These projects
make land in the area more valuable, and the City uses the extra revenue it gets from the higher
property taxes to reinvest in development or redevelopment within the area.TIF can be a direct source
of funding for projects that meet public goals such as affordable housing or mixed-use buildings that
MIG, Inc. I Lake Oswego Housing Production Strategy 11 of 27
Public Engagement Summary(DRAFT) 6/14/2024
might not otherwise be feasible.The City has been considering expanding the use of urban renewal and
TIF in Lake Oswego—particularly in the Foothills neighborhood—and could make affordable housing a
priority in those efforts.
Housing Need Addressed: Government-subsidized affordable housing for low-income households.
Magnitude: HIGH—TIF funds would enable the City to acquire land, partner with housing providers,
contribute to public improvements, and take other actions that could have a big impact on development
of affordable housing in targeted areas.
Value Percent Responses
Strongly Oppose 25.4% 34
Oppose 17.2% 23
Neutral(neither support nor oppose) 14.2% 19
Support 25.4% 34
Strongly Support 17.9% 24
Totals:134
8. Strategy: Affordable Housing Preservation Inventory
Prepare an inventory of subsidized and other already existing affordable housing to support proactive
policies intended to preserve existing affordable housing.The inventory would be used to target
potential properties for implementation of an affordable housing preservation strategy.
Housing Need Addressed: Housing for low-income residents.
Magnitude: LOW—Will not contribute to new housing production but will contribute to the preservation
of existing affordable housing.
Value Percent Responses
Strongly Oppose 11 2% 15
Oppose 6.7% 9
Neutral(neither support nor oppose) 23.1% 31
Support 38.8% 52
Strongly Support 20.1% 27
Totals:134
MIG, Inc. I Lake Oswego Housing Production Strategy 12 of 27
Public Engagement Summary(DRAFT) 6/14/2024
9. Strategy: Modify System Development Charge (SDC) fees so they area scaled
by unit size
SDCs are one-time charges on new development that help pay for the costs of expanding public facilities
to serve new development.The City of Lake Oswego charges SDCs for water, sewer, parks, and
transportation improvements. This strategy involves updating the way the SDCs are structured so they
are tied more directly to the size of a home.This also better matches the fees to the development's
impact on the system, since smaller housing units typically have fewer occupants and therefore less
impact on water, sewer, or transportation facilities.
Housing need addressed: Would facilitate development of smaller, more attainable housing units that
may be affordable to moderate-income and smaller households.
Magnitude: LOW TO MODERATE—This tool may enable some projects to produce a greater number of
smaller units, thus increasing production of more units and expand housing choices somewhat.
Value Percent Responses
Strongly Oppose 11.4% 15
Oppose 6.1% 8
•
Neutral(neither support nor oppose) 18.2% 24
Support 35.6% 47
Strongly Support 28.8% 38
Totals:132
10. Strategy: Create pre-approved plan sets for accessory dwelling units (ADUs)
Pre-approved plan sets are building plans that have been reviewed in advance for conformance with
zoning and building codes.The City could make such pre-approved plans available for ADUs,which are
small homes located on the same property as a single-family home.ADUs offer opportunities for family
members to live on the same site but in a separate dwelling, or can be rented out, allowing the
homeowners to supplement their income. Pre-approved plan sets can make ADUs easier to build and
reduce costs through reduced design fees and faster permit timelines.The plan sets could also be
designed to be accessible (consistent with the accessibility strategy discussed earlier).
Housing Need Addressed: Increased housing choices within existing neighborhoods. Increased rental
opportunities. Options for multigenerational housing. Opportunities for aging in place.
Magnitude: MODERATE—Would likely lead to more development of ADUs in the city, which could
increase the number of available rental properties and increase housing choices in developed
neighborhoods.
MIG, Inc. I Lake Oswego Housing Production Strategy 13 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Value Percent Responses
Strongly Oppose 15.3% 20
Oppose 9.2% 12
Neutral(neither support nor oppose) 17.6% 23
Support 32.8% 43
Strongly Support 25.2% 33
Totals:131
11. Strategy: Zoning bonuses for affordable housing
This strategy involves allowing additional building height, density, or floor area, or relaxing other zoning
standards for affordable housing.These types of bonuses allow affordable developers to make more
efficient use of land, fit more units into a development, and make their projects more financially viable.
The City already allows a limited height or density bonus for affordable developments in certain zones
and could consider enhancing or expanding this program or adopting a new bonus, such as reduced
open space for affordable housing.
Housing Need Addressed: Government-subsidized affordable housing for low-income households.
Magnitude: LOW TO MODERATE—Might lead to a small increase in the number or percentage of
affordable housing units.
Value Percent Responses
Strongly Oppose 26.0% 34
Oppose 20.6% 27
Neutral(neither support nor oppose) 22.1% 29
Support 19.8% 26
Strongly Support 11.5% 15
Totals:131
12. Strategy: Adopt a Construction Excise Tax (CET) to fund affordable housing
projects and programs
This strategy applies a tax on construction projects, and the funds generated from the tax can be used to
fund affordable housing or other needed housing. Most cities using this program have adopted a CET tax
of up to 1%on construction projects. Cities have options to exempt certain types of development—such
as smaller units or multi-family housing—and affordable housing is already exempted. Some cities have
used CET to fund new affordable development, purchase property for affordable housing, provide
financial incentives, and provide down payment assistance for first-time homebuyers. CET is one of the
few available locally-controlled sources of money to help fund affordable housing.
MIG, Inc. I Lake Oswego Housing Production Strategy 14 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Housing Need Addressed: Government-subsidized affordable housing for low-income households.
Magnitude: HIGH—The revenue potential of a CET in Lake Oswego is potentially quite high and could
support a significant amount affordable housing development in the city.
Value Percent Responses
Strongly Oppose 19.2.5 25
Oppose 16.9% 22
Neutral(neither support nor oppose) 16.9% 22
Support 25.4% 33
Strongly Support 21.5% 28
Totals:130
13. Strategy: Adopt a Vertical Housing Development Zone tax abatement in
targeted areas
This strategy is intended to encourage multi-story mixed-use development (ground-floor businesses with
housing above) and affordable housing in areas designated by the City.The program allows a property
tax reduction for 10 years, which can make mixed-use development more financially viable, as it is often
a challenging form of development. Projects earn additional tax reductions if they include housing units
that are affordable to low-income households.
Housing Need Addressed: High-density housing in targeted areas of the city. Increased housing choices
in areas with strong access to goods, services, and transit.
Magnitude: LOW TO MODERATE—This program has the potential to encourage some mixed-use
development in designated areas.
Value Percent Responses
Strongly Oppose 14.1% 18
Oppose 8.6% 11
Neutral(neither support nor oppose) 28.1% 36
Support 36.7% 47
Strongly Support 12.5% 16
Totals:128
14. Strategy: Adopt a Multiple Unit Property Tax Exemption (MUPTE)
This is a 10-year property tax exemption for multi-family or middle housing (e.g.,triplexes and
fourplexes)with particular features or at particular price points. MUPTE is a flexible tax abatement
MIG, Inc. I Lake Oswego Housing Production Strategy 15 of 27
Public Engagement Summary(DRAFT) 6/14/2024
strategy that can be used in various ways to encourage development of specific types of needed housing.
The City has broad discretion as to how to structure the program. Eligibility criteria could include
requirements for affordability, accessibility/universal design, unit size, or other desirable features.
Housing Need Addressed: More attainable housing choices, including multi-family and middle housing
options. Could also encourage apartments with family-sized units (2-3 bedrooms) and accessible housing
options for seniors and people with disabilities.
Magnitude: MODERATE—Could encourage production of more multi-unit housing that meets needs not
currently being met by the private market.
Value Percent Responses
Strongly Oppose 19.0% 21
Oppose 15.1% 19
Neutral(neither support nor oppose) 23.8% 30
Support 34.1% 43
Strongly Support 7.9% 10
Totals:126
15. Strategy: Create pre-approved plan sets for middle housing types
This is similar to the strategy of pre-approved plan sets for ADUs, except this would encourage more
development of middle housing types, such as duplexes, triplexes, and cottage clusters. Pre-approved
plan sets can make these housing options easier to build and reduce costs through lower design fees and
faster permit timelines.This could attract developers that typically develop only single-family housing to
get involved in building middle housing. The plan sets could also be designed to be accessible (consistent
with the accessibility strategy discussed earlier).
Housing Need Addressed: Increased housing choices, including more attainable homeownership
options.
Magnitude: MODERATE—Would likely lead to more development of middle housing in the city, but cost
savings to builders wouldn't necessarily translate to reduced sale prices or rents.
MIG, Inc. I Lake Oswego Housing Production Strategy 16 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Value Percent Responses
Strongly Oppose 15.6% 20
Oppose 18.0% 23
Neutral(neither support nor oppose) 19.5% 25
Support 31.3% 40
Strongly Support 15.6% 20
Totals.128
16. Strategy: Remove or reduce minimum parking requirements —no question
asked
17. Do you have any thoughts or concerns about any of the strategies
described in this survey that you would like to share with the City? (open ended
responses)
1. Removal of parking mandates is a bad idea.There is little rapid transit in town and individuals
must get to work. Cars will be forced to park on the street in areas where there is limited street
parking.
2. Don't allow developers to raze old buildings and build multi-million dollar homes making Lake
Oswego unaffordable to families who want to live there.
3. The city is already becoming overwhelmed we have seen a sharp increase in traffic, as the
population has increased, and this is puffing a drain on services - by simply adding more
affordable houses we increase the density and thereby further increase the strain on what was
once a comfortably sized small city.
4. What about allowing Tiny Houses on lots with alleys? They can be added or removed as needed.
A simple way to offer lower housing costs.
5. It will destroy the atmosphere and the character of the city and many people who lived here for
decades will move out
6. Stop taxing us.The people living here are trying to afford staying in their homes.The constant
bonds and taxes are making that very difficult.
7. Lake Oswego is a great place to live and if someone wants to live here they can find a way, like I
did. Like we all did. I am not rich,far from it. Where was our hand out?That is what you are
creating. Keep it fair,will you subsidize ALL of the lower income families in Lake Oswego?Will
you reduce my taxes when I retire and they become a massive burden? People need to work
harder and make it on their own. Sorry sometimes you need to live in an area you can afford.
The crying of unfairness is getting old, I want a new Lexus, but I don't ask the manufacturer to
reduce rates or give me a deal, I buy a Toyota.The city needs to stay far away from playing in the
real estate business let the private sector do that.
MIG, Inc. I Lake Oswego Housing Production Strategy 17 of 27
Public Engagement Summary(DRAFT) 6/14/2024
8. It seems that the cities options for affordable house only consist of apartments or attached
houses. What about people who want to have a home that is standalone. Perhaps it would be
worth looking into all the developers who buy smaller affordable homes and turn them into
huge expensive monstrosity.They are literally taking affordable homes out of the hands of
people in Lake Oswego.
9. I would like to know if it's been taken in to account how all this construction will affect the
surrounding nature density? Is there a requirement for preserving our tree canopy?What is the
environmental impact of all this proposed construction?The natural beauty of this are is
important! Please consider an initiative regarding tree replacement! Perhaps a requirement that
if one is cut one, one must be planted.
10. The city should consider goal 5 (natural resources) and goal 1 (citizen input) of the comp plan as
it relates to the environmental impact of housing.These decisions cannot be made in a "silo".
The comp plan is mentioned once in this survey-in strategy number four relating to fairness in
housing.The city should not cherry pick portions of the comp plan to suit developers or appear
DEI-minded. If we have an environment with noise and air pollution, and increased heat, and
disconnection from trees and insects and birds, we can have all the houses in the world, but we
will be unhappy due to increased crime, reduced property values, and physical, mental, and
spiritual illness.
11. Either one can afford to live in a certain city or not. It's out of control to mandate government to
implement services/policies to accommodate those who can't. It's really that simple.
12. Concerns with loss of unique characteristics of neighborhoods. Loss of older homes and mature
tree canopy. New builds that lack character or charm and are built with low quality materials.
13. I really just would like to see more new housing of any type built in LO (this includes and is not
limited to any and all new apartment buildings of any visual appearance built anywhere in the
city). I have lived in LO my whole life, but as a college student about to enter the workforce, I'm
concerned I'll never be able to buy or rent anywhere in LO because of the rising costs(and while
I never expect LO to be a cheap place to live, I think it should be a possibility for people like me
making near the US median salary). I think increasing the supply of new housing should be the
#1 priority of the city with these plans, and I see cities like Austin,TX as success stories for
reducing the rent burden of their residents by allowing the building of tens of thousands of new
housing units — resulting in significant decreases in rent prices. I also see multi-unit dwellings
as a bonus for the City of Lake Oswego, because they add multiple new citizens to the city's tax
base, while requiring public service expenditures that are far less per citizen (than in a
comparable number of people in single family homes) because of the housing density.
14. Strategy#16 did not have a response option, although I support it fully, so long as the city
continues its commitment to regionally integrated mass transportation and bicycling lanes.
15. You can easily address housing issues for seniors on fixed incomes by providing property tax
discounts for people over 65 and provide homestead property tax exemption to encourage
home ownership rather than rental.
16. Do not reduce parking or build high rise buildings. Schools will be impacted by more families so
it is sometime to consider.As well as increased traffic.
17. This important project has s in the right track. Keep moving forward with a sense of urgency.
18. Na
MIG, Inc. I Lake Oswego Housing Production Strategy 18 of 27
Public Engagement Summary(DRAFT) 6/14/2024
19. 1.) I strongly support removing minimum parking requirements 2.)As a low income senior
dependent on Social Security,the burden of meeting my property taxes is becoming almost
impossible. I have owned my house for a long time and would like to age in place. I don't want
to be forced out of my home because I cannot afford the taxes.
20. Recommend changes to strict protections for trees in our city to allow home owners to build
more ADUs and middle housing on their land.
21. There needs to be more options for seniors so they can stay in LO.There is no real tax breaks for
seniors as the deferred property tax is just a loan that has to be paid back. I support housing for
low income/moderate income households. Start with the seniors,they have been paying
property taxes for 50 years and need a break to age in place.This state is very backwards on tax
breaks for seniors.
22. I think that the approach to most construction for existing homeowners is restrictive by the City.
For example,ADUs should not have the restrictions on them. The City should be working with
community members not making it impossible for anyone to modify their property as they feel
fit, obviously safely.
23. Removing parking is a mistake that will lead to increased engine idling due to congestion and
decreased pedestrian safety for a generation as businesses are choked through lack of customer
space. It will make the city less accessible to elders and families. Can the city designate
mandatory"waiting spaces"? It's already hard to pick up and drop off my children from dance,
which I certainly can't do by bicycle with my three other children under 10 in tow. Less space for
vehicular movement means less commerce and less tax revenue.
24. Reduced parking needs to be offset with enhancement to public transportation
25. I strongly disagree with reducing parking requirements as part of developing middle/affordable
housing. I also strongly disagree with the City's continuing to allow greedy developers (e.g.
Monogram and Renaissance) to purchase perfectly good, relatively affordable homes, destroy
the houses, and erect over-sized, highly-priced, mcmonster houses in their place.
26. Concerns- need to have parking to support multi family housing. Most residents living in these
units will have at least one car.Also concerned that traffic will increase significantly with these
plans. - LOSD class sizes are already too large; not sure how the schools can support big
increases in multi family housing especially if property tax exemptions are made. - preserving
our parks and green spaces needs to be a priority.
27. this last state mandate strongly concerns me as someone who is disabled
28. It's pretty simple, Lake Oswego is expensive. You can build 5 low income units in LO for the same
price you can build 20 elsewhere. Every measure proposed is increasing our density and
increasing costs of living for those in our community while infrastructure gets no improvements.
Those living here will reach a point they can longer afford to age in place forcing their sale of
what has been their family home. Traffic continues to increase with no additional roads or
improvement to roads occurs. The planning department and existing codes do not allow
homeowners to build what they choose due to a myriad of rules that will all be thrown out the
window if one chooses to add a home via ADU,why is this ok when you won't even allow a
second kitchen in a home? I am aware of the State's housing requirements but they DO NOT FIT
OUR COMMUNITY! People work hard and pay a fortune to live here, our property taxes alone
are higher than many pay for mortgage and everything you are proposing will simply increases
costs while reducing the quality of our community and the quality of life in our community.
MIG, Inc. I Lake Oswego Housing Production Strategy 19 of 27
Public Engagement Summary(DRAFT) 6/14/2024
29. My family and many other community members are concerned about the city taking our parks,
like Springbrook and Waluga, and turning them into housing developments. Kids use
Springbrook to walk to school, explore, connect with nature, run trails during gym class, and
bike. It's also home to many animals. It's a treasured part of the community by kids and adults.
Our parks are a big part of what make LO unique and beautiful. Please don't take Springbrook
annd other parks away from the community.
30. The City is beholden to large developers of large houses because their construction generates
greater taxes, most of which (greater than 50%of my tax bill)go toward LOSD bonds. We would
have been wise to use some of the land in First Addition where older homes were demolished
and large new trendy homes were built, and devote them to multi-family dwellings like
townhomes. Public transit is almost non-existent in LO without driving to a transit mall or to a
neighborhood with a bus stop and on-street parking.Tri-Met schedules are infrequent,
inconvenient, and the rides are long.Affordable housing and/or middle-income housing doesn't
make sense unless they are near public housing, especially if we are required to reduce or
eliminate the already low parking inventory.Thinking logically,there are almost always 2 drivers
per household, and almost always 2 vehicles because, in order to afford housing costs,there are
2 workers per household.That means there needs to be 2 parking spaces per household or living
unit. If the household has student drivers with vehicles, you need more space. Through
eminent domain, the City forced out a couple of businesses so they could rebuild the water
treatment plant, which idea has since been scrapped. But the land is still being considered for
affordable/middle-income waterfront housing?Seriously?The large plats of land that are
available, and there aren't many, are in zoned industrial areas.This reminds me of the Projects of
Chicago, Detroit and New York, or"Planned Ghettos". In addition,we do not have the
infrastructure in place to handle our current population much less an increased one due to an
increased number of housing units. I understand the Governor has mandated changes and I
don't think she fully grasps the magnitude of the negative effect on Lake Oswego's livability. As
one of those people trying to "age in place", I fully appreciate what our current inventory lacks in
terms of places for me to move when the time comes. I can't afford to live anywhere other than
my mortgage-free 2-story home.The "creep" effect of our proximity to Portland has brought
more people to LO panhandling in parking lots and on sidewalks and generally undesirable-
looking people wandering around our neighborhoods.And by that description I mean a young
white male with falling jeans and bare chest stumbling down the hill near Kruse Way Place at
Boones Ferry Road (it was about 45 that day), or another young white male in a dark hoody and
extremely baggy pants grabbing his pants to keep from exposing himself. I have never seen this
type of thing in the 37 years I have lived here. I'd like to keep LO livable, and I'd like to continue
to feel safe here so whatever strategies the City ultimately adopts, I hope they don't negatively
impact my, and others' feeling of well-being. A challenge to be sure and thank you for the
opportunity to share my opinion.
31. I think the State mandated rule to "Remove or reduce minimum parking requirements" is an
extremely bad idea.This will push drivers to park in residential neighborhoods causing friction
between the neighborhood, businesses, pedestrians and future home owners. I see this as a first
step toward going to a permit system to park in front of my own house.
32. While I generally support increased housing for those in need, it is difficult to support an
increase in housing in Lake Oswego without also expanding our infrastructure to accommodate
MIG, Inc. I Lake Oswego Housing Production Strategy 20 of 27
Public Engagement Summary(DRAFT) 6/14/2024
an influx of 1000 people. This is a relatively small town, without amenities a large city offers.
There are regions in Oregon with expansive land...why aren't we creating new clusters of low
income housing in areas that can manage a massive influx of cars and people with daily living
needs? Why are we needing to cram everyone in to these area/towns with over loaded
capacity? I realize we can't reverse federal laws, but whatever can be done to minimize the
impact on Lake Oswegos charm and livability, should be prioritized. The Mercato Grove which
has "unaffordable" housing and is mixed use, is a complete eyesore because of its height and
grandiose size,and robs our city of its natural beauty. The parking area in the center should be a
piazza where people can gather. The strategies described in this survey all seem to diminish
quality of life in Lake Oswego. I am not sure what the answers are, but I lean towards cottage
clusters, built near downtown or Foothills,over massive apt buildings any day.
33. In general, I am opposed to government subsidy of new house, or rezoning to increase density. I
prefer seeing further development outside of Lake Oswego where the natural setting has already
been obliterated by suburban development.
34. Limit teardowns!
35. More affordable house typically leads to more litter,vandalism and crime. Lake Oswego doesn't
necessarily need to adopt liberal housing policies just because Portland does.
36. Of the 40 percent of current households with incomes less than $100K, how many are owned by
retired folks who are living in their homes with no mortgage. Protecting those generally older
homes and affordability for seniors should be an important consideration.
37. It's a mistake to reduce parking.There's not enough safe public transit. Even in Portland,the
MAX runs without transit police and when I commuted by MAX I felt unsafe on many occasions
and I'm no stranger to big cities. In LO we just have a few bus routes. We're a car-centric city.
38. Reduce property taxes for seniors living on fixed income, utility bills also!!!!
39. As a lifelong LO resident, I have no problem with encouraging more ADUs, low income
residences and bringing that diverse population into LO.
40. The parking issue is a major concern for me. The City cannot put its head in the sand and think
for one minute that people don't have cars. You MUST provide adequate parking for the housing
that is being built. This includes the hotel project at 1st and B. I believe that the City is ignoring
the impact on current residents when it is reducing the required number of parking spaces.
PLEASE WAKE UP AND CHANGE THIS WAY OF THINKING!!! I don't care that it costs more for
developers to build adequate parking. I don't care that you can't have as many housing units if
you also build parking. The people who live there NOW should be treated with more
consideration.
41. This type of social engineering always has more negative, if unintentioned, consequences than
benefits. It is a massive waste of resources that has no measurable benefits for current
resident/taxpayers and greatly expands the role of government in our lives. The primary roles of
local government are public safety, providing adequate and safe infrastructure,fair and effective
land use and ensuring a public environment where environmentally friendly space is made
available for recreation. The rest is mostly political ideology.
42. I like the idea of middle housing, but do not like the pre approved plans idea because I don't
want to see the same clusters all over town. I like them to be unique to the area and
neighborhood.
MIG, Inc. I Lake Oswego Housing Production Strategy 21 of 27
Public Engagement Summary(DRAFT) 6/14/2024
43. Based on my experience as a Lake Oswego homeowner and history of working with low income
populations I have a couple of thoughts: 1) increase/preserve starter homes that allow and
promote home ownership by low and moderate income families with children and a pathway to
our rich resources LO (parks, schools, etc.) 2) Identify what role developers can play beyond just
making a profit 3) Keep engaging residents
44. Well prepared proposals and survey!
45. Lake Oswego does not need more housing.
46. Turning Lake Oswego into Portland's Pearl District is a major concern for me, a 30 yr resident.
47. Builders need to build simple, homes with good bones. Cut out the granite countertops but keep
well insulated walls. No more flashy homes that are out of financial reach. &Yes we need
parking. 2 per unit. &charging stations in apartment complexes. Limit corporate ownership for
renting so more affordable to buy.
48. Lowering our existing home values, creating population density and infrastructure issues by
adding more people. I'm strongly opposed to these ideas which is basically trying to sell
overdevelopment in the. name of fair, affordable housing. Not everyone can afford everywhere,
it's ridiculous to make towns forced to add cheaper housing than the market allows
49. STOP BUILDING MULTI MILLION DOLLAR HOMES AND CONDOS. You all are complete idiots.
Stop building unaffordable e
50. Glad to see any and all housing in LO!
51. Our housing shortage is 100%due to 50 years of restrictive zoning. Open up all LO
neighborhoods to any development and stop nitpicking. Setbacks, FAR, driveway and garage
regulations? Gatekeeping, homogenous NIMBY BS. Throw away Euclidean zoning and let LO
change according to its needs NOW, not 50 years ago.
52. I feel that the current water rates are inequitable and don't align with LO's affordable housing
goals. One way to support affordable housing and lower income residents like myself would be a
reevaluation of water and sewer charges. I live alone, shower every other day, do 2 loads of
laundry per week, 3 dishwasher loads. I don't have a driveway and I live in a small townhome so
my surface/stormwater impact is minimal. I also don't water a lawn because I don't have a yard.
And yet my water bill is only$10 a month less than a family of 3 that I know who live on a
double lot with a home, garage and additional outbuilding. People like me are subsidizing the
water bills of more affluent people with huge stormwater impacts from long driveways and roofs
covering 5000 square foot homes. Plus their high water usage for pools, lawns and family water
needs barely moves up their water costs. Because the base rate is the same for all people
regardless of their property size, usage and income level,the system is set up to reward the
wealthy while putting an unfair burden on lower income people. I currently have zero incentive
to conserve water as I could let my tap run all day and my bill would hardly increase at all. I think
there needs to be a tiered base rate system that addresses property size, surface area for
stormwater runoff and income level. And an incentivized lower usage rate for people who's
usage falls below a certain amount.
53. Any incentives should only apply to affordable units, not market rate dwellings.There should be
a strategy to leverage regional and state resources and partnerships.
54. My biggest concern is control of security and crime. How do we ensure our city stays safe?And -
how do we ensure we avoid homelessness issues?
55. Please don't ruin our community!
MIG, Inc. I Lake Oswego Housing Production Strategy 22 of 27
Public Engagement Summary(DRAFT) 6/14/2024
56. get rid of rent control. 98%of economists say it is a bad idea. Get rid of the tree code. It is
counter-productive to a healthy urban forest. becauseof it no one plants trees that will grow
large. with no new trees the forest will end.
57. This issue has been under discussion for decades. I hope this survey/project actually leads
to...something? Someday?
58. We struggle with finding parking as it is in Lake Grove, and you want to take that away? My
clients are seniors and had to walk two blocks just to eat at Gubanc's after the Vity took up the
parking,there has to be a better way.
59. Housing cost is extremely high. How about a rent break on taxes?
60. The location of high density needs to be where there is transportation and grocery options
61. Support services (schools, emergency services, grocery, restaurants, parking, more traffic
solutions and so much more) must be planned for with any new housing that may be
considered.
62. Reducing parking is a problem. It should only be done for housing along public transit lines.
63. I am concerned about losing the character of Lake Oswego for sake of new development. I'm
concerned that we will lose our natural beauty and spaciousness. More development means
more traffic, more strain on community systems, and ultimately, a more crowded place to live. I
oppose the assumption here that Lake Oswego needs to develop more housing. Development
control has more or less worked to preserve the small town feel and beauty here for years.
64. As many other Oregon cities have with Middle Housing and in general code, Lake Oswego needs
to include detached units (duplexes, etc) and encourage universal design.
Demographic Questions
1. What is your relationship to Lake Oswego? Check all that apply.
100
75
a)
u 50
a)
a
25
0 -
I live in I live in I live I work in I regularly
the City of unincorporated outside of lake visit Lake
Lake area near Lake Oswego Oswego
Oswego Lake Oswego for
Oswego reasons
other than
work
2. Do you rent or own your home?
MIG, Inc. I Lake Oswego Housing Production Strategy 23 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Value Percent Responses
I live in the City of Lake Oswego 95.2% 119
I live in unincorporated area near Lake Oswego 2.4% 3
I live outside of Lake Oswego 1.6% 2
I work in lake Oswego 8.8% 11
I regularly visit Lake Oswego for reasons other than 3.2% 4
work
3. What type of housing do you currently live in?
Value Percent Responses
Rr rt 119H 15
Own 88 111
Totals:126
4. What is your age?
Value Percent Responses
Detached single-family home 75.8% 94
Duplex,triplex,or quadplex 4.0% 5
Townhouse(attached home on its own lot) 9.7% 12
Apartment or condo 10.5% 13
Totals: 124
MIG, Inc. I Lake Oswego Housing Production Strategy 24 of 27
Public Engagement Summary(DRAFT) 6/14/2024
5. What is your approximate household income (before taxes)?
Value Percent Responses
18-24 9 u 1
25-34 0.8% 1
35-44 21.0% 25
ammo
45-54 14.3% 17
55-64 22.7% 27
65 and older 40.3% 48
Totals: 119
6. What is your race/ethnicity? Check all that apply.
Value Percent Responses
White 87 9 94
Black or African American 0.9% 1
American Indian or Alaska Native 1.9% 2
Asian 1.9% 2
Native Hawaiian or Pacific Islander 0.9% 1
Hispanic or Latino 1.9% 2
Other(please describe): 11.2% 12
MIG, Inc. I Lake Oswego Housing Production Strategy 25 of 27
Public Engagement Summary(DRAFT) 6/14/2024
Other (please describe): Count
American 1
Doesn't matter 1
Human 1
N/A 1
mixed 1
prefer not to disclose 1
why does it matter 1
Totals 7
7. What is the highest level of education you've received?
Value Percent Responses
High school degree or equivalent(e.g.GED) 2.5% 3
•
Some college 8.4% 10
Associate's degree 4.2% 5
■
Bachelors Degree 34.5% 41
Graduate Degree 50.4% 60
Totals:119
Engagement Evaluation
Even though this project included a thorough engagement effort,with various opportunities for
community members and stakeholders to participate,there are opportunities for improvement in future
engagement practices.
The city did include members of historically underrepresented groups and marginalized communities—
including renters and people of color—as part of the HPS Task Force, and also engaged these
communities through discussions with the Diversity, Equity and Inclusion Advisory Board. However,the
City could make more efforts to more directly engage with these communities,for example,through
MIG, Inc. I Lake Oswego Housing Production Strategy 26 of 27
Public Engagement Summary(DRAFT) 6/14/2024
targeted focus groups.The City could consider partnering with organizations that specialize in that type
of engagement—such as organizations that work with Hispanic and Latino or other culturally-specific
communities.
Also,the city lacks tools and platforms that make virtual/hybrid participation accessible and engaging for
everyone.The project incorporated some tools (e.g.,the Alchemer survey platform and Zoom)to engage
community members virtually. However, in the future, a virtual engagement platform like Bang the Table
could make virtual engagement more accessible to those who cannot attend or commit to an
event/meeting at a set date and time, and could facilitate more robust community conversations.
MIG, Inc. I Lake Oswego Housing Production Strategy 27 of 27
APPENDIX C:
PRE- HPS SURVEY RESULTS
Lake Oswego Housing Production Strategy
Encourage Reduce
Needed Increase
Housing? Affordability? rent
All Categories burden?
0 Strategy Comments(LO) Description
We allow ADUs,manufactured homes,and housing units of In many cities,towns,and counties,changes to local zoning policies can help to facilitate the development of lower-cost housing types,such as Accessory Dwelling Units(ADU's),
Zoning Changes to Facilitate the Use of all sizes in most residential zones.We allow multi-family manufactured homes,multifamily housing,micro-units,or single-room occupancy developments.Changes to local zoning policies can also help to facilitate the development of safe
Ao2 yes Yes Yes overnight sheltering options for unhoused residents,such as Safe Park programs,Conestoga Hut Micro-shelters,sleeping pod micro-shelters,and others.To increase the likelihood
Lower-Cost Housing Types residential in high-denisty residential zones.We do not allow
the other housing types mentioned in the description. the market can produce lower-cost housing types,it is important to make them allowable as of right in all locations and neighborhoods.If not,still provide flexibility in zoning code
to still issue variance or conditional use permits that allow deviations from existing regulations on a case-by-case basis.
A03 FAR,Density,or Height Bonuses for yes Yes Yes We allow a limited height or density bonus for affordable FAR,density,and height bonuses for affordable housing developments.Note:FAR/density bonuses do not work if there is not adequate height to make additional development
Affordable Housing developments in the WIG-OC and R-DD zones feasible.
A04 Housing Rehabilitation Codes Yes No No We administer the state building code that accomplishes this Housing rehabilitation codes(or rehab codes)are building codes designed to reduce the costs of renovating and rehabilitating existing buildings,thereby facilitating the continued
as a part of House Bill 2001 compliance. availability and habitability of older rental housing and owner-occupied homes.This is especially helpful to facilitate conversation into multiplex housing.
ADUs are smaller,ancillary dwelling units located on the same lot as a primary residence.They are typically complete dwellings with their own kitchen,bathroom and sleeping area.
We have removed occupancy requirements for ADUs and Given that ADUs are usually built by individual homeowners with limited experience or financial resources,code provisions can have a significant influence on the feasibility of their
A05 Code Provisions for ADUs Yes No No expanded maximum ADU size to 1,000 sq.ft.for internal development and enable more widespread production.For example,easing occupancy requirements,allowing more ADUs on a lot,and expanding maximum size requirements.
remodels of primary dwellings. Certain building and development code regulations can inadvertently drive up ADU construction costs.More flexibility in siting,design,construction and lower fees are also needed
to achieve feasibility in many cases.
We do not specify ownership of cottages so that both Cottage clusters are groups of relatively small homes typically oriented around shared common grounds with 4-14 homes typically between 1,000-1200 square feet in size.By
renters/owners can live on the same cluster.Our minimum further defining cottage cluster design and development standards,housing code can effectively address a predictable process for developers,and potentially encourage greater
site size,setbacks and building coverage requirements do not production for this housing type.Some examples may include:allowing for a wide range of sizes and attached/detached options for housing;not specifying ownership structure so
A08 Promote Cottage Cluster Housing Yes No No prohibit cottage cluster development on smaller lots,and we that both renters/owners can live on the same cluster;ensuring that minimum site size,setbacks and building coverage requirements do not prohibit cottage cluster development
have design standards for cottage clusters that implement HB on smaller lots;draft design requirements that ensure neighborhood compatibility,and efficient use of land,but are not so specific as to restrict the ability to adapt to varying
2001.We allow shared underground infrastructure for neighborhood contexts.Other ideas include:uniformed codes,form-based codes,and allowing shared underground infrastructure when practical(e.g.sewer lines from each cottage
cottages on one single lot. can connect to one main that runs out to street,rather than 8 parallel lines out to street).
We have short-term rental regulations that require the rental Short-term rentals can be seen as an investment strategy for small investors,but can also remove rental housing supply from the market,in effect driving up rent from the local
A09 Short-Term Rentals Regulations Yes Yes Yes is a home occupation where a resident lives on the lot.STRs housing market.To avoid this effect,regulations can include definitions for various forms of short-term rentals,defining use,and occupancy standards,and even adding limits to the
are not permitted in ADUs where the ADU received an SDC fee number of days that a short term rental can be in operation in order to mitigate their impact on the local housing market.Short Term Rental Regulation should begin with/include
waiver. registration requirements for all short term rentals.
We require affordable housing(affordable to those earning Requiring that a portion of the units within a market rate development be set aside as affordable housing.This tool will often be combined with property tax exemptions,fee
or development bonuses to offset the cost of affordable housing units.Careful consideration should be employed when enacting inclusionary zoning.Note:A number of
80%or less of AMI)on a portion of the Marylhurst Special
A10 Inclusionary Zoning Yes Yes Yes studies,including those analyzing the IZ Ordinance in Portland,have shown that IZ suppresses,rather than increases,the creation of new housing.Given that,if IZ is proposed,the
District and a portion of the West Lake Grove Design District financial components need to be calculated right to ensure that the inclusionary rate is not too high for the offsets provided and that overall housing production increases as a
(W LG-OC zone)where multifamily use is allowed.
result.
We dothis for affordable housing developments that are Adding restrictive covenants to ensure affordability over time at a certain income level for affordable housing developments.Restrictive covenants are usually placed on a property
Add Restrictive Covenants to Ensure withinin the Marylhurst Special District or the West Lake Grove
All Affordability Yes Yes Yes Design District,and for any affordable housing development in exchange for a local or state government providing financial contribution to the project.These covenants work best over the short-term(up to 30 years);after that they become
that receives SDC fee waivers. unable to accommodate changed circumstances.
ADD FAR&Density Transfer Provisions Yes Yes Yes We allow development rights to be transferred from areas Enable and encourage Transfer of Development Rights(TDR)to maximize available Floor Area Ratio(FAR)provided public benefit(e.g.historic preservation&affordable housing)are
protected as sensitive lands. attained and covenants ensure long term benefit.This strategy assumes that there are adequate,realistic,and relatively easy receiving areas for TRDs.
Critically re-assess requirements for ground floor retail;lively streetscape is a worthy goal,but not for every street.Jurisdictions can inadvertently impose massive costs on
Re-examine Requirements for Ground- We have a very limited area within our downtown where a
A34 yes No No developers by requiring ground floor retail and commercial space even when it's unlikely to be fully occupied or generate nearly enough revenue to pay for itself.Ground floor uses
floor Retail/Commercial ground-floor commercial requirement applies. should be driven by market demand;with residential use more beneficial to meet needed housing in some cases(eg.affordable housing).
The mixed-use zoning that is in place near transit-Metro
'town centers',which also serve as CFAs,allows residential use Adopt increased density codes by right near transit stations,with higher levels of density near high capacity/high frequency stations,then stepping hack into residential areas.
A38 Increase Density near Transit Stations yes No No and does not limit density.These areas have Automaticallybased on transportation corridor classifications;meaning der ROWS t more flexibility land use byht.This will add some flexibility for new transit
and Regional Multi-use Trails upzone po gwi get yinrig y
developed/redeveloped with s of high-density(50-100 units stops,including bus stops.Be careful not to word the language so that people incorrectly assume that the density can only come after the transit has been put in place.
per acre)development in recent years.
We don't have policies to encourage them,but we do allow The Oregon Reach Code,Part II,defines a"tiny house"as a dwelling that is 400 square feet or less in floor area,excluding lofts.While many(though not all)jurisdictions allow tiny
ADS Legalize and Encourage Tiny Homes yes No No tiny houses to be constructed as primary or accessory homes to be sited as a primary or accessory dwelling,few encourage their development through regulatory incentives.Legalizing the siting of tiny homes as primary or accessory
and Villages dwellings,and as cotttages within cottage cluster dwellings through the removal of minimum unit size requirements can enable the development of this housing type.Jurisdictions can encourage the development of tiny houses and
developments. tiny house villages by providing regulatory incentives—such as reductions in required off-street parking or open space—for units less than 400 SF in floor area.
The City has removed minimum parking requirements within
Remove or Reduce Minimum Parking 1/2-mile of priority transit,which includes the entire Removing parking requirements for residential uses provides the opportunity to reduce the amount of lot area used for pavement and provides more space for housing and open
001 yes No No Downtown Town Center,and will remove minimum parking space.This strategy offers greater flexibility to site housing and reduces costs associated with providing parking.Allow developers to respond to market demands and transit access
Requirements requirements in the City's other climate-friendly area(Lake without having the burden of parking minimums.Consider removing parking requirements near transit or for affordable housing.
Grove Village Center)to comply with CFEC rules.
Expedited permitting will help to reduce costs of development of Needed Housing as identified by the City.Consider projects with director indirect funding from local government as
003 Expedite Permitting for Needed yes No No The City has a practice of expediting the permitting process essential and projects with long term affordability covenants through tax abatement or inclusionary requirements as high priority and/or only expedite housing according to the
Housing Types for deed-restricted affordable units. jurisdictions identified needed housing types.Local governments might also consider assigning a designating staff to shepherd projects through the construction process in order to
expedite process.
The City allows up to two flag lots,in addition to a"non-flag"
Boy Reduce Regulatory Barriers to Lot yes No No lot that meets minimum frontage requirements.This can limit Remove barriers such as minimum street frontage,driveway requirements,etc.,that impact minimum lot size/density during lot division.Preferably allow by-right lot division up to
Division the total number of lots created,notwithstanding the max number of units allowed.
minimum lot size(maximum density)allowed by the zone.
The City allows minor variances and residential infill design
Flexible Regulatory Concessions for variances for all buildings,including affordable housing Often,nonprofit housing developers and housing agencies face regulatory impediments to building affordable housing,which can often derail projects.This strategy providesa
BoB yes Yes Yes developments;the City also offers a height or density bonus flexible framework for delivery of affordable housing including but not limited to reduced minimum setbacks,height bonuses,and/or allowing for flexibility in how units are
Affordable Housing for affordable housingdevelopments in certain zones(portion delivered.This strategy not intended to allow for a lower qualityfor affordable housingbuildings.pmen gy is
of WLG-OC,and the Marylhurst District's CI zone).
The City Council has prioritized affordable housing for several
years now with specific initiatives relating to City land
banking,fee waivers,rezonings,code and permit streamlining,Change the culture of Planning/Development Services departments to have a pro Affordable Housing agenda for both rental and homeownership.Supplement with fair housing
B12 Pro Affordable Housing Agenda Yes Yes Yes partnerships with Metro and the Housing Authority of education and education on the supply and demand impact on housing prices.The State could support jurisdictions in this effort by providing an incentive(e.g.funding set-aside)for
Clackamas County,and incentives and assistance to nonprofit jurisdictions that adopt aggressive pro Affordable Housing policies.This agenda should include a plan to ensure that affordable housing is not suppressed in single-family zones or in
affordable housing developers including Mercy Housing NW, wealthier communities.As part of this,encourage departments to look closely at how existing approaches may inadvertently favor one type of tenure over another.
Habitat for Humanity.This has resulted in more than 180
units of affordable housing in the development pipeline.
Align Bike Parking Requirements with The City has bike parking requirements that comply with
313 Actual Use No Yes No Metro's requirements,and relatively few spaces are required. Require bicycle parking requirements more in line with actual use.Example:No more than 1-1.5 bike parking stalls per unit.
Reduce the Power of NlMBYism to The City has adopted numerous clear and objective standards Many jurisdictions give communities/neighborhoods too much veto power on both zoning policy,and particular project proposals to keep others who they don't approve of from
B15 stop,slow,change,or reduce Yes Yes Yes and development review processes that provide predictability moving in.Dedicate funds to educate citizens on poverty,exclusion,and racial dynamics.Remove policies that allow neighborhood opposition to evidence based zoning proposals
affordable housing in the permit process with appropriate opportunities for and individual projects.Decisions about what kind and how much housing goes where it needs to be data-driven and focused on equitable outcomes instead of the best outcomes
public input. for those with the most money and/or privilege.
Our Comprehensive Plan historically has proritized infill and
redevelopment over UGB expansion to manage growth,
reduce infrastructure costs,and maintain a high quality of life.
Holistic Planning to Distribute New The City has focused higher density development into its two Geography is often at odds with social equity;natural beauty is often in wealthy neighborhoods,as are historic buildings,allowing them to exclude new development and affordable
B16 yes No No town centers and the mixed-use employment districts.The housing.Develop a targeted plan to distribute density within the jurisdiction more equitably to areas with quality schools,access to natural resources etc.Additionally,work to
Density More Equitably City opted to take an equity approach in complying with distribute transit equitably to ensure that exclusionary neighborhoods don't remain that way because they don't offer transit for higher density housing.
middle housing requirements under HB 2001,wherein middle
housing is generally permitted in all of the City's residential
districts(we did not use the performance metric approach).
The City regularly seeks input from developers and builders
when drafting land use and local building code amendments
to understand how these policies may affect their projects.
We also seek input from affordable housing developers Add a section to the city's development application asking developers how they decided on their development program and which public incentives were part of the consideration.
1339 Survey Applicants on Development yes No No specifically when developing policy and when the City is a This would lead to better information about how to tailor city strategies toward production.An alternative to requiring cities to collect this info,is to consider this approach as part
Program Decision-Making partner or contributor to their project(e.g.,financial of a production strategy.To be a strategy it needs additional action like logging and making publicly available the aggregated survey information on the city's
incentives).The Community Development Director also housing/development/planning webpage or similar.The information could be collected on a form separate from the development application,so it is clear that the additional
coordinates with the Home Builders Association on legislative information is not part of the permit decision.
proposals,and over the years has convened a Builders
Advisory Committee to vet policy issues and provide customer
feedback.
The City has adopted regulations to waive systems
Reduce or Exempt SDCs for Needed development charges(SDCs)and development review fee
C01 Housing Yes Yes No waivers for income restricted affordable housing(80%or less Reducing,deferring,and/or financing System Development Charges(SDCs)at a low interest rate for needed housing types.This strategy reduces development costs.
of AMI)and for accessory dwelling units
The City has adopted regulations to waive systems
CO3 Reduce or Exempt SDCs for ADUs Yes Yes No development charges(SDCs)and development review fees for Waivers/reductions of SDCS for ADU production in order to improve the feasibility of the development.Create a model ordinance for the waiver,or deferment,of SDCs.Scale SDCs
accessory dwelling units based on size,resource efficiency,and access to alternative transportation.
Publicly Funded Infrastructure The City funds some off-site improvements for affordable
CO6 Improvements Yes Yes No housing developments on a case-by-case basis. Fund off-site improvements for workforce or affordable housing;e.g.street intersection improvements triggered by development.
provemen g pmen y
D0D Low Income Housing Tax Credit(LIHTC)Yes Yes Yes LIHTC are used by affordable housing developers,not the City.Federal tax provision that encourages private investment in affordable rental housing by providing qualified investors with a dollar-for-dollar reduction in federal income tax liability
we do not have our own housing authority. in exchange for investment in qualifying new construction and rehabilitation projects.LIHTCs may also be paired with Tax Exempt Revenue Bonds.
The Lake Oswego Redevlopment Agency underwrote some of Create a TIF set-aside for affordable housing development programs within designated Urban Renewal Areas(URAs).Target could be to begin setting aside funds for affordable
Tax Increment Financing(TIF)Set- the costs in the North Anchor development to ensure the
D30 yes Yes Yes housing projects as a medium-term action,over the next 5 years or so.For example:Portland City Council designates 45%of the gross amount of TIF for designated housing
Aside provision of deed-restricted affordable housing units using purposes(rental housing for households under 60%of Area Median Income(AMI)and homeownership for households under 80%of AMI.
funds from the City's urban renewal program.
The City does this with vacant or underutilized sites,most Public purchasingof vacant/under-utilized sites of land in order to save for future affordable housing development.House Bill 2003,section 15 supports land banking:SECTION 15.
recently the 1.4 acre construction staging property for the g pmen ppo
FOS Land Banking Yes Yes Yes Boones Ferry Road Improvement Project.Metro is acquiring (1)As used in this section,"public property"means all real property of the state,counties,cities,incorporated towns or villages,school districts,irrigation districts,drainage districts,
the site using regional affordable housing bond funds to ports,water districts,service districts,metropolitan service districts,housing authorities,public universities listed in ORS 352.002 or all other public or municipal corporations in this
state.
create 50 deed-restricted affordable housing units.
The City has partnered with organizations such as Habitat for partnerships between government and the private sector and/or nonprofits have the capacity to bring resources to the table that would otherwise not be available if each
F04 Public/Private Partnerships(PB) Yes Yes Yes Humanity and Mercy Housing Northwest to produce institution were able to helpties de housing on its own.This can come in the form of coalitions,affordable housing task forces,and collaboratives.
affordable housing units. communities provide g g
Providing Information and Education The City's Planning Department frequently dedicates time to Providing information to small,local developers that will help them understand land use permitting processes and give them a sense of clarity and certainty about requirements so
F07 ye No No working with small,local developers to help them underttand
to Small Developers the City's housing regulations. they can better provide smaller scale housing at an affordable level.
The City acquired the North Anchor site-which was an
Conversion of underperforming commercial asset in the City's Downtown Acquisition of underperforming or distressed commercial assets(commercial,retail,industrial,or hotel)or partnerships with owners of the assets for conversion into needed
F08 Underperforming or Distressed Yes No No Redevelopment District,and is working to convert the housing.
Commercial Assets property into a mixed-use development that includes both
market-rate and deed-restricted affordable housing units.
The City does this with City-owned land,including the
F10 Prioritize Housing on City/County yes No No disposition of the staging site for the City's recent stmet Surplus property suitable for housing is offered up for affordable development.
Owned Land improvement project on Boones Ferry Road,which is now
slated to become deed-restricted affordable housing.
The City does this with vacant or underutilized sites,most
Gently the 1.4 acre construction staging property for the Sell land at the State or City's cost below market to developersof affordable housing.Lon
F12 Surplus Land for Affordable Housing Yes No No Boones Ferry Road Improvement Project.Metro is acquiring ( ) ous g Long-term lease at very minimal cost to developers for land the City is not yet ready to
the site using regional affordable housing bond funds to surplus.County surplus of foreclosed land to affordable housing developers and/or housing authority.
create 50 deed-restricted affordable housing units.
F14 Right of First Refusal for land Purchase Yes No No The City employed this strategy in the Boones Ferry staging Affordable housing providers could be offered a Right of First Refusal for city,county,or state owned land when the land would be used for affordable housing.Examples include a
site affordable housing development. manufactured home program where residents can buy out the manufactured home park when the owner is ready to sell.
F16 Regulatory Agreement Yes Yes Yes The City does this for a 50-year term,for all SDC waivers for Regulatory Agreement,between the jurisdiction and developer,in place with the land sale that keeps the units affordable for 20 years in exchange for SDC waivers.This is
affordable housing. straightforward without going through a difficult or costly process.
The City employed this strategy through its work with the Over thepast few decades,faith institutions across the countryhave been declining.This has prompted conversations within different faith communities about how to refocus their
Sisters of Holy Names of Jesus and Mary(Sisters)when they g.
Utilize Surplus Land Owned by Faith- mission of social change.The housing affordability crisis in many cities around the country has brought these institutions into the work of creating affordable housing in their
were considering resuse of the former Marylhurst University
FSS Based Organizations for Affordable Yes No No communities.This strategy would:1)Identify faith and community-based organizations that are interested in offering their available land for development of affordable housing,2)
Campus.Ultimately,the Sisters entered into an agreement
Housing Provide design and finance consultation for three organizations to prepare them for future affordable housing development projects,and 3)Determine barriers to development and
with Mercy Housing NW for construction of 100 units of how those can be addressed and/or streamlined.
affordable family housing.