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HomeMy WebLinkAbout1-Staff Report 08-26-25 PCPH 09-08-25 LU 25-0001 503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY STAFF REPORT CITY OF LAKE OSWEGO PLANNING AND BUILDING SERVICES DEPARTMENT I. APPLICANT'S REQUEST The City of Lake Oswego is proposing to amend its Comprehensive Plan to explicitly make Affirmatively Furthering Fair Housing (AFFH) a City housing policy. II. APPLICABLE REGULATIONS A. Oregon Statewide Planning Goals Goal 2: Land Use Goal 10: Housing B. Metro Urban Growth Management Functional Plan [Metro Code 3.07] Title 7: Housing Choice [Metro Code 3.07.710 - .740] Title 8: Compliance Procedures [Metro Code 3.07.810 - .870] E. City of Lake Oswego Comprehensive Plan Complete Neighborhoods & Housing Policy B-1 First Addition – Forest Hills Neighborhood Plan Housing, Land Use, and Neighborhood Character Policy 7 Lake Grove Village Center Plan Land Use Policy 4.2 F. City of Lake Oswego Community Development Code LOC 50.07.003.3.c Notice of Public Hearing LOC 50.07.003.4 Hearings before a Hearings Body APPLICANT City of Lake Oswego FILE NO. LU 25-0001, Ordinance 2967 LOCATION Citywide STAFF Erik Olson, Long Range Planning Manager DATE OF REPORT August 28, 2025 PLANNING COMMISSION HEARING DATE September 8, 2025 Planning Commission Public Hearing Page 2 of 7 LU 25-0001 September 8, 2025 LOC 50.07.003.16.a Legislative Decision Defined (Quasi-judicial Comp. Plan Map, Zone Map, and CDC Amendments to be processed via Major Developments Procedures) LOC 50.07.003.16.c Required Notice to DLCD LOC 50.07.003.16.d Planning Commission Recommendation Required LOC 50.07.003.16.e City Council Review and Decision III. BACKGROUND AND DISCUSSION Title VIII of the Civil Rights Act, also known as the federal Fair Housing Act (codified at 42 U.S.C. 3601-3619), was enacted by the United States Congress in April of 1968 and has been further clarified by the Federal Department of Housing and Urban Development (HUD) in subsequent rules. The Fair Housing Act makes it unlawful to discriminate against people seeking to obtain housing, and covers a wide range of housing-related activities including renting, selling, lending, zoning and providing insurance. The law includes provisions related to AFFH, requiring entities who receive federal funds to use a fair housing lens in viewing all their activities — including zoning, land use, code enforcement, and sustainability planning. The intent is to ensure that none of these activities will have a negative impact on protected classes, diversity, and inclusion, while also eliminating any remaining patterns of housing discrimination. More specifically, AFFH includes taking steps to:  Address significant disparities in access to community assets;  Overcome segregated living patterns and support and promote integrated communities;  End racially and ethnically concentrated areas of poverty; and  Foster and maintain compliance with civil rights and fair housing law. On November 19, 2024, the City Council approved Resolution 24-36 to adopt the Housing Production Strategy (HPS) as a component of the Comprehensive Plan to meet the requirements of ORS 197.296 and OAR 660-008-0050 [Oregon House Bill 2003 (2019)]. The HPS identifies Fair Housing Policy and Education as a strategy for near-term adoption, including both the adoption of legislative amendments to the Comprehensive Plan to explicitly make AFFH a Housing Policy as well as education and other actions to increase access to fair housing information. Per the HPS, the Fair Housing and Education strategy (Strategy 13) is intended to benefit priority populations – including low-income households, people of color, people with disabilities, seniors, and other state or federal protected classes – by:  Formalizing the City’s commitment to fair housing goals;  Facilitating a better understanding of fair housing issues in the community; and  Educating City staff, housing stakeholders, and community members about fair housing laws and residents’ rights. Though the City is required to comply with state and federal fair housing laws regardless of whether an AFFH policy is formally adopted, the strategy is nonetheless anticipated to provide additional protections against housing discrimination and bolster the City’s focus on prioritizing housing equity and affordability in its housing programs and investments. Planning Commission Public Hearing Page 3 of 7 LU 25-0001 September 8, 2025 The proposed Comprehensive Plan amendment is included in Attachment 2 to Ordinance 2967, Exhibit A-1. The proposed amendment would add a new policy – Policy B-5 – to the Housing Choice and Affordability section of the Complete Neighborhoods and Housing chapter of the Comprehensive Plan to explicitly make AFFH a City Housing Policy. While the draft amendment is similar to the version discussed at the City Council’s July 15 work session, the revised version addresses direction from the Planning Commission at their study session on July 28 to clarify that AFFH policies are not limited in applicability to protected classes, and must be applied to other populations as well. More specifically, the resulting change modifies the language at the end of the policy from, “for protected classes” to, “for populations including, but not limited to, people in classes protected under state and federal fair housing regulations.” Public Engagement City staff offered numerous opportunities for public engagement and comment on the adoption of the HPS in Fall 2023 through Fall 2024, drafts of which always included a strategy to adopt legislative amendments to the Comprehensive Plan to explicitly make AFFH a City Housing Policy. These opportunities occurred through several avenues and public events , including an Online Open House survey, a “Community Forum” event, five Planning Commission meetings, two City Council study sessions, one joint meeting with both the Planning Commission and Council, and five meetings of the City-appointed Ad-Hoc Housing Production Strategy Task Force (“Task Force”) per Resolution 22-30, charged with providing high-level policy guidance to the Planning Commission and City Council on their efforts to comply with HB 2003. The following opportunities were provided for public comment specifically related to the currently-proposed adoption of Comprehensive Plan amendments to make AFFH a City Housing Policy:  On January 27, a work session was held at the Planning Commission that included an overview of AFFH policy from Samuel Goldberg, Public Policy Manager at the Fair Housing Council of Oregon (FHCO);  On May 28, 2025, a second work session was held at the Planning Commission with another brief update on the project as part of a work session on HPS implementation more broadly;  On July 15, 2025, a study session was held at City Council where they received a general overview of AFFH from Shyle Ruder, Education and Outreach Director at FHCO, and provided direction regarding draft Comprehensive Plan amendments;  On July 28, 2025, a third work session was held at the Planning Commission to provide more detailed direction to staff regarding proposed Comprehensive Plan language. Additionally, the City maintains a project website that describes the project, includes project updates, and allows the public to access draft documents as they become available. Planning Commission Public Hearing Page 4 of 7 LU 25-0001 September 8, 2025 IV. NOTICE OF APPLICATION A. Newspaper Notice: On August 27, 2025, public notice of the proposed Comprehensive Plan amendment and Planning Commission public hearing will be published in the Lake Oswego Review. B. DLCD and Metro Notices: Pursuant to ORS 197.610 and LOC 50.003.07.16.c, staff has provided notice of the proposed amendments to DLCD. Staff notified Metro as required by Metro Code 3.07.820(a). V. COMPLIANCE WITH APPROVAL CRITERIA A. OREGON STATEWIDE PLANNING GOALS Amendments to the Lake Oswego Comprehensive Plan must comply with Oregon’s Statewide Planning Goals and Guidelines (OAR Chapter 660 Division 15) when amending the Comprehensive Plan policies, and must also comply with the existing Comprehensive Plan policies. Goal 2: Land Use – The City of Lake Oswego has a state-acknowledged Comprehensive Plan. Section B of this report describes findings and conclusions that the proposed Comprehensive Plan amendment is consistent with applicable procedures and applicable goals and policies of the City’s Comprehensive Plan. Goal 10: Housing – The proposed Comprehensive Plan amendment was developed in compliance with statewide planning policies that govern planning for housing and residential development, including Goal 10 (Housing), OAR 660 Division 7 (Metropolitan Housing), and OAR 660 Division 8 (Interpretation of Goal 10 Housing). The Comprehensive Plan amendment is being proposed to reflect the findings of the City’s 2023 HNA and community values and priorities that were heard during the HPS project outreach. Additional findings regarding Housing can be found in Section B of this report. Conclusion: The proposed Comprehensive Plan amendment is consistent with all applicable Oregon Statewide Planning Goals. For the reasons stated above, the proposed Comprehensive Plan amendment is established on a factual basis, is consistent with existing City policies, and has been sufficiently coordinated with needed housing in the Metro region, in accordance with OAR 660-008-030(1). B. METRO CODE Metro Urban Growth Management Functional Plan, Title 7: Housing Choice [Metro Code 3.07.710 - .740] Title 7 of Metro’s Urban Growth Management Functional Plan is designed to ensure the production of affordable housing in the Metro UGB. Each city and county within the Metro region is encouraged to voluntarily adopt an affordable housing production goal and is Planning Commission Public Hearing Page 5 of 7 LU 25-0001 September 8, 2025 required to ensure that their comprehensive plans and implementing ordinances include strategies to:  Ensure the production of a diverse range of housing types;  Maintain the existing supply of affordable housing, increase opportunities for new affordable housing dispersed throughout their boundaries; and  Increase opportunities for households of all income levels to live in affordable housing (3.07.730). Findings: These requirements are intended to ensure that Lake Oswego’s implementing ordinances include strategies to ensure the production of a diverse range of housing types and increase opportunities for new affordable housing dispersed throughout the City. The proposed Comprehensive Plan amendment furthers the City’s compliance with Title 7 by implementing one of the strategies identified in the HPS to promote the development of needed housing. This Comprehensive Plan amendment will lay the foundation for future actions and implementation measures aimed at increasing opportunities for households of all income levels to live within Lake Oswego in affordable housing. Metro Urban Growth Management Functional Plan, Title 8: Compliance Procedures [Metro Code 3.07.810 - .870] Section 3.07.820 of this title requires that at least 35 days prior to the first evidentiary hearing on an amendment to a comprehensive plan, or land use regulation, that the City submit the proposed amendments to Metro. Metro may review the amendments and can request that the City provide an analysis of compliance with the Functional Plan. Findings: The City submitted the proposed amendments to Metro on August 4, 2025, 35 days prior to the first evidentiary hearing scheduled for September 8, 2025. Conclusion: The proposed Comprehensive Plan amendment will increase the likelihood that development of needed housing will occur that meets the housing needs identified in the 2023 HNA, and will directly implement one the strategies outlined in the City’s HPS. The proposal is consistent with Title 7 Housing Choice and Title 8 Compliance Procedures as described in the findings herein. C. CITY OF LAKE OSWEGO COMPREHENSIVE PLAN Staff has identified the following Comprehensive Plan Policies applicable to this proposal. Following each policy or group of policies is a response: Complete Neighborhoods and Housing - Housing Choice and Affordability: Policy B-1: Provide and maintain zoning and development regulations that allow the opportunity to develop an adequate supply and variety of housing types, and that accommodate the needs of existing and future Lake Oswego residents. Findings: The proposed Comprehensive Plan amendment was specifically developed as part of the action plan outlined in the City’s HPS to increase housing supply over a 20- year time period though the development of the types of housing that meet the city’s Planning Commission Public Hearing Page 6 of 7 LU 25-0001 September 8, 2025 current and future housing needs. The adoption of the proposed Comprehensive Plan amendment and the subsequent implementation of this policy will encourage more opportunities for increased housing supply and the development of a variety of housing types. This policy is met. Neighborhood Plans First Addition Neighbors and Forest Hills Neighborhood Plan Housing, Land Use, and Neighborhood Character Policy 7: Encourage a variety of housing types within First Addition/Forest Hills that is compatible with neighborhood character and design. Finding: This policy is intended, in part, to encourage a variety of housing types within the First Addition / Forest Hills neighborhood, along with other neighborhoods throughout the City. The proposed Comprehensive Plan amendment would establish a new City Housing Policy that would, among other things, serve to ensure that future City land use actions enhance housing choice for populations including, but not limited to, people in classes protected under state and federal fair housing regulations. This policy is met. Lake Grove Village Center Plan Policy 4.2: Preserve and increase the number of high density housing units and provide a range of housing opportunities. Finding: This policy is intended, in part, to encourage a variety of housing types within the Lake Grove neighborhood, along with other neighborhoods throughout the City. As stated above, the proposed amendment would establish a new City Housing Policy that would, among other things, serve to ensure that future City land use actions enhance housing choice for populations including, but not limited to, people in classes protected under state and federal fair housing regulations. This policy is met. D. CITY OF LAKE OSWEGO COMMUNITY DEVELOPMENT CODE Notices will be published in the Lake Oswego Review in advance of both the Planning Commission and City Council hearings. Public comment may be submitted before or during the forthcoming Planning Commission and City Council hearings. All those who submit comment on the proposed amendments receive a notice of decision. Notice of the Planning Commission public hearing has been given to DLCD in the manner provided by LOC 50.07.003.16.c. Classification of Amendments as a Legislative Decision The “legislative decision” process per LOC 50.07.003.16.a for adoption of Ordinance 2967 will be followed for the adoption of amendments to the Comprehensive Plan and Community Development Code to comply with the CFEC rules: A legislative decision is generally a policy decision which is up to the discretion of the City Council, but shall: i. Comply with any applicable state law; Planning Commission Public Hearing Page 7 of 7 LU 25-0001 September 8, 2025 ii. Comply with any applicable statewide planning goal or administrative rule adopted pursuant to ORS Chapter 197; and iii. In the case of a legislative amendment to this Community Development Code, comply with any applicable provision of the Lake Oswego Comprehensive Plan. The criteria are listed in Applicable Regulations, above, and are addressed in Sections A-C, above. VI. RECOMMENDATION Based on the information presented in this report, staff recommends approval of the proposed amendments to the Lake Oswego Comprehensive Plan. EXHIBITS A. Draft Ordinance A-1 Ordinance 2967, draft 08/26/2025 Attachment 1: Reserved for City Council Findings (not included) Attachment 2: Comprehensive Plan Amendments, draft 08/04/2025 B. Findings, Conclusions and Order [No current exhibits; reserved for hearing use] C. Minutes [No current exhibits; reserved for hearing use] D. Staff Reports D-1 Staff Memo, dated January 16, 2025, for the Planning Commission Work Session on January 27, 2025 D-2 Staff Memo, dated May 16, 2025, for the Planning Commission Work Session on May 28, 2025 (regarding PP 22-0005) D-3 Staff Memo, dated July 18, 2025, for the Planning Commission Work Session on July 28, 2025 E. Graphics/Plans [No current exhibits; reserved for hearing use] F. Written Materials [No current exhibits; reserved for hearing use] G. Letters [No current exhibits; reserved for hearing use] Staff reports and public meeting materials that were prepared for this Comprehensive Plan amendment can be found by visiting the project webpage for LU 25-0001. Use the link below to visit the City’s “Project” page. https://www.ci.oswego.or.us/all-projects (Under “Search” enter LU 25-0001, then press “Enter”)