Middle Housing Code Update (House Bill 2001)

House Bill 2001

House Bill 2001 aims to enable communities to provide Oregonians with more housing choices, especially housing choices more people can afford. The law, passed by the 2019 Oregon Legislature, expands the ability of property owners to build certain traditional housing types, like triplexes, in residential zones. These housing types already exist in most cities but were outlawed for decades in many neighborhoods. These created limitations on the types of housing that could be built in residential zones, and contributed to increased housing costs and fewer options for renters and buyers alike. House Bill 2001 required updates to local laws that once limited the types of housing people could build in residential zones as a way to address the following issues:

Increasing Housing Costs

Rent and home prices have increased at a much greater rate than incomes, pushing out Oregon City residents. Children growing up in Oregon City may not be able to afford to live here as adults.

Changing Households

Household compositions are changing, and the trend is accelerating. Future housing inventory must match the community's needs, which may include housing for smaller, young households and more seniors living with their adult children.

Systemic Injustices

Housing rules and regulations have historically been powerful tools of racial exclusion. How the City's housing rules and regulations have been (or could be) tools of racial exclusion must be carefully examined.

Housing Types Now Permitted in Low & Medium-Density Residential Districts

Oregon City's recent equitable housing code amendments, adopted by the City Commissions in 2019, have already implemented many of the requirements of House Bill 2001. For instance, Oregon City already permitted duplexes and Accessory Dwelling Units (ADU's) in residential zones.

However, additional updates were needed for full compliance with HB 2001. The City adopted the new Middle Housing Code on June 30, 2022. As a result of these updates, Oregon City now permits the following housing types in all zones where single-family residences are permitted:

These housing types are now permitted in R-3.5 and R-5 Medium-Density Residential Districts, as well as R-6, R-8, and R-10 Low-Density Residential Districts, among others. Applications for these housing types are reviewed on a Type I basis (OCMC 17.50.030.A) with the building permit application, for compliance with the standards of the base zone and the Middle Housing Design Standards in OCMC 17.16.

Middle Housing Land Division (SB 458)

The City has also implemented code amendments to ensure compliance with the recently passed SB 458 which allows Middle Housing Land Divisions to separate dwelling units within middle housing projects, each on their own individually sellable lots. The Code Criteria that Middle Housing Land Divisions must comply with can be found in OCMC 16.24.

Planning Staff worked with boards, commissions, and community members in the fall and winter of 2021 to bring additional housing options to residential zoning districts and meet the requirements of the new state law by June 30, 2022. On June 1, 2022, the City Commission voted 4-0 to approve the second reading of Ordinance Number 22-1001 and remand the file to the October 24, 2022, Planning Commission Meeting to review a second package of outstanding policy questions not needed for compliance with HB 2001.

Package 2 of Middle Housing Code Amendments

On March 15, 2023, the City Commission adopted some additional technical revisions (effective March 31, 2023) to the Middle Housing Code. Adopted code chapters and Package Number 2 Planning Commission Agendas can be found on the Leg 22-01 Housing Choices Code Update Project page.