91视频

Oregon Legislature weighs in on housing regulation — should we worry? | OP-ED

By: Edward Sullivan and Carrie Richter//April 11, 2023//

Oregon Legislature weighs in on housing regulation — should we worry? | OP-ED

Listen to this article
Edward Sullivan and Carrie Richter

Oregon faces many decisions regarding land use in 2023. After voters elected a new governor who promised movement on housing and homelessness and additional resources for drug treatment and mental health, the Legislature must now deal with the governor鈥檚 housing proposals. While there is more state revenue available than anticipated, there is intense competition for those dollars. This month we look at only two important bills related to housing. By all accounts, these proposals have taken a front-row seat in the legislative arena and will be a measure of the effectiveness of the new governor and the current Legislature.

The most likely legislation to pass soon (and may well be law by the time this column appears in print) is HB 2001 (the same bill number used by then-Speaker Tina Kotek to provide major changes to Oregon鈥檚 land use laws in 2019), which, among other things, creates an Oregon Housing Needs Analysis (OHNA) by which the numbers and types of housing will be tracked and projected, serving as the basis to plan for 鈥 and take action to support and facilitate 鈥 adequate housing for cities of 10,000 or more, and subject to incentives and penalties. These changes are transformational, but as planning becomes the means of implementing state social policy, the brunt of the reaction will be upon elected city and county officials who face some voters who may be less thrilled about such changes.

Adding to this political reality is the concern that the funding to make these changes will be inadequate. That funding concern underlaid challenges to the state鈥檚 ambitious 鈥淐limate-Friendly and Equitable Communities鈥 rules adopted last year as part of the state鈥檚 response to climate change. The rules require regional and local code and transportation system plan amendments to reallocate densities, reduce off-street parking and incentivize multimodal planning, but necessary funding was not immediately available. Local governments complain they have heard this song before.

Unlike the Climate-Friendly and Equitable Communities rules, however, funding is part of the HB 2001 reform package and includes nearly $1.5 million for state costs to construct the OHNA, over $2.5 million to the Department of Land Conservation and Development to establish by rulemaking a workable system of housing production strategies and targets (including hires of state staff to support continued implementation of that system), and $3.5 million in available grants and technical assistance to local governments. Aside from the OHNA provisions, there are additional measures to deal with youth homelessness, support modular housing, change landlord-tenant law regarding evictions, and upgrade agricultural workforce housing.

Regarding funding, HB 2001 provides for a host of loans and grants to stimulate housing. For example, the Legislature appropriated $20 million for loans and grants to expand production and capacity to develop modular housing and to support homebuilders and developers to meet housing demand. Additionally, it appropriated over $3.6 million to provide financing or refinancing to local governments or private developers of low-income and moderate-income housing regarding housing pre-development costs, including infrastructure, site acquisition, planning, reports, surveys, and consultants. Further, it appropriated $5 million to the Oregon Department of Agriculture for grants to improve conditions of existing agricultural workforce housing. With most of these appropriations, the Legislature also appropriated funds to the state agencies managing housing grants and loans to assure adequate oversight and administration.

By passing this bill relatively early in the 2023 session, the governor and her allies wish to demonstrate they are taking quick and effective action on the housing crisis to meet campaign promises on housing. The bill has an emergency clause, so many of these changes will come into effect immediately.

Another bill likely to pass is HB 2506, which provides that existing law allowing 鈥渞esidential homes鈥 in single-family zones and 鈥渞esidential facilities鈥 in multifamily and mixed residential-commercial zones will be expanded to include other group homes allowed outright and provide for an attorney fee award to their proponents against opponents who unsuccessfully appeal those facilities. Residential homes will provide treatment or training for up to five individuals, whereas residential facilities will provide those services for up to 16 people. These changes may well be required in any event under federal legislation, such as the Fair Housing Act, the Rehabilitation Act, and the Americans with Disabilities Act.

Not all bills are enacted and those that are enacted may have very different provisions as the legislative sausage factory passes on a variety of ideas. Some bills are just plain bad 鈥 paving the way for anything that calls itself a housing application with little or no power for local governments to review them effectively, and even less for LUBA or appellate review. So long as a balance between housing and other planning values is maintained and funding is provided for local governments to implement, state and local governments will do their work. The genius of the Oregon system is its allocation of functions among state and local participants through an understanding of their respective roles and the necessary trust that must exist between them. If that trust is maintained, there is little reason to be worried this session.

Edward Sullivan is a retired practitioner of land use and municipal law with more than 50 years of experience. Contact him at [email protected].

Carrie Richter is an attorney specializing in land use and municipal law at Bateman Seidel. Contact her at 503-972-9903 or [email protected].

The opinions, beliefs and viewpoints expressed in the preceding commentary are those of the authors and do not necessarily reflect the opinions, beliefs and viewpoints of the Daily Journal of Commerce or its editors. Neither author nor the 91视频 guarantees the accuracy or completeness of any information published herein.



News

See All News

Commentary

See All Commentary

COMMUNITY CALENDAR