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Gov. Tina Kotek鈥檚 new middle-housing bill aims to solidify and extend the gains in production of small homes, building on lessons learned since 2019 legislation took effect and loosened single-family zoning around the state.

One thrust of House Bill 2138 prohibits cities from going backward on zoning reforms. The bill effectively bars downzoning within an urban growth boundary. It says a city 鈥渕ay not adopt a land use regulation that decreases the overall allowable or required density of residential development or creates additional limitations on allowed housing types that effectively reduces the allowable or required density.鈥�

Another aspect of the bill provides for expedited middle-housing land divisions. It encourages cities and counties to approve land divisions if the application includes a duplex, triplex, fourplex, cottage cluster or townhouse structure.

Oregon housing advocates said they support the bill.

鈥淚 love it,鈥� said Michael Andersen, a Portland-based researcher with the Sightline Institute think tank. 鈥淚t does a good job building on what has worked in the prior housing bill and trying to learn from things we鈥檝e learned in the last five years.鈥�

HB 2138 could draw some critics who see it as tying the hands of local governments. The League of Oregon Cities is working with the governor鈥檚 office to address concerns about the legislation, a representative said.

鈥淔or several months, the LOC and cities have been in ongoing conversations with the governor鈥檚 office about HB 2138,鈥� LOC lobbyist Alexandra Ring stated in an email. 鈥淲e appreciate Gov. Kotek and her staff listening to our concerns and suggestions. It is our understanding that there is a forthcoming amendment that reflects these conversations and addresses many of our concerns. We look forward to reading the amendment and to continuing to work together on this legislation.鈥�

The LOC did not address what concerns the organization has with the bill as introduced.

Some cities have authorized more middle housing than others since Kotek鈥檚 landmark housing bill, HB 2001, took effect in 2020. Beaverton and Roseburg saw proportionally large upticks in middle housing production, Andersen said.

Local zoning varies from city to city, and cities seeing higher middle-housing production tend to have looser floor-area ratio (FAR) rules, Andersen said.

Perhaps even more so than allowable units on a lot, FAR 鈥� which determines how large a building can be on a given parcel 鈥� often determines whether a middle housing project is feasible, he said.

鈥淚 don鈥檛 think it was obvious to everybody that that was such an effective dial to twist,鈥� Andersen said.

System development charge waivers have also made a big difference for small projects in Portland and other cities, Andersen said.

Kotek鈥檚 proposed legislation also goes to bat for single-room occupancies, or SROs. These small apartments with shared bathrooms and hallways have been identified by housing advocates as a low-cost housing option for those on the margins.

HB 2138 allows for the development of up to six SRO units on each parcel zoned for a single-family home. The bill also specifies that local governments, within an urban growth boundary, 鈥渟hall allow the development of a single room occupancy鈥� within certain density parameters.

HB 2138 was referred to the House Committee on Housing and Homelessness. More than 50 bills were referred to the committee since the session began on Tuesday.

Lawmakers in Washington state are also considering far-reaching housing legislation. One bill, Senate Bill 5148, revives an effort from the 2024 session to require cities to include a housing element in their comprehensive plans. Modeled after California law, the bill requires approval of housing projects if they provide 20 percent of units pegged to 60 percent of area median income.

The bill also includes a stick: Cities that do not demonstrate 鈥渟ubstantial progress towards compliance鈥� with their housing element may be ineligible for certain grants, loans and financial guarantees for infrastructure funding.

Another Washington bill would eliminate local parking minimums, which developers say raise costs for multifamily projects. Instead, a statewide ceiling of 0.5 parking stalls per unit would be instituted.