1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session House Bill 2138 Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of Governor Tina Kotek for Office of the Governor) SUMMARY The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the measure as introduced.The statement includes a measure digest written in compliance with applicable readability standards. Digest: This Act allows for denser home building in cities and requires the LCDC to adopt rules. (Flesch Readability Score:68.9). Expands allowable middle housing and expands middle housing requirements to include urban unincorporatedlands. Expands allowable single room occupancies. Makes retroactive the prohibition on private restrictions, including restrictions in governing documents of planned communities, that would limit middle housing, accessory dwelling units or housingdensity. Limits a local government’s ability to reduce density requirements or allowances within urban growthboundaries. Reforms expedited land division provisions and makes such divisions land use decisions. Allows for plats that consolidate a land division and a middle housing land division and requires review within 120 days. Requires the Land Conservation and Development Commission to adopt rules by January 1, 2028, to promote housing development and implement various provisions of this Act. Declares an emergency, effective on passage. A BILL FOR AN ACT Relating to land use; creating new provisions; amending ORS 34.020, 34.102, 92.031, 92.044, 92.325, 93.277, 94.776, 184.633, 197.015, 197.090, 197.200, 197.245, 197.360, 197.365, 197.625, 197.724, 197.794, 197.796, 197.825, 197A.015, 197A.200, 197A.400, 197A.420, 197A.430, 197A.465, 197A.470, 215.402, 215.416, 215.427, 215.429, 223.299, 227.160, 227.173, 227.178, 227.179, 227.184, 421.649 and 476.394 and sections 3 and 4, chapter 639, Oregon Laws 2019, and section 1, chapter 110, Oregon Laws 2024; repealing ORS 92.377, 197.370, 197.375, 197.380, 197.726 and 197.727; and declaring anemergency. Be It Enacted by the People of the State of Oregon: MIDDLE HOUSING SECTION 1. ORS 197A.420 is amended to read: 197A.420. (1) As used in this section: (a) “City” [or] includes land that is within a city’s urban unincorporated lands. (b) “City with a population of 25,000 or greater” includes, regardless of size, any city within Tillamook County and the communities of Barview/Twin Rocks/Watseco, Cloverdale, Hebo, Neahkahnie, Neskowin, Netarts, Oceanside and Pacific City/Woods. [(b) “Cottage clusters” means groupings of no fewer than four detached housing units per acre with a footprint of less than 900 square feet each and that include a common courtyard.] [(c) “Middle housing” means:] [(A) Duplexes;] NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted. New sections are in boldfaced type. LC 333 HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 [(B)Triplexes;] [(C)Quadplexes;] [(D) Cottage clusters; and] [(E) Townhouses.] (c) “Cottage cluster” means a grouping of attached or detached dwelling units in any configuration that includes a common courtyard or other shared community amenity and in which each unit has a small footprint. (d) “Duplex” means two attached or detached dwellings in any configuration on a lot or parcel, other than a lot or parcel created by a middle housing land division. (e)(A) “Middle housing” means housing that consists of duplexes, triplexes, quadplexes, cottage clusters or townhouses. (B) “Middle housing” includes dwelling units that are: (i) Additional units allowed under section 3 of this 2025 Act; and (ii) Existing dwelling units to which additional units are added under subsection (4) of thissection. (f) “Middle housing land division” has the meaning given that term in ORS 92.031. (g) “Quadplex” means four attached or detached dwellings in any configuration on a lot or parcel, other than a lot or parcel created by a middle housing land division. [(d)] (h) [“Townhouses”] “Townhouse” means a dwelling unit constructed in a row of two or more attached units, where each dwelling unit is located on an individual lot or parcel and shares at least one common wall with an adjacent unit. (i) “Triplex” means three attached or detached dwellings in any configuration on a lot or parcel, other than a lot or parcel created by a middle housing land division. (j) “Zoned for residential use” means land that: (A) Is within an urban growth boundary; (B) Has base zoning for residential uses; (C) Allows the development of a detached single-unit dwelling; and (D) Is not zoned primarily for commercial, industrial, agricultural or public uses; and (E) Is incorporated or: (i) Has sufficient urban services, as defined in ORS 195.065; and (ii) Is not zoned under an interim zoning designation that maintains the land’s potential for planned urban development. (2) Except as provided in subsection (4) of this section, each county, each city with a popu- lation of 25,000 or greater, and each [county or] city with a population of 1,000 or greater within [a metropolitan service district] Metro, shall allow the development of: (a) All middle housing types in areas zoned for residential use [that allow for the development of detached single-family dwellings]; and (b) A duplex on each lot or parcel zoned for residential use [that allows for the development of detached single-family dwellings]. (3) [Except as provided in subsection (4) of this section,] Each city not within [a metropolitan service district] Metro with a population of 2,500 or greater and less than 25,000 shall allow the development of a duplex on each lot or parcel zoned for residential use[that allows for the develop- ment of detached single-family dwellings. Nothing in this subsection prohibits a local government from allowing middle housing types in addition to duplexes]. [(4)(a) Except within Tillamook County, this section does not apply to:] [2] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 [(A) Cities with a population of 1,000 or fewer, except inside of Tillamook County;] [(B) Lands not within an urban growth boundary;] [(C) Lands that are not incorporated and also lack sufficient urban services, as defined in ORS 195.065;or] [(D) Lands that are not incorporated and are zoned under an interim zoning designation that maintains the land’s potential for planned urban development.] [(b) This section does not apply to lands that are not zoned for residential use, including lands zoned primarily for commercial, industrial, agricultural or public uses.] (4)(a) Each city required to allow middle housing under subsection (2) or (3) of this sec- tion shall allow the lot or parcel to include existing housing consisting of: (A) One single-unit dwelling; (B) One single-unit dwelling plus one accessory dwelling unit; or (C) One duplex. (b) The city may require only the new units, and not the existing units, to comply with siting and design standards adopted under subsection (5) of this section. (c) Existing units on the lot or parcel may be separated from the new units by a middle housing land division and are considered a single unit for the purposes of such division. (5) Local governments: (a) May regulate siting and design of middle housing required to be permitted under this sec- tion, provided that the regulations do not[,] individually or cumulatively[,] discourage, through unreasonable costs or delay, the development of all middle housing types permitted in the area [through unreasonable costs or delay]. (b) [Local governments] May regulate middle housing to comply with protective measures adopted pursuant to statewide land use planning goals. (c) May not require a traffic impact analysis for, or attribute an exaction based on traffic impacts to, middle housing developed on a lot or parcel for residential infill or redevelop- ment. (6) This section does not prohibit local governments from permitting: (a) [Single-family] Single-unit dwellings in areas zoned to allow for [single-family] single-unit dwellings;or (b) Middle housing in areas not required under this section. (7) A local government that amends its comprehensive plan or land use regulations relating to allowing additional middle housing is not required to consider whether the amendments significantly affect an existing or planned transportation facility. SECTION 2. Section 3 of this 2025 Act is added to and made a part of ORS chapter 197A. SECTION 3.(1) As used in this section: (a) “Accessible homeownership unit” means a unit of housing that complies with the “Type A” requirements applicable to units as set forth in section 1103 of the December 2023 printing of the Standard for Accessible and Usable Buildings and Facilities (ICC A117.1-2017) published by the International Code Council. (b) “Affordable homeownership unit” means a unit of housing that is subject to an af- fordable housing covenant, as described in ORS 456.270 to 456.295, that: (A) Makes the unit available and affordable to purchase and to own for families with in- comes of 120 percent or less of the area median income; and (B) Is enforceable for a duration of not less than 10 years from the date of the certificate [3] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 ofoccupancy. (2) On any lot, parcel or area on which middle housing may be sited under ORS 197A.420 (2) or (3), if one or more of the units of middle housing is an accessible or affordable homeownership unit, a city shall allow the additional development of: (a) For any allowable duplex or triplex, one additional attached or detached dwelling unit. (b) For any allowable townhouse, quadplex or cottage cluster, up to two additional at- tached or detached dwelling units. (3) The additional units under this section are subject to the regulations under ORS 197A.420 (5), except that a city must allow commensurate increases to the developable area, floor area, height or density requirements to allow for the development of the units. SECTION 4. Section 3, chapter 639, Oregon Laws 2019, as amended by section 21, chapter 223, Oregon Laws 2023, and section 3, chapter 283, Oregon Laws 2023, is amended to read: Sec. 3. (1) Notwithstanding ORS 197.646, a local government shall adopt land use regulations or amend its comprehensive plan to implement ORS [197.758] 197A.420 no later than: (a) June 30, 2021, for each city subject to ORS 197.758 (3) (2021 Edition) as in effect on Janu- ary 1, 2023; (b) June 30, 2022, for each local government subject to ORS [197.758 (2)] 197A.420 (2), except as provided in [paragraph (d)] paragraphs (d) and (e) of this subsection; (c) June 30, 2025, for each city subject to ORS [197.758 (3), as amended by section 20 of this 2023 Act] 197A.420 (3) but not included in paragraph (a) of this subsection; [or] (d) July 1, 2025, for each city, as defined in ORS [197.758] 197A.420, in Tillamook County[.]; or (e) A date or dates established by the Land Conservation and Development Commission for cities to conform with section 3 of this 2025 Act or the amendments to ORS 197A.420 by section 1 of this 2025 Act and any rules adopted under section 22 of this 2025 Act. (2) The [Land Conservation and Development] commission, with the assistance of the Building Codes Division of the Department of Consumer and Business Services, shall develop a model middle housing ordinance no later than December 31, 2020. (3) A local government that has not acted within the time provided under subsection (1) of this section shall directly apply the model ordinance developed by the commission under subsection (2) of this section [under] as provided by ORS 197.646 (3) until the local government acts as described in subsection (1) of this section. (4) In adopting regulations or amending a comprehensive plan under this section, a local gov- ernment shall consider ways to increase the affordability of middle housing by considering ordi- nances and policies that include but are not limited to: (a) Waiving or deferring system development charges; (b) Adopting or amending criteria for property tax exemptions under ORS 307.515 to 307.523, 307.540 to 307.548 or 307.651 to 307.687 or property tax freezes under ORS 308.450 to 308.481; and (c) Assessing a construction tax under ORS 320.192 and 320.195. SECTION 5. Section 4, chapter 639, Oregon Laws 2019, as amended by section 22, chapter 223, Oregon Laws 2023, is amended to read: Sec. 4. (1) The Department of Land Conservation and Development may grant to a local gov- ernment that is subject to ORS [197.758] 197A.420 an extension of the time allowed to adopt land use regulations or amend its comprehensive plan under section 3, chapter 639, Oregon Laws 2019. (2) An extension under this section may be applied only to specific areas where the local gov- ernment has identified water, sewer, storm drainage or transportation services that are significantly [4] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 deficient and for which the local government has established a plan of actions that will remedy the deficiency in those services that is approved by the department. The extension may not extend be- yond the date that the local government intends to correct the deficiency under the plan. (3) In areas where the extension under this section does not apply, the local government shall apply its own land use regulations consistent with section 3 (1), chapter 639, Oregon Laws 2019, or the model ordinance developed under section 3 (2), chapter 639, Oregon Laws 2019. (4) A request for an extension by a local government must be filed with the department no later than: (a) December 31, 2020, for a city subject to ORS 197.758 (3) (2021 Edition), as in effect on January 1, 2023. (b) June 30, 2021, for a local government subject to ORS [197.758 (2)] 197A.420 (2). (c) June 30, 2024, for each city subject to ORS [197.758 (3), as amended by section 20 of this 2023 Act] 197A.420 (3). (d) December 31, 2026, only for unincorporated urban lands. (5) The department shall grant or deny a request for an extension under this section: (a) Within 90 days of receipt of a complete request from a city subject to ORS [197.758 (3)] 197A.420(3). (b) Within 120 days of receipt of a complete request from a local government subject to ORS [197.758 (2)] 197A.420 (2). (6) The department shall adopt rules regarding the form and substance of a local government’s application for an extension under this section. The department may include rules regarding:] (a) Defining the affected areas; (b) Calculating deficiencies of water, sewer, storm drainage or transportation services; (c) Service deficiency levels required to qualify for the extension; (d) The components and timing of a remediation plan necessary to qualify for an extension; (e) Standards for evaluating applications; and (f) Establishing deadlines and components for the approval of a plan of action. SINGLE ROOM OCCUPANCIES SECTION 6. ORS 197A.430 is amended to read: 197A.430. (1) As used in this section, “single room occupancy” means a residential development with no fewer than four attached units that are independently rented and lockable and provide liv- ing and sleeping space for the exclusive use of an occupant, but require that the occupant share sanitary or food preparation facilities with other units in the occupancy. (2) Within an urban growth boundary, each local government shall allow the development of a single room occupancy: (a) With up to six units on each lot or parcel zoned to allow for the development of a detached [single-family] single-unit dwelling; and [(b) With the number of units consistent with the density standards of a lot or parcel zoned to allow for the development of residential dwellings with five or more units.] (b) With up to three times the number of units allowed by the maximum density stan- dards of a lot or parcel on which is allowed multiunit housing with five or more dwelling units. (3) For the purpose of any requirement establishing the maximum or minimum number [5] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 of parking spaces, a single room occupancy unit may not be counted as more than one-third of a dwelling unit that is not a single room occupancy unit. PROMOTING HOUSING DENSITY SECTION 7. ORS 93.277 is amended to read: 93.277. A provision in a recorded instrument affecting real property is [not enforceable if:] void and unenforceable, as being against the policy of this state of promoting housing availability and affordability and affirmatively furthering fair housing as defined in ORS 197A.100, if [(1)] the provision would allow the development of a single-family dwelling on the real property but would prohibit the development of, or the partitioning or subdividing of lands under ORS 92.031 for: [(a)] (1) Middle housing, as defined in ORS 197A.420; or [(b)] (2) An accessory dwelling unit allowed under ORS 197A.425 [(1); and]. [(2) The instrument was executed on or after January 1, 2021.] SECTION 8. ORS 93.277 applies to instruments executed before, on or after January 1, 2021. SECTION 9. ORS 94.776 is amended to read: 94.776. (1) A provision in a governing document [that is adopted or amended on or after January 1, 2020,] is void and unenforceable, as being against the policy of this state of promoting housing availability and affordability and affirmatively furthering fair housing as defined in ORS 197A.100, to the extent that the provision would prohibit or have the effect of unreasonably restricting the development of, or the dividing of lands under ORS 92.031 for, housing, including accessory dwelling units or middle housing, that is otherwise allowable under the maximum density of the zoning for the land. (2) Lots or parcels [resulting], as those terms are defined in ORS 92.010, that result from the division of land in a planned community are subject to the governing documents of the planned community [and]. Any resulting dwelling units are allocated assessments and voting rights on the same basis as existing units. SECTION 10. ORS 94.766 applies to governing documents that were adopted before, on or after January 1, 2020. SECTION 11. ORS 197A.200 is amended to read: 197A.200. (1) The availability of affordable, decent, safe and sanitary housing opportunities for persons of lower, middle and fixed income, including agriculture workforce housing, is a matter of statewideconcern. (2) Many persons of lower, middle and fixed income depend on government assisted housing as a source of affordable, decent, safe and sanitary housing. (3) A local government shall permit needed housing in one or more zoning districts or in zones described by some comprehensive plans as overlay zones with sufficient buildable land to satisfy that need. (4) Within an urban growth boundary, a city may not adopt a land use regulation that decreases the overall allowable or required density of residential development or creates ad- ditional limitations on allowed housing types that effectively reduces the allowable or re- quired density, except as necessary to comply with a statewide planning goal. Regulations prohibited under this subsection include any regulation, without an equivalent offsetting [6] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 regulation to increase density, that: (a) Limits allowable units per acre or per developable lot or parcel; (b) Reduces allowable floor-area-ratio for dwelling units; (c) Reduces allowable height; (d) Limits or prohibits allowable higher density housing types, including middle housing or multiunit housing; (e) Increases minimum lot sizes; or (f) Increases setbacks or otherwise limits the developable area of a lot or parcel. SECTION 12. ORS 197A.400, as amended by section 3, chapter 111, Oregon Laws 2024, is amended to read: 197A.400. (1) Except as provided in subsection (3) of this section, a local government may adopt and apply only clear and objective standards, conditions and procedures regulating the development of housing, [including needed housing,]or urban services, as defined in ORS 195.065, necessary for the development of housing, on land within an urban growth boundary. The standards, condi- tions and procedures: (a) May include, but are not limited to, [one or more] provisions regulating the density or height of a development. (b) May not have the effect, either in themselves or cumulatively, of discouraging needed hous- ing through unreasonable cost or delay. (c) May be contained in a comprehensive plan, land use regulation or an ordinance relating to housing adopted by a city that adopts, including by reference, a model ordinance adopted by the Land Conservation and Development Commission that comports with any qualifications, conditions or applicability of the model ordinance. (2) The provisions of subsection (1) of this section do not apply to: (a) An application or permit for residential development in an area identified in a formally adopted central city plan, or a regional center as defined by Metro, in a city with a population of 500,000 or greater. (b) An application or permit for residential development in historic areas designated for pro- tection under a land use planning goal protecting historic areas. (3) In addition to an approval process [for needed housing based on clear and objective standards, conditions and procedures as] provided in subsection (1) of this section, a local government may adopt and apply an alternative approval process for applications and permits for residential devel- opment based on approval criteria that are not clear and objective if: (a) The applicant retains the option of proceeding under the approval process that meets the requirements of subsection (1) of this section; (b) The approval criteria for the alternative approval process comply with applicable statewide land use planning goals and rules; and (c) The approval criteria for the alternative approval process authorize a density at or above the density level authorized in the zone under the approval process provided in subsection (1) of this section. (4) Subject to subsection (1) of this section, this section does not infringe on a local government’s prerogative to: (a) Set approval standards under which a particular housing type is permitted outright; (b) Impose special conditions upon approval of a specific development proposal; or (c) Establish approval procedures. [7] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 SECTION 13. ORS 197A.400, as amended by section 2, chapter 533, Oregon Laws 2023, and section 4, chapter 111, Oregon Laws 2024, is amended to read: 197A.400. (1) Except as provided in subsection (3) of this section, a local government may adopt and apply only clear and objective standards, conditions and procedures regulating the development of housing, [including needed housing,] or urban services, as defined in ORS 195.065, necessary for the development of housing, on land within an urban growth boundary, unincorporated com- munities designated in a county’s acknowledged comprehensive plan after December 5, 1994, nonresource lands and areas zoned for rural residential use as defined in ORS 215.501.The stan- dards, conditions and procedures: (a) May include, but are not limited to, [one or more] provisions regulating the density or height of a development. (b) May not have the effect, either in themselves or cumulatively, of discouraging needed hous- ing through unreasonable cost or delay. (c) May be contained in a comprehensive plan, land use regulation or an ordinance relating to housing adopted by a city that adopts, including by reference, a model ordinance adopted by the Land Conservation and Development Commission that comports with any qualifications, conditions or applicability of the model ordinance. (2) The provisions of subsection (1) of this section do not apply to: (a) An application or permit for residential development in an area identified in a formally adopted central city plan, or a regional center as defined by Metro, in a city with a population of 500,000 or greater. (b) An application or permit for residential development in historic areas designated for pro- tection under a land use planning goal protecting historic areas. (3) In addition to an approval process [for needed housing based on clear and objective standards, conditions and procedures as] provided in subsection (1) of this section, a local government may adopt and apply an alternative approval process for applications and permits for residential devel- opment based on approval criteria that are not clear and objective if: (a) The applicant retains the option of proceeding under the approval process that meets the requirements of subsection (1) of this section; (b) The approval criteria for the alternative approval process comply with applicable statewide land use planning goals and rules; and (c) The approval criteria for the alternative approval process authorize a density at or above the density level authorized in the zone under the approval process provided in subsection (1) of this section. (4) Subject to subsection (1) of this section, this section does not infringe on a local government’s prerogative to: (a) Set approval standards under which a particular housing type is permitted outright; (b) Impose special conditions upon approval of a specific development proposal; or (c) Establish approval procedures. EXPEDITED AND MIDDLE HOUSING LAND DIVISIONS SECTION 14. ORS 92.031, as amended by section 10, chapter 102, Oregon Laws 2024, is amended to read: 92.031. (1) As used in this section, “middle housing land division” means a partition or subdivi- [8] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 sion of a lot or parcel on which the development of middle housing is allowed under ORS 197A.420 (2) or (3) or section 5 of this 2025 Act. (2) A city or county shall approve a tentative plan for a middle housing land division if the ap- plication includes: [(a) A proposal for development of middle housing in compliance with the Oregon residential spe- cialty code and land use regulations applicable to the original lot or parcel allowed under ORS 197A.420(5);] [(b) Separate utilities for each dwelling unit;] (a) A proposal for one development of middle housing that complies with the Oregon residential specialty code and land use regulations under ORS 197A.420 (5) that are applicable to the original lot or parcel and which may consist of: (A) A single duplex, triplex, quadplex, cottage cluster or structure containing townhouses;and (B) Existing units allowed under ORS 197A.420 (4), if any; [(c)] (b) Proposed easements necessary for each dwelling unit on the plan for: (A) Locating, accessing, replacing and servicing all utilities; (B) Pedestrian access from each dwelling unit to a private or public road; (C) Any common use areas or shared building elements; (D) Any dedicated driveways or parking; and (E) Any dedicated common area; [(d)] (c) Exactly one dwelling unit on each resulting lot or parcel, except for: (A) Lots, parcels or tracts used as common areas; or (B) Lots or parcels with a detached single-unit dwelling and accessory dwelling unit or a duplex as allowed under ORS 197A.420 (4) ; and [(e)] (d) Evidence demonstrating how buildings or structures on a resulting lot or parcel will comply with applicable building codes provisions relating to new property lines and, notwithstanding the creation of new lots or parcels, how structures or buildings located on the newly created lots or parcels will comply with the Oregon residential specialty code. (3) A city or county may add conditions to the approval of a tentative plan for a middle housing land division to: (a) Subject to subsection (6) of this section, prohibit the further division of the resulting lots or parcels. (b) Require that a notation appear on the final plat indicating that the approval was given under thissection. (4) In reviewing an application for a middle housing land division, a city or county: (a) Shall apply the procedures [under ORS 197.360 to 197.380] applicable to an expedited land division under ORS 197.365. (b) May require street frontage improvements where a resulting lot or parcel abuts the street consistent with land use regulations implementing ORS 197A.420. (c) May not subject an application to approval criteria except as provided in this section, or as provided by rule by the Land Conservation and Development Commission, including that a lot or parcel require driveways, vehicle access, parking or minimum or maximum street frontage. (d) May not subject the application to procedures, ordinances or regulations adopted under ORS 92.044 or 92.046 that are inconsistent with this section or ORS [197.360 to 197.380] 197.365. (e) [May] Shall allow the submission of an application for a middle housing land division before, [9] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 after or at the same time as the submission of an application for building permits for the middle housing. (f) May require the dedication of right of way if the original parcel did not previously provide a dedication. (g) May require separate utilities for each dwelling unit. (h) Shall allow any existing units allowed under ORS 197A.420 (4) to be considered a single middle housing unit and allow for the unit to be separated by the division. (5) The type of middle housing developed on the original parcel is not altered by a middle housing land division. [(6) Notwithstanding ORS 197A.425 (1), a city or county is not required to allow an accessory dwelling unit on a lot or parcel resulting from a middle housing land division.] (6) Notwithstanding ORS 197A.425 (1) and subsection (4)(d) and (e) of this section, a city or county may prohibit or add approval criteria to the allowance of a new accessory dwelling unit on, or a subsequent middle housing land division of, a lot or parcel resulting from a middle housing land division: (a) To the extent allowed under this section and ORS 197A.420; and (b) Provided that the middle housing land division lots or parcels may be used to create housing that is at or above the minimum density for the zoning of the land. (7) Notwithstanding any other provision of ORS 92.010 to 92.192, within the same calendar year as an original partition that was not a middle housing land division, a city or county may allow one or more of the resulting vacant parcels to be further [divided] partitioned into not more than three parcels through a middle housing land division.[, provided that:] [(a) The original partition was not a middle housing land division; and] [(b) The original parcel or parcels not divided will not be part of the resulting partition plat for the middle housing land division.] (8) The tentative approval of a middle housing land division is void if and only if a final subdi- vision or partition plat is not approved within three years of the tentative approval. Nothing in this section [or ORS 197.360 to 197.380] prohibits a city or county from requiring a final plat before is- suing building permits. (9) The commission may adopt rules to interpret or implement this section. SECTION 15. ORS 92.044 is amended to read: 92.044. (1)(a) The governing body of a county or a city shall, by regulation or ordinance, adopt standards and procedures, in addition to those otherwise provided by law, governing, in the area over which the county or the city has jurisdiction under ORS 92.042, the submission and approval of tentative plans and plats of subdivisions[,] and tentative plans and plats of partitions [in exclusive farm use zones established under ORS 215.203]. (b) The standards [shall] must include, taking into consideration the location and surrounding area of the proposed subdivisions or partitions, requirements for: (A) Placement of utilities subject to subsection (7) of this section, for the width and location of streets or for minimum lot sizes and other requirements the governing body considers necessary for lessening congestion in the streets; (B) Securing safety from fire, flood, slides, pollution or other dangers; (C) Providing adequate light and air, including protection and assurance of access to incident solar radiation for potential future use; (D) Preventing overcrowding of land; [10] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (E) Facilitating adequate provision of transportation, water supply, sewerage, drainage, educa- tion, recreation or other needs; and (F) Protection and assurance of access to wind for potential electrical generation or mechanical application. (c) The [ordinances or regulations shall establish] procedures must provide for: (A) The form and contents of tentative plans of partitions and subdivisions submitted for ap- proval. [(d)] (B) [The procedures established by each ordinance or regulation shall provide for] The co- ordination in the review of the tentative plan of any subdivision or partition with all affected city, county, state and federal agencies and all affected special districts. (C) A method by which the city or county may approve a plan or plat that includes fur- ther division of one or more of the resulting lots or parcels via concurrently submitted ap- plications for middle housing land divisions under ORS 92.031, all to be approved within the timelines provided under ORS 215.427 or 227.178. (2)(a) The governing body of a city or county may provide for the delegation of any of its lawful functions with respect to subdivisions and partitions to the planning commission of the city or county or to an official of the city or county appointed by the governing body for such purpose. (b) If an ordinance or regulation adopted under this section includes the delegation to a plan- ning commission or appointed official of the power to take final action approving or disapproving a tentative plan for a subdivision or partition, such ordinance or regulation may also provide for appeal to the governing body from such approval or disapproval. (c) The governing body may establish, by ordinance or regulation, a fee to be charged for an appeal under ORS chapter 197, 197A, 215 or 227, except for an appeal under ORS 197.805 to 197.855. (3) The governing body may, by ordinance or regulation, prescribe fees sufficient to defray the costs incurred in the review and investigation of and action upon proposed subdivisions that are submitted for approval pursuant to this section. As used in this subsection, “costs” does not include costs for which fees are prescribed under ORS 92.100 and 205.350. (4) The governing body may, by ordinance or regulation, prescribe fees sufficient to defray the costs incurred in the review and investigation of and action upon proposed partitions that are sub- mitted for approval pursuant to this section. (5) Ordinances and regulations adopted under this section [shall] must be adopted in accordance with ORS 92.048. (6) Any ordinance or regulation adopted under this section [shall] must comply with the com- prehensive plan for the city or county adopting the ordinance or regulation. (7) Unless specifically requested by a public or private utility provider, the governing body of a city or county may not require a utility easement except for a utility easement abutting a street. Utility infrastructure may not be placed within one foot of a survey monument location noted on a subdivision or partition plat. The governing body of a city or county may not place additional re- strictions or conditions on a utility easement granted under this chapter. (8) For the purposes of this section: (a) “Incident solar radiation” means solar energy falling upon a given surface area. (b) “Wind” means the natural movement of air at an annual average speed measured at a height of 10 meters of at least eight miles per hour. SECTION 16. ORS 215.427, as amended by section 7, chapter 102, Oregon Laws 2024, and sec- tion 8, chapter 110, Oregon Laws 2024, is amended to read: [11] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 215.427. [(1) Except as provided in subsections (3), (5) and (10) of this section, for land within an urban growth boundary and applications for mineral aggregate extraction, the governing body of a county or its designee shall take final action on an application for a permit, limited land use decision or zone change, including resolution of all appeals under ORS 215.422, within 120 days after the ap- plication is deemed complete. The governing body of a county or its designee shall take final action on all other applications for a permit, limited land use decision or zone change, including resolution of all appeals under ORS 215.422, within 150 days after the application is deemed complete, except as provided in subsections (3), (5) and (10) of this section.] (1) Except as provided in subsections (3), (5) and (10) of this section, the governing body of a county or its designee shall take final action on an application, including resolution of all appeals under ORS 215.422, within the shortest applicable period of the following periods, all of which begin on the date that the application is deemed complete: (a) 150 days; (b) 120 days, for land within an urban growth boundary or for applications for mineral aggregateextraction; (c) 100 days, for an application for the development of affordable housing as provided in ORS 197A.470; or (d) 63 days, for an expedited land division under ORS 197.365. (2) If an application [for a permit, limited land use decision or zone change] is incomplete, the governing body or its designee shall notify the applicant in writing of exactly what information is missing within 30 days of receipt of the application and allow the applicant to submit the missing information. The application [shall be] is deemed complete for the purpose of subsection (1) of this section [and ORS 197A.470] upon receipt by the governing body or its designee of: (a) All of the missing information; (b) Some of the missing information and written notice from the applicant that no other infor- mation will be provided; or (c) Written notice from the applicant that none of the missing information will be provided. (3)(a) If the application was complete when first submitted or the applicant submits additional information within 180 days of the date the application was first submitted, approval or denial of the application must be based: (A) Upon the standards and criteria that were applicable at the time the application was first submitted;or (B) For an application relating to development of housing, upon the request of the applicant, those standards and criteria that are operative at the time of the request. (b) If an applicant requests review under different standards as provided in paragraph (a)(B) of this subsection: (A) For the purposes of this section, any applicable timelines for completeness review and final decisions restart as if a new application were submitted on the date of the request; (B) For the purposes of this section, [and ORS 197A.470] the application is not deemed complete until: (i) The county determines that additional information is not required under subsection (2) of this section;or (ii) The applicant makes a submission under subsection (2) of this section in response to a county’srequest; (C) A county may deny a request under paragraph (a)(B) of this subsection if: [12] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (i) The county has issued a public notice of the application; or (ii) A request under paragraph (a)(B) of this subsection was previously made; and (D) The county may not require that the applicant: (i) Pay a fee, except to cover additional costs incurred by the county to accommodate the re- quest; (ii) Submit a new application or duplicative information, unless information resubmittal is re- quired because the request affects or changes information in other locations in the application or additional narrative is required to understand the request in context; or (iii) Repeat redundant processes or hearings that are inapplicable to the change in standards orcriteria. (4) On the 181st day after first being submitted, the application is void if the applicant has been notified of the missing information as required under subsection (2) of this section and has not sub- mitted: (a) All of the missing information; (b) Some of the missing information and written notice that no other information will be pro- vided;or (c) Written notice that none of the missing information will be provided. (5) The period set in subsection (1) of this section [or the 100-day period set in ORS 197A.470] may be extended for a specified period of time at the written request of the applicant.The total of all extensions, except as provided in subsection (10) of this section for mediation, may not exceed 215 days. (6) The period set in subsection (1) of this section applies: (a) Only to decisions wholly within the authority and control of the governing body of the county;and (b) Unless the parties have agreed to mediation as described in subsection (10) of this section or ORS 197.319 (2)(b). (7) Notwithstanding subsection (6) of this section, the period set in subsection (1) of this section [and the 100-day period set in ORS 197A.470 do] does not apply to: (a) A decision of the county making a change to an acknowledged comprehensive plan or a land use regulation that is submitted to the Director of the Department of Land Conservation and De- velopment under ORS 197.610; or (b) A decision of a county involving an application for the development of residential structures within an urban growth boundary, where the county has tentatively approved the application and extends these periods by no more than seven days in order to assure the sufficiency of its final or- der. (8) [Except when an applicant requests an extension under subsection (5) of this section,] If the governing body of the county or its designee does not take final action on an application [for a permit, limited land use decision or zone change within 120 days or 150 days, as applicable, after the application is deemed complete,] within the applicable periods allowed under subsections (1) and (5) of this section, the county shall refund to the applicant either the unexpended portion of any application fees or deposits previously paid or 50 percent of the total amount of such fees or de- posits, whichever is greater. The applicant is not liable for additional governmental fees incurred subsequent to the payment of such fees or deposits. However, the applicant is responsible for the costs of providing sufficient additional information to address relevant issues identified in the con- sideration of the application. [13] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (9) A county may not compel an applicant to waive the period set in subsection (1) of this sec- tion or to waive the provisions of subsection (8) of this section or ORS [197A.470 or] 215.429 as a condition for taking any action on an application, [for a permit, limited land use decision or zone change] except when such applications are filed concurrently and considered jointly with a plan amendment. (10) The periods set forth in subsections (1) and (5) of this section [and ORS 197A.470] may be extended by up to 90 additional days, if the applicant and the county agree that a dispute concerning the application will be mediated. (11) As used in this section, “application” means an application for: (a) A permit; (b) A limited land use decision; (c) A zone change; (d) A consolidated zone change and permit described under ORS 215.416; (e) An expedited land division under ORS 197.365; or (f) A plat consisting of a land division and middle housing land division as described in ORS 92.044 (1)(c)(C). SECTION 17. ORS 227.178, as amended by section 8, chapter 102, Oregon Laws 2024, and sec- tion 9, chapter 110, Oregon Laws 2024, is amended to read: 227.178. (1) Except as provided in subsections (3), (5) and (11) of this section, the governing body of a city or its designee shall take final action on an application [for a permit, limited land use de- cision or zone change], including resolution of all appeals under ORS 227.180, within [120 days after] the shortest applicable period of the following periods, all of which begin on the date that the application is deemed complete[.]: (a) 120 days; (b) 100 days, for an application for the development of affordable housing as provided in ORS 197A.470; or (c) 63 days, for an expedited land division under ORS 197.365. (2) If an application [for a permit, limited land use decision or zone change] is incomplete, the governing body or its designee shall notify the applicant in writing of exactly what information is missing within 30 days of receipt of the application and allow the applicant to submit the missing information. The application [shall be] is deemed complete for the purpose of subsection (1) of this section [or ORS 197A.470] upon receipt by the governing body or its designee of: (a) All of the missing information; (b) Some of the missing information and written notice from the applicant that no other infor- mation will be provided; or (c) Written notice from the applicant that none of the missing information will be provided. (3)(a) If the application was complete when first submitted or the applicant submits the re- quested additional information within 180 days of the date the application was first submitted, ap- proval or denial of the application must be based: (A) Upon the standards and criteria that were applicable at the time the application was first submitted; or (B) For an application relating to development of housing, upon the request of the applicant, those standards and criteria that are operative at the time of the request. (b) If an applicant requests review under different standards as provided in paragraph (a)(B) of this subsection: [14] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (A) For the purposes of this section, any applicable timelines for completeness review and final decisions restart as if a new application were submitted on the date of the request; (B) For the purposes of this section, [and ORS 197A.470] the application is not deemed complete until: (i) The city determines that additional information is not required under subsection (2) of this section; or (ii) The applicant makes a submission under subsection (2) of this section in response to a city’s request; (C) A city may deny a request under paragraph (a)(B) of this subsection if: (i) The city has issued a public notice of the application; or (ii) A request under paragraph (a)(B) of this subsection was previously made; and (D) The city may not require that the applicant: (i) Pay a fee, except to cover additional costs incurred by the city to accommodate the request; (ii) Submit a new application or duplicative information, unless information resubmittal is re- quired because the request affects or changes information in other locations in the application or additional narrative is required to understand the request in context; or (iii) Repeat redundant processes or hearings that are inapplicable to the change in standards orcriteria. (4) On the 181st day after first being submitted, the application is void if the applicant has been notified of the missing information as required under subsection (2) of this section and has not sub- mitted: (a) All of the missing information; (b) Some of the missing information and written notice that no other information will be pro- vided;or (c) Written notice that none of the missing information will be provided. (5) The [120-day] period set in subsection (1) of this section [or the 100-day period set in ORS 197A.470] may be extended for a specified period of time at the written request of the applicant. The total of all extensions, except as provided in subsection (11) of this section for mediation, may not exceed 245 days. (6) The [120-day] period set in subsection (1) of this section applies: (a) Only to decisions wholly within the authority and control of the governing body of the city; and (b) Unless the parties have agreed to mediation as described in subsection (11) of this section or ORS 197.319 (2)(b). (7) Notwithstanding subsection (6) of this section, the [120-day] period set in subsection (1) of this section [and the 100-day period set in ORS 197A.470 do] does not apply to: (a) A decision of the city making a change to an acknowledged comprehensive plan or a land use regulation that is submitted to the Director of the Department of Land Conservation and De- velopment under ORS 197.610; or (b) A decision of a city involving an application for the development of residential structures within an urban growth boundary, where the city has tentatively approved the application and ex- tends these periods by no more than seven days in order to assure the sufficiency of its final order. (8) [Except when an applicant requests an extension under subsection (5) of this section,] If the governing body of the city or its designee does not take final action on an application [for a permit, limited land use decision or zone change within 120 days after the application is deemed complete] [15] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 within the period set in subsection (1) of this section, the city shall refund to the applicant, subject to the provisions of subsection (9) of this section, either the unexpended portion of any ap- plication fees or deposits previously paid or 50 percent of the total amount of such fees or deposits, whichever is greater. The applicant is not liable for additional governmental fees incurred subse- quent to the payment of such fees or deposits. However, the applicant is responsible for the costs of providing sufficient additional information to address relevant issues identified in the consider- ation of the application. (9)(a) To obtain a refund under subsection (8) of this section, the applicant may either: (A) Submit a written request for payment, either by mail or in person, to the city or its designee; or (B) Include the amount claimed in a mandamus petition filed under ORS 227.179. The court shall award an amount owed under this section in its final order on the petition. (b) Within seven calendar days of receiving a request for a refund, the city or its designee shall determine the amount of any refund owed. Payment, or notice that no payment is due, shall be made to the applicant within 30 calendar days of receiving the request. Any amount due and not paid within 30 calendar days of receipt of the request shall be subject to interest charges at the rate of one percent per month, or a portion thereof. (c) If payment due under paragraph (b) of this subsection is not paid within 120 days after the city or its designee receives the refund request, the applicant may file an action for recovery of the unpaid refund. In an action brought by a person under this paragraph, the court shall award to a prevailing applicant, in addition to the relief provided in this section, reasonable attorney fees and costs at trial and on appeal. If the city or its designee prevails, the court shall award reasonable attorney fees and costs at trial and on appeal if the court finds the petition to be frivolous. (10) A city may not compel an applicant to waive the [120-day] period set in subsection (1) of this section or to waive the provisions of subsection (8) of this section or ORS [197A.470 or] 227.179 as a condition for taking any action on an application, [for a permit, limited land use decision or zone change] except when such applications are filed concurrently and considered jointly with a plan amendment. (11) The periods set forth in subsections (1) and (5) of this section [and ORS 197A.470] may be extended by up to 90 additional days, if the applicant and the city agree that a dispute concerning the application will be mediated. (12) As used in this section, “application” means an application for: (a) A permit; (b) A limited land use decision; (c) A zone change; (d) A consolidated zone change and permit described under ORS 227.175; (e) An expedited land division under ORS 197.365; or (f) A plat consisting of a land division and middle housing land division as described in ORS 92.044 (1)(c)(C). SECTION 18. ORS 197.360 and 197.365 are added to and made a part of ORS chapter 197A. SECTION 19. ORS 197.360 is amended to read: 197.360. (1) [As used in this section:] [(a) “Expedited land division” means a division of land] Unless the applicant requests to use the procedure set forth in a comprehensive plan and land use regulations, a local government shall approve a partition or subdivision made under ORS 92.010 to 92.192, 92.205 to 92.245 or [16] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 92.830 to 92.845 [by a local government that] as an expedited land division under ORS 197.365 if thedivision: [(A)] (a) Includes only land that is zoned for residential uses and is within an urban growth boundary. [(B)] (b) Is solely for the purposes of residential use, including recreational or open space uses accessory to residential use. [(C)] (c) Does not provide for dwellings or accessory buildings to be located on land that is specifically mapped and designated in the comprehensive plan and land use regulations for full or partial protection of natural features under the statewide planning goals that protect: [(i)] (A) Open spaces, scenic and historic areas and natural resources; [(ii)] (B) The Willamette River Greenway; [(iii)] (C) Estuarine resources; [(iv)] (D) Coastal shorelands; and [(v)] (E) Beaches and dunes. [(D)] (d) Satisfies minimum street or other right-of-way connectivity standards established by acknowledged land use regulations or, if such standards are not contained in the applicable regu- lations, as required by statewide planning goals or rules. [(E)] (e) Will result in development that either: [(i)] (A) Creates enough lots or parcels to allow building residential units at 80 percent or more of the maximum net density permitted by the zoning designation of the site; or [(ii)] (B) Will be sold or rented to households with incomes below 120 percent of the median family income for the county in which the project is built. [(b) “Expedited land division” includes land divisions that create three or fewer parcels under ORS 92.010 to 92.192 and meet the criteria set forth in paragraph (a) of this subsection]. [(2) An expedited land division as described in this section is not a land use decision or a limited land use decision under ORS 197.015 or a permit under ORS 215.402 or 227.160.] [(3)] (2) [The provisions of ORS 197.360 to 197.380 apply] ORS 197.365 applies to all elements of a local government comprehensive plan and land use regulations applicable to a land division, including any planned unit development standards and any procedures designed to regulate: (a) The physical characteristics of permitted uses; (b) The dimensions of the lots or parcels to be created; or (c) Transportation, sewer, water, drainage and other facilities or services necessary for the proposed development, including but not limited to right-of-way standards, facility dimensions and on-site and off-site improvements. [(4)] (3) An application [for an expedited land division submitted to a local government shall] under this section must describe the manner in which the proposed division complies with each of the provisions of subsection (1) of this section. SECTION 20. ORS 197.365 is amended to read: 197.365. [Unless the applicant requests to use the procedure set forth in a comprehensive plan and land use regulations, a local government shall use the following procedure for an expedited land divi- sion, as described in ORS 197.360, or a middle housing land division under ORS 92.031:] [(1)(a) If the application for a land division is incomplete, the local government shall notify the applicant of exactly what information is missing within 21 days of receipt of the application and allow the applicant to submit the missing information. For purposes of computation of time under this section, the application shall be deemed complete on the date the applicant submits the requested information [17] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 or refuses in writing to submit it.] [(b) If the application was complete when first submitted or the applicant submits the requested additional information within 180 days of the date the application was first submitted, approval or denial of the application shall be based upon the standards and criteria that were applicable at the time the application was first submitted.] [(2) The local government shall provide written notice of the receipt of the completed application for a land division to any state agency, local government or special district responsible for providing public facilities or services to the development and to owners of property within 100 feet of the entire contiguous site for which the application is made. The notification list shall be compiled from the most recent property tax assessment roll. For purposes of appeal to the referee under ORS 197.375, this re- quirement shall be deemed met when the local government can provide an affidavit or other certification that such notice was given. Notice shall also be provided to any neighborhood or community planning organization recognized by the governing body and whose boundaries include the site.] [(3) The notice required under subsection (2) of this section shall:] [(a) State:] [(A) The deadline for submitting written comments;] [(B) That issues that may provide the basis for an appeal to the referee must be raised in writing prior to the expiration of the comment period; and] [(C) That issues must be raised with sufficient specificity to enable the local government to respond to the issue.] [(b) Set forth, by commonly used citation, the applicable criteria for the decision.] [(c) Set forth the street address or other easily understood geographical reference to the subject property.] [(d) State the place, date and time that comments are due.] [(e) State a time and place where copies of all evidence submitted by the applicant will be available forreview.] [(f) Include the name and telephone number of a local government contact person.] [(g) Briefly summarize the local decision-making process for the land division decision being made.] [(4) After notice under subsections (2) and (3) of this section, the local government shall:] [(a) Provide a 14-day period for submission of written comments prior to the decision.] Notwithstanding any other requirement applicable to a land use decision under ORS chapter 197 or 197A, for an application reviewed as an expedited land division, a local gov- ernment: [(b)] (1) Shall make a decision to approve or deny the application within 63 days of receiving a completed application as described in ORS 215.246 or 227.178, based on whether [it] the appli- cation satisfies the substantive requirements of the applicable land use regulations. An approval may include conditions to ensure that the application meets the applicable land use regulations. [For applications subject to this section, the local government:] [(A)] (2) [Shall] May not hold a hearing on the application[; and]. [(B)] (3) Shall issue a written determination of compliance or noncompliance with applicable land use regulations that includes a summary statement explaining the determination. The summary statement may be in any form reasonably intended to communicate the local government’s basis for the determination. [(c) Provide notice of the decision to the applicant and to those who received notice under sub- [18] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 section (2) of this section within 63 days of the date of a completed application. The notice of decision shall include:] [(A) The summary statement described in paragraph (b)(B) of this subsection; and] [(B) An explanation of appeal rights under ORS 197.375.] (4) Shall provide notice of the decision to the applicant but may not require that notice be given to any other person. (5) May assess an application fee calculated to recover the estimated full cost of pro- cessing an application based on the estimated average cost of such applications. Within one year of establishing a fee under this section, the city or county shall review and revise the fee, if necessary, to reflect actual experience in processing expedited land decisions. SECTION 21. ORS 92.377, 197.370, 197.375, 197.380, 197.726 and 197.727 are repealed. RULEMAKING SECTION 22.(1) On or before January 1, 2028, the Land Conservation and Development Commission shall adopt rules that must include: (a) Prohibiting or restricting siting and design standards that prevent or discourage, or have the effect of preventing or discouraging, the siting of middle housing that is manufac- tured, site-built or prefabricated; (b) Establishing parameters on unreasonable cost or delay for siting and design standards for accessory dwelling units and single room occupancies under standards allowed under ORS 197A.425 and 197A.430; (c) Regulating cottage clusters for the purposes of appropriately incentivizing the pro- vision of smaller, less expensive housing, shared community amenities and other public benefits in a manner that is financially feasible and including regulations that implement the terms “small footprint” and “community amenity” as used within the definition of cottage clusters in ORS 197A.420; (d) Amending siting and design parameters for housing types, to better facilitate housing production, availability and affordability; (e) Amending permissible discretionary criteria applied by local government in evaluating housing under ORS 197A.400 (3); (f) Repealing requirements for demolition review for houses listed in the National Regis- ter of Historic Places; (g) Developing model system development charges for residential development types for the optional adoption or incorporation by local governments; and (h) Establishing procedures to estimate the reasonable zoned housing capacity of an area as part of an inventory of buildable lands or housing capacity under ORS 197A.270, 197A.280 and 197A.350. (2) In adopting rules under this section, the commission shall: (a) Emphasize improving the efficiency of the development process with a focus on in- creasing housing production, availability and affordability, especially that of middle housing, accessory dwelling units and single room occupancies; and (b) To the extent practicable, implement recommendations in the reports produced under section 5 (1) to (3), chapter 110, Oregon Laws 2024. [19] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 CONFORMING AMENDMENTS SECTION 23. ORS 34.020 is amended to read: 34.020. Except for a proceeding resulting in a land use decision or limited land use decision as defined in ORS 197.015, for which review is provided in ORS 197.830 to 197.845, [or an expedited land division as described in ORS 197.360, for which review is provided in ORS 197.375 (8),] any party to any process or proceeding before or by any inferior court, officer, or tribunal may have the decision or determination thereof reviewed for errors, as provided in ORS 34.010 to 34.100, and not otherwise. Upon a review, the court may review any intermediate order involving the merits and necessarily affecting the decision or determination sought to be reviewed. SECTION 24. ORS 34.102 is amended to read: 34.102. (1) As used in this section, “municipal corporation” means a county, city, district or other municipal corporation or public corporation organized for a public purpose, including a coop- erative body formed between municipal corporations. (2) Except for a proceeding resulting in a land use decision or limited land use decision as de- fined in ORS 197.015, for which review is provided in ORS 197.830 to 197.845, [or an expedited land division as described in ORS 197.360, for which review is provided in ORS 197.375 (8),] the decisions of the governing body of a municipal corporation acting in a judicial or quasi-judicial capacity and made in the transaction of municipal corporation business shall be reviewed only as provided in ORS 34.010 to 34.100, and not otherwise. (3) A petition for writ of review filed in the circuit court and requesting review of a land use decision or limited land use decision as defined in ORS 197.015 of a municipal corporation shall be transferred to the Land Use Board of Appeals and treated as a notice of intent to appeal if the pe- tition was filed within the time allowed for filing a notice of intent to appeal pursuant to ORS 197.830. If the petition was not filed within the time allowed by ORS 197.830, the court shall dismiss the petition. (4) A notice of intent to appeal filed with the Land Use Board of Appeals pursuant to ORS 197.830 and requesting review of a decision of a municipal corporation made in the transaction of municipal corporation business that is not reviewable as a land use decision or limited land use decision as defined in ORS 197.015 shall be transferred to the circuit court and treated as a petition for writ of review. If the notice was not filed with the board within the time allowed for filing a petition for writ of review pursuant to ORS 34.010 to 34.100, the court shall dismiss the petition. (5) In any case in which the Land Use Board of Appeals or circuit court to which a petition or notice is transferred under subsection (3) or (4) of this section disputes whether it has authority to review the decision with which the petition or notice is concerned, the board or court before which the matter is pending shall refer the question of whether the board or court has authority to review to the Court of Appeals, which shall decide the question in a summary manner. SECTION 25. ORS 92.325, as amended by section 11, chapter 102, Oregon Laws 2024, is amended to read: 92.325. A person may not sell or lease any subdivided lands or series partitioned lands without having complied with all the applicable provisions of ORS 92.305 to 92.495 except that: (1) ORS 92.305 to 92.495 do not apply to the sale or leasing of: (a) Apartments or similar space within an apartment building; (b) Cemetery lots, parcels or units in Oregon; (c) Subdivided lands and series partitioned lands in Oregon that are not in unit ownership or [20] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 being developed as unit ownerships created under ORS chapter 100, to be used for residential pur- poses and that qualify under ORS 92.337; (d) Property submitted to the provisions of ORS chapter 100; (e) Subdivided lands and series partitioned lands in Oregon expressly zoned for and limited in use to nonresidential industrial or nonresidential commercial purposes; (f) Lands in this state sold by lots or parcels of not less than 160 acres each; (g) Timeshares regulated or otherwise exempt under ORS 94.803 and 94.807 to 94.945; (h) Mobile home or manufactured dwelling parks, as defined in ORS 446.003, located in Oregon; (i) Planned community subdivision of manufactured dwellings or mobile homes created under ORS 92.830 to 92.845; (j) Lots or parcels created [from an expedited land division] under ORS 197.360; or (k) Lots or parcels created from a middle housing land division under ORS 92.031 or 92.044 (1)(c)(C). (2) The subdivider or series partitioner of subdivided and series partitioned lands in a city or county which, at the time tentative approval of a subdivision plat and each partition map for those lands is given under ORS 92.040 or an ordinance adopted under ORS 92.046, has a comprehensive plan and implementing ordinances that have been acknowledged under ORS 197.251 must only com- ply with ORS 92.425, 92.427, 92.430, 92.433, 92.460 and 92.485 in the sale or leasing of such lands. SECTION 26. ORS 184.633 is amended to read: 184.633. (1) Subject to policy direction by the Oregon Transportation Commission, the Director of Transportation shall: (a) Be the administrative head of the Department of Transportation; (b) Have power, within applicable budgetary limitations, and in accordance with ORS chapter 240, to hire, assign, reassign and coordinate personnel of the department and prescribe their duties and fix their compensation, subject to the State Personnel Relations Law; (c) Administer the laws of the state concerning transportation; (d) Intervene, as authorized by the commission, pursuant to the rules of practice and procedure, in the proceedings of state and federal agencies which may substantially affect the interest of the consumers and providers of transportation within Oregon; and (e) Construct, coordinate and promote an integrated transportation system in cooperation with any city, county, district, port or private entity, as defined in ORS 367.802. (2) In addition to duties otherwise required by law, the director shall prescribe regulations for the government of the department, the conduct of its employees, the assignment and performance of its business and the custody, use and preservation of its records, papers and property in a manner consistent with applicable law. (3) The director may delegate to any of the employees of the department the exercise or dis- charge in the director’s name of any power, duty or function of whatever character, vested in or imposed by law upon the director, including powers, duties or functions delegated to the director by the commission pursuant to ORS 184.635. The official act of any such person so acting in the director’s name and by the authority of the director shall be considered to be an official act of the director. (4) The director shall have authority to require a fidelity bond of any officer or employee of the department who has charge of, handles or has access to any state money or property, and who is not otherwise required by law to give a bond. The amounts of the bond shall be fixed by the direc- tor, except as otherwise provided by law, and the sureties shall be approved by the director. The [21] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 department shall pay the premiums on the bonds. (5)(a) Subject to local government requirements and the provisions of ORS 197.830 to 197.845, the director may participate in and seek review of a land use decision or limited land use decision as defined in ORS 197.015[, or an expedited land division as defined in ORS 197.360]. The director shall report to the commission on each case in which the department participates and on the posi- tions taken by the director in each case. (b) If a meeting of the commission is scheduled prior to the close of the period for seeking re- view of a land use decision[, expedited land division] or limited land use decision, the director shall obtain formal approval from the commission prior to seeking review of the decision. However, if the land use decision[, expedited land division] or limited land use decision becomes final less than 15 days before a meeting of the commission, the director shall proceed as provided in paragraph (c) of this subsection. If the director requests approval from the commission, the applicant and the affected local government shall be notified in writing that the director is seeking commission approval. The director, the applicant and the affected local government shall be given reasonable time to address the commission regarding the director’s request for approval to seek review. No other testimony shall be taken by the commission. (c) If a meeting of the commission is not scheduled prior to the close of the period for seeking review of a land use decision[, expedited land division] or limited land use decision, at the next commission meeting the director shall report to the commission on each case for which the depart- ment has sought review. The director shall request formal approval to proceed with each appeal. The applicant and the affected local government shall be notified of the commission meeting in writing by the director.The director, the applicant and the affected local government shall be given reasonable time to address the commission regarding the director’s request for approval to proceed with the appeal. No other testimony shall be taken by the commission. If the commission does not formally approve an appeal, the director shall file a motion with the appropriate tribunal to dismiss the appeal. (d) A decision by the commission under this subsection is not subject to appeal. (e) For purposes of this subsection, “applicant” means a person seeking approval of [a permit, as defined in ORS 215.402 or 227.160, expedited land division or limited land use decision] an appli- cation as defined in ORS 215.427 or 227.178. (6) The director may intervene in an appeal of a land use decision brought by another person in the manner provided for an appeal by the director under subsection (5) of this section. SECTION 27. ORS 197.015, as amended by section 44, chapter 110, Oregon Laws 2024, is amended to read: 197.015. As used in ORS chapters 195, 196, 197 and 197A, unless the context requires otherwise: (1) “Acknowledgment” means a commission order that certifies that a comprehensive plan and land use regulations, land use regulation or plan or regulation amendment complies with the goals or certifies that Metro land use planning goals and objectives, Metro regional framework plan, amendments to Metro planning goals and objectives or amendments to the Metro regional frame- work plan comply with the goals. (2) “Board” means the Land Use Board of Appeals. (3) “Carport” means a stationary structure consisting of a roof with its supports and not more than one wall, or storage cabinet substituting for a wall, and used for sheltering a motor vehicle. (4) “Commission” means the Land Conservation and Development Commission. (5) “Comprehensive plan” means a generalized, coordinated land use map and policy statement [22] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 of the governing body of a local government that interrelates all functional and natural systems and activities relating to the use of lands, including but not limited to sewer and water systems, trans- portation systems, educational facilities, recreational facilities, and natural resources and air and water quality management programs.“Comprehensive” means all-inclusive, both in terms of the geographic area covered and functional and natural activities and systems occurring in the area covered by the plan. “General nature” means a summary of policies and proposals in broad catego- ries and does not necessarily indicate specific locations of any area, activity or use. A plan is “co- ordinated” when the needs of all levels of governments, semipublic and private agencies and the citizens of Oregon have been considered and accommodated as much as possible. “Land” includes water, both surface and subsurface, and the air. (6) “Department” means the Department of Land Conservation and Development. (7) “Director” means the Director of the Department of Land Conservation and Development. (8) “Goals” means the mandatory statewide land use planning standards adopted by the com- mission pursuant to ORS chapters 195, 196, 197 and 197A. (9) “Guidelines” means suggested approaches designed to aid cities and counties in preparation, adoption and implementation of comprehensive plans in compliance with goals and to aid state agencies and special districts in the preparation, adoption and implementation of plans, programs and regulations in compliance with goals. Guidelines are advisory and do not limit state agencies, cities, counties and special districts to a single approach. (10) “Land use decision”: (a) Includes: (A) A final decision or determination made by a local government or special district that con- cerns the adoption, amendment or application of: (i) The goals; (ii) A comprehensive plan provision; (iii) A land use regulation; or (iv) A new land use regulation; (B) A final decision or determination of a state agency other than the commission with respect to which the agency is required to apply the goals; [or] (C) A decision of a county planning commission made under ORS 433.763; or (D) An expedited land division under ORS 197.365; (b) Does not include a decision of a local government: (A) That is made under land use standards that do not require interpretation or the exercise of policy or legal judgment; (B) That approves or denies a building permit issued under clear and objective land use stan- dards; (C) That is a limited land use decision; (D) That determines final engineering design, construction, operation, maintenance, repair or preservation of a transportation facility that is otherwise authorized by and consistent with the comprehensive plan and land use regulations; [(E) That is an expedited land division as described in ORS 197.360;] [(F)] (E) That approves, pursuant to ORS 480.450 (7), the siting, installation, maintenance or removal of a liquefied petroleum gas container or receptacle regulated exclusively by the State Fire Marshal under ORS 480.410 to 480.460; [(G)] (F) That approves or denies approval of a final subdivision or partition plat or that de- [23] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 termines whether a final subdivision or partition plat substantially conforms to the tentative subdi- vision or partition plan; or [(H)] (G) That a proposed state agency action subject to ORS 197.180 (1) is compatible with the acknowledged comprehensive plan and land use regulations implementing the plan, if: (i) The local government has already made a land use decision authorizing a use or activity that encompasses the proposed state agency action; (ii) The use or activity that would be authorized, funded or undertaken by the proposed state agency action is allowed without review under the acknowledged comprehensive plan and land use regulations implementing the plan; or (iii) The use or activity that would be authorized, funded or undertaken by the proposed state agency action requires a future land use review under the acknowledged comprehensive plan and land use regulations implementing the plan; (c) Does not include a decision by a school district to close a school; (d) Does not include, except as provided in ORS 215.213 (13)(c) or 215.283 (6)(c), authorization of an outdoor mass gathering as defined in ORS 433.735, or other gathering of fewer than 3,000 persons that is not anticipated to continue for more than 120 hours in any three-month period; and (e) Does not include: (A) A writ of mandamus issued by a circuit court in accordance with ORS 215.429 or 227.179; (B) Any local decision or action taken on an application subject to ORS 215.427 or 227.178 after a petition for a writ of mandamus has been filed under ORS 215.429 or 227.179; or (C) A state agency action subject to ORS 197.180 (1), if: (i) The local government with land use jurisdiction over a use or activity that would be au- thorized, funded or undertaken by the state agency as a result of the state agency action has already made a land use decision approving the use or activity; or (ii) A use or activity that would be authorized, funded or undertaken by the state agency as a result of the state agency action is allowed without review under the acknowledged comprehensive plan and land use regulations implementing the plan. (11) “Land use regulation” means any local government zoning ordinance, land division ordi- nance adopted under ORS 92.044 or 92.046 or similar general ordinance establishing standards for implementing a comprehensive plan. (12)(a) “Limited land use decision” means a final decision or determination made by a local government pertaining to a site within an urban growth boundary that concerns: (A) The approval or denial of a tentative subdivision or partition plan, as described in ORS 92.040(1). (B) The approval or denial of an application based on discretionary standards designed to reg- ulate the physical characteristics of a use permitted outright, including but not limited to site re- view and design review. (C) The approval or denial of an application for a replat. (D) The approval or denial of an application for a property line adjustment. (E) The approval or denial of an application for an extension, alteration or expansion of a non- conforming use. (b) “Limited land use decision” does not mean a final decision made by a local government pertaining to a site within an urban growth boundary that concerns approval or denial of a final subdivision or partition plat or that determines whether a final subdivision or partition plat sub- stantially conforms to the tentative subdivision or partition plan. [24] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (13) “Local government” means any city, county or Metro or an association of local govern- ments performing land use planning functions under ORS 195.025. (14) “Metro” means a metropolitan service district organized under ORS chapter 268. (15) “Metro planning goals and objectives” means the land use goals and objectives that Metro may adopt under ORS 268.380 (1)(a). The goals and objectives do not constitute a comprehensive plan. (16) “Metro regional framework plan” means the regional framework plan required by the 1992 Metro Charter or its separate components. Neither the regional framework plan nor its individual components constitute a comprehensive plan. (17) “New land use regulation” means a land use regulation other than an amendment to an acknowledged land use regulation adopted by a local government that already has a comprehensive plan and land regulations acknowledged under ORS 197.251. (18) “Person” means any individual, partnership, corporation, association, governmental subdi- vision or agency or public or private organization of any kind. The Land Conservation and Devel- opment Commission or its designee is considered a person for purposes of appeal under ORS chapters 195, 197 and 197A. (19) “Special district” means any unit of local government, other than a city, county, Metro or an association of local governments performing land use planning functions under ORS 195.025, au- thorized and regulated by statute and includes but is not limited to water control districts, domestic water associations and water cooperatives, irrigation districts, port districts, regional air quality control authorities, fire districts, school districts, hospital districts, mass transit districts and sani- tary districts. (20) “Urban growth boundary” means an acknowledged urban growth boundary contained in a city or county comprehensive plan or adopted by Metro under ORS 268.390 (3). (21) “Urban unincorporated community” means an area designated in a county’s acknowledged comprehensive plan as an urban unincorporated community after December 5, 1994. (22) “Voluntary association of local governments” means a regional planning agency in this state officially designated by the Governor pursuant to the federal Office of Management and Budget Circular A-95 as a regional clearinghouse. (23) “Wetlands” means those areas that are inundated or saturated by surface or ground water at a frequency and duration that are sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. SECTION 28. ORS 197.090 is amended to read: 197.090. (1) Subject to policies adopted by the Land Conservation and Development Commission, the Director of the Department of Land Conservation and Development shall: (a) Be the administrative head of the Department of Land Conservation and Development. (b) Coordinate the activities of the department in its land conservation and development func- tions with such functions of federal agencies, other state agencies, local governments and special districts. (c) Appoint, reappoint, assign and reassign all subordinate officers and employees of the de- partment, prescribe their duties and fix their compensation, subject to the State Personnel Relations Law. (d) Represent this state before any agency of this state, any other state or the United States with respect to land conservation and development within this state. (2)(a) Subject to local government requirements and the provisions of ORS 197.830 to 197.845, [25] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 the director may participate in and seek review of: (A) A land use decision[, expedited land division] or limited land use decision involving the goals or involving an acknowledged comprehensive plan and land use regulations implementing the plan; or (B) Any other matter within the statutory authority of the department or commission under ORS chapters 195, 196, 197 and 197A. (b) The director shall report to the commission on each case in which the department partic- ipates and on the positions taken by the director in each case. (c) If a meeting of the commission is scheduled prior to the close of the period for seeking re- view of a land use decision[, expedited land division] or limited land use decision, the director shall obtain formal approval from the commission prior to seeking review of the decision. However, if the land use decision[, expedited land division] or limited land use decision becomes final less than 15 days before a meeting of the commission, the director shall proceed as provided in paragraph (d) of this subsection. If the director requests approval from the commission, the applicant and the affected local government shall be notified in writing that the director is seeking commission approval. The director, the applicant and the affected local government shall be given reasonable time to address the commission regarding the director’s request for approval to seek review. The parties shall limit their testimony to the factors established under subsection (3) of this section. No other testimony shall be taken by the commission. (d) If a meeting of the commission is not scheduled prior to the close of the period for seeking review of a land use decision[, expedited land division] or limited land use decision, at the next commission meeting the director shall report to the commission on each case for which the depart- ment has sought review. The director shall request formal approval to proceed with each appeal. The applicant and the affected local government shall be notified of the commission meeting in writing by the director.The director, the applicant and the affected local government shall be given reasonable time to address the commission regarding the director’s request for approval to proceed with the appeal.The parties shall limit their testimony to the factors established under subsection (3) of this section. No other testimony shall be taken by the commission. If the commission does not formally approve an appeal, the director shall file a motion with the appropriate tribunal to dismiss the appeal. (e) A decision by the commission under this subsection is not subject to appeal. (f) For purposes of this subsection, “applicant” means a person seeking approval of a permit, as defined in ORS 215.402 or 227.160, [expedited land division] or limited land use decision. (3) The commission by rule shall adopt a set of factors for the commission to consider when determining whether to appeal or intervene in the appeal of a land use decision[, expedited land di- vision] or limited land use decision that involves the application of the goals, acknowledged com- prehensive plan, land use regulation or other matter within the authority of the department or commission under ORS chapters 195, 196, 197 and 197A. (4) The director may intervene in an appeal of a land use decision[, expedited land division] or limited land use decision brought by another person in the manner provided for an appeal by the director under subsection (2)(c) and (d) of this section. SECTION 29. ORS 197.200 is amended to read: 197.200. (1) A local government may convene a land use proceeding to adopt a refinement plan for a neighborhood or community within its jurisdiction and inside the urban growth boundary as provided in this section. [26] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (2) A refinement plan is more detailed than a comprehensive plan and applies to a specific ge- ographic area. A refinement plan shall: (a) Establish efficient density ranges, including a minimum and a maximum density for residen- tial land uses; (b) Establish minimum and maximum floor area ratios or site coverage requirements for non- residentialuses; (c) Be based on a planning process meeting statewide planning goals; and (d) Include land use regulations to implement the plan. (3) A refinement plan and associated land use regulations adopted prior to September 9, 1995, may qualify as a refinement plan if the local government holds a public hearing to gather public comment and decides to adopt the plan as a refinement plan under this section. (4) A local government shall apply the procedures for expedited land divisions described in ORS [197.360 to 197.380] 197.365 to all applications for land division and site or design review located in any area subject to an acknowledged refinement plan. The review shall include: (a) All elements of a local government comprehensive plan and land use regulations that must be applied in order to approve or deny any such application; and (b) Any planned unit development standards and any procedures designed to regulate: (A) The physical characteristics of permitted uses; (B) The dimensions of the lots or parcels to be created; or (C) Transportation, sewer, water, drainage and other facilities or services necessary for the proposeddevelopment. [(5) Any decision made on a refinement plan described in subsection (3) of this section shall be appealed only as provided for appeals of expedited land division decisions in ORS 197.375.] [(6)] (5) Refinement plans and implementing ordinances may be adopted through the post- acknowledgment or periodic review process. SECTION 30. ORS 197.245 is amended to read: 197.245. The Land Conservation and Development Commission may periodically amend the ini- tial goals and guidelines adopted under ORS 197.240 and adopt new goals and guidelines. The adoption of amendments to or of new goals shall be done in the manner provided in ORS 197.235 and 197.240 and shall specify with particularity those goal provisions that are applicable to land use decisions[, expedited land divisions] and limited land use decisions before plan revision. The com- mission shall establish the effective date for application of a new or amended goal. Absent a com- pelling reason, the commission shall not require a comprehensive plan, new or amended land use regulation, land use decision[, expedited land division] or limited land use decision to be consistent with a new or amended goal until one year after the date of adoption. SECTION 31. ORS 197.625 is amended to read: 197.625. (1) A local decision adopting a change to an acknowledged comprehensive plan or a land use regulation is deemed to be acknowledged when the local government has complied with the requirements of ORS 197.610 and 197.615 and either: (a) The 21-day appeal period set out in ORS 197.830 (9) has expired and a notice of intent to appeal has not been filed; or (b) If an appeal has been timely filed, the Land Use Board of Appeals affirms the local decision or, if an appeal of the decision of the board is timely filed, an appellate court affirms the decision. (2) If the local decision adopting a change to an acknowledged comprehensive plan or a land use regulation is affirmed on appeal under ORS 197.830 to 197.855, the comprehensive plan or the [27] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 land use regulation, as modified, is deemed to be acknowledged upon the date the decision of the board or the decision of an appellate court becomes final. (3) Prior to acknowledgment of a change to an acknowledged comprehensive plan or a land use regulation: (a) The change is effective at the time specified by local government charter or ordinance; and (b) If the change was adopted in substantial compliance with ORS 197.610 and 197.615, the local government shall apply the change to land use decisions[, expedited land divisions] and limited land use decisions unless a stay is granted under ORS 197.845. (4) Approval of a land use decision[, expedited land division] or limited land use decision that is subject to an effective but unacknowledged provision of a comprehensive plan or a land use regu- lation must include findings of compliance with land use statutes, statewide land use planning goals and administrative rules of the Land Conservation and Development Commission implementing the statutes or goals that apply to the decision and that the unacknowledged provision implements. (5) If an effective but unacknowledged provision of a comprehensive plan or a land use regu- lation fails to gain acknowledgment, a permit or zone change approved, in whole or in part, on the basis of the change does not justify retention of the improvements that were authorized by the permit or zone change. (6) If requested by a local government, the Director of the Department of Land Conservation and Development shall issue certification of the acknowledgment upon receipt of an affidavit from: (a) The local government, attesting that the change to the acknowledged comprehensive plan or the land use regulation was accomplished in compliance with ORS 197.610 and 197.615; and (b) The Land Use Board of Appeals, stating either: (A) That no notice of appeal was filed within the 21 days allowed under ORS 197.830 (9); or (B) The date the decision of the board or the decision of an appellate court affirming the change to the acknowledged comprehensive plan or the land use regulation became final. (7) The board shall issue an affidavit for the purposes of subsection (6) of this section within five days after receiving a valid request from the local government. SECTION 32. ORS 197.724 is amended to read: 197.724. (1) An applicant for a new industrial use or the expansion of an existing industrial use located within a regionally significant industrial area may request that an application for a land use permit be reviewed as an application for an expedited industrial land use permit under this section if the proposed use does not require: (a) An exception taken under ORS 197.732 to a statewide land use planning goal; (b) A change to the acknowledged comprehensive plan or land use regulations of the local gov- ernment within whose land use jurisdiction the new or expanded industrial use would occur; or (c) A federal environmental impact statement under the National Environmental Policy Act. (2) If the applicant makes a request that complies with subsection (1) of this section, the local government shall review the applications for land use permits for the proposed industrial use by applying the standards and criteria that otherwise apply to the review and by using the procedures set forth for review of an expedited land division in ORS 197.365 [and 197.370]. SECTION 33. ORS 197.794 is amended to read: 197.794. (1) As used in this section, “railroad company” has the meaning given that term in ORS 824.200. (2) If a railroad-highway crossing provides or will provide the only access to land that is the subject of an application for a land use decision[,] or a limited land use decision [or an expedited [28] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 land division], the applicant must indicate that fact in the application submitted to the decision maker. (3) The decision maker shall provide notice to the Department of Transportation and the rail- road company whenever the decision maker receives the information described under subsection (2) of this section. SECTION 34. ORS 197.796 is amended to read: 197.796. (1) An applicant [for a land use decision, limited land use decision or expedited land di- vision or for a permit] under ORS 215.427 or 227.178 may accept a condition of approval imposed under ORS 215.416 or 227.175 and file a challenge to the condition under this section. Acceptance by an applicant [for a land use decision, limited land use decision, expedited land division or permit] under ORS 215.427 or 227.178 of a condition of approval imposed under ORS 215.416 or 227.175 does not constitute a waiver of the right to challenge the condition of approval.Acceptance of a condi- tion may include but is not limited to paying a fee, performing an act or providing satisfactory evi- dence of arrangements to pay the fee or to ensure compliance with the condition. (2) Any action for damages under this section shall be filed in the circuit court of the county in which the application was submitted within 180 days of the date of the decision. (3)(a) A challenge filed pursuant to this section may not be dismissed on the basis that the ap- plicant did not request a variance to the condition of approval or any other available form of re- consideration of the challenged condition. However, an applicant shall comply with ORS 197.797 (1) prior to appealing to the Land Use Board of Appeals or bringing an action for damages in circuit court and must exhaust all local appeals provided in the local comprehensive plan and land use regulations before proceeding under this section. (b) In addition to the requirements of ORS 197.797 (5), at the commencement of the initial public hearing, a statement shall be made to the applicant that the failure of the applicant to raise con- stitutional or other issues relating to proposed conditions of approval with sufficient specificity to allow the local government or its designee to respond to the issue precludes an action for damages in circuit court. (c) An applicant is not required to raise an issue under this subsection unless the condition of approval is stated with sufficient specificity to enable the applicant to respond to the condition prior to the close of the final local hearing. (4) In any challenge to a condition of approval that is subject to the Takings Clause of the Fifth Amendment to the United States Constitution, the local government shall have the burden of dem- onstrating compliance with the constitutional requirements for imposing the condition. (5) In a proceeding in circuit court under this section, the court shall award costs and reason- able attorney fees to a prevailing party. Notwithstanding ORS 197.830 (15), in a proceeding before the Land Use Board of Appeals under this section, the board shall award costs and reasonable at- torney fees to a prevailing party. (6) This section applies to appeals by the applicant of a condition of approval and claims filed in state court seeking damages for the unlawful imposition of conditions of approval [in a land use decision, limited land use decision, expedited land division or permit] of an application made under ORS 215.427 or 227.178. SECTION 35. ORS 197.825 is amended to read: 197.825. (1) Except as provided in ORS 197.320 and subsections (2) and (3) of this section, the Land Use Board of Appeals shall have exclusive jurisdiction to review any land use decision or limited land use decision of a local government, special district or a state agency in the manner [29] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 provided in ORS 197.830 to 197.845. (2) The jurisdiction of the board: (a) Is limited to those cases in which the petitioner has exhausted all remedies available by right before petitioning the board for review; (b) Is subject to the provisions of ORS 197.850 relating to judicial review by the Court of Ap- peals; (c) Does not include a local government decision that is: (A) Submitted to the Department of Land Conservation and Development for acknowledgment under ORS 197.251, 197.626 or 197.628 to 197.651 or a matter arising out of a local government de- cision submitted to the department for acknowledgment, unless the Director of the Department of Land Conservation and Development, in the director’s sole discretion, transfers the matter to the board;or (B) Subject to the review authority of the department under ORS 197.412, 197.445, 197.450 or 197.455 or a matter related to a local government decision subject to the review authority of the department under ORS 197.412, 197.445, 197.450 or 197.455; (d) Does not include those land use decisions of a state agency over which the Court of Appeals has jurisdiction for initial judicial review under ORS 183.400, 183.482 or other statutory provisions; (e) Does not include any rules, programs, decisions, determinations or activities carried out un- der ORS 527.610 to 527.770, 527.990 (1) and 527.992; and (f) Is subject to ORS 196.115 for any county land use decision that may be reviewed by the Columbia River Gorge Commission pursuant to sections 10(c) or 15(a)(2) of the Columbia River Gorge National Scenic Area Act, P.L. 99-663[; and]. [(g) Does not include review of expedited land divisions under ORS 197.360.] (3) Notwithstanding subsection (1) of this section, the circuit courts of this state retain juris- diction: (a) To grant declaratory, injunctive or mandatory relief in proceedings arising from decisions described in ORS 197.015 (10)(b) or proceedings brought to enforce the provisions of an adopted comprehensive plan or land use regulations; and (b) To enforce orders of the board in appropriate proceedings brought by the board or a party to the board proceeding resulting in the order. SECTION 36. ORS 197A.015, as amended by section 1, chapter 102, Oregon Laws 2024, is amended to read: 197A.015. As used in this chapter: (1) “Allocated housing need” means the housing need allocated to a city under ORS 184.453 (2) as segmented by income level under ORS 184.453 (4). (2) “Buildable lands” means lands in urban and urbanizable areas that are suitable, available and necessary for the development of needed housing over a 20-year planning period, including both vacant land and developed land likely to be redeveloped. (3) “City” and “city with a population of 10,000 or greater” includes, regardless of size: (a) Any city within Tillamook County and the communities of Barview/Twin Rocks/Watseco, Cloverdale, Hebo, Neahkahnie, Neskowin, Netarts, Oceanside and Pacific City/Woods; and (b) A county with respect to its jurisdiction over Metro urban unincorporated lands. (4) “Development-ready lands” means buildable lands that are likely to support the production of housing during the period of their housing production target under ORS 184.455 (1) because the lands are: [30] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (a) Currently annexed and zoned to allow housing through clear and objective standards and procedures; (b) Readily served through adjacent public facilities or identified for the near-term provision of public facilities through an adopted capital improvement plan; and (c) Not encumbered by any applicable local, state or federal protective regulations or have ap- propriate entitlements to prepare the land for development. (5) “Government assisted housing” means housing that is financed in whole or part by either a federal or state housing agency or a housing authority as defined in ORS 456.005, or housing that is occupied by a tenant or tenants who benefit from rent supplements or housing vouchers provided by either a federal or state housing agency or a local housing authority. (6) “Housing capacity” means the number of needed housing units that can be developed on buildable lands within the 20-year planning period based on the land’s comprehensive plan desig- nation and capacity for housing development and redevelopment. (7) “Housing production strategy” means a strategy adopted by a local government to promote housing production under ORS 197A.100. (8) “Manufactured dwelling,” “manufactured dwelling park,” “manufactured home” and “mobile home park” have the meanings given those terms in ORS 446.003. (9) “Metro urban unincorporated lands” means [lands] urban unincorporated lands within the Metro urban growth boundary. [that are identified by the county as:] [(a) Not within a city;] [(b) Zoned for urban development;] [(c) Within the boundaries of a sanitary district or sanitary authority formed under ORS chapter 450 or a district formed for the purposes of sewage works under ORS chapter 451;] [(d) Within the service boundaries of a water provider with a water system subject to regulation as described in ORS 448.119; and] [(e) Not zoned with a designation that maintains the land’s potential for future urbanization.] (10) “Periodic review” means the process and procedures as set forth in ORS 197.628 to 197.651. (11) “Prefabricated structure” means a prefabricated structure, as defined in ORS 455.010, that is relocatable, more than eight and one-half feet wide and designed for use as a single-family dwell- ing. (12) “Urban unincorporated lands” means lands within an urban growth boundary that are identified by the county as: (a) Not within a city; (b) Zoned for urban development; (c) Within the boundaries of a sanitary district or sanitary authority formed under ORS chapter 450 or a district formed for the purposes of sewage works under ORS chapter 451; (d) Within the service boundaries of a water provider with a water system subject to regulation as described in ORS 448.119; and (e) Not zoned with a designation that maintains the land’s potential for future urbanization. SECTION 37. ORS 197A.465 is amended to read: 197A.465. (1) As used in this section: (a) “Affordable housing” means housing that is affordable to households with incomes equal to or higher than 80 percent of the median family income for the county in which the housing is built. (b) “Multifamily structure” means a structure that contains three or more housing units sharing [31] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 at least one wall, floor or ceiling surface in common with another unit within the same structure. (2) Except as provided in subsection (3) of this section, a metropolitan service district may not adopt a land use regulation or functional plan provision, or impose as a condition for approving [a permit] an application under ORS 215.427 or 227.178 a requirement, that has the effect of estab- lishing the sales or rental price for a housing unit or residential building lot or parcel, or that re- quires a housing unit or residential building lot or parcel to be designated for sale or rent to a particular class or group of purchasers or renters. (3) The provisions of subsection (2) of this section do not limit the authority of a metropolitan service district to: (a) Adopt or enforce a use regulation, provision or requirement creating or implementing an incentive, contract commitment, density bonus or other voluntary regulation, provision or require- ment designed to increase the supply of moderate or lower cost housing units; or (b) Enter into an affordable housing covenant as provided in ORS 456.270 to 456.295. (4) Notwithstanding ORS 91.225, a city or county may adopt a land use regulation or functional plan provision, or impose as a condition for approving [a permit] an application under ORS 215.427 or 227.178 a requirement, that has the effect of establishing the sales or rental price for a new multifamily structure, or that requires a new multifamily structure to be designated for sale or rent as affordable housing. (5) A regulation, provision or requirement adopted or imposed under subsection (4) of this sec- tion: (a) May not require more than 20 percent of housing units within a multifamily structure to be sold or rented as affordable housing. (b) May apply only to multifamily structures containing at least 20 housing units. (c) Must provide developers the option to pay an in-lieu fee, in an amount determined by the city or county, in exchange for providing the requisite number of housing units within the multifamily structure to be sold or rented at below-market rates. (d) Must require the city or county to offer a developer of multifamily structures, other than a developer that elects to pay an in-lieu fee pursuant to paragraph (c) of this subsection, at least one of the following incentives: (A) Whole or partial fee waivers or reductions. (B) Whole or partial waivers of system development charges or impact fees set by the city or county. (C) Finance-based incentives. (D) Full or partial exemption from ad valorem property taxes on the terms described in this subparagraph. For purposes of any statute granting a full or partial exemption from ad valorem property taxes that uses a definition of “low income” to mean income at or below 60 percent of the area median income and for which the multifamily structure is otherwise eligible, the city or county shall allow the multifamily structure of the developer to qualify using a definition of “low income” to mean income at or below 80 percent of the area median income. (e) Does not apply to a CCRC, as defined in ORS 101.020, that executes and records a covenant with the applicable city or county in which the CCRC agrees to operate all units within its structure as a CCRC. Units within a CCRC that are offered or converted into residential units that are for sale or rent and are not subject to ORS chapter 101 must comply with regulations, provisions or requirements adopted by the city or county that are consistent with those applicable to a new multifamily structure under subsection (3) or (4) of this section. [32] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (6) A regulation, provision or requirement adopted or imposed under subsection (4) of this sec- tion may offer developers one or more of the following incentives: (a) Density adjustments. (b) Expedited service for local permitting processes. (c) Modification of height, floor area or other site-specific requirements. (d) Other incentives as determined by the city or county. (7) Subsection (4) of this section does not restrict the authority of a city or county to offer de- velopers voluntary incentives, including incentives to: (a) Increase the number of affordable housing units in a development. (b) Decrease the sale or rental price of affordable housing units in a development. (c) Build affordable housing units that are affordable to households with incomes equal to or lower than 80 percent of the median family income for the county in which the housing is built. (8)(a) A city or county that adopts or imposes a regulation, provision or requirement described in subsection (4) of this section may not apply the regulation, provision or requirement to any multifamily structure for which an application for a permit, as defined in ORS 215.402 or 227.160, has been submitted as provided in ORS 215.416 or 227.178 (3), or, if such a permit is not required, a building permit application has been submitted to the city or county prior to the effective date of the regulation, provision or requirement. (b) If a multifamily structure described in paragraph (a) of this subsection has not been com- pleted within the period required by the permit issued by the city or county, the developer of the multifamily structure shall resubmit an application for a permit, as defined in ORS 215.402 or 227.160, as provided in ORS 215.416 or 227.178 (3), or, if such a permit is not required, a building permit application under the regulation, provision or requirement adopted by the city or county under subsection (4) of this section. (9)(a) A city or county that adopts or imposes a regulation, provision or requirement under subsection (4) of this section shall adopt and apply only clear and objective standards, conditions and procedures regulating the development of affordable housing units within its jurisdiction. The standards, conditions and procedures may not have the effect, either individually or cumulatively, of discouraging development of affordable housing units through unreasonable cost or delay. (b) Paragraph (a) of this subsection does not apply to: (A) An application or permit for residential development in an area identified in a formally adopted central city plan, or a regional center as defined by Metro, in a city with a population of 500,000 or more. (B) An application or permit for residential development in historic areas designated for pro- tection under a land use planning goal protecting historic areas. (c) In addition to an approval process for affordable housing based on clear and objective stan- dards, conditions and procedures as provided in paragraph (a) of this subsection, a city or county may adopt and apply an alternative approval process for applications and permits for residential development based on approval criteria regulating, in whole or in part, appearance or aesthetics that are not clear and objective if: (A) The developer retains the option of proceeding under the approval process that meets the requirements of paragraph (a) of this subsection; (B) The approval criteria for the alternative approval process comply with applicable statewide land use planning goals and rules; and (C) The approval criteria for the alternative approval process authorize a density at or above [33] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 the density level authorized in the zone under the approval process provided in paragraph (a) of this subsection. (10) If a regulation, provision or requirement adopted or imposed by a city or county under subsection (4) of this section requires that a percentage of housing units in a new multifamily structure be designated as affordable housing, any incentives offered under subsection (5)(d) or (6) of this section shall be related in a manner determined by the city or county to the required per- centage of affordable housing units. SECTION 38. ORS 197A.470 is amended to read: 197A.470. (1) As used in this section: (a) “Affordable housing” means housing that is affordable to households with incomes equal to or less than 60 percent of the median family income for the county in which the development is built or for the state, whichever is greater, that is subject to an affordable housing covenant, as provided in ORS 456.270 to 456.295, that maintains the affordability for a period of not less than 60 years from the date of the certificate of occupancy. (b) “Multifamily residential building” means a building in which three or more residential units each have space for eating, living and sleeping and permanent provisions for cooking and sanitation. (2) [Notwithstanding ORS 215.427 (1) or 227.178 (1),] A city with a population greater than 5,000 or a county with a population greater than 25,000 shall take final action on an application qualifying under subsection (3) of this section[, including resolution of all local appeals under ORS 215.422 or 227.180,] within 100 days after the application is deemed complete as provided in ORS 215.427 or 227.178. (3) An application qualifies for final action within the timeline described in subsection (2) of this sectionif: (a) The application is submitted to the city or the county under ORS 215.416 or 227.175; (b) The application is for development of a multifamily residential building containing five or more residential units within the urban growth boundary; and (c) At least 50 percent of the residential units included in the development will be sold or rented as affordable housing. (4) A city or a county shall take final action within the time allowed under ORS 215.427 or 227.178 on any application [for a permit, limited land use decision or zone change] that does not qualify for review and decision under subsection (3) of this section, including resolution of all ap- peals under ORS 215.422 or 227.180, as provided by ORS 215.427 and 215.435 or by ORS 227.178 and 227.181. (5) With respect to property within an urban growth boundary owned by a nonprofit corporation organized as a religious corporation, a local government: (a) May apply only restrictions or conditions of approval to the development of affordable housing that are, notwithstanding ORS 197A.400 (2) or statewide land use planning goals relating to protections for historic areas: (A) Clear and objective as described in ORS 197A.400 (1); or (B) Discretionary standards related to health, safety, habitability or infrastructure. (b) Shall approve the development of affordable housing on property not zoned for housing if: (A) The property is not zoned for industrial uses; and (B) The property is contiguous to property zoned to allow residential uses. (6) Affordable housing allowed under subsection (5)(b) of this section may be subject only to the restrictions applicable to the contiguously zoned residential property as limited by subsection (5)(a) [34] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 of this section and without requiring that the property be rezoned for residential uses. If there is more than one contiguous residential property, the zoning of the property with the greatest density applies. SECTION 39. ORS 215.402 is amended to read: 215.402. As used in ORS 215.402 to 215.438 and 215.700 to 215.780 unless the context requires otherwise: (1) “Contested case” means a proceeding in which the legal rights, duties or privileges of spe- cific parties under general rules or policies provided under ORS 215.010 to 215.311, 215.317, 215.327, 215.402 to 215.438 and 215.700 to 215.780, or any ordinance, rule or regulation adopted pursuant thereto, are required to be determined only after a hearing at which specific parties are entitled to appear and be heard. (2) “Hearing” means a quasi-judicial hearing, authorized or required by the ordinances and regulations of a county adopted pursuant to ORS 215.010 to 215.311, 215.317, 215.327, 215.402 to 215.438 and 215.700 to 215.780: (a) To determine in accordance with such ordinances and regulations if a permit shall be granted or denied; or (b) To determine a contested case. (3) “Hearings officer” means a planning and zoning hearings officer appointed or designated by the governing body of a county under ORS 215.406. (4) “Permit” means discretionary approval of a proposed development of land under ORS 215.010 to 215.311, 215.317, 215.327 and 215.402 to 215.438 and 215.700 to 215.780 or county legislation or regulation adopted pursuant thereto. “Permit” does not include: (a) A limited land use decision as defined in ORS 197.015; (b) A decision which determines the appropriate zoning classification for a particular use by applying criteria or performance standards defining the uses permitted within the zone, and the de- termination applies only to land within an urban growth boundary; (c) A decision which determines final engineering design, construction, operation, maintenance, repair or preservation of a transportation facility which is otherwise authorized by and consistent with the comprehensive plan and land use regulations; or (d) An expedited land division, as described in ORS [197.360] 197.365. SECTION 40. ORS 215.416 is amended to read: 215.416. (1) When required or authorized by the ordinances, rules and regulations of a county, an owner of land may apply in writing to such persons as the governing body designates, for a permit, in the manner prescribed by the governing body. The governing body shall establish fees charged for processing permits at an amount no more than the actual or average cost of providing that service. (2) The governing body shall establish a consolidated procedure by which an applicant may ap- ply at one time for all permits or zone changes needed for a development project. The consolidated procedure shall be subject to the time limitations set out in ORS 215.427. The consolidated proce- dure shall be available for use at the option of the applicant no later than the time of the first pe- riodic review of the comprehensive plan and land use regulations. (3) Except as provided in subsection (11) of this section, the hearings officer shall hold at least one public hearing on the application. (4)(a) A county may not approve an application if the proposed use of land is found to be in conflict with the comprehensive plan of the county and other applicable land use regulation or or- [35] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 dinance provisions. The approval may include such conditions as are authorized by statute or county legislation. (b)(A) A county may not deny an application for a housing development located within the urban growth boundary if the development complies with clear and objective standards, including but not limited to clear and objective design standards contained in the county comprehensive plan or land use regulations. (B) This paragraph does not apply to: (i) Applications or permits for residential development in areas described in ORS 197A.400 (2); or (ii) Applications or permits reviewed under an alternative approval process adopted under ORS 197A.400 (3). (c) A county may not condition an application for a housing development on a reduction in densityif: (A) The density applied for is at or below the authorized density level under the local land use regulations; and (B) At least 75 percent of the floor area applied for is reserved for housing. (d) A county may not condition an application for a housing development on a reduction in heightif: (A) The height applied for is at or below the authorized height level under the local land use regulations; (B) At least 75 percent of the floor area applied for is reserved for housing; and (C) Reducing the height has the effect of reducing the authorized density level under local land use regulations. (e) Notwithstanding paragraphs (c) and (d) of this subsection, a county may condition an appli- cation for a housing development on a reduction in density or height only if the reduction is nec- essary to resolve a health, safety or habitability issue or to comply with a protective measure adopted pursuant to a statewide land use planning goal. Notwithstanding ORS 197.350, the county must adopt findings supported by substantial evidence demonstrating the necessity of the reduction. (f) As used in this subsection: (A) “Authorized density level” means the maximum number of lots or dwelling units or the maximum floor area ratio that is permitted under local land use regulations. (B) “Authorized height level” means the maximum height of a structure that is permitted under local land use regulations. (C) “Habitability” means being in compliance with the applicable provisions of the state building code under ORS chapter 455 and the rules adopted thereunder. (5) Hearings under this section shall be held only after notice to the applicant and also notice to other persons as otherwise provided by law and shall otherwise be conducted in conformance with the provisions of ORS 197.797. (6) Notice of a public hearing on an application submitted under this section shall be provided to the owner of an airport defined by the Oregon Department of Aviation as a “public use airport” if: (a) The name and address of the airport owner has been provided by the Oregon Department of Aviation to the county planning authority; and (b) The property subject to the land use hearing is: (A) Within 5,000 feet of the side or end of a runway of an airport determined by the Oregon [36] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Department of Aviation to be a “visual airport”; or (B) Within 10,000 feet of the side or end of the runway of an airport determined by the Oregon Department of Aviation to be an “instrument airport.” (7) Notwithstanding the provisions of subsection (6) of this section, notice of a land use hearing need not be provided as set forth in subsection (6) of this section if the zoning permit would only allow a structure less than 35 feet in height and the property is located outside the runway “ap- proach surface” as defined by the Oregon Department of Aviation. (8)(a) Approval or denial of a permit application [shall] must be based on standards and criteria [which shall be] that are set forth in the zoning ordinance or other appropriate ordinance or regu- lation of the county and which shall relate approval or denial of a permit application to the zoning ordinance and comprehensive plan for the area in which the proposed use of land would occur and to the zoning ordinance and comprehensive plan for the county as a whole. (b) When an ordinance establishing approval standards is required under ORS [197A.200 and] 197A.400 to provide only clear and objective standards, the standards must be clear and objective on the face of the ordinance. (9) Approval or denial of a permit [or expedited land division shall] must be based upon and accompanied by a brief statement that explains the criteria and standards considered relevant to the decision, states the facts relied upon in rendering the decision and explains the justification for the decision based on the criteria, standards and facts set forth. (10) Written notice of the approval or denial [shall] must be given to all parties to the pro- ceeding. (11)(a)(A) The hearings officer or such other person as the governing body designates may ap- prove or deny an application for a permit without a hearing if the hearings officer or other desig- nated person gives notice of the decision and provides an opportunity for any person who is adversely affected or aggrieved, or who is entitled to notice under paragraph (c) of this subsection, to file an appeal. (B) Written notice of the decision shall be mailed to those persons described in paragraph (c) of this subsection. (C) Notice under this subsection shall comply with ORS 197.797 (3)(a), (c), (g) and (h) and shall describe the nature of the decision. In addition, the notice shall state that any person who is ad- versely affected or aggrieved or who is entitled to written notice under paragraph (c) of this sub- section may appeal the decision by filing a written appeal in the manner and within the time period provided in the county’s land use regulations. A county may not establish an appeal period that is less than 12 days from the date the written notice of decision required by this subsection was mailed. The notice shall state that the decision will not become final until the period for filing a local appeal has expired. The notice also shall state that a person who is mailed written notice of the decision cannot appeal the decision directly to the Land Use Board of Appeals under ORS 197.830. (D) An appeal from a hearings officer’s decision made without hearing under this subsection shall be to the planning commission or governing body of the county. An appeal from such other person as the governing body designates shall be to a hearings officer, the planning commission or the governing body. In either case, the appeal shall be to a de novo hearing. (E) The de novo hearing required by subparagraph (D) of this paragraph shall be the initial evidentiary hearing required under ORS 197.797 as the basis for an appeal to the Land Use Board of Appeals. At the de novo hearing: [37] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (i) The applicant and other parties shall have the same opportunity to present testimony, argu- ments and evidence as they would have had in a hearing under subsection (3) of this section before the decision; (ii) The presentation of testimony, arguments and evidence shall not be limited to issues raised in a notice of appeal; and (iii) The decision maker shall consider all relevant testimony, arguments and evidence that are accepted at the hearing. (b) If a local government provides only a notice of the opportunity to request a hearing, the local government may charge a fee for the initial hearing. The maximum fee for an initial hearing shall be the cost to the local government of preparing for and conducting the appeal, or $250, whichever is less. If an appellant prevails at the hearing or upon subsequent appeal, the fee for the initial hearing shall be refunded. The fee allowed in this paragraph shall not apply to appeals made by neighborhood or community organizations recognized by the governing body and whose bounda- ries include the site. (c)(A) Notice of a decision under paragraph (a) of this subsection shall be provided to the ap- plicant and to the owners of record of property on the most recent property tax assessment roll where such property is located: (i) Within 100 feet of the property that is the subject of the notice when the subject property is wholly or in part within an urban growth boundary; (ii) Within 250 feet of the property that is the subject of the notice when the subject property is outside an urban growth boundary and not within a farm or forest zone; or (iii) Within 750 feet of the property that is the subject of the notice when the subject property is within a farm or forest zone. (B) Notice shall also be provided to any neighborhood or community organization recognized by the governing body and whose boundaries include the site. (C) At the discretion of the applicant, the local government also shall provide notice to the Department of Land Conservation and Development. (12) A decision described in ORS 215.402 (4)(b) shall: (a) Be entered in a registry available to the public setting forth: (A) The street address or other easily understood geographic reference to the subject property; (B) The date of the decision; and (C) A description of the decision made. (b) Be subject to the jurisdiction of the Land Use Board of Appeals in the same manner as a limited land use decision. (c) Be subject to the appeal period described in ORS 197.830 (5)(b). (13) At the option of the applicant, the local government shall provide notice of the decision described in ORS 215.402 (4)(b) in the manner required by ORS 197.797 (2), in which case an appeal to the board shall be filed within 21 days of the decision.The notice shall include an explanation of appeal rights. (14) Notwithstanding the requirements of this section, a limited land use decision shall be sub- ject to the requirements set forth in ORS 197.195 and 197.828. SECTION 41. ORS 215.429 is amended to read: 215.429. (1) [Except when an applicant requests an extension under ORS 215.427,] If the governing body of the county or its designee does not take final action on an application [for a permit, limited land use decision or zone change within 120 days or 150 days, as appropriate, after the application is [38] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 deemed complete,] within the period allowed under ORS 215.427, the applicant may file a petition for a writ of mandamus under ORS 34.130 in the circuit court of the county where the application was submitted to compel the governing body or its designee to issue the approval. (2) The governing body shall retain jurisdiction to make a land use decision on the application until a petition for a writ of mandamus is filed. Upon filing a petition under ORS 34.130, jurisdiction for all decisions regarding the application, including settlement, shall be with the circuit court. (3) A person who files a petition for a writ of mandamus under this section shall provide written notice of the filing to all persons who would be entitled to notice under ORS 197.797 and to any person who participated orally or in writing in any evidentiary hearing on the application held prior to the filing of the petition. The notice shall be mailed or hand delivered on the same day the peti- tion is filed. (4) If the governing body does not take final action on an application within [120 days or 150 days, as appropriate, of the date the application is deemed complete,] the period allowed under ORS 215.427, the applicant may elect to proceed with the application according to the applicable pro- visions of the county comprehensive plan and land use regulations or to file a petition for a writ of mandamus under this section. If the applicant elects to proceed according to the local plan and regulations, the applicant may not file a petition for a writ of mandamus within 14 days after the governing body makes a preliminary decision, provided a final written decision is issued within 14 days of the preliminary decision. (5) The court shall issue a peremptory writ unless the governing body or any intervenor shows that the approval would violate a substantive provision of the county comprehensive plan or land use regulations as those terms are defined in ORS 197.015.The writ may specify conditions of ap- proval that would otherwise be allowed by the county comprehensive plan or land use regulations. SECTION 42. ORS 223.299 is amended to read: 223.299. As used in ORS 223.297 to 223.316: (1)(a) “Capital improvement” means facilities or assets used for the following: (A) Water supply, treatment and distribution; (B) Waste water collection, transmission, treatment and disposal; (C) Drainage and flood control; (D) Transportation; or (E) Parks and recreation. (b) “Capital improvement” does not include costs of the operation or routine maintenance of capitalimprovements. (2) “Improvement fee” means a fee for costs associated with capital improvements to be con- structed. (3) “Reimbursement fee” means a fee for costs associated with capital improvements already constructed, or under construction when the fee is established, for which the local government de- termines that capacity exists. (4)(a) “System development charge” means a reimbursement fee, an improvement fee or a com- bination thereof assessed or collected at the time of increased usage of a capital improvement or issuance of a development permit, building permit or connection to the capital improvement. “System development charge” includes that portion of a sewer or water system connection charge that is greater than the amount necessary to reimburse the local government for its average cost of in- specting and installing connections with water and sewer facilities. (b) “System development charge” does not include any fees assessed or collected as part of a [39] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 local improvement district or a charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed upon a land use decision[, expedited land di- vision] or limited land use decision. SECTION 43. ORS 227.160 is amended to read: 227.160. As used in ORS 227.160 to 227.186: (1) “Hearings officer” means a planning and zoning hearings officer appointed or designated by a city council under ORS 227.165. (2) “Permit” means discretionary approval of a proposed development of land, under ORS 227.215 or city legislation or regulation. “Permit” does not include: (a) A limited land use decision as defined in ORS 197.015; (b) A decision which determines the appropriate zoning classification for a particular use by applying criteria or performance standards defining the uses permitted within the zone, and the de- termination applies only to land within an urban growth boundary; (c) A decision which determines final engineering design, construction, operation, maintenance, repair or preservation of a transportation facility which is otherwise authorized by and consistent with the comprehensive plan and land use regulations; or (d) An expedited land division, as described in ORS [197.360] 197.365. SECTION 44. ORS 227.173 is amended to read: 227.173. [(1) Approval or denial of a discretionary permit application shall be based on standards and criteria, which shall be set forth in the development ordinance and which shall relate approval or denial of a discretionary permit application to the development ordinance and to the comprehensive plan for the area in which the development would occur and to the development ordinance and com- prehensive plan for the city as a whole.] (1) Approval or denial of a discretionary permit application must be based on standards and criteria that are set forth in the development ordinance and that relate approval or de- nial of a discretionary permit application to the development ordinance and the comprehen- sive plan for the area in which the development would occur and to the development ordinance and comprehensive plan for the city as a whole. (2) When an ordinance establishing approval standards is required under ORS [197A.200 and] 197A.400 to provide only clear and objective standards, the standards must be clear and objective on the face of the ordinance. (3) Approval or denial of a permit application [or expedited land division shall be] must be based upon and accompanied by a brief statement that explains the criteria and standards considered rel- evant to the decision, states the facts relied upon in rendering the decision and explains the justi- fication for the decision based on the criteria, standards and facts set forth. (4) Written notice of the approval or denial [shall] must be given to all parties to the proceed- ing. SECTION 45. ORS 227.179 is amended to read: 227.179. (1) [Except when an applicant requests an extension under ORS 227.178 (5),] If the gov- erning body of a city or its designee does not take final action on an application [for a permit, lim- ited land use decision or zone change within 120 days after the application is deemed complete] within the period allowed under ORS 227.178 , the applicant may file a petition for a writ of mandamus under ORS 34.130 in the circuit court of the county where the application was submitted to compel the governing body or its designee to issue the approval. (2) The governing body shall retain jurisdiction to make a land use decision on the application [40] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 until a petition for a writ of mandamus is filed. Upon filing a petition under ORS 34.130, jurisdiction for all decisions regarding the application, including settlement, shall be with the circuit court. (3) A person who files a petition for a writ of mandamus under this section shall provide written notice of the filing to all persons who would be entitled to notice under ORS 197.797 and to any person who participated orally or in writing in any evidentiary hearing on the application held prior to the filing of the petition. The notice shall be mailed or hand delivered on the same day the peti- tion is filed. (4) If the governing body does not take final action on an application within [120 days of the date the application is deemed complete] the period allowed under ORS 227.178, the applicant may elect to proceed with the application according to the applicable provisions of the local comprehensive plan and land use regulations or to file a petition for a writ of mandamus under this section. If the applicant elects to proceed according to the local plan and regulations, the applicant may not file a petition for a writ of mandamus within 14 days after the governing body makes a preliminary de- cision, provided a final written decision is issued within 14 days of the preliminary decision. (5) The court shall issue a peremptory writ unless the governing body or any intervenor shows that the approval would violate a substantive provision of the local comprehensive plan or land use regulations as those terms are defined in ORS 197.015.The writ may specify conditions of approval that would otherwise be allowed by the local comprehensive plan or land use regulations. SECTION 46. ORS 227.184 is amended to read: 227.184. (1) A person whose application [for a permit] is denied by the governing body of a city or its designee under ORS 227.178 may submit to the city a supplemental application for any or all other uses allowed under the city’s comprehensive plan and land use regulations in the zone that was the subject of the denied application. (2) The governing body of a city or its designee shall take final action on a supplemental ap- plication submitted under this section, including resolution of all appeals, within 240 days after the application is deemed complete. Except that 240 days shall substitute for 120 days, all other appli- cable provisions of ORS 227.178 shall apply to a supplemental application submitted under this sec- tion. (3) A supplemental application submitted under this section shall include a request for any re- zoning or zoning variance that may be required to issue a permit under the city’s comprehensive plan and land use regulations. (4) The governing body of a city or its designee shall adopt specific findings describing the reasons for approving or denying: (a) A use for which approval is sought under this section; and (b) A rezoning or variance requested in the application. SECTION 47. ORS 421.649 is amended to read: 421.649. (1) The Department of Corrections shall obtain public services necessary for the con- struction and operation of a women’s correctional facility and intake center complex in the manner provided under ORS 421.628 (4) to (15). (2) Regardless of the territorial limits of the public body providing public services to the com- plex, and notwithstanding any other law, upon request or application from the department, the public body shall provide any public service necessary for the construction and operation of the complex. During the pendency of any mediation, arbitration or judicial review proceeding under this section, the public body shall provide any public service necessary for the continued construction and operation of the complex, as requested by the department. [41] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (3) The existence of a public service provided to the complex [shall] may not be a consideration in support of or in opposition to an application for a land use decision[,] or limited land use decision [or expedited land division] under ORS chapter 197, 197A, 215 or 227. SECTION 48. ORS 476.394 is amended to read: 476.394. (1) The minimum defensible space requirements established by the State Fire Marshal pursuant to ORS 476.392 may not be used as criteria to approve or deny: (a) An amendment to a local government’s acknowledged comprehensive plan or land use regu- lations. (b) A permit, as defined in ORS 215.402 or 227.160. (c) A limited land use decision, as defined in ORS 197.015. (d) An expedited land division, as [defined in ORS 197.360] described in ORS 197.365. (2) Notwithstanding subsection (1) of this section, a local government may: (a) Amend the acknowledged comprehensive plan or land use regulations of the local govern- ment to include the requirements; and (b) Use the requirements that are included in the amended acknowledged comprehensive plan or land use regulations as a criterion for a land use decision. SECTION 49. Section 1, chapter 110, Oregon Laws 2024, is amended to read: Sec. 1. (1) The Department of Land Conservation and Development and the Department of Consumer and Business Services shall enter into an interagency agreement to establish and admin- ister the Housing Accountability and Production Office. (2) The Housing Accountability and Production Office shall: (a) Provide technical assistance, including assistance through grants, to local governments to: (A) Comply with housing laws; (B) Reduce permitting and land use barriers to housing production; and (C) Support reliable and effective implementation of local procedures and standards relating to the approval of residential development projects. (b) Serve as a resource, which includes providing responses to requests for technical assistance with complying with housing laws, to: (A) Local governments, as defined in ORS 174.116; and (B) Applicants for land use and building permits for residential development who are experi- encing permitting and land use barriers related to housing production. (c) Investigate and respond to complaints of violations of housing laws under section 2, chapter 110, Oregon Laws 2024 [of this 2024 Act]. (d) Establish best practices related to model codes, typical drawings and specifications as de- scribed in ORS 455.062, procedures and practices by which local governments may comply with housinglaws. (e) Provide optional mediation of active disputes relating to housing laws between a local gov- ernment and applicants for land use and building permits for residential development, including mediation under ORS 197.860. (f) Coordinate agencies that are involved in the housing development process, including, but not limited to, the Department of Land Conservation and Development, Department of Consumer and Business Services, Housing and Community Services Department and Oregon Business Development Department, to enable the agencies to support local governments and applicants for land use and building permits for residential development by identifying state agency technical and financial re- sources that can address identified housing development and feasibility barriers. [42] HB2138 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 (g) Establish policy and funding priorities for state agency resources and programs for the pur- pose of addressing barriers to housing production, including, but not limited to, making recommen- dations for moneys needed for the purposes of section 35, chapter 110, Oregon Laws 2024 [of this 2024 Act]. (3) The Land Conservation and Development Commission and the Department of Consumer and Business Services shall coordinate in adopting, amending or repealing rules for: (a) Carrying out the respective responsibilities of the departments and the office under sections 1 to 5, chapter 110, Oregon Laws 2024 [of this 2024 Act]. (b) Model codes, development plans, procedures and practices by which local governments may comply with housing laws. (c) Establishing standards by which complaints are investigated and pursued. (4) The office shall prioritize assisting local governments in voluntarily undertaking changes to come into compliance with housing laws. (5) As used in sections 1 to 5, chapter 110, Oregon Laws 2024 [of this 2024 Act]: (a) “Housing law” means ORS chapter 197A and ORS 92.010 to 92.192, 92.830 to 92.845, 197.360, 197.365 [to 197.380], 197.475 to 197.493, 197.505 to 197.540, 197.660 to 197.670, 197.748, 215.402 to 215.438, 227.160 to 227.186, 455.148, 455.150, 455.152, 455.153, 455.156, 455.157, 455.165, 455.170, 455.175, 455.180, 455.185 to 455.198, 455.200, 455.202 to 455.208, 455.210, 455.220, 455.465 and 455.467 and administrative rules implementing those laws, to the extent that the law or rule imposes a mandatory duty on a local government or its officers, employees or agents and the application of the law or rule applies to residential development or pertains to a permit for a residential use or a division of land for residential purposes. (b) “Residential” includes mixed-use residential development. UNIT CAPTIONS SECTION 50. The unit captions used in this 2025 Act are provided only for the conven- ience of the reader and do not become part of the statutory law of this state or express any legislative intent in the enactment of this 2025 Act. EMERGENCY CLAUSE SECTION 51.This 2025 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2025 Act takes effect on its passage. [43]