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Council Report 05-04-22 CCPH 5-17-22 LU 22-0007 D 4� COUNCIL REPORT 442, ro t.4 Subject: Ordinance 2892, Middle Housing (House Bill 2001) Code Amendments- LU 22-0007 Meeting Date: May 17, 2022 Staff Member: Erik Olson, Senior Planner Report Date: May 5, 2022 Department: Community Development Department Action Required Advisory Board/Commission Recommendation ❑ Motion ❑X Planning Commission Recommends Approval ❑X Public Hearing ❑ Denial ❑X Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑ Consent Agenda Staff Recommendation: Conduct a public hearing on Ordinance 2892 to amend the Community Development Code (LOC Chapter 50) Recommended Language for Motion: Move to tentatively approve Ordinance 2892 and direct staff to return on June 7, 2022 with a final version of the ordinance, including findings and conclusions for LU 22-0007. Project/ Issue Relates To: Code amendments to comply with the middle housing requirements of House Bill 2001. ❑X Council Goals/Priorities ❑X Comprehensive Plan ❑Not Applicable Adopt code that complies with HB 2001 requirements ISSUE BEFORE COUNCIL The Council will hold a legislative public hearing for LU 22-0007, the proposed code amendments to comply with the middle housing requirements of Oregon House Bill 2001 (2019). EXECUTIVE SUMMARY The proposed amendments to the Community Development Code are part of the City Council goal to, "Conserve the community's quality of life by planning for growth and change", and the Council initiative to, "Adopt codes that comply with HB 2001 that are consistent with the community's sense of place, neighborhood character, and livability." The amendments were prepared in 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 2 response to state legislation requiring that cities allow "middle housing"—including duplexes, triplexes, quadplexes, townhouses and cottage clusters—in any zone that permits detached single-family dwellings. The amendments are intended to enact these and other changes necessary to meet the minimum compliance provisions outlined in the administrative rules for middle housing contained within Division 46 of Chapter 660 of the Oregon Administrative Rules (Division 46). BACKGROUND The Planning Commission developed recommendations for the proposed amendments (Ordinance 2892) in four work sessions on December 13, 2021, January 10, 2022, January 24, 2022, and February 15, 2022, and the Commission held a public hearing on the proposal on April 11, 2022. The Commission recommends approval of Ordinance 2892 as reflected in the Findings, Conclusion, and Order adopted on May 9, 2022 (Exhibit B-1). The proposed code text is contained in Attachment 2 to Ordinance 2892 (Exhibit A-1.1), dated May 9, 2022. DISCUSSION The amendments will clarify and update various provisions listed below. GENERAL CODE AMENDMENTS (LOC Chapters 50.01, 50.03, 50.07, 50.08, 50.10) ITEM TITLE CODE SECTION(S) 1. Add middle housing development in the purpose statements located within the following sections: 1. R-7.5, R-10, R-15 (Residential High Density) Zones; LOC 50.02.001.a 2. R-5, R-6, R-DD (Residential Medium Density) Zones; LOC 50.02.001.b 3. R-0, [R-2], R-3, R-W (Residential High-Density) Zones. LOC 50.02.001.c 2. Allow for the development of middle housing types in applicable Table 50.03.002-1 residential districts within the Residential Districts Use Table, to align with state minimum compliance requirements. 3. Remove the reference to "single-family zones" and clarify that LOC 50.03.003.4.i(3) the conditional use standards for group and institutional housing will apply to all zones where the uses are allowed. 4. Remove the reference to "single-family zones" and clarify that LOC 50.03.003.5.h.i the use-specific standards for public, institutional, and civic uses will apply to all zones where the uses are allowed. 5. Add a definition of"cottage cluster", to align with state minimum LOC 50.10.003.2 compliance requirements. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 3 GENERAL CODE AMENDMENTS (LOC Chapters 50.01, 50.03, 50.07, 50.08, 50.10) ITEM TITLE CODE SECTION(S) 6. Specify that cottage clusters are subject to a minimum of five and LOC 50.10.003.2 a maximum of eight dwelling units, consistent with state minimum compliance requirements. 7. Add a definition for "common courtyard" for cottage cluster LOC 50.10.003.2 developments. 8. Modify the definition of"duplex" to align with state minimum LOC 50.10.003.2 compliance requirements. (Maintains existing requirement that duplexes are two attached dwellings.) 9. Remove the existing definition of "dwelling, attached townhouse" and refer instead to the new "townhouse" and "townhouse project" definitions within the following sections: 1. Residential Districts Use Table Table 50.03.002-1 2. Definition of Terms LOC 50.10.003.2 10. Add a definition for "dwelling, cottage cluster". LOC 50.10.003.2 11. Revise the definition of "dwelling, multi-family" to be for LOC 50.10.003.2 developments of five or more attached dwelling units on a lot, to distinguish from middle housing. 12. Remove the existing definition and other code references to "dwelling, zero lot line", and refer instead to the new "townhouse" and "townhouse project" definitions, within the following sections: 1. Residential Districts Use Table; Table 50.03.002-1 2. Ministerial Development Classification; LOC 50.07.003.13.a 3. Definition of Terms. LOC 50.10.003.2 13. Add a definition for "cottage cluster dwelling footprint" to align LOC 50.10.003.2 with state minimum compliance requirements. 14. Add a definition for "middle housing" to align with state LOC 50.10.003.2 minimum compliance requirements. 15. Add a definition for "quadplex" to align with state minimum LOC 50.10.003.2 compliance requirements. 16. Add a new definition of "townhouse" to replace existing LOC 50.10.003.2 definition of "attached townhome dwelling", in alignment with state minimum compliance requirements. 17. Add a definition for "townhouse project" to align with state LOC 50.10.003.2 minimum compliance requirements, and to allow townhouse standards to be applied to the entire site prior to a land division. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 4 GENERAL CODE AMENDMENTS (LOC Chapters 50.01, 50.03, 50.07, 50.08, 50.10) ITEM TITLE CODE SECTION(S) 18. Add a definition for "triplex" to align with state minimum LOC 50.10.003.2 compliance requirements. 19. Modify minor variance standards to apply to single-family LOC 50.08.002.2.a; residences and middle housing equally, consistent with state 50.08.002.2.b; minimum compliance requirements. 50.08.002.2.d; 50.08.002.2.g 20. Modify design variance standards in the R-DD Zone to apply to LOC 50.08.003.2.a single-family residences and middle housing equally, consistent with state minimum compliance requirements. DESIGN & DIMENSIONAL STANDARD CODE AMENDMENTS (LOC Chapters 50.01, 50.04, 50.06) ITEM TITLE CODE SECTION(S) 1. Add or reference design standards for cottage clusters from the DLCD Model Code within the following sections: 1. Residential Districts Use Table; and Table 50.03.002-1 2. Use-specific standards for cottage clusters. LOC 50.03.003.1.d 2. ' Exempt duplexes, triplexes, quadplexes, and cottage clusters from maximum density standards, and clarify that the maximum density for townhouse projects is four dwelling units per lot, for lots that comply with minimum lot area standards for townhouse projects, within the following sections: 1. Residential Low-Density Zones Dimensions Table; Table 50.04.001-1 2. Residential Medium-Density Dimensions Table; and Table 50.04.001-3 3. Residential High-Density Dimensions Table. Table 50.04.001-11 3. Specify the minimum lot dimensions for all middle housing types within the following sections. to align with state minimum compliance requirements: 1. Residential Low-Density Zones Dimensions Table; Table 50.04.001-1 2. Residential Medium-Density Dimensions Table; and Table 50.04.001-3 3. Residential High-Density Dimensions Table. Table 50.04.001-11 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 5 DESIGN & DIMENSIONAL STANDARD CODE AMENDMENTS (LOC Chapters 50.01, 50.04, 50.06) ITEM TITLE CODE SECTION(S) 4. Remove density limitations related to minimum lot dimension standards that apply on a per-dwelling basis from the following sections, to align with state minimum compliance requirements: 1. Residential Low Density Zones- Purpose; LOC 50.01.001.1.b 2. R-5 Zone - Purpose; LOC 50.01.001.2.b.i 3. Residential High-Density Zones— Purpose; LOC 50.01.001.3.b 4. Residential Low-Density Zones Dimensions Table; Table 50.04.001-1 5. Residential Medium-Density Zones Dimensions Table; Table 50.04.001-3 6. Residential High-Density Zones Dimensions Table. Table 50.04.001-11 5. Apply height exceptions for wider setbacks equally to detached single-family dwellings and middle housing to align with state minimum compliance requirements, within the following sections: 1. Residential Low-Density Zones Dimensions Table; Table 50.04.001-1 2. Additional Height Standards for Low-Density Residential LOC 50.04.001.1.g.i Zones; 3. Additional Height Standards in the R-5 Zone; LOC 50.04.001.2.g.i(4) 4. Additional Height Standards in the R-DD Zone; LOC 50.04.001.2.g.iv(2) 5. Additional Height Standards for Residential High-Density LOC 50.04.001.3.f.iv(1) Zones. _ 6. Add minimum setback standards for cottage clusters and clarify minimum setback standards for other middle housing types to align with state minimum compliance requirements within the following sections: 1. Residential Low-Density Zones Dimensions Table; Table 50.04.001-1 2. R-5 Yard Setback Standards; LOC 50.04.001.2.e.i(1) 3. R-6 Zone Minimum Yard Setbacks Table; Table 50.04.001-5 4. R-DD Zone Yard Setback Standards; LOC 50.04.001.2.e.iii(3) 5. Residential High-Density Zones Dimensions Table; Table 50.04.001-11 6. R-2 Yard Setbacks Table. Table 50.04.001-13 7. Exempt cottage clusters from maximum floor area standards, to align with state minimum compliance requirements, within the following sections: 1. Residential Low-Density Zones Dimensions Table; Table 50.04.001-1 2. Residential Medium-Density Zones Dimensions Table; Table 50.04.001-3 3. Residential High-Density Zones Dimensions Table. Table 50.04.001-11 8. Add maximum average floor area standards for individual units within a cottage cluster as follows: 1. 1,200 square feet per unit in the R-10 and R-15 Zones; LOC 50.04.001.1.d 2. 1,000 square feet per unit in the R-7.5 Zone; LOC 50.04.001.1.d 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 6 DESIGN & DIMENSIONAL STANDARD CODE AMENDMENTS (LOC Chapters 50.01, 50.04, 50.06) ITEM TITLE CODE SECTION(S) 3. 1,000 square feet per unit in the R-6, R-5 and R-DD Zones; LOC 50.04.001.2.d.iv 4. 1,000 square feet per unit in the R-0, R-2 and R-3 Zones. LOC 50.04.001.3.c.iii 9. Add building separation standards for cottage clusters, to align with state minimum compliance requirements, within the following sections: 1. Additional Yard Setback Standards for Residential Low- LOC 50.04.001.1.e Density Zones; 2. Additional Yard Setback Standards for Residential LOC 50.04.001.2.e.iv Medium-Density Zones; and 3. Additional Yard Setback Standards for Residential High- LOC 50.04.001.3.e.v Density Zones. 10. Apply maximum floor area standards for townhouses to the entire site as allowed by state middle housing requirements, rather than individual townhouse lots, by referencing the term "townhouse project" within the following sections: 1. Residential Low-Density Zones Dimensions Table; Table 50.04.001-1 2. Additional Floor Area Standards for Residential Low- LOC 50.04.001.1.d Density Districts; 3. Residential Medium-Density Dimensions Table; Table 50.04.001-3 4. Residential High-Density Dimensions Table; and Table 50.04.001-11 5. Additional Lot Area and Floor Area Standards for LOC 50.04.001.3.c.iv Residential High-Density Zones. 11. Apply standards for setbacks on steeply sloped lots equally to detached single-family and middle housing dwellings, to align with state minimum compliance requirements, within the following sections: 1. Additional Yard Setback standards for Residential Low- LOC 50.04.001.1.e.iii Density Zones; 2. Additional Yard Setback standards for Residential LOC 50.04.001.2.e.iv Medium-Density Zones; 3. Additional Yard Setback standards for Residential High- LOC 50.04.001.3.e.iv Density Zones. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 7 DESIGN & DIMENSIONAL STANDARD CODE AMENDMENTS (LOC Chapters 50.01, 50.04, 50.06) ITEM TITLE CODE SECTION(S) 12. Clarify maximum lot coverage standards for duplexes, triplexes, quadplexes, and townhouse projects, and exempt cottage clusters from maximum lot coverage standards, to align with state minimum compliance requirements, in the following sections: 1. Maximum Lot Coverage standards for Residential Low- LOC 50.04.001.1.f.i Density Zones; 2. R-5 Lot Coverage Standards; LOC 50.04.001.2.f.i 3. R-6 Lot Coverage/Impervious Surfaces Standards; LOC 50.04.001.2.f.ii 4. R-DD Maximum Lot Coverage Table; Table 50.04.001-9 5. R-DD Lot Coverage Standards; LOC 50.04.001.2.f.iii(4) 6. R-2 Lot Coverage Table; and Table 50.04.001-12 7. R-0, R-2, and R-3 Zone Exemptions. LOC 50.04.001.3.d.ii(3); 50.04.001.3.d.ii(4) 13. Clarify maximum impervious surface standards for duplexes, LOC 50.04.001.2.f.iii(2) triplexes, quadplexes, and townhouse projects in the R-DD Lot Coverage Standards. 14. Clarify which maximum impervious surface standards apply to LOC 50.04.001.2.f.iii(3) cottage clusters by cross-referencing the use-specific standards for cottage clusters within the R-DD Lot Coverage Standards. 15. Increase the maximum height from the Oswego Lake Surface elevation from 24 ft. to 25 ft. within the following sections to comply with state minimum requirements: 1. Residential High-Density Dimensions Table; and Table 50.04.001-11 2. Height Measurement for R-W Zoned Lots figure. Figure 50.04.001-11[5] 16. Eliminate references to single-family zones in the solar LOC 50.04.004.b adjustments standards related to off-site shade, consistent with state minimum compliance requirements. 17. Apply general building design standards to middle housing in all applicable zones, to align with state minimum compliance requirements, within the following sections: 1. Building Design Standards Applicability Table; and Table 50.06.001-1; 2. Applicability standards for Structure Design — Residential LOC 50.06.001.2.a.i Zones. 18. Clarify that internal remodels and conversions of existing single- LOC 50.06.001.2.a family dwellings that result in the creation of middle housing are exempted from general building design standards, to align with state minimum compliance requirements. (Building design standards would apply to portions of dwellings that are expanded or additions.) 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 8 DESIGN & DIMENSIONAL STANDARD CODE AMENDMENTS (LOC Chapters 50.01, 50.04, 50.06) ITEM TITLE CODE SECTION(S) 19. Clarify that the following standards apply equally to detached single-family and middle housing dwellings, to align with state minimum compliance requirements: 1. Roof Design standards in the R-6 Zone; LOC 50.06.001.3.a.i 2. On-Site Circulation — Bikeways, Walkway, and Accessways; LOC 50.06.003.3.a 3. Street Connectivity; LOC 50.06.003.4.a.iii 4. Transit System; LOC 50.06.003.5.a 5. Site Design - Standards for Installation and Construction; LOC 50.06.004.1.c.iii 6. Solar Access; LOC 50.06.007.1.b 7. Definition of Floor Area. LOC 50.10.003.2 20. Modify front porch design standards in the R-6 Zone to not scale LOC 50.06.001.3.b by the number of dwelling units, to align with state minimum compliance requirements. 21. Clarify that alley surfacing standards in the R-6 Zone apply LOC 50.06.001.3.c equally to single-family dwellings and duplexes, and that other middle housing types are handled differently for the purposes of this standard, to align with state minimum compliance requirements. 22. Clarify that the following standards apply equally to detached single-family and middle housing dwellings, to align with state minimum compliance requirements, in applicable zones: 1. Garage appearance and location standards; LOC 50.06.001.4.a.i 2. Driveway width limitations; LOC 50.06.003.2.b.i(5)(a); 50.06.003.2.b.i(5)(b) 3. Driveway grade standards. LOC 50.06.003.2.b.iii(1); 50.06.003.2.b.iii(3) 23. Modify the following garage standards to scale based on the width of the garage relative to the facade: 1. Garage setback standards; LOC 50.06.001.4.a.iv(1) 2. Garage width standards; LOC 50.06.001.4.a.iv(2) 3. Garage appearance standards; LOC 50.06.001.4.a.iv(3) 4. Garage window standards; LOC 50.06.001.4.a.iii 5. Garage location standards in the R-6 Zone; LOC 50.06.001.4.b.ii(2) 6. Garage window standards in the R-6 Zone; LOC 50.06.001.4.b.iii 7. Garage setback standards in the R-6 Zone; and LOC 50.06.001.4.b.iv 8. Garage appearance standards in the R-6 Zone. LOC 50.06.001.4.b.v 24. Apply garage appearance and location standards to parcels of less LOC 50.06.001.4.a.iii than 50 feet in width. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 9 DESIGN & DIMENSIONAL STANDARD CODE AMENDMENTS (LOC Chapters 50.01, 50.04, 50.06) ITEM TITLE CODE SECTION(S) 25. Modify general off-street parking requirements to permit one Table 50.06.002-3 space per unit for middle housing, to align with state minimum compliance requirements. 26. Modify parking dimension standards to apply equally to single- LOC 50.06.002.2.a.vi(2) I family and middle housing, to align with state minimum compliance requirements. 27. Specify that on-lane parking spaces located on an access lane LOC 50.06.003.1.d.iii may be used to meet minimum parking requirements for middle housing on flag lots served by the access lane, to align with state minimum compliance requirements. 28. Limit the width of driveways on lots less than 50 ft. in width to LOC 50.06.003.2.b.i(5)(d) no wider than the associated garage opening. 29. Apply the exception from the hard pavement requirement for LOC 50.06.003.2.c.vi(2) driveways equally to duplexes and single-family residences, to align with state minimum compliance requirements. 30. Specify that access lanes are permitted to serve two to three lots, consistent with other definitions of"access lane" in the code, and remove the existing limitation on the number of dwelling units that can be served by an access lane, to align with state minimum compliance requirements, within the following sections: 1. Standards for Access Lanes; and LOC 50.06.003.1.d.ii 2. Standards for Approval of Development Which Requires LOC 50.06.003.4.c.v the Construction of a Street. 31. Specify that duplexes may be permitted on flag lots served by an LOC 50.06.003.1.d.ii access lane, but not other middle housing types, to align with state minimum compliance requirements. 32. Limit the density of townhouse projects to four attached LOC 50.03.003.1.e townhouse units per townhouse project within a new Use- Specific Standards for Townhouse Projects section. 33. Clarify that the garage wall facing street standard does not apply LOC 50.06.001.4.a.ii to garage walls containing the garage opening, as these are now addressed within the new garage appearance and location standards. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 10 OVERLAY DISTRICT CODE AMENDMENTS (LOC Chapter 50.05) ITEM TITLE CODE SECTION(S) 1. Exempt middle housing created through conversions or additions LOC 50.05.001.5a.ii to a single-family dwelling in the Glenmorrie R-15 Overlay from the requirement to submit a Plantings and Buffering plan, in order to treat single-family and middle housing equally, as required for state minimum compliance. _ 2. Clarify that the Downtown Redevelopment Design (DRD) District LOC 50.05.004.13.b Clear and Objective Standards may be applied equally to any new dwelling— including detached single-family dwellings and middle housing, to align with state minimum compliance requirements. 3. Clarify that the following design standards within the Old Town LOC 50.05.006.4.b.i(2)(f)(iii) Neighborhood Design (R-DD) Overlay District apply equally to LOC 50.05.006.4.b.i(2)(h) both detached single-family and middle housing dwellings, to align with state minimum compliance requirements: LOC 50.05.006.4.b.ii(2)(b) 1. Window standards for the Early 1900 Vernacular Style; 2. Front Entry standards for the Early 1900 Vernacular Style; LOC 50.05.006.4.b.ii(2)(f)(ii) 3. Massing/Composition standards for the Cape Cod Style; LOC 50.05.006.4.b.iii(2)(a) 4. Window standards for the Cape Cod Style; LOC 50.05.006.4.b.iii(2)(b) 5. Building Height standards for the Craftsman Style; 6. Massing/Composition standards for the Craftsman Style; LOC 50.05.006.4.b.iii(2)(h) 7. Front Entry standards for the Craftsman Style; and LOC 50.05.006.4.b.iii(2)(j) 8. Required design elements for the Craftsman Style. 4. Modify the following standards within the Old Town Overlay to no longer scale by the number of dwelling units, to align with state minimum compliance requirements: 1. Front Entry standards for the Early 1900 Vernacular Style; LOC 50.05.006.4.b.i(2)(h) and 2. Front Entry standards for the Craftsman Style. _ LOC 50.05.006.4.b.iii(2)(h) 5. Clarify that the design standards specific to multi-family LOC 50.05.006.9; dwellings in the Old Town Overlay are not applicable to middle 50.05.006.9.a; housing, to align with state minimum compliance requirements. 50.05.006.9.b; 6. Clarify that design standards apply to both detached single-family LOC 50.05.007.3.c.i(1); and middle housing dwellings equally in the Lake Grove Village 50.05.007.3.c.ii(5) Center Overlay (LGVCO). 7. Exempt remodels, conversions, or additions to detached single- LOC 50.05.007.3.c.ii(6) family dwellings that create middle housing from the Remodeled Buildings, Building Expansion, and Site Improvements standards in the LGVCO, as required for state minimum compliance. 8. Limit the applicability of density transfer provisions in the LOC 50.05.010.4.c.iii Sensitive Lands Overlay to single-family dwellings and duplexes. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 11 9. Modify the bonding period standards for the Sensitive Lands LOC 50.05.010.4.g.ix(4) Overlay District to apply equally to both detached single-family and middle housing dwellings. 10. Allow for duplex development within the Resource Protection LOC 50.05.010.6.a.iii (RP) District, but not other middle housing types. 11. Allow for duplex development on sites otherwise encumbered LOC 50.05.010.6.d.i by an RP District, but not other middle housing types. REVIEW PROCEDURE CODE AMENDMENTS (LOC Chapters 50.06 & 50.07) ITEM TITLE CODE SECTION(S) 1. Specify that middle housing development will be a ministerial decision, to align with state minimum compliance requirements, within the following sections: Table 50.06.001-1; 1. Building Design Standards Applicability Table; LOC 50.07.003.13.a.ii(1); 2. Ministerial Development Classification; and 50.07.003.13.a.ii(3); 3. Review Criteria for Ministerial Development. LOC 50.07.003.13.e.ii(8) 2. Clarify that duplexes, triplexes, fourplexes, and townhomes (middle housing) where allowed in the following districts are not classified as ministerial development: 1. Commercial, Industrial, and Mixed Use Districts; and LOC 50.07.003.13.a.ii(2)(h) _ 2. Special Purpose Districts. LOC 50.07.003.13.a.ii(2)(g) 3. Clarify that minor development procedures will apply equally to LOC 50.07.003.14.a.ii(1)(a); single-family residences and middle housing in the R-DD Zone, to 50.07.003.14.a.ii(2); align with state minimum compliance requirements. 50.07.003.14.a.ii(5); 4. Clarify that conversions from detached single-family to middle LOC 50.07.003.14.a.ii(1)(b) housing are classified as ministerial development in the R-DD Zone, to align with state minimum compliance requirements. EXPANSION OF NONCONFORMING STRUCTURES AMENDMENTS (LOC Chapters 50.01, 50.05, 50.06) ITEM TITLE CODE SECTION(S) 1. Specify that provisions related to the damage and reconstruction LOC 50.01.006.4 of nonconforming structures also apply to middle housing. 2. Revise provisions for nonconforming lots to allow for duplex LOC 50.01.006.5.a construction, but not to allow the construction of other middle housing types, on nonconforming lots, to align with state minimum compliance requirements. 3. Clarify that, for additions to single-family dwellings that result in the creation of middle housing, building design standards may 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 12 apply only to the newly-added portion(s) of the structure, and that existing non-conforming portions of the structure are exempted, within the following sections: 1. LGVCO Remodeled Buildings, Building Expansion, and LOC 50.05.007.3.c.ii(7) Site Improvements standards; and 2. Residential Zones Structure Design Applicability LOC 50.06.001.2.a.iv standards. 4. Clarify that internal remodels and conversions of existing single- LOC 50.06.001.2.a.iii family dwellings that result in the creation of middle housing are exempted from general building design standards. The testimony before the Commission focused on a now-modified portion of Design and Dimensional Standard Item #20, to modify front porch design standards in the R-6 Zone to not scale by the number of dwelling units, to align with state minimum compliance requirements: The Commission received oral testimony from Carole Ockert (Exhibit G-007) on behalf of the First Addition Neighbors— Forest Hills Neighborhood Association (FAN-FH). Ms. Ockert's testimony contended that the proposed code language to modify front porch design standards in the R-6 Zone to no longer scale by the number of dwelling units did not maintain the original intent of those standards to prohibit large obstructions from being located within the required front porch (Exhibit G-007). Ms. Ockert proposed language to address this concern that would require that front porches in the R-6 Zone be unobstructed on the side of the porch that faces the narrow street frontage, with an exception provided for railings. Code amendment language proposed by FAN-FH also suggested that a maximum railing height be established of, "up to 3 ft. in height... or the State mandated railing height for that project, whichever is higher." The Commission found that large obstructions located within the front porch can have a detrimental impact on neighborhood character. The existing front porch standards in the R-6 Zone were adopted to maintain First Addition's traditional streetscape by requiring sheltered main entries oriented towards the narrow/ numbered streets. The Commission found that this intent can be maintained, while still complying with state requirements that design standards not scale by the number of dwelling units, by adding language to the standard that more directly addresses front porch structural elements. With respect to the issue of railing height, the Commission noted that there are minimum railing (or "guardrail") heights established in the building code that may conflict with a maximum railing height of 3 feet. For example, railings required under the residential building code are subject to a minimum height of 36 inches; residential structures containing home-based businesses that allow customers to visit are regulated under the commercial building code, where required guardrails are subject to a minimum height of 42 inches. The Commission found that a maximum railing height should provide builders with some flexibility to design railings without mandating a specific height, and a maximum 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 13 railing height can be established that is a few inches higher than the minimum 42-inch railing height required for residential structures containing home-based businesses that allow customers to visit. Given that building code standards are subject to change, the Commission concluded that this code section should reference the building code itself while establishing the maximum height for railings in the R-6 front porch standards at 44 inches, or the minimum height required under the building code, whichever is greater. Additionally, staff received clarification from DLCD following the date of the Public Hearing regarding the maximum number of cottages that can be required in a cottage cluster (General Item #6). This prompted the Commission to direct staff to add language to the code amendments that establishes a maximum number of cottage clusters per lot: The Commission received communication from DLCD staff clarifying that provisions to establish a maximum number of cottages on a lot would be compliant with Division 46 (Exhibit F-2): A maximum number of cottages on a lot is acceptable for a large city to establish through the establishment of a maximum number of cottages per courtyard(at least eight) and maximum number of courtyards per lot. Effectively, this could result in as few as eight cottages and one courtyard per lot... General Item #6 included provisions stipulating that cottage clusters are subject to a minimum of five and a maximum of eight dwelling units, consistent with state minimum compliance requirements. City Council directed staff to set the minimum number of units for a cottage cluster at five as a means of differentiating requirements for cottage clusters from other forms of detached middle housing, which is consistent with previous Council direction to not permit detached quadplexes and avoids confusion with any potential future allowances of detached quadplexes. However, the recommended Code Amendments in Attachment 2 (dated 03/07/22) of proposed Ordinance 2892 were silent on the number of cottage clusters or common courtyards permitted on each lot. The Commission found that establishing a maximum number of cottage clusters per lot would encourage cottage cluster developments that are more consistent with existing neighborhood character. If the code continued not to specify a maximum number of cottage clusters per lot, larger lots could potentially contain multiple cottage cluster developments. As an example, certain lots could be able to feasibly "fit" up to three cottage clusters, each centered around a separate common courtyard, which could accommodate the development of 15 to 24 cottage dwelling units on a single lot (depending on the size and physical constraints of the site). The Commission finds that developments of this scale require more review than a typical ministerial decision, as the development could begin to resemble a "miniature subdivision" without requiring a land division to be approved through a minor development process. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 14 The Commission concluded that a maximum of one cottage cluster per lot would be most responsive to the Council directive to develop code amendments that both comply with Division 46 and are consistent with the community's sense of place, neighborhood character, and livability. The Commission noted that the guidance from DLCD includes language specifying that the City can establish a maximum number of cottages per lot through the indirect mechanism of establishing a maximum number of cottages per courtyard in combination with a maximum number of common courtyards per lot (Exhibit F-2). The Commission found that it is appropriate to implement a maximum number of cottages per lot through the establishment of a maximum number of common courtyards per lot (in combination with the proposed maximum number of eight cottages per cottage cluster). The Commission also found that for the public's and staff's awareness of the "one cottage cluster with one courtyard" maximum, and thus for proper implementation the DLCD's suggested indirect mechanism, this should also be stated directly in the Residential Use Table. Accordingly, the Residential Use Table (Table 50.03.002-1) and the use-specific standards for cottage clusters in LOC 50.03.003.1.d.i(1) [Design and Dimensional Standard Item #1] are modified per the Planning Commission Recommended Version of the code amendments in Attachment 2 (dated 05/09/22) of proposed Ordinance 2892. FISCAL IMPACT None RECOMMENDATION Staff recommends that the City Council tentatively approve LU 22-0007 as recommended by the Planning Commission, and direct staff to return on June 7, 2022 with a final version of Ordinance 2892, including findings and conclusions. EXHIBITS A. Draft Ordinances A-1.1 Draft Ordinance 2892, 5/9/22 Attachment 1: Reserved for City Council Findings (not included) Attachment 2: Community Development Code Amendments, 5/9/22 (Supersedes version dated 4/18/22) B. Findings, Conclusions and Order B-1 Planning Commission Findings, Conclusions and Order, 5/9/22 (see Attachment 2 of Ordinance 2892 dated 5/9/22) C. Minutes C-1 Planning Commission — Public Hearing 4/11/22 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 15 D. Staff Memos & Reports D-1 Planning Commission Staff Report, 3/7/22 D-2 Supplemental Staff Memo, 4/1/22 E. Graphics/Plans [No current exhibits] F. Written Materials F-1 Email from DLCD Staff, 3/9/22 F-2 DLCD Answers to LO Questions, 4/14/22 F-3 DLCD HB 2001 Findings Guidance F-4 MHCAC Key Issues Summary Memo, 11/3/21 G. Public Testimony G-001 S-Clark, dated 3/9/2022 G-002 R-Mullen, dated 3/28/2022 G-003 B-Miles, dated 4/10/2022 G-004 R-Ervin, dated 4/11/2022 G-005 S-Labhard, dated 4/11/2022 G-006 C-Miller, dated 4/11/2022 G-007 C-Ockert, First Addition Neighbors— Forest Hills, dated 4/11/2022 Staff reports and public meeting materials can be found by visiting the project webpage. Use the link below to visit the City's "Project" page. In the "Search" box enter LU 21-0057 then press "Enter": https://www.ci.oswego.or.us/all-projects 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city