Agenda Item - 2022-06-27 - Number 07.1 - Staff Memo 06/15/22 PCWS-1 w-Attach (PP 22-0005) MEMORANDUM
¼ wow
4EG1'
(
TO: Planning Commission/Commission for Citizen Involvement
FROM: Erik Olson, Senior Planner
SUBJECT: House Bill 2003 Work Session #1
DATE: June 15, 2022 MEETING DATE: June 27, 2022
EXECUTIVE SUMMARY&ACTION REQUESTED
This memo provides background on the Commission's upcoming work session scheduled for
June 27, 2022, which will include a presentation from staff regarding a proposed work plan to
comply with the requirements of House Bill 2003, enacted by the State Legislature in 2019 (HB
2003). The bill requires cities to analyze what housing is needed for current and future residents
through a Housing Needs Analysis (HNA), and to adopt a Housing Production Strategy (HPS) that
outlines what actions the City will take to address the needs identified.
The State Department of Land Conservation and Development (DLCD) has established a timeline
for cities to comply with HB 2003. The City of Lake Oswego is required to update its HNA by
December 31, 2023, and to complete an HPS by December 31, 2024. The City Council prioritized
this work as part of its 2022 goals and initiatives, which included attaining compliance with HB
2001 (Middle Housing), completed earlier this year, and HB 2003.
Staff has drafted a multi-phased work plan to amend the City's Comprehensive Plan, with work
conducted simultaneously on the HNA and HPS from approximately October 2022 through July
2024. The purpose of the July 27 work session is for the Commission to provide guidance to
staff on the proposed work plan to comply with the requirements of HB 2003 prior to issuing a
request for proposals (RFP) to solicit consultant services to assist with the work.
BACKGROUND
House Bill 2003
HB 2003 was adopted by the Oregon Legislature in 2019, concurrently with HB 2001, in order to
help local jurisdictions meet the housing needs of residents throughout the state (see
Attachment B). The bill requires Oregon cities with over 10,000 residents to analyze their
future housing needs, including the needs of existing and future residents, through an HNA, and
to develop strategies designed to promote the development of such needed housing through
503.635.0290 380 A Avenue PO BOX 369 Lake Oswego, OR 97034
www.ci.oswego.or.us
Page 2
an HPS. The bill also launched a prototype Regional Housing Needs Analysis (RHNA) in order to
explore a statewide program where housing need is studied and addressed on a regional level;
the RHNA program is still under development by the Oregon Department of Land Conservation
and Development (DLCD). Historically, HNAs have been coordinated at the county level, except
that in the Portland metro area, Metro has provided regional population and employment
forecasts to guide local planning.
DLCD conducted rulemaking efforts related to HB 2003 the Land Conservation and
Development Commission (LCDC) has adopted relevant Oregon Administrative Rules (OAR 660-
008-0045 through -0070) in November 2020. These rules established the components that are
required to be included within an HPS Report, as well as the criteria for compliance for cities
that do not meet their identified housing need.
Housing Needs Analysis
An HNA is a document, incorporated into a city's comprehensive plan by ordinance, which
assesses housing need and capacity over the course of a 20-year planning horizon. An HNA
must include the inventory, determination, and analysis required under ORS 197.296 (Factors
to establish sufficiency of buildable lands within urban growth boundarv)(3):
(3) In performing the duties under subsection (2) of this section, a local government
shall:
(a) Inventory the supply of buildable lands within the urban growth boundary
and determine the housing capacity of the buildable lands; and
(b) Conduct an analysis of existing and projected housing need by type and
density range, in accordance with all factors under ORS 197.303 ("Needed
housing"defined) and statewide planning goals and rules relating to housing,
to determine the number of units and amount of land needed for each
needed housing type for the next 20 years.
The City last updated its HNA in 2013 as part of an update to the Comprehensive Plan; the HNA
is currently an appendix to the Complete Neighborhoods and Housing chapter of the
Comprehensive Plan (see Attachment A). Under the requirements of HB 2003, cities with over
10,000 residents within the Portland Metro Boundary are now required to update their Housing
Needs Analysis (HNA) every six years. Though it has been more than six years since the City
adopted its HNA, DLCD maintains a schedule (Attachment D) that requires Lake Oswego to
adopt an updated HNA by December 31st, 2023.
Staff intends to issue an RFP for consultant services to assist with the technical work, which will
include a projection of housing needs, an inventory of residential buildable lands, an analysis of
residential development capacity, and the adoption of a final HNA into the City's
Comprehensive Plan (see Attachment F).
503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034
www.ci.oswego.or.us
Page 3
Housing Production Strategy
After the HNA has been updated, HB 2003 requires that cities then proceed to adopt an HPS
within one year of the date of HNA adoption. The HPS must identify a set of specific tools,
actions, and policies that the City will utilize in order to address the housing needs identified in
the HNA, as well as a timeline for adopting and implementing each strategy.
As outlined in Attachment C, there are five major components of an HPS:
1. Contextualized Housing Need— Identify the relevant social and demographic trends,
existing adopted measures, market conditions, barriers to housing, and housing
needs of underrepresented populations;
2. Engagement—Conduct meaningful engagement with both consumers and
producers of needed housing;
3. Strategies to Meet Future Housing Need—Outline the strategies proposed to meet
housing need, including a timeline for adoption, a timeline for implementation, and
the anticipated depth and breadth of the impact of the strategies;
4. Achieving Fair and Equitable Housing Outcomes— Describe how the proposed
strategies will achieve equitable outcomes with respect to location /transportation,
fair housing, housing choice, homelessness, opportunities for affordable housing,
and gentrification /displacement; and
5. Conclusion—Address any opportunities, constraints, or negative externalities
associated with adoption of the elements of proposed strategies, provide a detailed
list of actions to implement the strategies, and describe which metrics will be used
to measure progress.
The HPS review process will be managed by DLCD, who will review and approve an HPS based
on the accuracy and sufficiency of the strategies being proposed, based upon the following
factors:
• Unmet housing need;
• The proportion of households identified as severely rent-burdened;
• Recent housing development;
• Recent adoption of an HPS or implementation of actions therein;
• City response to addressing needs of those experiencing homelessness;
• Increased access to housing opportunity;
• Elimination of barriers to fair and equitable housing options; and
• Other relevant attributes that the Oregon Land Conservation and Development
Commission deems to be relevant.
Cities are also required to provide updates to DLCD at "mid-term checkpoints" every three
years in order to evaluate the progress and effectiveness of their HPS. This process will ask
cities to reflect upon which strategies were successful, which were not successful, and to
503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034
www.ci.oswego.or.us
Page 4
identify ways for cities to modify their strategies to ensure housing needs are adequately being
addressed.
To help cities as they produce HPS Reports for compliance with HB 2003, DLCD created a
guidance document containing a list of potential housing production strategies that
jurisdictions can select from in order promote housing production within their community (see
Attachment E). The strategies in this document are broken out into distinct categories for easy
reference, ranging from zoning and code changes to financial incentives, financial resources,
reducing regulatory impediments, tax exemption and abatement, and securing land for needed
housing.
PROPOSED WORK PLAN
Staff has drafted a multi-phased work plan in order to amend the City's Comprehensive Plan to
comply with HB 2003 while meeting the deadlines mandated by the state (see Attachment F).
The proposed work plan begins with the issuance of an RFP in August of this year, in order to
select a consultant to commence work in October 2022. The selected consultant would then
work with City staff to initiate the "project kickoff" process, including a kickoff meeting with
critical project stakeholders, research and information gathering related to housing needs in
Lake Oswego, the refinement of a public involvement plan, and the creation of outreach
materials to keep the public informed of upcoming engagement opportunities related to HB
2003.
After the project kickoff, the consultant would proceed to work with City staff to conduct
extensive research, data gathering, and public outreach in order to produce a projection of
housing need, an inventory of buildable residential lands, an analysis of residential land needs,
and other components required to be included the updated HNA document. Staff would then
bring the draft HNA forward for public hearings at the Planning Commission and City Council in
order to ensure that the HNA is adopted into the City's Comprehensive Plan before December
31St, 2023.
The project would transition towards the development of an HPS in late 2023, starting with the
identification of different housing strategy alternatives available to the City in order to address
the housing needs identified in the HNA. These alternatives would be refined through
continued public outreach and engagement, which will then guide the development of a draft
HPS Report for City consideration. The HPS would then be brought forward to public hearings at
the PC and City Council in order to ensure that it is adopted into the City's Comprehensive Plan
within less than a year of the most recent HNA's adoption.
As another component of this process, staff has recommended that City Council appoint an Ad-
Hoc Advisory Committee to provide high-level guidance to the Planning Commission and City
Council as they work to identify critical housing needs and recommend strategies to address
them. Staff suggests that a Housing Strategy Advisory Committee (HSAC) be comprised of a
representative group of elected and appointed officials including members of City boards and
503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034
www.ci.oswego.or.us
Page 5
commissions, housing producers, and housing consumers within Lake Oswego, with a specific
focus on equity outcomes from the City's housing work—including meeting the needs of low-
income communities, communities of color, people with disabilities, and other state and
federal protected classes (as defined in OAR 660-008-0050(3)(d)(C)). The committee would
meet regularly between October 2022 and March 2024 to review and provide feedback on
consultant work products.
Staff also proposes regular "check-ins" with the Commission and City Council prior to the
consideration of a draft HNA at public hearings, as well as "check-ins" in early 2024 prior to the
consideration of a draft HPS Report. These meetings will provide the Commission with several
opportunities to refine policy direction relevant to the identification of housing needs and the
development of housing production strategies, and will allow the Commission to receive more
updated guidance from City Council in order to better inform more detailed decision-making
later in the process.
ATTACHMENTS (LINKS)
A. City of Lake Oswego Housing Needs Analysis, 03/19/2013, click here
B. Enrolled House Bill 2003, 06/30/2019
C. Housing Production Strategies Open Forum Q&A, 02/23/2021
D. Housing Capacity Analysis Update Schedule, 01/04/2022
E. Housing Production Strategy Program - List of Tools, Actions, and Policies, 02/14/2022
F. HB 2003 Proposed Work Plan and Schedule, 06/08/2022
To view these documents and other documents in the public records file, visit the Planning
Project webpage:
https://www.ci.oswego.or.us/planning/pp-22-0005-housing-needs-and-production-strategies
503.635.0290 380 A Avenue PO Box 369 Lake Oswego, OR 97034
www.ci.oswego.or.us
EXHIBIT 4
ORDINANCE 2640
City of Lake Oswego
Housing Needs Analysis
June 26, 2012
Updated March 19, 2013
--.—, cif LAKE
OSWEGO
OREGON
03/19/13 Exhibit 4/Page 1
PP 22-0005 ATTACHMENT A/PAGE 1 OF 82
March 19, 2013 Update
03/19/13 Exhibit 4/Page 2
PP 22-0005 ATTACHMENT A/PAGE 2 OF 82
March 19, 2013 Update
Acknowledgements
The City appreciates grant funds received from the State of Oregon Department of Land Conservation
and Development(DLCD)for technical consultant assistance to complete this document.
We thank the following citizens for their dedicated work on this topic.
Comprehensive Plan Citizen Advisory Committee:
Councilor Sally Moncrieff, Chair
Katie Abbott
Dorothy Atwood
Tom Brennan
Christopher Clee
Doug Cushing
Tom Fahey
Bill Gaar
Nancy Gronowski
Liz Hartman
Jim Johnson
Tim Mather
Bob Needham
Teri Oelrich
David White
Goal 9 & 10 Work Group:
Tom Brennan
Doug Cushing
Julia Glisson
Jon Gustafson
Liza Hartman
Councilor Sally Moncrieff
Dan Vizzini
Planning Commission:
John Gustafson, Chair
Lynne Paretchan, Vice Chair
Puja Bhutani
Julia Glisson
Jim Johnson
Russell Jones
Todd Prager
Jeff Gudman, Council Liaison
City Staff:
Dennis Egner, AICP, Assistant Planning Director
Sidaro Sin, LEED AP, Senior Planner
Sarah Selden, Associate Planner
Laura Weigel, AICP, LEED AP, Associate Planner
Jane Blackstone, Economic Development Manager
Debra Andreades, AICP, Senior Planner
Consultants:
Kirstin Green, AICP, Principal Cogan Owens Cogan
Steve Faust, AICP, Senior Planner, Cogan Owens Cogan
Todd Chase, AICP, LEED AP, FCS Group
This document updates and builds upon the work the Draft Housing Needs Assessment created by
Winterbrook Planning and ECONorthwest in 2009-2010.
03/19/13 Exhibit 4/Page 3
PP 22-0005 ATTACHMENT A/PAGE 3 OF 82
March 19, 2013 Update
TABLE OF CONTENTS
Executive Summary 5
Introduction: Background and Context 9
Requirements 9
Vision and Goals (Local Aspirations) 10
Demographic and Population Overview 11
Demographic Trends and Forecasts 11
Housing Sales and In-Migration Trends 17
Population Forecast 21
Housing Land Supply and Capacity Analysis 21
Buildable Land Inventory 22
Redevelopment Analysis 24
Housing Needs Analysis 26
Housing Requirements 26
Comparison of Residential Capacity and Projected Demand 29
Future Needed Housing Types and Land 29
Summary and Policy Options 32
Implementation Strategies 32
Demographic Trends 32
Vacant Land Supply/Redevelopment 33
Metropolitan Housing Rule 33
Other Housing Strategies for Consideration 34
APPENDIX A. Housing Attainability Analysis for Lake Oswego USB 35
APPENDIX B. Federal Poverty Thresholds 36
APPENDIX C. Options for Providing New Dwellings within Lake Oswego USB 37
03/19/13 Exhibit 4/Page 4
PP 22-0005 ATTACHMENT A/PAGE 4 OF 82
March 19, 2013 Update
EXECUTIVE SUMMARY
This report provides an evaluation of Lake Oswego's 20-year housing needs to inform the update of
the City's Comprehensive Plan. Specifically, it provides the technical background to assist the City
and community in developing policies that will implement the community's vision for 2035 while
complying with state housing goals and requirements. This report was originally drafted during winter-
spring 2011 and was updated in June 2012 primarily to reflect most recent Census information and
2012 median family income levels. The report was updated again in March 2013 to reflect
consistency with the Metro adopted 2035 forecast. The Housing Needs Analysis will be adopted by
reference when the Comprehensive Plan is adopted by ordinance in 2013, and serve as a factual
basis for goals and policies.
Lake Oswego's draft vision for Complete Neighborhoods and Housing states:
We have a wide variety of neighborhoods with high quality, attractive and compatible housing
that serves a range of ages, incomes and households. Our distinct and walkable neighborhoods
contribute to the city's small town feel. Mixed-use districts enhance adjacent residential areas by
providing access to quality jobs, housing, transit, entertainment, services and shopping. Higher
density housing is located strategically and sensitively, including along transportation corridors and
town centers to preserve the character of our existing neighborhoods.
The State Goal for Housing states that:
Buildable lands for residential use shall be inventoried and plans shall encourage the availability of
adequate numbers of needed housing units at price ranges and rent levels which are commensurate
with the financial capabilities of Oregon households and allow for flexibility of housing location, type
and density.
Demographic and Housing Forecast
To meet both local and state goals, this document looks at population projections and demographic
trends, along with Lake Oswego's housing trends. It then evaluates the current inventory of buildable
land, which includes land that is vacant, partially-vacant (could be divided), and likely to redevelop
(more intensely developed) over the 20-year planning period. Next the report allocates the total number
of needed dwelling units to price ranges, dwelling types, and zoning categories to meet the needs of
area households. Finally the report reconciles the housing need with land supply, and describes
possible strategies to meet future needs along with implementing the community's vision and state
requirements.
In the fall of 2012, Metro completed its updated employment and housing forecast for 2035. Metro's
updated forecasts incorporate local input to make the forecast consistent with the work conducted as
part of the City's 2011 draft Housing Needs Analysis. The Metro numbers are slightly higher than the
Household Forecast described this report, however the difference of less than two hundred
households over twenty-five years is not significant enough to be of concern for planning purposes.
Updated City and Metro forecasts are shown on the following page. The Lake Oswego City Council
was presented with these forecasts along with the employment forecasts in September 2012, and on
October 9, 2012 accepted the forecasts listed below, which were presented in the October 9, 2012
Council Report. The Metro Council adopted this Metro forecast for households on November 29,
2012.
03/19/13 Exhibit 4/Page 5
PP 22-0005 ATTACHMENT A/PAGE 5 OF 82
March 19, 2013 Update
2010 2035 2010 -2035 Average
Units Estimate Projection Change Annual
Change
Population 43,094 51,000 8,006 320
City Forecast— 19,166 22,726 3,560 142
Households
Metro Forecast— 19,556 23,299 3,743 150
Households
According to U.S. Census estimates, the median age of Lake Oswego residents increased from 41.2
years in 2000 to 45.8 years of age in 2010. This is more than nine years older than the median age
of residents within the Portland Vancouver Metropolitan Statistical Area (36.7). As older Baby
Boomers tend to desire to remain in their current residence or community as long as possible, the
population over age 75 is expected to increase measurably over the coming decades, while the 24-55
cohort is projected to shrink. If trends continue, the younger population cohorts (age 5-14) are likely
to remain flat or experience negative growth.
Housing Land Supply
Lake Oswego's land area is designated primarily for residential use, with nearly 60% of the land
within the USB zoned for low-density residential development with minimum lot sizes of 7,500-15,000
sq. ft. Lake Oswego has a relatively new housing stock, with only 13% built prior to 1950, and 26%
built since 1990. The housing is primarily owner-occupied, though attached and multi-family housing
represented an increasing share of new development since 2000 (65%). Median home prices
reached their peak in 2005 and have since fallen an average of nearly 33%, to $338,100.
Lake Oswego has approximately 600 acres of vacant and part-vacant land, the large majority of
which fall into the part-vacant category, meaning they are at least 2.5 times the minimum lot size for
the zone, and could be divided to form additional lots. Over 90 percent of this land is located on lots
zoned for a minimum size of at least 7,500 sq. ft. The buildable land inventory also includes an
analysis of redevelopment potential on medium and high-density residential land, and on commercial
land where housing is a permitted use along with commercial uses (referred to in this document as
"mixed use" zones). This analysis examines where these zones have developed below their potential
capacity, and may add additional units in the future, assuming that properties have redevelopment
potential when the building value is up to 150% of the land value. The analysis demonstrated a large
capacity for new high-density units in mixed-use areas like Downtown and Lake Grove Village Center.
Including vacant, part-vacant, and redevelopable land, Lake Oswego's total buildable land inventory
could accommodate approximately 5,500 new units.
Housing Need
In addition to determining the total number of needed units based on population forecast, the State
requires jurisdictions to provide housing that is "commensurate with the financial capabilities of
Oregon households." This report used Clackamas County's demographics to demonstrate
attainability needs for future residents. Based on the County income distribution, Lake Oswego's
demographic trends and land supply, the following mix of housing types was estimated to meet future
needs:
03/19/13 Exhibit 4/Page 6
PP 22-0005 ATTACHMENT A/PAGE 6 OF 82
March 19, 2013 Update
Owner-Occupied Renter-Occupied All Dwelling
Dwelling Units Dwelling Units Units
Housing Tenure Distribution: 60.0% 40.0% 100%
Housing Unit/Type Distribution
Detached Large Lot SF (>5,000 sq.ft. lot size) 34% 4% 22.0%
Detached Small Lot SF "cottages" (<+5,000
sq.ft. lot size) 18% 5% 12.8%
Attached SF (Rowhouses, Secondary Dus, 30% 8% 21.2%
Zero Lot Line DUs)
Duplex/Triplex 10% 11% 10.4%
Multifamily (Apartments, Condos) 8% 72% 33.6%
Total 100% 100% 100%
Conclusion
The results of the housing analysis (see Table 20, p. 29) indicate that the Lake Oswego Urban
Services Boundary has an adequate amount of vacant and part-vacant, and redevelopable land area
to meet the 2035 forecasts for its projected housing needs. While the low-density dwellings can be
accommodated on vacant and part vacant land, the community will need to rely on redevelopment in
existing medium- and high-density residential zones and mixed-use zones to meet the projected need
for smaller and attached housing types. In order to realize the housing redevelopment potential
described in this report, the City will need to develop new strategies such as incentives or
requirements for new development in the town centers to include a minimum number of housing
units. In addition, re-zoning and redevelopment of the area identified in the Foothills District Plan
provides an additional opportunity to create high-density housing units and may lower the needed
capacity for high-density housing units through redevelopment in mixed-use and high-density
residential areas.
In addition to supporting the right size and type of dwelling unit, the city may need to establish
strategies to help ensure a range of housing prices is maintained over time, in particular to provide
affordable housing for residents earning less than 80 percent of the median family income, which
represents 45 percent of Clackamas County households and 30 percent of Lake Oswego
households.
To meet the State's Metropolitan Housing Rule, Lake Oswego will be updating its development code
to ensure that all new housing may be developed under clear and objective review standards that do
not have the effect of discouraging housing or reducing the proposed housing density as allowed
through zoning.
Finally, the Housing Rule requires cities within the Metro Urban Growth Boundary to provide minimum
zoned density levels. Lake Oswego must provide for an average density of ten or more dwelling units
per net buildable acre. Lake Oswego has demonstrated compliance with this rule at each Periodic
Review since the City's original acknowledgement of its 1978 Comprehensive Plan. In 1994, DLCD
acknowledged Lake Oswego's average density at 10.2 dwelling units/acre. Consistent with the City's
03/19/13 Exhibit 4/Page 7
PP 22-0005 ATTACHMENT A/PAGE 7 OF 82
March 19, 2013 Update
last acknowledgement, Lake Oswego plans to demonstrate its average density "based on the
jurisdiction BLI at the time of acknowledgment as updated," which the City's preliminary analysis
shows continues to meet the 10 dwelling units/acre requirement.
The information in this report, along with a preferred land use scenario and updated population
forecast, will form the starting place of the community's Comprehensive Plan policy discussion for
Complete Neighborhoods and Housing, meeting Lake Oswego's housing needs for the next 20 years
by providing "high quality, attractive and compatible housing that serves a range of ages, incomes
and households."
03/19/13 Exhibit 4/Page 8
PP 22-0005 ATTACHMENT A/PAGE 8 OF 82
March 19, 2013 Update
INTRODUCTION: BACKGROUND AND CONTEXT
The City of Lake Oswego is conducting a Housing Needs Analysis (HNA) as required by its State of
Oregon Comprehensive Plan Periodic Review Work Program to update its long-range Comprehensive
Plan (Plan) by June, 2013. The City received grant funds from the Department of Land Conservation
and Development (DLCD) for technical consultant assistance to help update Goal 10 of the Plan. The
City also elected to take advantage of periodic review to create a comprehensive vision for the City to
guide policies, investments and associated implementing actions.
This HNA presents current and projected demographic and housing data within the statewide land
use planning regulatory context. The assessment of housing needs and development potential frames
preliminary implementation actions for the City to consider in order to provide housing opportunities
consistent with legal requirements and community aspirations.
Requirements
As part of its Comprehensive Plan update, the City must address its Plan chapter associated with
statewide land use planning Goal 10 (OAR 660-015-0000), its implementing/guiding measure, the
Metropolitan Housing Rule (OAR 660-007), and the Portland Metropolitan Area Functional Plan Title
1, Requirements for Housing and Employment Accommodation.
The intent of Goal 10 is to ensure provision for the housing needs of citizens of the State; and to
ensure that each city accommodates its fair share of regional housing needs. To this end, Goal 10
requires that cities demonstrate sufficient buildable land that could produce a range of housing types
appropriate to meet housing needs'.
State laws in this area require that a range of housing types must be accommodated within Lake
Oswego. Approval standards for needed housing types and densities must be "clear and objective"
and must not have the effect, individually or cumulatively, of discouraging needed housing through
unreasonable cost or delay.2
Statewide Metropolitan Housing Rule
In the Portland Metro region, Goal 10 is also implemented through the Metropolitan Housing Rule
(MHR), OAR Chapter 660, Division 007. The rule applies to the cities and three counties within the
Metro Urban Growth Boundary (UGB), including Lake Oswego, and addresses the Metro area as a
regional market in terms of housing demand and buildable land supply and establishes minimum
housing type and density standards for each city.
An important requirement of the MHR for Lake Oswego is to zone land to provide the opportunity for
new residential construction to consist of at least 50% attached housing, and to provide an overall
density of 10 or more dwelling units per net buildable acre3.
1 See ORS 197.295 through 197.314, also known as"the needed housing statutes."
2 See ORS 197.307(6): "Any approval standards, special conditions and the procedures for approval adopted by a local
government shall be clear and objective and may not have the effect, either in themselves or cumulatively, of discouraging
needed housing through unreasonable cost or delay." See also OAR 660-007-0015: "Clear and Objective Approval
Standards Required Local approval standards, special conditions and procedures regulating the development of needed
housing must be clear and objective, and must not have the effect, either of themselves or cumulatively, of discouraging
needed housing through unreasonable cost or delay."
3 OAR 660-007-(3) Multnomah County and the cities of Portland, Gresham, Beaverton, Hillsboro, Lake Oswego and Tigard
must provide for an overall density of ten or more dwelling units per net buildable acre. These are larger urbanized
jurisdictions with regionally coordinated population projections of 50,000 or more for their active planning areas, which
encompass or are near major employment centers, and which are situated along regional transportation corridors.
03/19/13 Exhibit 4/Page 9
PP 22-0005 ATTACHMENT A/PAGE 9 OF 82
March 19, 2013 Update
Metro's Urban Growth Management Functional Plan Title 1
Title 1 of Metro's Urban Growth Management Functional Plan is intended to promote efficient land use
for housing and employment within the Metro UGB. This Functional Plan is essentially a regional
Comprehensive Plan and seeks to assure that each city plans for adequate capacity of buildable land
to accommodate future housing. The primary tool for achieving this objective is for local governments
to determine the location of 2040 Growth Concept design types (town centers, main streets, corridors,
etc.) and incorporate these designations into adopted comprehensive plans. In 1999, the 2040 Growth
Concept design types were incorporated into the Lake Oswego Comprehensive Plan by Ordinance
2204.
Title 1 previously established dwelling unit capacity targets for each local government based primarily
on the amount of buildable land and refill assumptions for each jurisdiction. In 1998 and 2002, Metro
found that Lake Oswego met Title 1 capacity requirements. In December 2010, the Metro Council
adopted Ordinance 10-1244B, known as the "capacity ordinance." This ordinance replaced the
dwelling capacity target number with a "no net loss policy." Title 1 now requires the City to maintain
the existing dwelling unit capacity by ensuring that any proposed zone change does not reduce the
City's overall dwelling unit capacity.
The draft Metro Urban Growth Report (UGR) (December 2009) is currently being updated with an
expected completion date of December 2011. Lake Oswego will continue working with Metro toward a
coordinated local dwelling unit forecast for 2035 through their periodic review Plan update process.
Vision and Goals (Local Aspirations)
The City of Lake Oswego has prepared a draft 2035 vision statement which includes seven specific
action areas. Goal 10 is addressed by the Complete Neighborhoods and Housing action area, which
states:
We have a wide variety of neighborhoods with high quality, attractive and compatible housing that
serves a range of ages, incomes and households. Our distinct and walkable neighborhoods contribute
to the city's small town feel. Mixed-use districts enhance adjacent residential areas by providing access to
quality jobs, housing, transit, entertainment, services and shopping. Higher density housing is located
strategically and sensitively, including along transportation corridors and town centers to preserve the
character of our existing neighborhoods.
While Lake Oswego's vision for Complete Neighborhoods and Housing includes an aspiration to
accommodate a range of ages, incomes and households, demographic trends indicate an aging
population. The largest population cohort in Lake Oswego is the 45 to 64 year age group, compared
to Clackamas County and the Portland-Vancouver Metropolitan Statistical Area (MSA), where the 20
to 44 year old cohort is the largest. This suggests that people are remaining in or moving to Lake
Oswego to retire. This trend indicates a need to plan for housing oriented toward older age groups
that typically desire well-located, safe, smaller units with lower property maintenance requirements.
For more information on the needs of this age group, see A Community Vision for Aging in Lake
Oswego, Report on the City of Lake Oswego 50+ Community Dialogues.
Lake Oswego also has relatively few younger, working-age families when compared with Clackamas
County and the region. Discussions with the Comprehensive Plan Citizen Advisory Committee and
the community as a whole have indicated a specific desire to attract more young families with
children, which are vital to the city and schools in particular.
03/19/13 Exhibit 4/Pa e 10
PP 22-0005 ATTACHMENT A/PAGE 10 OF 82
March 19, 2013 Update
DEMOGRAPHIC AND POPULATION OVERVIEW
Demographic Trends and Forecasts
Lake Oswego is located in the desirable inner-urban area within the greater Portland region. This
location is considered advantageous for accessing downtown Portland and its surrounding
communities within a manageable commute. Downtown Lake Oswego's ongoing renaissance and
the city's excellent parks, schools and community facilities continue to serve as attributes that make it
a desirable place to live, work and visit.
As Figure 1 indicates, the U.S. Census Bureau's 2010 census count estimated there to be
approximately 36,619 people in the City of Lake Oswego'', which is an increase of 1,341 people since
the 2000 U.S. Census.5 This figure also demonstrates the rate of growth by decade over the last
century, which slowed considerably in the last ten years. For comparison purposes, Figure 2 shows
the more recent twenty-year growth trend and population estimates prepared by Portland State
University, which indicate a population of 36,845 within the Lake Oswego city limits as of July 1, 2010.
Figure 1. Lake Oswego Historic Population Trends, 1920-2010
City of Lake Oswego Population Trends, 1920-
2010 (source: U.S. Census)
40,000
36,61'y
35,000 l c,278
30,000 30,570
25,000 22,527
20,000
14,573
15,000
10,000 8,906
3,316
5,000 -1,816 1
1,285 1,727
1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Source: U.S. Census;compiled by FCS Group.
4 The Census area is slightly larger than the city limits,but smaller than the urban services boundary(USB).
a Limited Census 2010 information was available at the conclusion of the grant period.Where information was available,it was included.
03/19/13 Exhibit 4/Pa e 11
PP 22-0005 ATTACHMENT A/PAGE 11 OF 82
March 19, 2013 Update
Figure 2. Lake Oswego Recent Population Trends, 1990-2011
City of Lake Oswego Population Trends, 1990 - 2011
(source:PSU)
440,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1440 l941 1947 7493 1944 l' 1 I99r 7491 114'314 1999 7[INI 2001 704I1 J017.4 J0I14 ADS 211W Jtlfll • JI3[1R 2004 20111 2011
I City Pup_30,570 31,022 31,480j31,945 17,417 31,896.33.383 31.876 34,377I34.884!35.400 35,565 35,733 35.840 35.310 36,055 36,330 36325.36,570 36,755 35,845036,725
Source:Portland State University, Population Research Center;compiled by FCS Group.
Lake Oswego experienced a net gain of approximately 1,097 households since year 2000, with an
increase of 414 family households and 710 nonfamily households, which represents an increase in
the share of nonfamily households when compared to the 2006-08 Census data. Another notable
shift as indicated in Table 1 on the following page, is the decrease in average household size from
2000-2010, which indicates a recent trend when compared to the increase in household size that
occurred between 2000 and 2006-8.
More recent 2010 estimates by City of Lake Oswego Long Range Planning staff for the Lake Oswego
USB indicate a relatively lower ratio of population to total dwelling units. Using GIS data, City staff
estimates that there were 43,09 people and 19,166 dwelling units in the Lake Oswego Urban Service
Boundary (USB) in 2010; with a ratio of people per dwelling unit of 2.25. The fact that this ratio is
lower than the average household size estimate reported by the U.S. Census is to be expected, since
the U.S. Census tallies only occupied dwelling units and population that resides in households (not
group quarters) population.
03/19/13 Exhibit 4/Pa e 12
PP 22-0005 ATTACHMENT A/PAGE 12 OF 82
March 19, 2013 Update
Table 1. Lake Oswe•o Demo•raphic and Socio-economic Trends
Census 2000 Census 2010 Change
Population 35,237 36,619 1,382
Group Quarters Population 163 222 59
Households 14,796 15,893 1,097
Family Households 9,665 10,079 414
Nonfamily Households 5,104 5,814 710
Average Household Size 2.38 2.29 (0.09)
Average Family Size 2.95 2.88 (0.07)
Median Age 41.2 45.8 4.6
Census 2000 ACS 2008-10 Change
Median Household Income (unadjusted) $71,597 $81,097 $9,500
Median Family Income (unadjusted) $94,587 $105,722 $11,135
Per Capita Income (unadjusted) $42,166 $47,704 $5,538
Median Household Income (inflation adjusted)* $98,883 $86,977 ($11,906)
Median Family Income (inflation adjusted)* $130,634 $113,387 ($17,247)
Per Capita Income (inflation adjusted)* $58,235 $51,163 ($7,073)
*Income data were adjusted to current June 2012 dollars by FCS Group based on the U.S. Bureau of Labor
Statistics, inflation calculator.
Source:U.S. Census, 2000 and 2010 and 2008-2010 American Community Survey, data compiled by FCS Group
According to U.S. Census estimates, the median age of Lake Oswego residents also increased from
41.2 years in 2000 to 45.8 years of age in 2010. This is more than nine years older than the median
age of residents within the Portland Vancouver MSA region (36.7). In fact, Lake Oswego has more
residents over age 65 than all other cities in the greater Portland region, with the exception of King
City.
Table 2 indicates that Lake Oswego continues to retain and attract upper-income households. The
portion of all households with annual income levels of more than $100,000 increased slightly from
35% to 38% from 2000 to 2008-10. While the portion of households earning below $75,000 fell
slightly, this income level (just above the 2012 Median Family Income for Clackamas County) still
represents 47% of all Lake Oswego Households.
Table 2. Households b Income Level, Lake Oswe•o
Income Cohort Census 2000 ACS 2008-2010 Change
Number Dist. % Number Dist.% Number Percent
less than $14,999 861 5.8% 770 4.9% (91) -0.9%
$15,000 to $34,999 2,338 15.8% 1,951 12.5% (387) -3.3%
$35,000 to $74,999 4,472 30.2% 4,615 29.5% 143 -0.7%
$75,000 to $99,999 1,931 13.0% 2,359 15.1% 428 2.1%
$100,000 to $149,999 2,550 17.2% 2,361 15.1% (189) -2.1%
$150,000 to $199,999 1,090 7.4% 1,602 10.2% 512 2.8%
$200,000 or more 1,582 10.7% 1,989 12.7% 407 2.0%
Total 14,824 100% 15,647 I 100% 823 -0.1%
Source:2000 U.S. Census data income levels expressed in 1999 dollars, and 2008-2010 U.S. Census American
Community Survey, income levels expressed in 2009 dollars.
03/19/13 Exhibit 4/Pa e 13
PP 22-0005 ATTACHMENT A/PAGE 13 OF 82
March 19, 2013 Update
According to the U.S. Census 2008-2010 American Community Survey, Lake Oswego's average per
capita income was $47,704, median household income was $86,977, and median family income was
$113,387 in 2012 dollar amounts.
While average income levels in Lake Oswego have increased in nominal dollars, inflation adjusted
income levels have fallen since 2000. This trend towards lower real income levels has been well-
documented in the Portland region and nationally, and is primarily attributed to the shrinking income
levels in middle-income households and higher costs of living for items such as housing,
transportation, food, energy and health care.
Poverty levels in Lake Oswego are relatively low in the region, however according to the U.S. Census
2006-2008 American Community Survey, Lake Oswego still has an estimated 2,602 people in
poverty.
A closer look at population age cohort patterns for Lake Oswego reflects the aging "Baby Boom"
population, defined as those born between 1946 and 1965. As indicated in Figure 3 and Table 4,
population cohorts that experienced the most significant increase are Baby Boomers within the 55-64
and 65-74 age ranges. These Baby Boomers age 55-74 recorded a combined gain of 4,315 people
since 2000.
As summarized in Figure 3 and Table 4 below, since 2000 there have been significant increases in
the 55-64 and 65-74 age cohorts, with increases of 70% and 113% respectively. The only other
increase occurred among the 15-19 age cohort with a minor 15 person gain. The 20-54 age cohorts
experienced the most significant population decline, followed by the birth-age 14 cohort.
Figure 3. Population Age Cohort Trends, Lake Oswego, 2000 and circa 2010
Population Pyramid for Lake Population Pyramid for Lake
Oswego, 2000 Oswego, 2010
%of total pop.;source: U.S. Census %of total pop.;source: U.S. Census
Age 75 + 2_1 5.1 female Age 75 + 2.7 4.9
female
65 to 74 2.5 1.6 % 65 to 74 4.0 4.6 %
55 to 64 5.2 5.3 55 to 64 8.1 9.1
45 to 54 9.9 10.v 45 to 54 8.2 9.6
25 to 44 12 4 14.3 25 to 44 10,0 11.0
20 to 24 2_0 2.2 20 to 24 1.9 1.'3
15 to 19 3.7 1.2 15 to 19 3A 1.2
10 to 14 4.2 3.7 10 to 14 3.9 ;.5
5 to 9 3.5 3.4 5 to 9 3.0 2_8
Age 5 - 2,6 2.4 Age 5 - 21 2.1)
03/19/13 Exhibit 4/Pa e 14
PP 22-0005 ATTACHMENT A/PAGE 14 OF 82
March 19, 2013 Update
Table 4. Lake Oswe•o Area Po•ulation A•e Cohort Trends
Percent
Age Cohort(years) Census 2000 Census 2010 Change Change
under 5 1,746 1,489 (257) -15%
5 to 9 2,426 2,129 (297) -12%
10 to 14 2,810 2,694 (116) -4%
15 to 19 2,424 2,439 15 1%
20 to 24 1,470 1,403 (67) -5%
25 to 44 9,441 7,697 (1,744) -18%
45 to 54 7,267 6,548 (719) -10%
55 to 64 3,676 6,302 2,626 71%
65 to 74 1,477 3,166 1,689 114%
75+ 2,541 2,752 211 8%
Total 35,278 36,619 1,341 4%
Source: U.S. Census, 2000 and 2010. Lake Oswego area is slightly larger than city limits but smaller
than the Urban Service Boundary.
Figure 4. Lake Oswego Population Trends and Forecasts
Source:U.S. Census(trend)and FCS GROUP(forecast)
100%
90% -
80% -
75+
70% -Y 65 to 74
• 55 to 64
60% -
• 45 to 54
50% - ------ - -- - 4 25 to 44
II 20 to 24
40%
• 15 to 19
30% - 1 10 to 14
■ 5to9
20%
w . ■ under 5
10% - - — ". t
`LOGO ,y0ti� e rLcS.' 0'10� ,MCP `e �0.5
4.`'��2.� F0- <(0 <(0 4°�� (<0
03/19/13 Exhibit 4/Pa e 15
PP 22-0005 ATTACHMENT A/PAGE 15 OF 82
March 19, 2013 Update
Source:FCS Group.
As older Baby Boomers tend to desire to remain in their current residence or community as long as
possible, the population over age 75 is expected to increase measurably over the coming decades.
However, the younger population cohorts (age 5-14) are likely to remain flat or experience negative
growth.
Table 5. Lake Oswe•o Area Annual Historic Po•ulation Growth Rates
10-Year Trend Long-Term Trend
2000 to 2010 1990 to 2010
Number AAGR% Number AAGR%
Total Population 134 0.4% 302 0.9%
Male 33 0.2% 133 0.8%
Female 101 0.5% 169 1.0%
Age Cohort(years)
under 5 (26) -1.6% (14) -0.9%
5 to 9 (30) -1.3% 5 0.2%
10 to 14 (12) -0.4% 26 1.1%
15 to 19 2 0.1% 26 1.2%
20 to 24 (7) -0.5% 2 0.2%
25 to 44 (174) -2.0% (159) -1.7%
45 to 54 (72) -1.0% 101 1.9%
55 to 64 263 5.5% 188 4.7%
65 to 74 169 7.9% 58 2.3%
75+ 21 0.8% 69 3.6%
Source: US Census.AAGR=average annual growth rate.
A declining younger (school age) population is also evidenced by Lake Oswego School District
enrollment levels. After maintaining enrollment levels above 7,000 students between 1995 and 2001,
School District enrollment levels have declined over the past several years. Between 2001 and 2009,
total school district enrollment declined to 6,702 students. The most significant enrollment decline
occurred in the elementary school level, which lost 368 students over the 2001-2009 time period,
while the junior high school enrollment dropped by 110 students. This decline was countered by a
slight increase in high school enrollment of 26 students during this time period.
Current 10-year student enrollment forecasts prepared by the Lake Oswego School District range
from no growth (best case) to a loss of 342 students (most likely scenario) to a loss of 632 students
(worst case). The School District intends to have an updated forecast in December 2012.
Since housing demand is generally a function of population change and household size, it is important
to understand how changing demographics translate into evolving housing needs. As indicated in
Table 6A, U.S. Census estimates show the fastest growing segment of household formations in Lake
Oswego since 2000 has occurred among senior households, while the household segment with
members less than age 18 declined by 429 since 2000.
03/19/13 Exhibit 4/Pa e 16
PP 22-0005 ATTACHMENT A/PAGE 16 OF 82
March 19, 2013 Update
An analysis of marital status in Table 6A indicates that Lake Oswego is attracting and retaining single
(unmarried) households and is "losing" married households with children; which often occurs as kids
move away to college or for work, and the household becomes reclassified as "empty nesters." As
evidenced by the data shown in Table 6A, the city is still attractive to single-parent households, but
the number of married households with kids is declining.
Table 6A. Lake Oswe•o Area Household Formation Trends
Household Type Census 2000 Census 2010 Change
HHs with 1 or more<18 yrs 4,862 4,433 (429)
HHs with 1 or more 18 to 65 yrs 7,049 6,996 (53)
HHs with 1 or more>65 yrs 2,858 4,310 1,452
Total 14,769 15,739 970
Household Type Census 2000 Census 2010 Change
Married,w/Kids under 18 yrs 3,918 3,522 (396)
Married, no Kids 4,377 4915 538
Single, under age 65 2,958 3939 981
Single, over age 65 1,163 1,875 712
Other* 2,353 1,488 (865)
Total 14,769 15,739 970
*Includes non-related people living together.
Source: U.S. Census, 2000 and 2010, compiled by FCS Group.
Table 6B below also shows that renter households have a significant share of the total households
with children under age 18. This is an important consideration in the city's planning for future housing
types and desire to attract more families with school-age children.
Table 6B. Lake Oswego Households Tenure by Age of Related Children, 2010
Household Type Owner Renter Total
With Children Under 18 3,473 1,085 4,558
With Children under 6 497 284 781
With Children between 6-17 449 622 1,071
With no Children under 18 7,477 3,858 11,335
Total 10,950 4,943 15,893
Source: U.S. Census, 2000 and 2010 and 2008-2010 American Community Survey, data compiled
by FCS Group
Housing Sales and In-Migration Trends
The recent 2008-2009 economic recession created turmoil in the housing market for Lake Oswego, as
with most cities across the United States. Median home prices in Lake Oswego have fallen about
33% since hitting a peak of$502,000 in February 2008. Median sales prices in Lake Oswego were
$338,100 as of April 2012 according to Zillow.com, As indicated in Table 7, average home prices in
Lake Oswego recorded a significant 13.5% decline from one year ago, with the median sales price
now lower than West Linn.
03/19/13 Exhibit 4/Pa e 17
PP 22-0005 ATTACHMENT A/PAGE 17 OF 82
March 19, 2013 Update
Table 7. Median Home Sales Price Trends in Selected Markets
Year-Over Year
Market Location Median Sales Price Median Sales
Change,April 2011 Price
to April 2012
Lake Oswego -13.5% $338,100
West Linn 16.5% $353,800
I Tualatin 19.6% $337,900
I Beaverton -3.0% $209,000
I Portland 1.7% $252,800
Source:Zillow.corn
In 2010, Lake Oswego's housing prices on a per-square-foot of floor area basis exceed neighboring
jurisdictions in all price levels, with one exception in Portland. Average price/sq ft levels were higher
in Lake Oswego relative to other jurisdictions with the exception of Portland homes priced between
$350,000 and $500,000 as shown in tables Table 8 and Figure 5. Recent home sales in the Portland
market in the $350,000 to $499,000 price category were dominated by relatively new condominium
units with relatively small floor plans, hence the cost per square foot tends to exceed Lake Oswego in
this price category.
There are many reasons why a variation in sales price per square foot occurs, such as: relative
property taxes, quality of public education/schools; community image; and perceived quality of life.
Other factors, such as the relative age of housing structure and level of amenities also play a role in
the sales price per square foot. With regard to the homes priced above $1 million, many of the most
expensive homes in Lake Oswego are relatively new or rehabilitated dwellings with Mt. Hood Views
and/or Oswego Lake access; amenities that command price premiums.
Table 8. Average Home Sales Price Per SF of Floor Area in Selected Market Areas
Ave Home Sales Price Per SF of Floor Area in Selected Market Areas
Price Range Lake Oswego Portland West Linn Tualatin Beaverton
$349korless $166 $157 $153 $137 $133
$350.499k $159 $166 $150 $146 $138
$500-699k $209 $197 $162 $156 $156
$700.999k $233 $184 $148 $184 $177
$1M or more $358 $255 n/a n/a n/a
Lake Oswego Average Home Sales Prices Per SF Compared to:
Price Range Portland West Linn Tualatin Beaverton
$349k or less 106% 109% 122% 125%
$350.499k 96% 106% 109% 115%
$500-699k 106% 129% 134% 134%
$700.999k 127% 157% 127% 132%
1M or more 140% n/a n/a n/a
Source:Zillow.corn hosed on sample of actual housing sales over post 12 months;os
of March 31, 2010.
03/19/13 Exhibit 4/Pa e 18
PP 22-0005 ATTACHMENT A/PAGE 18 OF 82
March 19, 2013 Update
Figure 5. Average Home Sales Price Per SF by Price Range, March 2009 to March 2010
Average Home Sales Price Per Square Foot by Price
Range, March 2009 to March 2010 (source Zillow.com)
$400
$358
$350
$300
• Lake Oswego
$255
$250 yZ33 • Portland
$209 West$197 VVest Linn
$200 184 51l34
$166 $166 162 $177
157 $159 $150 $156 $156
$150 ■ Tualatin
$153$137 $146 0 14
$133 Beaverton
$100
$50
$-
$349k or less $350-499k $500-699k $700-999k $1M or more
Source:FCS Group.
One reason for the relatively high cost of Lake Oswego housing is the average age of the structure.
Lake Oswego's housing stock is relatively new in comparison to the Portland market. In Lake
Oswego, nearly 26% of the dwellings were built since 1990, while less than 17% of the inventory in
Portland was built since 1990. In Lake Oswego, only 13% of the housing inventory was built before
1950, whereas in Portland, 57% of the inventory predates 1950.
Lake Oswego housing is predominantly owner-occupied, with 64% of the total housing inventory
occupied by owners and 29% occupied by renters. However, the share of multifamily dwellings as a
percentage of the total housing inventory is increasing. As indicated in Figure 6 and Table 9, recent
increases in the housing inventory have been predominantly made up of multifamily structures
(apartments and condominiums) and single family attached (townhome) units, which together
accounted for 65% of the total housing inventory additions since 2000, according to U.S. Census
estimates.
03/19/13 Exhibit 4/Pa e 19
PP 22-0005 ATTACHMENT A/PAGE 19 OF 82
March 19, 2013 Update
Figure 6. Lake Oswego Housing Inventory Additions, 2000 to 2010 (Source: U.S. Census)
Mobile Home
1%
Single-Family
Detached
34%
Multi-Family
48%
iV_
Single-Family
Attached/
Plexes
17%
*Estimates for circa 2007 reflect data from the U.S. Census American Community Survey 2006-2008.
Table 9. Lake Oswe•o Housin• Characteristics
Census 2000 Census 2010 Change
Dwelling Units
Owner-Occupied 10,423 10,950 527
Renter-Occupied 4,346 4,943 597
Vacant* 972 1,102 130
Total Unit Count 15,741 16,995 1,254
Structure Type =KaiI.IuI.W4IlSle itaar41111aMti
Single-Family Detached 10,055 10,425 370
Single-Family Attached/Plexes 2,117 2,295 178
Multi-Family 3,470 3,984 514
Mobile Home 26 42 16
Total Unit Count 15,668 16,746 1,078
ISa i l it{.t.0lwll-GLN'P.1,l,l:iM ILI
Median Home Value $296,200 $535,300 $239,100
Median Gross Rent $839 $1,111 $272
*indicates that data was obtained from 2010 census
Source: U.S. Census, 2000 and 2010 and 2008-2010 American Community Survey, data compiled by FCS
Group
03/19/13 Exhibit 4/Pa e 20
PP 22-0005 ATTACHMENT A/PAGE 20 OF 82
March 19, 2013 Update
In light of the increase in seniors over the age of 65 and increase in married and single households
without kids, the desired mix of future housing demand will likely be strongest for relatively smaller two
bedroom dwelling units, including single family "cottages", multifamily apartments and low rise flats or
condominiums.
This report estimates about 10% of the population over the age of 75 will opt to live in assisted living
facilities. Given that assumption, the City will likely see a measured increase in the demand for senior
care assisted living facilities, but the vast majority of Lake Oswego Baby Boomers will opt to remain in
their current residence as long as possible to "age in place". A significant share may also opt to
relocate into smaller dwellings within Lake Oswego, if attainable housing alternatives exist.
Population Forecast
The population growth forecast for the Lake Oswego USB considered for this HNA are summarized in
Table 10. Base year (2010) housing counts reflect current Lake Oswego Planning Department staff
estimates for housing units within the Lake Oswego USB. Population 2010 base year estimates for
the Lake Oswego USB assume 2.25 people per occupied housing unit, based on Lake Oswego
Planning Department estimates.
For regulatory compliance, Lake Oswego is required to adopt a forecast"consistent" with that which
Metro establishes for Lake Oswego. At the time this report was originally developed in 2011, the most
recent long-term jobs and households forecast for the Lake Oswego area was adopted by the Metro
Council in 2005 (Metroscope Generation 2.3).The May 2011 draft of this report used two growth
forecasts to explore a range of options while Metro worked with local jurisdictions to update the
forecasts. In June 2012, the report was updated to be consistent with draft projections by Metro, and
the forecast range was narrowed to the single "Medium Growth Forecast" originally presented in the
May 2011 draft.
In the fall of 2012, Metro completed its updated employment and housing forecast for 2035, which
maintained consistency with the "Medium Growth Forecast" for households originally developed by
the City. Updated City and Metro forecasts are shown on the table below. The Lake Oswego City
Council was presented with these forecasts along with the employment forecasts in September 2012,
and on October 9, 2012 accepted the forecasts listed below, which were presented in the October 9,
2012 Council Report. The Metro Council adopted Metro forecast for households on November 29,
2012.
This forecast is based on Lake Oswego's capacity for future housing units on vacant, part-vacant and
redevelopable land among other trends and market assumptions.
Table 10. Summary of Growth Forecast
2010 2035 2010 - 2035 Average
Units Estimate Projection Change Annual
Change
Population 43,094 51,000 8,006 320
City Forecast— 19,166 22,726 3,560 142
Households
Metro Forecast— 19,556 23,299 3,743 150
Households
03/19/13 Exhibit 4/Pa e 21
PP 22-0005 ATTACHMENT A/PAGE 21 OF 82
March 19, 2013 Update
HOUSING LAND SUPPLY AND CAPACITY ANALYSIS
The housing demand and vacant buildable lands inventory (BLI) methodology in this section should
be consistent with the state Metropolitan Housing Rule (MHR) requirements. The following steps
were performed:
1. Calculated gross BLI of vacant and part-vacant residential-zoned land in Lake Oswego USB.
2. Removed environmental constraints and land for public facilities.
3. Determined minimum and maximum housing capacity allowed with current zoning on vacant
buildable lands.
4. Determined 20-year housing needs based on the growth forecast.
5. Compared dwelling demand forecast to dwelling capacity on vacant, part vacant and
redevelopment lands using current zoning.
6. Applied MHR requirements:
- Provide the opportunity for a 50/50 mix of attached and detached housing.
- Provide for an overall density of 10 dwelling units/acre for needed land.
- Provide types and densities for present and future area residents of all incomes.
Buildable Land Inventory
The City of Lake Oswego Planning Department estimates that the City has approximately 600 acres
of buildable lands in residentially designated zones, including approximately 77 acres of vacant land
and over 500 acres of part-vacant residentially zoned land as shown in Table 11. Part vacant land
may have a structure on it, but the footprint of that structure could easily allow for further residential
unit(s) on the site under current zoning. This analysis considered lots partially vacant if they were at
least 2.5 times the minimum lot size for the zone.
Table 11. Summary of Vacant and Part-Vacant Residential Buildable Land Inventory and
Expected Dwelling Capacity Levels
Residentially Designated Land and Buildable Land Inventory,
Lake Oswego USB
Total Area as Total
Zone/Plan Acres % of Vacant Part Vacant/
Designation within Total Acres Vacant Part Vacant
USB Land in Acres Acres
USB
R-0 225.7 2.7% 0.0 5.6 5.6
R-2 10.1 0.1% 2.2 0 2.2
R-2.5 3.2 <0.1% 0.4 0 0.4
R-3 166.6 2.0% 0.5 12.5 13.0
R-5 503.7 6.0% 4.4 18.1 22.5
R-6 104.2 1.2% 0.6 0 0.6
R-7.5 2122.2 25.2% 33.0 242.7 275.7
R-10 1921.8 22.8% 18.5 179.5 198.0
R-15 822.8 9.8% 17.7 80.5 98.2
Total I 77.3 I 538.9 616.2
Source: City of Lake Oswego, 2009.
Table 12 shows that the vacant land area is zoned to accommodate approximately 447 new dwelling
units under current zoning.
03/19/13 Exhibit 4/Pa e 22
PP 22-0005 ATTACHMENT A/PAGE 22 OF 82
March 19, 2013 Update
Table 12. Summary of Vacant Residential Buildable Land Inventory and Expected Dwelling
Capacity Levels
Maximum Maximum
Zone/Plan Vacant Allowed Allowed/
Designation Acres Density Permitted
(DU/Acre) Dwellings
R-0 0.0 34.0 0
R-2 2.2 28.5 63
R-2.5 0.4 28.5 11
R-3 0.5 12.9 6
R-5 4.4 8.7 38
R-6 0.6 7.3 4
R-7.5 33.0 5.8 191
R-10 18.5 4.4 81
R-15 17.7 2.9 51
Total 77.3 5.8 447
Source:City of Lake Oswego, Winterbrook Planning.
As shown in Table 13, Lake Oswego's current development opportunities on vacant and part-vacant
land are primarily concentrated among lower-density land use zone/plan designations. The part-
vacant land inventory is estimated to accommodate 1,708 net new dwellings under current land use
zone/plan designations.
Table 13. Summary of Part-Vacant Residential Buildable Land Inventory and Expected
Dwelling Capacity Levels
Maximum Dwelling Less Maximum
Zone/Plan Part Vacant Allowed Unit Cap Existing Net New
Designation Acres Density (Max) Dwelling Dwellings
(DUs/Acre) Units
R-0 5.6 34.0 191 44 147
R-2 0 28.5 0 0 0
R-2.5 0 28.5 0 0 0
R-3 12.5 12.9 162 33 129
R-5 18.1 8.7 158 43 115
R-6 0 7.3 0 0 0
R-7.5 242.7 5.8 1,409 631 778
R-10 179.5 4.4 782 332 450
R-15 80.5 2.9 234 145 89
Total 538.9 5.5 2,936 1,228 1,708
Source: City of Lake Oswego, January 2011.
Combining the number expected dwelling units on vacant land (447) and part-vacant land (1,708)
results in a dwelling capacity of 2,155 units.
03/19/13 Exhibit 4/Pa e 23
PP 22-0005 ATTACHMENT A/PAGE 23 OF 82
March 19, 2013 Update
Redevelopment Analysis
In order to better understand how many new housing units may be constructed on land within the
Lake Oswego USB, FCS Group and Lake Oswego Planning staff also estimated the potential number
of net new units that could reasonably be expected to redevelop in medium and high-density
residential and mixed-use zones.
The residential redevelopment analysis focuses on medium and higher density residential zones in
the USB (R-0, R-2, R-2.5, R-3, R-5) where there is capacity for additional units to be added through
redevelopment. The analysis includes lots with an assessed improvement value to land value ratio of
1.5 or less and tax lots over 0.20 acres (8,712 SF) in net buildable land area, which are considered
likely to redevelop by 2035. Environmental constraints were removed, and the maximum capacity
calculated based on net acreage by zone. Existing dwellings were estimated based on total
developed residential floor area (assuming an average of 1,250 square feet per dwelling unit) then
subtracted from the potential capacity to determine the net potential for additional units.
As shown in Table 14 below, the preliminary redevelopment analysis identifies the potential for up to
1,331 net new dwellings in medium and high-density residential zones.
Table 14. Summary of Redevelopment Potential in Medium and High-Density Residential Zones
Maximum
Max. Potential
Buildable Allowed Less DUs at Net New
Redevelopment DUs Per Estimated Existing DU
Zoning Acres Acre Existing DUs Zoning Capacity
R-0 17.4 34.0 148 657 509
R-2 4.2 28.5 31 91 60
R-2.5 1.3 28.5 2 36 34
R-3 36.9 12.9 196 493 297
R-5 67.4 8.7 160 590 432
Total 127.1 537 1,867 1,331
Source:Analysis by FCS Group and City of Lake Oswego Long Range Planning staff, 2011.
A redevelopment analysis also was conducted for mixed use zones that allows both residential and
commercial uses (GC/R-0, NC/R-0, OC/R-3, EC, GC, HC, EC/R-0). This analysis focused on the
following key districts: Foothills, Downtown, Kruse Way and the Boones Ferry Corridor. The same
methodology used to remove constraints and determine vacant and part-vacant buildable land was
used in the redevelopment analysis. In addition, this analysis assumes a range of building floor areas
allocated toward housing, as noted in Table 15, under"Estimated Residential FAR as % of Total
FAR." The residential allocation assumptions reflected here differ by zone based on City staff and
consultant observations in the city and region.
03/19/13 Exhibit 4/Pa e 24
PP 22-0005 ATTACHMENT A/PAGE 24 OF 82
March 19, 2013 Update
Table 15. Summary of Redevelopment Potential in Mixed-Use Zones
Estimated
Estimated Maximum
Net Estimated Max Estimated New
Buildable FAR Max Building SF Residential Dwellings Less Estimated
Redevelop- Per at Zoned FAR as%of at Zoned Existing Max Net
Zoning men Acres* Zoning Capacity Total FAR Capacity** DUs New DUs
GC 21.3 0.30 278,218 50% 121 - 121
NC/R-0 2.3 0.25 25,047 50% 11 1 10
OC/R3 12.0 0.30 157,208 50% 68 2 66
EC 14.8 3.00 1,936,678 80% 1,347 9 1,338
HC 29.0 0.30 378,319 10% 33 - 33
CR&D 0 - - - - - -
EC/R-0 0 - - - - - -
OC 1.6 0.30 20,386 50% 9 - 9
Total 80.9 2,795,855 1,589 12 1,577
*includes tax lots with existing land improvement value to land value ratio of 1.5 or less.
**assumes 1,150 square feet average floor area per future dwelling unit.
FAR=Building Floor-to-Land Area ratio. DUs=dwelling units.
Source:Analysis by FCS GROUP based on City of Lake Oswego redevelopment assumptions.
The findings, as shown in Table 15, result in 80.9 acres of mixed-use zoned land area that is likely to
redevelop over the next 20 years. This redevelopment acreage is zoned to accommodate nearly 2.8
million square feet of building floor area, though not all of this development will be housing. An
analysis of potential housing units results in up to 1,589 dwellings that could potentially be provided in
these mixed-use areas under current zoning. After accounting for the existing 12 dwellings on these
properties, the net new residential development potential on mixed-use redevelopment lands in the
Lake Oswego USB is expected to be 1,577 dwelling units. The remaining portion of these
redeveloped lands could serve non-residential development and employment/job growth.
Based on the preceding analyses, the Lake Oswego USB has the potential of accommodating
approximately 5,063 net new dwelling units under current zoning capacity. As indicated in Table 16,
the vacant, part vacant and redevelopment lands have the potential of accommodating about 1,646
single family detached dwellings, 1,017 medium-density dwellings (townhomes, duplexes, etc.) and
2,400 multifamily dwellings (apartments and mid-rise flats) under current zoning.
03/19/13 Exhibit 4/Pa e 25
PP 22-0005 ATTACHMENT A/PAGE 25 OF 82
March 19, 2013 Update
Table 16. Summary of Net New Residential Dwelling Unit Capacity in Lake Oswego USB
Medium Higher
Low Density Density Density
Land Classification Dwellings 5 Dwellings 6 Dwellings7 Total Dwellings
Vacant Land in "R
Zones" 1 329 44 74 447
Part Vacant Land in "R
Zones" 2 1,317 244 147 1,708
Redevelopment Land
in Medium & High
Density"R Zones" 3 - 729 602 1,331
Redevelopment Land
in "Mixed-Use Zones"
4 - - 1,577 1,577
Total 1,646 1,017 2,400 5,063
Notes:
1 derived from Table 14.
2 derived from Table 15.
3 derived from Table16.
a reflects land zoned R-6, R-7.5, R-10, and R-15.
5reflects land zoned R-3, and R-5.
6reflects land zoned R-0, R-2, and R-2.5;and the mixed-use zones(GC, NC/RO, OC/R-3, EC, HC, CR&D, EC/RO and OC).
Source:Analysis by FCS GROUP based on City of Lake Oswego redevelopment assumptions.
HOUSING NEEDS ANALYSIS
Housing Requirements
Housing Mix Requirement
According to state Metropolitan Housing Rule requirements (OAR 660-007-0000) , Lake Oswego
"must provide the opportunity for at least 50 percent of new residential units to be attached single
family housing or multiple family housing or justify an alternative percentage based on changing
circumstances." Lake Oswego meets this requirement by allowing zero lot line (attached single
family) dwellings in all residential zones.
Population Forecast
Through the Periodic Review process, Lake Oswego must have a forecast that is coordinated with
Metro. Based on the expected development capacity levels described earlier, Lake Oswego could
potentially provide up to 5,063 dwelling units without changes to existing zone/plan standards. This
capacity exceeds the total demand anticipated by the forecast.
Housing Density Requirements
The MHR also requires Lake Oswego to provide for needed housing at an overall residential density
of 10 or more dwelling units per net buildable acre. Lake Oswego's approach to meeting this rule is
discussed on page 31.
03/19/13 Exhibit 4/Pa e 26
PP 22-0005 ATTACHMENT A/PAGE 26 OF 82
March 19, 2013 Update
Housing Attainability Requirements
The MHR requires cities in the Metro region to meet the needs of the "area" or region (not city)
residents at "all income levels". For Lake Oswego, the area being considered is Clackamas County.
Table 17 below summarizes regional income ranges by very low, low, lower middle, upper middle and
high income ranges, according to the U.S. Department of Housing and Urban Development.
Table 17. Income Levels and Distribution in 2010
Qualifying Income 1 Region 2 Lake Oswego 3
Lower- Upper- Percent Percent
Income Cohort end end Households Dist. Households Dist.
High (120%or more of
Median Income) $87,600 or more 303,230 35% 8,222 54%
Upper Middle (80% to
120%of Median Income) $58,400 $87,600 170,460 20% 2,511 16%
Lower Middle (50% to
80%of Median Income) $36,500 $58,400 124,204 14% 1,684 11%
Low (30%to 50%of
Median Income) $21,900 $36,500 167,890 20% 2,052 13%
Very Low(less than 30%of
Median Income) or less $21,900 91,654 11% 857 6%
857,439 100% 15,326 100%
Notes:
1. Consistent with current regional HUD income limits for Urban Clackamas County, shown in
Appendix A.
2. Region includes Clackamas, Multnomah and Washington counties, Oregon. Derived from American
Community Survey, 2008-2010.
3. Reflects data for Lake Oswego city;derived from American Community Survey, 2006-2010.
The income levels and distribution in Table 17 have been translated into a range of housing prices,
unit types and allocation for future dwellings. To reflect the demographic trend of an aging population
and shrinking household size, along with the desire to attract more young households, the allocations
in Table 18 have been adjusted slightly in favor of additional allocation toward the upper and lower
middle income range.
03/19/13 Exhibit 4/Pa e 27
PP 22-0005 ATTACHMENT A/PAGE 27 OF 82
March 19, 2013 Update
Table 18. Home Types and Price Points to Meet Attainability Goals*
Owner-Occupied Housing
Net New DU
Allocation to
Attainable Housing Address
Approximate Attainable Home Price* Low Range High Range Product** Attainability
SFD or other high end
High (120%or more of Median Income) $434,000 or more type(ie.,condos) 35%
SFD or other mid-
value type(ie.,
Upper Middle (80% to 120%of Median Income) $289,000 $434,000 townhomes) 20%
Small-lot"cottage"
SFD,SFA, apt. &gov.
Lower Middle (50% to 80%of Median Income) $181,000 $289,000 assisted housing 14%
Duplex/Triplex/
Quad plexes&gov.
Low (30%to 50%of Median Income) $109,000 $181,000 assisted housing 20%
Condos/Plexes&gov.
Very Low(less than 30%of Median Income) or less $109,000 assisted 11%
100%
*Assumes 30%of income is used for mortgage payment, 20%downpayment, 6%interest, 30-year mortgage.
**consistent with regional HUD income limits shown in Appendix A.
Renter-Occupied Housing
Net New DU
Allocation to
Attainable Housing Address
Approximate Attainable Monthly Rents* Low Range High Range Product Attainability
Any housing type,
High (120%or more of Median Income) $2,190 or more higher price 35%
Any housing type,
Upper Middle (80% to 120%of Median Income) $1,460 $2,190 lower price 20%
Small-lot"cottage"
SFD,SFA, apt. &gov.
Lower Middle (50% to 80%of Median Income) $913 $1,460 assisted housing 14%
Apartments, plexes&
Low (30%to 50%of Median Income) $548 $913 gov.assisted housing 20%
Apartments, plexes&
Very Low(less than 30%of Median Income) or less $548 gov.assisted housing 11%
100%
03/19/13 Exhibit 4/Pa e 28
PP 22-0005 ATTACHMENT A/PAGE 28 OF 82
March 19, 2013 Update
*Assumes 30%of income is used for rental payments.
**consistent with regional HUD income limits shown in Appendix A.
In light of the most current findings regarding demographics, housing tenure, and recent housing
additions, it appears that the market for housing in Lake Oswego is appropriate at a 60:40
owner/renter ratio of housing inventory, rather than a 64.5:35.5 ratio that was determined
previously in the May 2011 draft report. We would also expect the planned mix of multifamily to
rise to about 40% of all new dwellings (up from 22.9% assumed previously), and the planned
increase in other housing types to fall.
Table 19. Pro'ected Residential Housin. Need Mix, Lake Oswe•o USB, 2010 to 2035
Owner-Occupied Renter-Occupied All Dwelling
Dwelling Units Dwelling Units Units
Housing Tenure Distribution: 60.0% 40.0% 100%
Housing Unit/Type Distribution
Detached Large Lot SF (>5,000 sq.ft. lot size) 34% 4% 22.0%
Detached Small Lot SF "cottages" (<+5,000
sq.ft. lot size) 18% 5% 12.8%
Attached SF (Rowhouses, Secondary Dus, 30% 8% 21.2%
Zero Lot Line DUs)
Duplex/Triplex 10% 11% 10.4%
Multifamily(Apartments, Condos) 8% 72% 33.6%
Total 100% 100% 100%
COMPARISON OF RESIDENTIAL CAPACITY AND PROJECTED DEMAND
Future Needed Housing Types and Land
Based on the preceding analysis, the Lake Oswego USB can accommodate approximately 5,574 net
new dwelling units under current zoning capacity assumptions. There may also be additional dwelling
unit opportunities that could be provided through new secondary dwelling units (SDUs), which are
currently allowed but conservatively excluded from these capacity forecasts. As indicated in Table 20,
after applying the housing attainability assumptions (shown in Table 18) to the low and medium
growth forecasts, it appears that the city can accommodate the low growth forecast for all housing and
zone types, but would need to adopt some new policies to fully accommodate the expected medium
housing density need associated with the medium growth forecast.
Specifically, the analysis indicates that under the medium forecast, there is an additional need to
accommodate approximately 349 medium density (townhouse, duplex, SDU, etc.) dwelling units,
which would require approximately 48 acres. This need could mainly be addressed by redevelopment
in appropriate locations within the existing USB area. The City may also want to explore if some or all
03/19/13 Exhibit 4/Pa e 29
PP 22-0005 ATTACHMENT A/PAGE 29 OF 82
March 19, 2013 Update
of the medium density need could technically be met through the high density supply, under the
assumption that high-density housing can be provided at price levels at or below medium-density
price levels. The projected housing deficit for medium density housing could be addressed through a
combination of local land use policy measures discussed in the Implementation section.
03/19/13 Exhibit 4/Pa e 30
PP 22-0005 ATTACHMENT A/PAGE 30 OF 82
March 19, 2013 Update
Table 20. Residential Dwelling Capacity and Projected Housing Demand, Lake Oswego USB, 2010 to 2035
Dwelling Unit Capacity and Demand Potential Land Need in by
0
Potential Net Buildable Land Area in Acres Forecast Year 2035
IIII
Dwelllings
Needed to
Redevel Meet Pop. Potential Potential
opment Potential Forecast& Dwelling Likely Residential
Redevel- Mixed- Dwelling Attain- Unit Residential Land
Part opment: Use Unit abiltiy Surplus by Land Need Surplus or
Land Use Vacant Vacant R Zones Zones Total Capacity Levels 2035 by 2035 (Deficit) by
Classifications (acres) (acres) (acres) (acres) Acres (dwellings) (dwellings) (dwellings) (acres) 2035(acres)
Low Density
(primarily large
lot SFD in R-7.5, 69.2 502.7 - - 571.9 1,646 783 863 272.1 299.8
R-10, R-15
zones)
Medium
Density
(primarily small 5.5 30.6 104.3 - 140.4 1,017 456 561 62.9 77.5
lot SFD in R-3,
R-5 zones)
High Density
(primarily MF in
RO, R-2, R-2.5, 2.6 5.6 22.8 80.9 111.9 2,400 2,321 79 108.2 3.7
GC, NC/RO,
OC/R3, EC, HC,
CR&D, EC/RO,
OC zones)
Total 77.3 538.9 127.1 80.9 824.2 5,063 3,560 1,503 443.3 380.9
03/19/13 Exhibit 4/Page 31
PP 22-0005 ATTACHMENT A/PAGE 31 OF 82
March 19, 2013 Update
SUMMARY AND POLICY OPTIONS
Considering the supply of vacant, part-vacant, and redevelopable land, Lake Oswego appears to have
a surplus of buildable low-density and high-density land, but a deficit of medium density land to serve
middle income levels and meet the State's housing attainability requirement. This need may be met in
part or whole through the redevelopment capacity for high-density housing. The City will need to
consider if this would provide the desired mix of housing options and meet the community vision.
Appendix C lists potential strategies and potential density levels associated with potential new
development within the Lake Oswego USB for consideration during housing implementation
discussions.
Although the City appears to meet its MHR requirements for attached/detached mix, needed housing
types and locations, the City will need to review its code and make updates as needed to ensure that
all needed housing types can be developed under clear and objective standards. In other words,
policies and regulations should not prohibit or discourage the provision of affordable and needed
housing.
In addition, the City may want to consider new policies and incentives specifically aimed at providing
opportunities for senior residents to age in place, and for young people and families to find a home in
Lake Oswego.
By the conclusion of Periodic Review in April 2013, the Lake Oswego City Council will need to adopt a
single population projection and update these strategies if and as needed.
IMPLEMENTATION STRATEGIES
The following set of policy options have been developed in response to state requirements and local
aspirations. These considerations and recommendations have been compiled from previous housing
strategies as well as conversations with the Comprehensive Plan Citizen Advisory Committee, Goal 9
and 10 Work Group and Planning Commission. The policy options are intended to create a menu of
options for the City and its advisory groups to consider as they work to update the Comprehensive
Plan based on the findings that have been identified through this HNA process.
Demographic Trends
The demographic analysis suggests that people are remaining in or moving to Lake Oswego to retire
and indicates a need to plan for housing oriented toward older age groups that typically demand
smaller units with lower property maintenance requirements. The location of senior-oriented housing
options in relation to senior needs and community amenities will also be an important part of this
policy discussion.
Discussions with the Citizen Advisory Committee and the community as a whole have indicated a
specific desire to attract more young families with children, which are vital to the city and schools.
The demographic and housing trends and conditions suggest that higher housing costs in Lake
Oswego compared with neighboring jurisdictions may be a barrier for young families. In order to
provide a diversity of housing types and densities, the City may want to consider providing additional
opportunities for housing types more affordable for these families.
03/19/13 Exhibit 4/Page 32
PP 22-0005 ATTACHMENT A/PAGE 32 OF 82
March 19, 2013 Update
Vacant Land Supply/Redevelopment
Lake Oswego has a relatively limited supply of vacant land area inside the USB, and now must rely on
redevelopment and optimization of the remaining vacant land inventory to meet future needs and be
consistent with MHR requirements.
Possible Strategy
Continue to emphasize policies that encourage or support redevelopment at designated areas (such
as mixed-use and neighborhood centers); and policies and code that support new secondary dwelling
units; single family attached housing; and multifamily housing, especially in designated centers.
Metropolitan Housing Rule
Housing Mix. Lake Oswego is required to meet the State's MHR requirements for housing mix
(opportunity for 50/50 mix of attached and detached housing) and average density on buildable land
(see page 7). Lake Oswego has a limited amount of vacant land and needs to develop strategies to
meet future housing needs and MHR requirements in a way that fits within the city's unique character.
Lake Oswego's residential zones allow for attached "zero lot line" housing and meets this
requirement.
Clear and Objective Standards. The MHR also requires the City to provide an opportunity for all
needed housing to be developed under clear and objective development standards. "Needed housing"
includes all single family, multifamily, attached and detached housing; this requirement is not
exclusive to the "buildable" portion of the city. Multifamily and single family housing with three or more
attached units in Lake Oswego currently goes through a design review process with the Design
Review Commission and is reviewed against a set of building design standards. The City received a
Periodic Review grant from DLCD to update its development code to ensure the opportunity for these
housing types to be developed under clear and objectives standards. The City plans to adopt revised
standards within the timeframe of Periodic Review to comply with this provision of the Metropolitan
Housing Rule.
Minimum Density. To help maintain the Metro Urban Growth Boundary and efficient land use
patterns, the MHR requires cities within the Metro UBG to provide minimum average zoned density
levels. Lake Oswego must provide for an overall density of ten or more dwelling units per net
buildable acre. The city was assigned this density category because it is one of the "larger urbanized
jurisdictions with regionally coordinated population projections of 50,000 or more for their active
planning areas, which encompass or are near major employment centers, and which are situated
along regional transportation corridors."
Lake Oswego has demonstrated compliance with this rule at each Periodic Review since the city's
original acknowledgement of its1978 Comprehensive Plan. In 1994, DLCD acknowledged Lake
Oswego's average density at 10.2 dwelling units/acre. The City may demonstrate compliance with this
rule using one of two buildable land inventory approaches as outlined in OAR 660-007-0045 (2).
Consistent with the City's last acknowledgement, Lake Oswego plans to demonstrate its average
density "based on the jurisdiction BLI at the time of acknowledgment as updated." Lake Oswego's
preliminary analysis shows that zone/plan changes since acknowledgement have not had the effect of
decreasing zoned density below 10 dwelling units/net buildable acre.
03/19/13 Exhibit 4/Page 33
PP 22-0005 ATTACHMENT A/PAGE 33 OF 82
March 19, 2013 Update
Other Complete Neighborhood and Housing Strategies for Consideration
Other strategies for consideration:
o Strategically explore re-designation in select locations near centers with transportation options
and other amenities to focus new development and redevelopment in the best areas for Lake
Oswego while maintaining the integrity of single family neighborhoods.
o Amend development standards in appropriate areas targeted for mixed-use development to
remove barriers to mixed-use housing and employment uses. Amendments could include
adjustments to allowable heights and densities, reduction of parking requirements, allowances
for meeting landscaping requirements, permitting greater floor lot coverage to make structured
parking more feasible, and/or removing or limiting subjective buffering standards.
o Consider the following strategies to meet the need for lower income housing attainability:
• Establish a minimum percentage of affordable units in all developments that receive
assistance from the Lake Oswego Redevelopment Agency.
• Work toward a goal of"no net loss" of existing affordable housing through incentives
and other means.
• Improve the permitting process to allow for needed housing types including secondary
dwelling units while respecting neighborhoods.
• Avoid "one size fits all" approaches for different geographic areas in Lake Oswego.
03/19/13 Exhibit 4/Page 34
PP 22-0005 ATTACHMENT A/PAGE 34 OF 82
March 19, 2013 Update
APPENDIX A. HOUSING ATTAINABILITY ANALYSIS FOR LAKE OSWEGO
USB
Urban Clackamas County Median Family Income Level (2012)* $73,000
Market Segment by Income Level Lower-end Upper-End
High (120% or more of MFI) 120%
Upper Middle (80% to 120% of MFI) 80% 120%
Lower Middle (50% to 80%of MFI) 50% 80%
Low (30%to 50%) 30% 50%
Very Low (less than 30%of MFI) 30%
Qualifying Income Level Lower-end Upper-End
High (120% or more of MFI) $87,600 or more
Upper Middle (80% to 120% of MFI) $58,400 $87,600
Lower Middle (50% to 80%of MFI) $36,500 $58,400
Low (30%to 50%) $21,900 $36,500
Very Low (less than 30%of MFI) $21,900 or less
Available Annual Housing Payment(@30%of income level) Lower-end Upper-End
High (120% or more of MFI) $26,280 or more
Upper Middle (80% to 120% of MEI) $17,520 $26,280
Lower Middle (50% to 80%of MFI) $10,950 $17,520
Low (30%to 50%) $6,570 $10,950
Very Low (less than 30%of MFI) $6,570 or less
Available Monthly Rent or Payment (@30%of income level) Lower-end Upper-End
High (120%or more of MFI) $2,190 or more
Upper Middle (80% to 120% of MFI) $1,460 $2,190
Lower Middle (50% to 80%of MFI) $913 $1,460
Low (30%to 50%) $548 $913
Very Low (less than 30%of MEI) $548 or less
Approximate Attainable Home Price** Lower-end Upper-End
High (120%or more of MFI) $434,000 or more
Upper Middle (80% to 120% of MFI) $289,000 $434,000
Lower Middle (50% to 80%of MFI) $181,000 $289,000
Low (30%to 50%) $109,000 $181,000
Very Low (less than 30%of MFI) $109,000 or less
Notes:
*based on Housing and Urban Development thresholds for Clackamas County in 2012.
Note, this analysis is generally consistent with 4-person household size characteristics.
**assumes 20%down payment on 30-year fixed mortgage at 6.0%interest.
Source:analysis by FCS Group using Housing and Urban Development, and US Census data.
03/19/13 Exhibit 4/Page 35
PP 22-0005 ATTACHMENT A/PAGE 35 OF 82
March 19, 2013 Update
APPENDIX B. FEDERAL POVERTY THRESHOLDS BY FAMILY SIZE,
URBAN CLACKAMAS COUNTY, CURRENT YEAR DOLLAR AMOUNTS
(NOT INFLATION ADJUSTED)
. • 2012-Income Limits for LIHTC&Tax-Exempt Bonds �`;, ,.
pip
Clackamas County.Oreaon G!`; ;a
if For mere detailed M7SP income limit information,please visit HLIDs website: 4 co_-,
r.
http:1Muvw.h u duser.orglporta Lida to s etehmtsp.him I
1Ariiiiii 2012 Median $73.400
N111 Non-Metro 2012 NfeOian $52.400 (applies to 9%credits only in non-metro areas)
2012 HERA Special Median $73.400 (applies to projects in existence before January 1.2009)
Median incomes cakulafed based so a 9-peraan household
What Income Limit Should You Use?
I5 the location considered RURAL by USDA?(ryes,t is eligible Io use the NMI Non-Metro Median For 9%projects]
Nat All Clackamas County is considered urban with in it's major cities.to verify your address and accuracy.please visit:
hisireloiblihs sr_en ov.dada oovtel'oihittvhsIcom eAction do7oaoeAthen=sre0Na,sKev=ornoerbor'ml2
-The following income limits indicate the highest income Unfit allowable--
Did the project exist`in 2008? If NO,did it exist': If N0,did it exist:
-If 0t0 a 4%Tax Credit Project Between Jan 1,2009-Nov 30th,2011 After Dec 1st 2011
L1se.:HERA Specie(2012 --It it's a 4%Tax Credit Project -II it's a 4%Tax Credit Project
-If it's a 9%Tan Credit Project Use:Actual themes 2012 Use:Actual Incomes 2012
Use.:HERA Special 2012 --If it's a 9%Tax Credit Project -If it's a 9%Tax Credit Project
Use:Actual Incomes 2012 Use:Actual Incomes 2012
Actual Income Limits 2012
%MFI 1 Pers 2 Pers 3 Pers 4 Pers 5 Pers 6 Pers 7 Pers 9 Pers
30% 615.330 517.520 $19.710 $21.900 623.670 $25.410 627.180 $28.920
3501 017.585 520.440 $22.995 $25.650 627.615 $29.645 531.710 $33.740
409'a $20.440 S23.360 $26.280 $29.200 531.560 $33.880 S36.240 $38.560
45% $22.995 526.280 $29.565 $32.850 535.505 $38.115 540.770 $43.380
50% $25,550 029,200 $32,850 $36,500 $39,450 $42,350 $45,300 $48,200
56% $28.105 532.120 $36.135 $40.150 543.395 $46.585 549.830 $53.020
60% 330,660 535.04-0 $39.420 $43.800 547.340 $60.820 564.360 $57,840
80% $40,680 546.720 $52.560 $58.400 563.120 $67,760 572.480 $77,120
HERA Special Income Limits 2012
%MFI 1 Pers 2 Pers 3 Pers 4 Pers 5 Pers 6 Pers 7 Pers 9 Pers
30% 515,420 517.940 $19.930 $22.020 523.790 $25.560 627.330 $29.070
35% $17.990 020.580 $23.135 $25.690 527,755 $29.820 031,885 833.915
4096 $20,560 523.520 $26.440 $29,360 531.720 $34,030 536.440 $36.760
45% $23,130 526.460 $29.745 $33,030 535.685 033.340 540.996 $43.906
50% $25,700 $29,400 $33,050 $36,700 $39,650 $42,600 $45,550 $48,450
55% $28.270 532.340 $36.355 $40.370 543.615 $46.860 560.106 $53.296
60% 030,840 S35.280 $39.660 $44,040 S47.580 $51.120 S54.660 $58.140
80% $41.120 647.040 $52.880 $58,720 S63.440 $68.160 S72.880 $77.520
Ntnl Non-Metro Income Limits 2012
%MFI 1 Pers 2 Pers 3 Pers 4 Pers 5 Pers 6 Pers 7 Pers 9 Pers
30% $11.010 512.570 $14.160 $15,720 616.980 $18.240 619.500 $20.760
35% 512.345 514.665 $16.520 $18.340 519.510 $21.280 522.750 $24.220
40% $14,680 516.760 $18.680 $20.960 522.640 $24.320 526.000 $27.580
45% 515,515 S18.855 $21.240 923.560 525.470 $27.360 S29.250 $21.140
50% $11,350 $20,950 $23,600 $26,200 $28,300 $30,400 $32,500 $34,600
55% $20,185 523.045 $25.960 $26.820 531.130 $33,440 535.750 $33.060
60% 522,020 525.140 $28,320 $31.440 533.960 $35,480 539,000 $41.520
80% $29.360 533.520 $37,760 $41.920 545.280 $48.640 S52.000 556.360
Notes:
1:Projects win previous'Rural'designations that are no longer considered is be located Sr rural areas(by The USDA)are perm in ad to use The previous
years National Non-Mahe income limits should lhey be higher then the current years income Ire its. The Nation el NorrMelro income lints are seine here:
httollwwwr.ohcs.oreo on.aSCAJHCS+HPM income lin is-shim I
2'Exist-tern Id by WC es the projects placed-in-service 11.l5l date.Projects canal sling of rauttple b wild ings,whera each building is be.g treated as
pail era multRle building project(see line Bit on IRS Farm B609).will be considered as being'in e:isi en ce'provided at least one building was PIS during
the affected year.
The names bins lislad abo•+e are based on the Mutifam ily Tee Subsidy Program(MTSP)income limits published by HUD on December 1.2011.Per
Revenue Ruing 01-57,owners nil have until January 15.2012 to implement lhas a new•MTSP income limits,45 days from 7hei effective data).Please
note!hat all definlivns and explanations herein may be subject to change upon later IRS andfor HUD clarirca San.
OHCS,1 211 212 0 1 1
03/19/13 Exhibit 4/Page 36
PP 22-0005 ATTACHMENT A/PAGE 36 OF 82
March 19, 2013 Update
APPENDIX C. OPTIONS FOR PROVIDING NEW DWELLINGS WITHIN LAKE
OSWEGO USB
Estimated Potential
Acres in Dwelling Avg.
USB (net Potential Density
buildable) (net new) (DU/acre)
1. Vacant and Part Vacant Land Inventory
a. Low Density 571.9 1,640 2.9
b. Medium Density 36.1 292 8.1
c. Higher Density 8.2 221 30.0
2. Redevelopment: Net New Dwellings on Medium &
High Density R-Zones (R-0, R-2, R-2.5, R-3, R-5) 127 1,331 10.5
3. Redevelopment: Net New Dwellings on Mixed-Use
Zones (GC/R-0, NC/R-0, OC/R-3, EC, GC, HC, EC/R-0) 80.9 1,577 19.5
4. Redevelopment: Increase housing in Boones Ferry
Corridor (various strategies may be used) n/a n/a n/a
5 Specific Plan and Zone Change for Foothills
Industrial Area n/a 1,735 n/a
6. New Goals and Standards for SDUs n/a n/a n/a
Source: Compiled by City of Lake Oswego Long Range Planning Department, and FCS Group, April 29, 2011.
03/19/13 Exhibit 4/Page 37
PP 22-0005 ATTACHMENT A/PAGE 37 OF 82
EXHIBIT 5
ORDINANCE 2640
City of Lake Oswego
Draft Economic Opportunities Analysis
May 26, 2011
Updated March 18, 2013
Cr of LAKE
OSWEGO
OREGON
03/18/13 Exhibit 5/Page 1
PP 22-0005 ATTACHMENT A/PAGE 38 OF 82
March 2013 Update
03/18/13 Exhibit 5/Page 2
PP 22-0005 ATTACHMENT A/PAGE 39 OF 82
March 2013 Update
Acknowledgements
The City appreciates grant funds received from the State of Oregon Department of Land Conservation
and Development(DLCD)for technical consultant assistance to complete this document.
We thank the following citizens for their dedicated work on this topic.
Comprehensive Plan Citizen Advisory Committee:
Councilor Sally Moncrieff, Chair
Katie Abbott
Dorothy Atwood
Tom Brennan
Christopher Clee
Doug Cushing
Tom Fahey
Bill Gaar
Nancy Gronowski
Liz Hartman
Jim Johnson
Tim Mather
Bob Needham
Teri Oelrich
David White
Goal 9 & 10 Work Group:
Tom Brennan
Doug Cushing
Julia Glisson
Jon Gustafson
Liz Hartman
Councilor Sally Moncrieff
Dan Vizzini
Planning Commission:
John Gustafson, Chair
Lynne Paretchan, Vice Chair
Puja Bhutani
Julia Glisson
Jim Johnson
Russell Jones
Todd Prager
Jeff Gudman, Council Liaison
City Staff:
Dennis Egner, AICP, Assistant Planning Director
Sidaro Sin, LEED AP, Senior Planner
Sarah Selden, Associate Planner
Laura Weigel, AICP, LEED AP, Associate Planner
Jane Blackstone, Economic Development Manager
Debra Andreades, AICP, Senior Planner
Consultants:
Kirstin Green, AICP, Principal Cogan Owens Cogan
Steve Faust, AICP, Senior Planner, Cogan Owens Cogan
Todd Chase, AICP, LEED AP, FCS Group
03/18/13 Exhibit 5/Page 3
PP 22-0005 ATTACHMENT A/PAGE 40 OF 82
March 2013 Update
TABLE OF CONTENTS
Executive Summary 5
Introduction 10
Requirements 10
Methodology 11
Vision and Goals (Local Aspirations) 12
Economic Conditions, Trends and Forecasts 13
Demographic Trends 13
Income 18
Availability of Workforce 19
Commuting Patterns 20
Changes in Employment 20
Lake Oswego's Competitive Advantages and Challenges 23
Potential Growth Industries in Lake Oswego 26
Target Industries 27
Inventory of Suitable Sites (Land Supply) 29
Redevelopment Potential 30
Site Suitability Analysis (Land Demand) 31
Assessment of Employment Land Needs 34
Short-Term Land Supply and Need Determination 34
Implementation 36
Vacant Land Supply/Redevelopment 36
Commitment to Provide a Short-Term Land Supply 36
Commitment to Provide Adequate Sites and Facilities 36
Other Considerations 37
Appendix A. Assumptions for Vacant Land Needs Forecast 38
Appendix B. Redevelopment Allocations and Land Needs by Forecast 40
Appendix C. Vacant Building Absorption Assumptions 42
Appendix D. Stakeholder Interview Summary 43
03/18/13 Exhibit 5/Page 4
PP 22-0005 ATTACHMENT A/PAGE 41 OF 82
March 2013 Update
EXECUTIVE SUMMARY
The City of Lake Oswego is conducting an Economic Opportunities Analysis (EOA) as required
by its Periodic Review work program to update Goal 9 (Economic Development) of its
Comprehensive Plan. The City received grant funds from the Department of Land Conservation
and Development (DLCD) for technical consultant assistance to complete this task. The City
elected to take advantage of this required plan update to create a long-range vision for the City.
Part of this vision addresses economic development over the next 20 years.
2013 Update
This EOA was originally drafted in 2011 to inform the update of Comprehensive Plan goals and
policies. As noted in the Site Suitability (Land Demand) section of this document (page 30), at
that time, Metro was in the process of coordinating with local jurisdictions to develop updates to
its regional employment and housing forecasts through 2045. The most recent adopted Metro
forecast at that time was from 2005. This forecast, along with preliminary forecast numbers
contained within the 2009 Regional Growth Report guided the development of four employment
growth scenarios for Lake Oswego in the 2011 Draft EOA.
In the fall of 2012, Metro completed its updated employment and housing forecast for 2035.
Metro's updated forecasts incorporate local input to make the forecast more consistent with the
work conducted as part of the City's 2011 draft Economic Opportunities Analysis. The Metro
numbers are slightly higher than the City's Medium-High Employment Forecast described in
Table 12 of this report. The differences are not significant enough to be of concern for planning
purposes; the Metro numbers are slightly higher than the City's numbers partially because the
Lake Oswego boundaries used by Metro' are slightly larger than the City's USB.
Updated City and Metro forecasts are shown in the table below. The Lake Oswego City Council
was presented with these forecasts in September 2012, and on October 9, 2012 accepted the
housing and employment forecasts listed below, which were presented in the October 9, 2012
Council Report. The Metro Council adopted this forecast on November 29, 2012.
Comparison of 2010 to 2035 City Forecasts with the Metro Adopted TAZ Forecasts
for the Current Lake Oswego USB
Forecast 2010 Total 2035 Total 2010-2035 Change
City Forecast-
Households 19,166 22,726 3,560
Metro Forecast-
Households 19,556 23,299 3,743
City Forecast-
Employment 20,538 25,398 4,860
Metro Forecast- 21,804 27,095 5,291
Employment
While a range of four employment forecast options is described throughout this report, the
Medium-High employment forecast should be considered the correct forecast for the
Metro's forecast numbers are developed for Transportation Analysis Zones (TAZ)within the metro area,
with certain TAZ assigned to each jurisdiction. The TAZ do not align perfectly with jurisdictional lines, for
example one TAZ assigned to Lake Oswego includes a portion of Tualatin's commercial area near 1-5.
03/18/13 Exhibit 5/Page 5
PP 22-0005 ATTACHMENT A/PAGE 42 OF 82
March 2013 Update
purpose of employment land planning. Additional updates were made to this report to reflect
more recent demographic information available from the 2010 Census.
Vision and Goals (Local Aspirations)
The strategies in this report are designed to help City leaders improve economic vitality for Lake
Oswego, as described in the draft Lake Oswego Community Vision for 2035:
We are a community where people can live, work, play and meet their daily needs for
goods and services. We build upon the intellectual capital of the community to attract new
ventures, retain local businesses and connect to the global economy. We are business-friendly
and a regional model for employment and mixed-use centers that attract quality jobs.
The City also developed a set of Community Economic Development Objectives (CEDOs) that
are intended to help guide the development of the EOA and move the community towards
implementation of its vision for Economic Vitality.
Draft Community Economic Development Objectives:
• Maintain and grow a strong local employment base to provide jobs for Lake Oswego
residents and support a high quality of life.
• Support and grow existing and locally-owned businesses.
• Support business incubation and employment growth within the city by providing a
diversity of space/site opportunities.
• Provide flexibility in employment zones that supports economic resilience and
sustainability while minimizing negative impacts.
• Focus redevelopment and intensification of jobs (e.g., jobs per acre) in employment
corridors and centers.
• Provide opportunities for a range of industrial and employment uses. Actively pursue
environmentally responsible businesses.
• Pursue a range of employment opportunities, such as an emphasis on creative class
opportunities and clusters that build on Lake Oswego's intellectual capital, proximity to
universities and colleges and connection to the I-5 corridor. These could include but
would not necessarily be limited to science, engineering, education, computer
programming, research, arts, media and design.
• Explore long term redevelopment opportunities in the southwest industrial area, along
Bangy Road, along the Kruse Way corridor, and in Foothills.
• Create the opportunity for employment well served by transportation options.
• Maintain Lake Oswego's exceptional quality of life by investing in infrastructure and
services that support residents and businesses.
Demographic Trends
The City's most current population estimate for the Lake Oswego Urban Services Boundary is
approximately 43,000 people and 19,166 dwelling units. By 2035, the population within the Lake
Oswego urban services boundary is expected to be between 47,000 to 51,000 people.
According to U.S. Census estimates, the median age of Lake Oswego residents increased from
41.2 years in 2000 to 42.1 years of age in 2006/2008. This is more than five years older than
the median age of residents within the Portland Vancouver Metropolitan Statistical Area (36.7).
As older Baby Boomers tend to desire to remain in their current residence or community as long
as possible, the population over age 75 is expected to increase measurably over the coming
decades, while the 24-55 cohort is projected to shrink. If trends continue, the younger
population cohorts (age 5-14) are likely to remain flat or experience negative growth.
03/18/13 Exhibit 5/Page 6
PP 22-0005 ATTACHMENT A/PAGE 43 OF 82
March 2013 Update
Economic Conditions, Trends and Forecasts
Lake Oswego is located in the desirable "inner-urban area" within the greater Portland region.
This location is considered advantageous for accessing downtown Portland and its surrounding
communities within a manageable commute. Downtown Lake Oswego's ongoing renaissance
and excellent parks, schools and community facilities continue to serve as attributes that make it
a desirable place to live, work and visit. The Kruse Way Corridor from 1-5 to Boones Ferry Road
is another significant economic engine for Lake Oswego, with over 2,700 on-site jobs, an annual
direct payroll of$243 million, and an annual regional economic output of$1.4 billion.
Lake Oswego had 18,871 jobs at 2,297 places of work in 2009. The average wage per
employee was about $52,700. The sectors with the most employment and above average
wages were Finance and Insurance, and Professional, Scientific and Technical Services. This
data also indicates that between 9% and 12% of Lake Oswego's workforce is located on land
that is not designated for employment uses, figures that are consistent with the City's business
license database which shows that 9% of Lake Oswego businesses are home-based.
An analysis of how Lake Oswego fits into the Clackamas County economy based on job
concentration by employment sector indicates the City of Lake Oswego has different economic
strengths than the rest of Clackamas County. What defines Lake Oswego is its high
concentration of wages in the Finance, Insurance, and Professional Consulting Services sectors
compared to the County as a whole. The most pertinent employment trends for Lake Oswego
over the next 20-years are: growth in financial firms, growing importance of health care, and
growth in other services that require high quality office space.
Target Industries
Based on current employment trends, the City's competitive advantages, and City land-use and
economic development policies, types of businesses that may be attracted to Lake Oswego
include:
• Finance and Insurance
• Professional, Scientific, Technical Services and Information
• Real Estate
• Corporate or Regional Headquarters
• Green Businesses
• Health Care
• Services for Residents
• Services for Seniors
• Government and Public Services
• Advanced Continuing Education
• Arts
Assessment of Employment Land Needs
A range of employment land need forecasts were prepared for consideration in this report. A
description of the forecasts can be found on page 30 in the land demand analysis. While four
potential forecasts (low, medium, medium-high and high growth) have been considered in this
report, feedback from the City's advisory groups and Metro indicate that the high forecast likely
represents a higher level of job growth than is currently expected or feasible for Lake Oswego
over the next 20 years. Lake Oswego is in the process of coordinating with Metro on job
forecasts and will narrow the range to a single forecast prior to the completion of Periodic
Review.
03/18/13 Exhibit 5/Page 7
PP 22-0005 ATTACHMENT A/PAGE 44 OF 82
March 2013 Update
The table on page 4 summarizes Lake Oswego's land supply and demand for each employment
growth forecast. The Economic Opportunities Analysis requirements focus on an assessment
of vacant employment land, however due to Lake Oswego's limited supply of vacant
employment land, this report also assesses the potential to add jobs through redevelopment
and through filling vacant office space.
The results in the table below show that with the exception of Institutional demand in the
medium-high employment forecast, Lake Oswego's supply of vacant and redevelopable land
along with vacant office space, could provide the capacity for over 4,000 new jobs under the
medium job growth forecast. The limited vacant land supply can most easily accommodate the
low growth forecast without more focused economic strategies to support job growth. While
commercial and mixed-use land demand can only be met by vacant land in the low scenario,
the redevelopable land supply provides sufficient capacity to meet commercial/mixed-use
demand in all but the high growth forecast. For institutional uses, the vacant land supply can
accommodate the low and medium demand forecasts, while an additional 2.1 to 14.1 acres of
land would be needed for the medium-high and high forecasts. For industrial uses, the low to
flat demand in all but the high scenario, combined with over 30 acres of redevelopment potential
in the southwest Industrial Park zone, results in a surplus of industrial land for the low, medium
and medium-high employment forecasts.
Employment Vacant Land Needs and Vacant Land Supply, Lake Oswego USB, 2010 to
2035 (gross buildable acres)
Vacant&Redevelopment Potential Land Acreage
Medium Med-High High
Low Growth
Growth Growth Growth
Scenario
Commercial&Mixed-Use Scenario Scenario Scenario
Land Supply-Vacant 12.3 12.3 12.3 12.3
Land Supply-Redevelopment 106.7 106.7 106.7 106.7
Land Supply Subtotal 119.0 119.0 119.0 119.0
Vacant Land Demand 10.0 20.0 40.0 95.0
Redevelopment Land 8.7 21.8 49.4 91.7
Land Demand Subtotal 18.7 41.8 89.4 186.7
Overall Land Surplus/ 100.3 77.2 29.6 (67.7)
Institutional
Land Supply-Vacant 6.9 6.9 6.9 6.9
Land Supply-Redevelopment n/a n/a n/a n/a
Land Supply Subtotal 6.9 6.9 6.9 6.9
Vacant Land Demand 1.01 1.01 9.0 21.0
Redevelopment Land 0.5 1.0 16.7 37.6
Land Demand Subtotal 1.5 2.0 25.7 58.6
Overall Land Surplus/ 5.4 4.9 (18.8) (51.7)
Industrial
Land Supply-Vacant 1.0 1.0 1.0 1.0
Land Supply-Redevelopment 37.5 37.5 37.5 37.5
Land Supply Subtotal 38.5 38.5 38.5 38.5
Vacant Land Demand 1.01 2.01 - 24.0
Redevelopment Land - 46.4
Land Demand Subtotal 1.0 2.0 - 70.4
Overall Land Surplus/ 37.5 36.5 38.5 (31.9)
03/18/13 Exhibit 5/Page 8
PP 22-0005 ATTACHMENT A/PAGE 45 OF 82
March 2013 Update
Note:Redevelopment assumptions assume portion of job growth is addressed though building
refill/vacancy absorption as noted in Appendix C.
Conclusion
Lake Oswego has a limited 20-acre supply of vacant land area inside the USB, seven acres of
which are located on the Marylhurst/Mary's Woods campus. The redevelopment analysis,
however, demonstrates a large capacity for redevelopment in commercial and mixed use zones
that could accommodate 1,600 net new jobs. In addition, the redevelopment analysis shows the
potential for a significant amount of redevelopment in the City's southwest Industrial Park zone.
The assessment of vacant office space also indicates the capacity for 1,500 additional jobs
without additional land needs. In order to realize Lake Oswego's employment land
redevelopment potential, the City will need to develop and implement strategies to encourage
employment redevelopment in strategic locations. As the City begins to update the Economic
goals and policies in its Comprehensive Plan, it should look at strategies to encourage
redevelopment and optimization of the remaining vacant land inventory that implement the draft
Community Economic Development Objectives and move the city toward its vision for Economic
Vitality in 2035.
03/18/13 Exhibit 5/Page 9
PP 22-0005 ATTACHMENT A/PAGE 46 OF 82
March 2013 Update
INTRODUCTION
The City of Lake Oswego is conducting an Economic Opportunities Analysis (EOA) as required
by its Periodic Review work program to update Goal 9 (Economic Development) of its
Comprehensive Plan. The City received grant funds from the Department of Land Conservation
and Development (DLCD) for technical consultant assistance to complete this task. The City
elected to take advantage of this required plan update to create a long-range vision for the City.
Part of this vision addresses economic development over the next 20 years.
The focus of Goal 9 is "to provide adequate opportunities throughout the state for a variety of
economic activities vital to the health, welfare and prosperity of Oregon's citizens." Goal 9
describes an EOA report as "an analysis of the community's economic patterns, potentialities,
strengths, and deficiencies as they relate to state and national trends" and states that a principal
determinant in planning for employment should be the competitive advantage of the region
within which the developments would be located. The assessment of economic development
potential in Lake Oswego is therefore presented in this analysis along with preliminary policies
and strategies that would help the City provide economic development opportunities consistent
with state requirements and its community aspirations. The implementation section identifies
policies and strategies for meeting the economic development needs of existing and future Lake
Oswego residents. These will merit further discussion and analysis in the implementation phase
2011-2012.
Requirements
This EOA describes how the City has and will comply with state and local requirements related
to economic development. Specifically, as part of its Comprehensive Plan update, the City must
address the requirements of Goal 9 (OAR 660-009) and the Metro Functional Plan Title 4
(Industrial and Other Employment Areas).
Planning in the State of Oregon is governed by 19 Goals that express the State's aspirations on
land use planning and related topics, including economic development. Each goal includes
guidelines for local jurisdictions' comprehensive plans. The substantive content of an EOA is
governed by Oregon Administrative Rule, 660-009-0015 which implements Goal 9: Economic
Development. This rule requires inclusion of the following three interrelated elements inventory
(supply), need, and policies as shown in Figure 1.
Metro's Urban Growth Management Functional Plan
Title 4 of Metro's Urban Growth Management Functional Plan is intended to provide and protect
a supply of sites for industrial uses and to cluster those industries so they may operate more
productively. Title 4 also seeks to provide for the efficient movement of goods and services and
to encourage the location of other types of employment in Centers, Employment Areas,
Corridors, Main Streets and Station Communities.
Title 4 requires that jurisdictions adopt land use regulations that:
• Derive specific plan designations and zoning district boundaries of industrial areas in an
Employment and Industrial Areas Map.
• Limit the size of new buildings for retail commercial uses and retail and professional
services to ensure that they serve primarily the needs of workers in the area.
Title 6 of the Functional Plan addresses Centers, Corridors, Station Communities and Main
Streets in the regional 2040 Growth Concept. It recognizes these areas as "the principal
centers of urban life in the region". It defines the elements (boundary, assessment, policies and
action strategies) needed for regional growth including federal investments.
03/18/13 Exhibit 5/Page 10
PP 22-0005 ATTACHMENT A/PAGE 47 OF 82
March 2013 Update
Figure 1. Lake Oswego Economic Opportunities Analysis Methodology
Part A Part B Part C
Employment Land Employment Land Local Economic
Inventory Need Development Policies
-Step 2A:Analyze
-Step 1:Inventory Economic Trends -Step 3:Articulate
Employment Land Economic
OAR 660-009-0015(1) Development
i Objectives
4 Step 28:Assess OAR 660-09-
-Step 1A:Identify Comparative 0020(1)(a)
Vacant Buildable Advantages
Employment Land OAR 660-009-0015(4)
OAR 660-009-
0015(3) -Step 2C:Forecast
Employment Growth
111
-Step 1B:Describe
OAR 660-009-0015{1)
Characteristics of
Buildable Sites -Step 20:Identify
OAR 660-009- Required Sties
0025(3){a) OAR 660-009-0015(2)
11141
-Step 4:Estimate
-Step 1C:Identify Land Need Based on
Short-term Land Site Needs
Supply OAR 660-009-0025
OAR 660-009-
0025(3)(a)(C) - IMO
-Step 6:Adopt
Economic
Development Policies
OAR 660-09-0020(1)
step 5:Determine Employment Land -Step 7:Designate
Sufficiency Lands for Industrial
OAR 660-09-0025(2) and Commercial Uses
OAR 660-09-0025
FCS GROUP
Methodology
The technical and political approach used for the EOA and related steps are consistent with the
DLCD Goal 9 administrative rule, and the supporting OAR 660 guidance, as well as other
supporting guidance provided per the DLCD Industrial & Other Employment Lands Analysis
Guidebook (2005), and the Updated Draft Economic Development and Employment Land
Planning Guidebook (July 2010).
03/18/13 Exhibit 5/Page 11
PP 22-0005 ATTACHMENT A/PAGE 48 OF 82
March 2013 Update
VISION AND GOALS (LOCAL ASPIRATIONS)
While this report complies with state rules and regulations, more importantly, it provides a vision
for how the City of Lake Oswego, within a land use context, will plan for and provide economic
opportunities for its citizens from 2010 to 2035. The strategies in this report are designed to help
City leaders improve economic vitality for Lake Oswego, as described in the draft Lake Oswego
Community Vision for 2035:
We are a community where people can live, work, play and meet their daily needs for
goods and services. We build upon the intellectual capital of the community to attract new
ventures, retain local businesses and connect to the global economy. We are business-friendly
and a regional model for employment and mixed-use centers that attract quality jobs.
To this end, the City of Lake Oswego developed a set of Community Economic Development
Objectives (CEDOs) that are intended to help guide the development of the EOA and move the
community towards implementation of its vision for Economic Vitality. Some community
objectives may, in the Implementation Phase rise to the level of a goal or policy and be formally
incorporated into the updated Comprehensive Plan. Others may be more appropriately refined
to become strategies for implementation. The objectives were developed based on the City's
existing Comprehensive Plan, the Economic Development Strategy, other local market analyses
and were reviewed and updated by the Goal 9 & 10 Work Group, the Citizen Advisory
Committee and the Planning Commission.
Draft Community Economic Development Objectives:
• Maintain and grow a strong local employment base to provide jobs for Lake Oswego
residents and support a high quality of life.
• Support and grow existing and locally-owned businesses.
• Support business incubation and employment growth within the city by providing a
diversity of space/site opportunities.
• Provide flexibility in employment zones that supports economic resilience and
sustainability while minimizing negative impacts.
• Focus redevelopment and intensification of jobs (e.g., jobs per acre) in employment
corridors and centers.
• Provide opportunities for a range of industrial and employment uses. Actively pursue
environmentally responsible businesses.
• Pursue a range of employment opportunities, such as an emphasis on creative class
opportunities and clusters that build on Lake Oswego's intellectual capital, proximity to
universities and colleges and connection to the I-5 corridor. These could include but
would not necessarily be limited to science, engineering, education, computer
programming, research, arts, media and design.
• Explore long term redevelopment opportunities in the southwest industrial area, along
Bangy Road, along the Kruse Way corridor, and in Foothills.
• Create the opportunity for employment well served by transportation options.
• Maintain Lake Oswego's exceptional quality of life by investing in infrastructure and
services that support residents and businesses.
03/18/13 Exhibit 5/Page 12
PP 22-0005 ATTACHMENT A/PAGE 49 OF 82
March 2013 Update
ECONOMIC CONDITIONS, TRENDS AND FORECASTS
Lake Oswego exists as part of the larger economy of the Portland metropolitan area and is
strongly influenced by regional economic conditions. For many factors, such as workforce, Lake
Oswego does not differ significantly from the broader region. For other factors, such as income,
it does. Thus, Lake Oswego benefits from being a part of the larger regional economy and plays
a specific role in the regional economy.
Demographic Trends
Lake Oswego is located in the very desirable "inner-urban area" within the greater Portland
region. This location is considered advantageous for accessing downtown Portland and its
surrounding communities within a manageable commute. Downtown Lake Oswego's ongoing
renaissance and excellent parks, schools and community facilities continue to serve as
attributes that make it a desirable place to live, work and visit.
As Figure 2 indicates, the U.S. Census Bureau's 2010 census count estimated there to be
approximately 36,619 people in the City of Lake Oswego,2 which is an increase of 1,341 people
since the 2000 U.S. Census. 3 For comparison purposes, Figure 3 shows population estimates
prepared by Portland State University that indicate a population of 36,845 within the Lake
Oswego city limits as of July 1, 2010.
Figure 2. Lake Oswego Historic Population Trends, 1920-2010
City of Lake Oswego Population Trends, 192°-
2010 (source: U.S. Census)
40,000
36,619
35,000 15,278
30,000 30,570
25,000 22,527
20,000
14,573
15,000
10,000 8,906
3,316
5,000 1,810 1
1,285 1,727
- I I I I I I I
1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Source: U.S. Census;compiled by FCS Group.
2 The Census area is slightly larger than the city limits, but smaller than the urban services boundary
(USB).
Limited Census 2010 information was available at the conclusion of the grant period. Where information
was available, it was included.
03/18/13 Exhibit 5/Page 13
PP 22-0005 ATTACHMENT A/PAGE 50 OF 82
March 2013 Update
Figure 3. Lake Oswego Recent Population Trends, 1990-2011
City of Lake Oswego Population Trends, 1990 - 2011
(source:PSU)
40,000
35,000
30,000
25,000 —
20,000
15,000
10,000
5,000
0
1990 1991 1992 2993 1994 1995 1995 1997 ' 1998 1999 t 2000 2001 2002 2003 20011 2005 2006 ' 2007 2008 2009 201❑ 12011
!City Pep.311,'.f0.I],{147 31,48Si 11,94'3:31,41 J 3I,H4i,:i3,381 a,H11i.i4,.i!1.12,88414.'0191.i.',,.'OS 35,133 81,94[i i'a,`flll 1fo,[Fl,,:iG,3JLi.-0,,:11:,:i{,,'i1{1,ifi,l.'i'e 3G,#4',13[3,J75
Source:Portland State University, Population Research Center;compiled by FCS Group.
Lake Oswego experienced a net gain of approximately 898 1,097 households since year 2000,
with an increase of 472 414 family households and 426 710 nonfamily households, which
represents an increase in the share of nonfamily households when compared to the 2006-08
Census data. Another notable shift as indicated in Table 1 on the following page, is the
decrease in average household size from 2000-2010, which indicates a recent trend when
compared to the increase in household size that occurred between 2000 and 2006-8. As
indicated in Table 1, according to the U.S. Census, the average household size and average
family size in Lake Oswego increased over the 2000 to 2008 time period. The average
household size was 2.48 and the average family size was 3.10 people per household according
to the U.S. Census, 2006-2008 American Community Survey.
More recent 2010 estimates by City of Lake Oswego Long Range Planning staff for the Lake
Oswego USB indicate a relatively lower ratio of population to total dwelling units. Using GIS
data, City staff estimates that there were 43,09 people and 19,166 dwelling units in the Lake
Oswego Urban Service Boundary (USB) in 2010; with a ratio of people per dwelling unit of 2.25.
The fact that this ratio is lower than the average household size estimate reported by the U.S.
Census is to be expected, since the U.S. Census tallies only occupied dwelling units and
population that resides in households (not group quarters) population.
03/18/13 Exhibit 5/Page 14
PP 22-0005 ATTACHMENT A/PAGE 51 OF 82
March 2013 Update
Table 1. Lake Oswe•o Demo•raphic and Socio-economic Trends
Census 2000 Census 2010 Change
Population 35,237 36,619 1,382
Group Quarters Population 163 222 59
Households 14,796 15,893 1,097
Family Households 9,665 10,079 414
Nonfamily Households 5,104 5,814 710
Average Household Size 2.38 2.29 (0.09)
Average Family Size 2.95 2.88 (0.07)
Median Age 41.2 45.8 4.6
Census 2000 ACS 2008-10 Change
Median Household Income (unadjusted) $71,597 $81,097 $9,500
Median Family Income (unadjusted) $94,587 $105,722 $11,135
Per Capita Income (unadjusted) $42,166 $47,704 $5,538
Median Household Income (inflation
adjusted)* $98,883 $86,977 ($11,906)
Median Family Income (inflation adjusted)* $130,634 $113,387 ($17,247)
Per Capita Income (inflation adjusted)* $58,235 $51,163 ($7,073)
*Income data were adjusted to current June 2012 dollars by FCS Group based on the U.S. Bureau of Labor
Statistics, inflation calculator.
Source:U.S. Census,2000 and 2010 and 2008-2010 American Community Survey, data compiled by FCS Group
Prepared by FCS GROUP.
According to U.S. Census estimates, the median age of Lake Oswego residents also increased
from 41.2 years in 2000 to 45.8 years of age in 2010. This is more than nine years older than
the median age of residents within the Portland Vancouver MSA region (36.7). In fact, Lake
Oswego has more residents over age 65 than all other cities in the greater Portland region, with
the exception of King City.
A closer look at population age cohort patterns for Lake Oswego reflects the aging Baby Boom
population (born between 1946 and 1965). As indicated in Figure 4 and Table 2, population
cohorts that experienced the most significant increase include Baby Boomers within the 55-64
and 65-74 age ranges. These Baby Boomers (age 55 to 74) recorded a combined gain of 4,315
people since 2000.
03/18/13 Exhibit 5/Page 15
PP 22-0005 ATTACHMENT A/PAGE 52 OF 82
March 2013 Update
Figure 4. Population Age Cohort Trends, Lake Oswego, 2000 and circa 2010
Population Pyramid for Lake Population Pyramid for Lake
Oswego,2000 Oswego,2010
%of taw'pop.;%ourre:[1__S.Censu% %of total pop;source:U.S.Census
Ago 75+ 2;3 5.1 female Age 25 + DI 4m
female
65 to 74 2.6 14 % 65 to 74 4_01, 1.5 %
55 to 64 5:, 3 55 to 64 8.1 9..7.
45 to 54 °+_+ it).+ 45 to 54 x_1 y.fy
25 to 44 12,4 14.3 25 to 44 io.o li,A
20 to 24 e.0 ).: 20 to 24 1.L3 , ,
15 to 19 3.7 3.2 15 to 19 5.4 3.2
10 to 14 a.7 .3.- 10 to 14 3.9 3..S
5to9 3, ;4 5to9 3.0 zs
Age 5 - 2.5 2.a Age 5- ,..i in
Table 2. Lake Oswe•o Area Po•ulation A•e Cohort Trends
Percent
Age Cohort (years) Census 2000 Census 2010 Change Change
under 5 1,746 1,489 (257) -15%
5 to 9 2,426 2,129 (297) -12%
10 to 14 2,810 2,694 (116) -4%
15 to 19 2,424 2,439 15 1%
20 to 24 1,470 1,403 (67) -5%
25 to 44 9,441 7,697 (1,744) -18%
45 to 54 7,267 6,548 (719) -10%
55 to 64 3,676 6,302 2,626 71%
65 to 74 1,477 3,166 1,689 114%
75+ 2,541 2,752 211 8%
Total 35,278 36,619 1,341 4%
Source:U.S. Census, 2000 and 2010. Lake Oswego area is slightly larger than city limits but smaller than the
Urban Service Boundary.
As summarized in Figure 4 and Table 2 above, since 2000 there have been significant
increases in the 55-64 and 65-74 age cohorts, with increases of 70% and 113% respectively.
The only other increase occurred among the 15-19 age cohort with a minor 15 person gain. The
20-54 age cohorts experienced the most significant population decline, followed by the birth-age
14 cohort.
03/18/13 Exhibit 5/Page 16
PP 22-0005 ATTACHMENT A/PAGE 53 OF 82
March 2013 Update
As older Baby Boomers tend to desire to remain in their current residence or community as long
as possible, the population over age 75 is expected to increase measurably over the coming
decades. However, the younger population cohorts (age 5-14) are likely to remain flat or
experience negative growth.
Table 3. Lake Oswe.o Area Annual Historic Population Growth Rates
10-Year Trend Long-Term Trend
2000 to 2010 1990 to 2010
Number AAGR% Number AAGR%
Total Population 134 0.4% 302 0.9%
Male 33 0.2% 133 0.8%
Female 101 0.5% 169 1.0%
Age Cohort (years)
under 5 (26) -1.6% (14) -0.9%
5 to 9 (30) -1.3% 5 0.2%
10 to 14 (12) -0.4% 26 1.1%
15 to 19 2 0.1% 26 1.2%
20 to 24 (7) -0.5% 2 0.2%
25 to 44 (174) -2.0% (159) -1.7%
45 to 54 (72) -1.0% 101 1.9%
55 to 64 263 5.5% 188 4.7%
65 to 74 169 7.9% 58 2.3%
75+ 21 0.8% 69 3.6%
Source: US Census. AAGR=average annual growth rate.
Prepared by FCS GROUP.
03/18/13 Exhibit 5/Page 17
PP 22-0005 ATTACHMENT A/PAGE 54 OF 82
March 2013 Update
Income
Table 4 indicates that Lake Oswego continues to retain and attract upper-income households.
The portion of all households with annual income levels of more than $100,000 increased
slightly from 35% to 38% from 2000 to 2008-10. While the portion of households earning below
$75,000 fell slightly, this income level (just above the 2012 Median Family Income for
Clackamas County) still represents 47% of all Lake Oswego Households.
Table 4. Households b Income Level, Lake Oswe•o, 2000 and 2006-2008
Income Cohort
Census 2000 ACS 2008-2010 Change
Number Dist. % Number Dist. % Number Percent
less than $14,999 861 5.8% 770 4.9% (91) -0.9%
I$15,000 to $34,999 2,338 15.8% 1,951 12.5% (387) -3.3%
I$35,000 to $74,999 4,472 30.2% 4,615 29.5% 143 -0.7%
I$75,000 to $99,999 1,931 13.0% 2,359 15.1% 428 2.1%
I$100,000 to $149,999 2,550 17.2% 2,361 15.1% (189) -2.1%
I$150,000 to $199,999 1,090 7.4% 1,602 10.2% 512 2.8%
$200,000 or more 1,582 10.7% 1,989 12.7% 407 2.0%
Total 14,824 100% 15,647 100% 823 I -0.1%
Source:2000 U.S. Census data income levels expressed in 1999 dollars, and 2008-2010 U.S. Census American
Community Survey, income levels expressed in 2009 dollars.
Prepared by FCS GROUP.
According to the U.S. Census 2008-2010 American Community Survey, Lake Oswego's
average per capita income was $47,704, median household income was $86,977, and median
family income was $113,387 in 2012 dollar amounts.
While average income levels in Lake Oswego have increased in nominal dollars, inflation
adjusted income levels have fallen since 2000. This trend towards lower real income levels has
been well-documented in the Portland region and nationally, and is primarily attributed to the
shrinking income levels in middle-income households and higher costs of living for items such
as housing, transportation, food, energy and health care.
Poverty levels in Lake Oswego are relatively low in the region, however according to the U.S.
Census 2006-2008 American Community Survey, Lake Oswego still has an estimated 2,602
people in poverty 4.
4 Federal Poverty Level is defined by the U.S. Department of Housing and Urban Development(HUD) as
70% of median income in a given year.
03/18/13 Exhibit 5/Page 18
PP 22-0005 ATTACHMENT A/PAGE 55 OF 82
March 2013 Update
Availability of Workforce
The availability of trained workers in Lake Oswego will impact development of Lake Oswego's
economy over the planning period. Key trends that will affect the workforce in Lake Oswego
through 2035 include growing population, demographic factors (e.g., aging of the population;
income), availability of educated and skilled workers, and regional commuting patterns. Lake
Oswego has access to workers in the Portland metropolitan region workforce and is likely to
continue to be able to draw workers from the regional workforce in the future.
Educational attainment
The availability of trained, educated workers affects the quality of the workforce in a community.
Educational attainment is an important workforce factor because firms need to be able to find
educated workers. In addition, educational attainment is correlated with income. The fastest
growing occupations in the U.S. require an academic degree and, on average, have higher
incomes than occupations that do not require an academic degree.5
Figure 5 shows educational attainment in Oregon, Clackamas County, and Lake Oswego in
2007. In 2007, Lake Oswego had a higher share of residents above the age of 25 with a
bachelor's degree or higher (64%) than residents of Clackamas County (32%) or Oregon (28%).
Access to Lake Oswego's workforce may be attractive to businesses that need highly educated
and skilled workers, such as Corporate Headquarters or Professional and Scientific Services.
Figure 5. Educational attainment for the population 25 years and over, Oregon,
Clackamas County and Lake Oswego, 2007
1
Graduate or I 1
11 professional degree
I I
Bachelor's degree
Associate degree
E
c -
co Some college, I I
a no degree
Tti
o
High school graduate
(includes equivalency)
w 9th to 12th grade,
no diploma
Less than 9th grade
0% 10% 20% 30% 40% 50%
Percent of Population Age 25+
■Oregon ❑Clackamas County ❑Lake Oswego
Source:2007 American Community Survey;prepared by ECONorthwest.
5 Arlene Dohm and Lyn Shniper,"Occupational Employment Projections to 2016,"Monthly Labor Review,November 2007, pp.86-
125.
03/18/13 Exhibit 5/Page 19
PP 22-0005 ATTACHMENT A/PAGE 56 OF 82
March 2013 Update
Commuting Patterns
Commuting plays an important role in Lake Oswego's economy. Lake Oswego residents have a
slightly shorter commute than most residents of Clackamas County or the Portland metropolitan
region. About 70% of Lake Oswego's residents commute 29 minutes or less, compared to 60%
of Clackamas County residents and 65% of residents in the Portland metropolitan region. About
2% of Lake Oswego's residents had a commute of 60 minutes or more, compared to 6% of
residents of Clackamas County and the Portland metropolitan region.6
Lake Oswego's residents commuted across the Portland metropolitan region in 2006,7 with
about 90% of workers working in Multnomah County, Clackamas County, and Washington
County. About 37% of Lake Oswego's residents worked in the City of Portland, 14% in Lake
Oswego, and 5% or more in Beaverton, Tigard, and Tualatin.8
Lake Oswego's workforce commuted from across the Portland metropolitan region in 2006, with
about 85% of workers coming from Multnomah County, Clackamas County, and Washington
County. About 22% of Lake Oswego's workforce lived in the City of Portland, 14% in Lake
Oswego, and 5% or more from Beaverton or Tigard.9
This means that Lake Oswego's companies have access to workers from across the Portland
metropolitan area but especially from the City north to Portland and from Beaverton east to I-
205. These commuting patterns create demand for automotive and other forms of
transportation, both within Lake Oswego and on roads throughout the Portland metropolitan
area.
Changes in Employment
The global economy is evolving. Nationally, this is reflected in changes observed during the
1980's to the current period. These changes affected the composition of Oregon's economy,
including the Portland metropolitan area and Lake Oswego. The most important shift during this
period at the national-level was the shift in employment from a focus on manufacturing to
services. The most important shift in Oregon has been the shift from a timber-based economy to
a more diverse economy, with the greatest employment in services. The most important trends
and changes in employment for Lake Oswego over the next 20-years are: growth in financial
firms, growing importance of health care, and growth in other services that require high quality
office space (e.g., professional and technical services).
Lake Oswego had 21,044 jobs at 2,272 establishments in 20061°, with an average firm size of
9.3 employees." The average wage per employee was about $49,400. The sectors with the
most employment and above average wages were Finance and Insurance ($65,335 average
wage) and Professional, Scientific and Technical Services ($73,100). Other sectors with at least
5% of the City's employment and above average wages were: Wholesale Trade ($86,400),
Construction ($58,000), and Manufacturing ($54,700). The sectors with the greatest number of
2007 American Community Survey.
The most current data on commuting patterns is for 2006.This data is available from U.S.Census Bureau: LED on the Map.
8 U.S. Census Bureau: Longitudinal Employer-Housing Dynamics mapping tool.
9 U.S. Census Bureau: Longitudinal Employer-Housing Dynamics mapping tool.
10 This study uses 2006 QCEW data to be consistent with the base employment data used by Metro in the recent work on the Urban
Growth Report 2009-2030.
11 The number of employees per firm is calculated based on the covered data from the Quarterly Census of Employment and
Workforce(QCEW).Other data sources give different firm size. For example,Table A-11 presents employment data from Lake
Oswego's business license database,which shows an overall firm size of 6.1 employees per firm and 9.1 employees per firm,
excluding home occupations.The best available data about firm size is from the QCEW data because businesses with employees
covered by unemployment insurance are required by the Federal Government to report all employment on a monthly basis.
03/18/13 Exhibit 5/Page 20
PP 22-0005 ATTACHMENT A/PAGE 57 OF 82
March 2013 Update
employees were: Finance and Insurance (17%), Professional, Scientific and Technical Services
(12%), Government (11%), Accommodation and Food Services (9%), Health Care and Social
Assistance (8%), and Retail (7%). These sectors accounted for 13,245 or 63% of Lake
Oswego's jobs.
The sectors with the most employment and below average wages were Accommodation and
Food Services ($16,300), Retail ($24,100), Government ($34,100), and Health Care and Social
Assistance ($36,000). Other sectors with at least 5°/0 of the City's employment and below
average wages were: Other Services ($27,200),12 and Administrative Support and Waste
Management ($30,500).
A substantial amount of Lake Oswego's employment is located on land that is not designated
for employment.
• Home occupations. Table 6 shows home occupations, which account for about 9% of
employment in the City's License Database. Home occupations tend to have a lower
average firm size, 1.5 employees per firm, compared to 9.1 employees per firm for non-
home occupations operating in Lake Oswego.13 The most common types of home
occupations are general construction, interior design, design, consultants, and mortgage
brokers.
Table 6. Licensed businesses in Lake Oswego, 2009
Firms Employees
Percent Percent Avg.
Number of total Number of total Emp/Firm
Businesses operating within
Lake Oswego 1,373 61% 12,532 91% 9.1
Home Occupations 887 39% 1,294 9% 1.5
Total 2,260 100% 13,826 100% 6.1
Source:City of Lake Oswego Business License Database;prepared by ECONorthwest.
• Employment located on non-employment plan designations. The Quarterly Census
of Employment and Wages (QCEW) data in Table 7 includes employment that is located
in non-employment plan designations, mostly residential plan designations. This
employment includes home occupations (e.g., home offices or construction contractors
working out of their home), as well as businesses located in non-employment plan
designations (e.g., or assisted living facilities).
12 Other Services includes services such as repair and maintenance,dry cleaning services,personal care services(e.g.,barber
shops or nail salons),and organizations.
13 This estimate of the number of employees per firm is based on employment data from Lake Oswego's business license database.
The best available data about firm size is from the QCEW data because businesses with employees covered by unemployment
insurance are required by the Federal Government to report all employment on a monthly basis.The purpose of presenting the data
about firm size in this paragraph is to illustrate that home occupations have fewer employees than the City's average firm size.
13 This estimate of population is based on the housing and population forecast in the 2009 Housing Needs
Analysis conducted by Winterbrook Planning.
03/18/13 Exhibit 5/Page 21
PP 22-0005 ATTACHMENT A/PAGE 58 OF 82
March 2013 Update
Table 7. Em•to ment in Lake Oswe•o's urban services bounda , 2009
Avg.Pay
Employment Sector Firms Jobs %of Emp. Per Job
Agriculture, Forestry, Fishing&Hunting 3 17 0% $20,271
Utilites 3 10 0% $46,504
Construction 162 686 4% $54,995
Manufacturing 10 191 1% $31,175
Wood Product Manufacturing 13 226 1% $43,018
Primary Metal Manufacturing 25 468 2% $77,453
Wholesale Trade 265 1,115 6% $91,833
Retail Trade 96 1,216 6% $24,689
Sporting Goods, Hobby, Book,and Music Stores 51 158 1% $20,844
Transportation and Warehousing 12 126 1% $32,818
Postal Service 6 75 0% $57,373
Information 40 537 3% $106,415
Finance and Insurance 290 2,549 14% $78,665
Real Estate, Rental and Leasing 130 436 2% $45,251
Professional,Scientific and Technical Services 407 2,538 13% $74,203
Management of Companies and Enterprises 24 335 2% $81,397
Admin.,Waste Mgmt.and Remediation Services 100 838 4% $34,892
Educational Services 55 1,862 10% $36,550
Health Care and Social Assistance 191 1,709 9% $38,217
Arts, Recreation and Entertainment 25 330 2% $18,404
Accommodation and Food Services 118 1,659 9% $17,596
Other Services 246 798 4% $29,324
Public Administration/Government 4 988 5% $45,633
All Other 21 12 0% $56,410
Total 2,297 18,879 100% $52,685
Source: Oregon Employment Department Quarterly Census of Employment and Wages(QCEW). Summary by
industry and percentages calculated by FCS GROUP.
Note: Only employment in "covered"jobs that include workman's comprehensive insurance payments are reflected in
Table 7.
Analysis of the QCEW data shows that about 2,450 employees are located in non-employment
plan designations, accounting for 12% of Lake Oswego's employment. The most common types
of employment located on non-employment plan designations are: Health Care and Social
Assistance; Arts, Entertainment, and Recreation; Construction; and Other Services.
It is likely that there is overlap in the employment reported from these data sources. The QCEW
data probably includes some home occupations, such as contractors working from home or
telecommuters that work for firms not located in Lake Oswego. The information in this analysis
suggests that between 9% and 12% of Lake Oswego's workforce is located on land that is not
designated for employment uses.
03/18/13 Exhibit 5/Page 22
PP 22-0005 ATTACHMENT A/PAGE 59 OF 82
March 2013 Update
Lake Oswego's Competitive Advantages and Challenges
Economic development opportunities in Lake Oswego will be affected by local conditions in
addition to national and state economic conditions. Economic conditions in Lake Oswego
relative to other portions of the Portland metropolitan area form Lake Oswego's competitive
advantage for economic development. Lake Oswego's competitive advantages have
implications for the types of firms most likely to locate and expand in Lake Oswego.
Lake Oswego's primary competitive advantages are quality of life, prestige, market buying
power, location, and access to highly educated and skilled labor. These factors make Lake
Oswego attractive to residents and businesses that want a high quality of life where they live
and work.
A recent analysis by FCS GROUP revealed that Lake Oswego, and particularly the Kruse Way
Corridor, is a major economic engine within Clackamas County. 14As shown in the figure below,
the Lake Oswego Boones Ferry Road Corridor is one of the leading clusters of employment
activity within Clackamas County (map depicts level of relative annual economic output per 10-
acre grid that occurred in 2008). In 2008, the businesses within the Kruse Way Corridor (the 81
net acre area extending along Kruse Way from 1-5 to Boones Ferry Road) included 199
separate businesses with a total covered workforce of 2,747 direct jobs (on site) and generated
an annual direct payroll of$243 million, and annual direct/indirect regional economic output of
$1.4 billion. While, total employment within the Kruse Way Corridor has declined since 2008 in
the aftermath of the recent economic recession, this area continues to provide significant
employment and economic output within the greater Portland region.
s
/ -
�_ w -
j '}' ,.,_!
140,0
- It "� r r
14 Clackamas County Economic Landscape, Economic Profiles, 2010; report for Clackamas County by
FCS GROUP, Cogan Owens Cogan, and Real Urban Geographics.
03/18/13 Exhibit 5/Page 23
PP 22-0005 ATTACHMENT A/PAGE 60 OF 82
March 2013 Update
The local factors that form Lake Oswego's competitive advantage are summarized below.
• Quality of life. Lake Oswego's high quality of life and significant amenities are a primary
competitive advantage for attracting businesses to the City. Lake Oswego's quality of life
attributes include: high-quality housing, urban amenities (restaurants and shopping
opportunities), Oswego Lake and lake front properties, parks and open space, proximity
to Portland, beautiful setting, and access to urban and outdoor recreation. Lake
Oswego's high quality of life is likely to attract businesses and entrepreneurs that want to
locate in a high amenity area.
• Prestige. Office space in Lake Oswego, especially along Kruse Way, is considered a
prestigious location. Businesses that want to locate in a prestigious, high amenity area
are likely to be attracted to Lake Oswego.
• Buying power of markets. The buying power of Lake Oswego's households provides a
strong market for goods and services. According to estimates on household spending by
Oregon Prospector,15 households in Lake Oswego spent over$1.2 billion in 2008, about
18% of total household expenditures in Clackamas County. Lake Oswego households
spend an average of$78,900 on commonly purchased items. Expenditures by
households in Lake Oswego were 135% of the County average ($58,443 per
household). The buying power of households in Lake Oswego is a competitive
advantage for attracting retail and services.
• Location. Lake Oswego is located in the Portland metropolitan area, immediately south
of the City of Portland and near the intersection of I-5 and 1-205. Lake Oswego is located
near Tigard, Tualatin and West Linn. Lake Oswego is located in the northwestern part of
Clackamas County, near Multnomah and Washington counties. Lake Oswego's location
affects economic development in the City because: the city is located in the most
populous part of Oregon; residents have access to easy shopping in and around the city;
residents have access to cultural and urban amenities in Lake Oswego and adjacent
cities; and businesses in Lake Oswego have access to transportation and business
infrastructure in the Portland metropolitan area.
• Transportation. Businesses and residents in Lake Oswego have access to a variety of
modes of transportation: automobile (1-5, 1-205, Highway 43, Highway 217, and local
roads); transit (Tri-Met buses, possible future bus rapid transit or Portland Streetcar
extension); and air (Portland International Airport). Businesses that need relatively easy
automobile access to 1-5 and other major roads in the region may be attracted to Lake
Oswego.
• Labor market. The availability of labor is critical for economic development. Availability
of labor depends not only on the number of workers available, but the quality, skills, and
experience of available workers as well. Commuting is common in Lake Oswego. The
commuting patterns show that businesses in Lake Oswego are able to attract skilled and
unskilled workers from across the Portland metropolitan region. Businesses that need
access to workers from across the Portland metropolitan region and that want a pool of
local highly educated and skilled workers may be attracted to Lake Oswego.
• Public policy. Public policy can impact the amount and type of economic growth in a
community. The City can impact economic growth through its policies about the
provision of land, redevelopment, and infill development. Success at attracting or
retaining firms may depend on availability of attractive sites for development and public
support for redevelopment. Although firms may be attracted to Lake Oswego because of
15 Oregon Prospector is the State of Oregon's economic development website. It has city profiles,which include information about
expenditures by residents of the city.The website can be accessed at: http://www.oregonprospector.com/.
03/18/13 Exhibit 5/Page 24
PP 22-0005 ATTACHMENT A/PAGE 61 OF 82
March 2013 Update
the City's competitive advantages, the choice to locate in Lake Oswego may be based,
in large part, on public assistance with redevelopment (e.g., parcel assembly) because
of the challenges associated with redevelopment.
• Business taxes. Multnomah County levies a 1.45% business income tax. Clackamas
and Washington Counties do not have a business income tax, which gives cities in these
counties an advantage for attracting businesses over cities in Multnomah County. Lake
Oswego's proximity to Multnomah County presents an opportunity to attract firms that
want to locate near Multnomah County.
Lake Oswego also has a number of real or perceived challenges for economic development,
relative to the Portland metropolitan region. Interviews with stakeholders identified the following
barriers to economic development in Lake Oswego.
• Land. The availability of land in Lake Oswego was the most commonly mentioned
challenge to economic development. The challenges included: availability of vacant land,
availability of sites over a few acres, and cost of land. The lack of light industrial land
with highway access or flex space is a concern because the City has so little industrial
land.
• Infill and redevelopment. Infill and redevelopment, especially of sites larger than an
acre, is difficult. This is especially true in Downtown, where parcel assembly of sites is
very difficult because of the highly fragmented pattern of ownership. In addition, the
City's policies make it challenging to change existing uses through rezoning.
• Parking. High land costs make providing parking costly, especially for structured or
underground parking. The need for parking, both because of the lack of transportation
alternatives and City policies, is cited by the stakeholders as a challenge to increasing
densities in areas with office buildings. In addition, it is perceived that a lack of parking in
Downtown makes retail uses more challenging, especially for small retailers that cannot
afford to build parking structures. This seems to be more perception than reality based
on a 2010 Downtown Parking Study.
• Providing infrastructure. The cost of providing new infrastructure to increase intensity
of uses and funding maintenance of existing infrastructure are also cited by stakeholders
as a challenge to economic development.
• Downtown. The distance from Downtown to 1-5 and the capacity of Highway 43 and
local roads are cited as a challenge to development in Downtown, with observations that
the distance from 1-5 will prevent Downtown from providing regional retail or services. In
addition, increasing densities in Downtown substantially may create capacity issues on
the street system, especially if people come from outside of Lake Oswego for retail and
services.
• Affordable housing. The lack of affordable housing, especially workforce housing, is
seen as a challenge to businesses with lower paid employees. These employees
generally cannot afford to live in Lake Oswego and must commute from other
communities.
• Community attitudes. Community attitudes are viewed as a challenge to development,
especially development near established neighborhoods. In addition, community
concerns about development often make the development process (from concept to
receiving development approval from the City) slower.
• City government. The complexity and speed of the planning process were cited in
stakeholder interviews as a challenge to economic development.
03/18/13 Exhibit 5/Page 25
PP 22-0005 ATTACHMENT A/PAGE 62 OF 82
March 2013 Update
Potential Growth Industries in Lake Oswego
The types of jobs and target industries Lake Oswego is focusing on have the following
attributes: high-wage, stable jobs with benefits; jobs requiring skilled and unskilled labor;
employers in a range of industries that will contribute to a diverse and sustainable economy;
and industries that are compatible with Lake Oswego's community values.
Regional and Local Business Clusters
Overall, Clackamas County's clusters can be organized into five broad categories:
Manufacturing; Warehousing & Transportation; Wholesale Trade; and Finance, Insurance, and
Professional Services. Combined, the direct economic impacts of the 10 clusters account for
roughly 39.8% of the Clackamas County economy. When secondary impacts, such as those
realized by up- and downstream cluster suppliers are considered, the 10 clusters account for
about 65% of the county economy.
An analysis of how Lake Oswego fits into the Clackamas County economy based on job
concentration by employment sector defined the region as nine counties from Salem to
Vancouver.16 Location quotients (LQ) were calculated using value added of an industry as the
best measure of economic importance.17
Related industry sectors are grouped into clusters and ranked according to size and LQ using
value added. Key clusters are described in terms of size and other economic characteristics.
The summaries were constructed using 2006 IMPLAN (IMpact analysis for PLANing software)
data, supplemented by QCEW data.
The analysis identified ten "key clusters" in Clackamas County. Each of these clusters met two
basic criteria: (1) highest value added location quotients in Clackamas County relative to the
nine county CMSA; and (2) a contribution of at least 0.25% to the County's total Gross Domestic
Product (GDP) (as measured by value added). Table 8 provides the results of this analysis.
Table 8. Clackamas County key industry clusters, with selection criteria, 2006 (dollar
figures in millions of$)
Value Added
cyo
Cluster Name LQ Direct % % Total
County Region County Region
1. Warehousing 2.58 $ 102.3 0.86A �.1% $ 149.7 1.26A .1
2. Fabricated Metal Manufacturing 2.36 345.7 2.7% 0.3% 602.7 4.7% 0.6%
3. Nurseries and Greenhouses 2.10 197.6 1.5% 0.2% 273.6 2.1% 0.3%
4. Primary Metal Manufacturing 1.65 188.2 1.5% 0.2% 325.8 2.5% 0.3%
5. Truck Transport 1.62 235.9 1.8% 0.2% 433.0 3.3% 0.4%
6. Wood Product Manufacturing 1.43 134.8 1.0% 0.1% 255.8 2.0% 0.2%
7. Professional Consulting Services 1.41 677.8 5.2% 0.6% 1,168.4 9.0% 1.1%
8. Finance and Insurance 1.27 1,680.4 13.0% 1.6% 2,637.8 20.4% 2.5%
9. Wholesale Trade 1.22 1,453.4 11.2% 1.4% 2,283.9 17.7% 2.2%
10. Machinery Manufacturing 1.17 131.6 1.0% 0.1% 276.1 2.1% 0.3%
Clusters Total N/A $ 5,147.7 39.8% 4.9% $ 8,406.8 65.0% 8.0%
Source:ECONorthwest, using 2006 IMPLAN data.
Note: "Region"is the nine-county Portland CMSA region as defined earlier;the Finance and Insurance cluster
excludes banks.
16 This region is defined by the U.S.Census as the Portland Consolidated Metropolitan Service Area(CMSA).This area includes
Clackamas,Columbia,Marion, Multnomah,Polk,Washington,and Yamhill counties in Oregon;and Clark County and Skamania
County in Washington.
17 It is more typical for cluster studies to use employment as the basis for comparison. But the highest employment does not
necessarily produce the highest value added.While the measures are highly correlated,value added is a theoretically preferable
measure of an industry's or cluster's impact on the economy.
03/18/13 Exhibit 5/Page 26
PP 22-0005 ATTACHMENT A/PAGE 63 OF 82
March 2013 Update
Location quotients for industry sectors (defined by 2-digit North American Industrial
Classification System (NAICS) codes) were calculated for Lake Oswego compared to
Clackamas County, using data on wages for covered employees for 2006. Because of the
different methodologies used, these results are not directly comparable to the clusters identified
for the County. However, this analysis does shed some light on the relationships between the
Lake Oswego and Clackamas County economies.
Four industries in Lake Oswego had more than double the employment concentration than
Clackamas County, indicating possible employment clusters. Those sectors were Finance &
Insurance; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; and
Information. These sectors roughly correlate to two of the key industry clusters identified in
Clackamas County: Professional Consulting Services, and Finance and Insurance.
This analysis indicates the City of Lake Oswego has different economic strengths than the rest
of Clackamas County. Manufacturing, Transportation and Warehousing are some of the
County's key clusters, compared to the Portland metropolitan region. Employment in these
clusters is not concentrated in Lake Oswego.
On the other hand, Finance, Insurance, and Professional Consulting Services were identified as
key clusters in the County, where Lake Oswego has a high concentration of wages in these
sectors, compared to the County as a whole. Were it not for the strength of these sectors in
Lake Oswego, it is unlikely that Clackamas County would show a comparative advantage in
these clusters.
Target Industries
Based on current employment trends, the City's competitive advantages, and City land-use and
economic development policies, types of businesses that may be attracted to Lake Oswego
include:
• Finance and Insurance. Lake Oswego currently has a high concentration of
employment in finance and insurance. The City's high quality of life, prestige, proximity
to Downtown Portland, concentration of employment in finance and insurance, and
access to high quality labor may make Lake Oswego firms particularly competitive in this
industry.
• Professional, Scientific, Technical Services and Information. The availability of
highly educated and skilled labor, concentration of existing professional firms, and the
high quality of life in Lake Oswego make it attractive to professional service firms and
information firms. These types of businesses could include engineering, research, law
firms, accounting firms, software development, and other professional services that are
attracted to high-quality settings.
• Real Estate. Lake Oswego's high quality housing stock and reputation as a desirable
commercial location make Lake Oswego attractive to real estate firms. The growth in this
industry, however, may be limited because of limited supply of land (and real estate
opportunities) in Lake Oswego. The City may continue to attract real estate firms that
primarily operate in communities outside of Lake Oswego.
• Corporate or Regional Headquarters. The availability of office space on Kruse Way
(and other parts of Lake Oswego), quality of life, prestige, proximity to Portland, location
along 1-5, availability of executive housing, and availability of highly educated workers
may make Lake Oswego attractive as a place to locate corporate or regional
headquarters.
03/18/13 Exhibit 5/Page 27
PP 22-0005 ATTACHMENT A/PAGE 64 OF 82
March 2013 Update
• Green Businesses. There is no clear definition of what constitutes a green industry or
business. In general, green businesses are those that produce products or services that
improve or maintain environmental quality. Opportunities for environmentally conscious
businesses are growing. The type of green businesses that may choose to locate or
expand in Lake Oswego includes: training and support firms, research firms, or small
scale, light industrial firms with environmentally friendly practices.
• Health Care. One of the fastest growing sectors in the national and State economy is
Health Care. The aging of the population in Lake Oswego, and the Portland metropolitan
region, make Health Care a sector that is likely to grow in Lake Oswego. The types of
health care businesses likely to locate or expand in Lake Oswego are medical offices
rather than large complexes, given land supply.
• Services for Residents. Population growth will drive development of retail and
government services in Lake Oswego.
• Services for Seniors. The Portland metropolitan region and Lake Oswego's growing
population of retirees or people nearing retirement, creates demand for services for
seniors, such as medical services or high-amenity senior housing, which may be
attracted to Lake Oswego.
• Government and Public Services. Lake Oswego will continue to be the location for
institutions such as: Lake Oswego City Services, the Lake Oswego School District, and
Marylhurst University.
• Advanced Continuing Education. Lake Oswego has shown a commitment to lifelong
learning opportunities and is strategic located near Marylhurst University, Portland
Community College, Oregon Health and Sciences University and Lewis and Clark
University.
• Arts. Lake Oswego supports and promotes the arts through the Arts Council of Lake
Oswego, Lakewood Center for the Arts and annual Festival of the Arts among other
opportunities. This is an integral part of the community that contributes to the excellent
quality of life, one of the City's competitive advantages.
The draft employment land needs analysis will need to consider any special site requirements
from these types of target clusters to ascertain whether the existing land supply and zoning
regulations are adequate for retaining and enhancing job growth in these employment sectors.
03/18/13 Exhibit 5/Page 28
PP 22-0005 ATTACHMENT A/PAGE 65 OF 82
March 2013 Update
INVENTORY OF SUITABLE SITES (LAND SUPPLY)
Consistent with the employment land demand forecast, the buildable land inventory (BLI) for the
Lake Oswego EOA documents industrial and commercial inventory that currently exists within
the Lake Oswego USB.
The BLI includes an analysis of existing vacant and partially vacant (sub-dividable) tax lots by
current zoning classification and deducted all significant environmental constraints (wetlands,
floodplains, stream corridors and slopes greater than 25%) to estimate buildable land area
within the Lake Oswego USB. The buildable land area for each tax lot was derived by analyzing
GIS data pertaining to environmental features that would constrain the amount of potential site
development on vacant and partially vacant areas. The vacant and part-vacant land inventory
includes tax lots or parcels that have at least 10,000 square feet (about 1/4 acre) of buildable
land area (net of existing developed buildings and environmental and slope constraints).
The land supply analysis focused on the land use classifications that can accommodate job
growth within the USB and does not include zones with no buildable land. As shown in Table 9,
Lake Oswego has four commercial, one institutional and one industrial zoning designation that
meet these criteria.
Table 9. Lake Oswego Employment Zone Designations
Commercial
East End General Commercial (EC)
I General Commercial (GC)
West Lake Grove Office
Commercial/Neighborhood Commercial
(OC/NC)
Campus Research & Development (CR&D)
Institutional
Campus Institutional (CI)
Industrial
Industrial Park (IP)
Prepared by FCS GROUP.
The vacant and partially vacant land inventory for the Lake Oswego USB includes 12 tax lots
with a total buildable land area of 20.11 acres, as indicated in Table 10.
Table 10. Distribution of Vacant and Part Vacant Lands by Land Use Zone Classification,
Lake Oswego USB
Vacant and Part-Vacant Property
Zone 0.26 to 1 Acre 1 to 3 Acres 3 to 6 Acres > 6 Acres Total
Lots I Acres Lots I Acres Lots I Acres Lots I Acres Lots Acres
Commercial 7 2.98 2 4.63 1 4.67 10 12.3
EC 2 0.57 2 0.6
GC 4 1.89 2 4.63 6 6.5
OC/NC 1 0.52 1 0.5
CR & D 1 4.67 1 4.7
Institutional (CI) 1 6.92 1 6.92
Industrial (IP) 1 0.91 1 0.91
Total 8 3.89 2 4.63 1 4.67 1 6.92 12 20.11
Prepared by FCS GROUP.
03/18/13 Exhibit 5/Page 29
PP 22-0005 ATTACHMENT A/PAGE 66 OF 82
March 2013 Update
Redevelopment Potential
In addition to the vacant and part-vacant BLI development opportunities, the City of Lake
Oswego is also anticipating the potential for significant redevelopment to occur within these and
other employment zones. This includes employment zones: Industrial (I), General Commercial
(GC) Highway Commercial (HC); and mixed-use zones: Office Campus/Townhome Residential
(OC/R-2.5); Neighborhood Commercial/Residential High Density (NC/R-0); Office
Campus/Residential High Density (OC/R-3); and East End Commercial/Residential High
Density (EC/R-0).
Unique Refill and Redevelopment Considerations
• Office vacancy rates end of 2010 were 18.3% in Kruse Way and 12.2% in Lake
Oswego/West Linn. Equals 635,000 square feet of vacant space.
■ Vacant buildings could support about 1,500 jobs in Lake Oswego (with no vacant
land need).
• Retail has relatively low vacancy rates (4%).
• Industrial had negative absorption during 2010 in Lake Oswego (lost 24,000 SF with 6%
vacancy rate).
• There are about 103 acres of mixed-use land area with medium to very high
redevelopment potential in Lake Oswego (could accommodate about 1,600 net new
jobs).
The analysis of redevelopment opportunities is based on the ratio of assessed improvement
value to land value for each tax lot using 2010 Clackamas County Assessor data where parcels
with an improvement value of 150% or less of the land value are considered redevelopable.
The results provided in Table 11 indicate that there is a significant amount of redevelopment
potential within the Lake Oswego USB. The redevelopment analysis identifies more than 121
acres with economic development potential in the Downtown, Foothills, Kruse Way and Boones
Ferry areas.
Table 11. Potential Mixed-Use Redevelopment Parcels with less than 1.5:1 improvement-
to-land-value ratio and greater than 1/4 Acre, Lake Oswego USB
Zoning Downtown Foothills Kruse Way Boones Ferry Subtotal
GC 0.0 0.0 0.0 21.3 21.3
NC/RO 0.0 0.0 0.0 2.3 2.3
OC/R3 0.0 0.0 9.9 2.1 12.0
EC 14.8 0.0 0.0 0.0 14.8
HC 0.0 0.0 29.0 0.0 29.0
CR&D 0.0 0.0 0.0 0.0 0.0
EC/RO 0.0 25.7 0.0 0.0 25.7
I (Foothills area) 0.0 14.6 0.0 0.0 14.6
OC 0.0 0.0 0.0 1.6 1.6
Total 14.8 40.2 38.9 27.3 121.2
Source:Analysis by City of Lake Oswego and FCS GROUP, 2011.
03/18/13 Exhibit 5/Page 30
PP 22-0005 ATTACHMENT A/PAGE 67 OF 82
March 2013 Update
SITE SUITABILITY ANALYSIS (LAND DEMAND)
In the case of Lake Oswego, the city is located within the Metro planning boundary and also
needs to maintain consistency between adopted regional plans and requirements. The most
recent adopted jobs and population forecast for the Lake Oswego area is from 2005
(Metroscope Generation 2.3) and is now being updated by Metro staff(release date expected
December 2011).
Preliminary employment and population forecasts for the Lake Oswego area have also been
released as part of the 2009 Metro Urban Growth Report, as reflected in the "High" employment
growth forecast. Lake Oswego is in the process of coordinating with Metro to update jobs and
population forecasts, which are planned for release by Metro in December 2011. The draft EOA
will be updated to reflect this forecast prior to final submittal.
Hence, for planning purposes, four job growth forecast scenarios are assumed and summarized
in Table 12:18
Low Growth Forecast is based on the average annual growth rate (AAGR) from the 2010
census between 2000 and 2010 and assumes that the overall job growth is consistent with
population growth in the Lake Oswego USB, with no changes to existing land supply or zoning.
In light of recent trends and local objectives, we have assumed no gain/loss in jobs within the
government and industrial sectors, and growth to occur in the retail and service sectors.
Medium Growth Forecast utilizes the most current trend and forecast data available from the
Oregon Employment Department. Like the low growth forecast, it also is based on the AAGR
from the 2010 census between 2000-2010 and assumes that the overall job growth is consistent
with population growth in the Lake Oswego USB, with no changes to existing land supply or
zoning. In light of recent trends and local objectives, we have assumed no gain/loss in jobs
within the government and industrial sectors, and growth to occur in the retail and service
sectors. To create this forecast, FCS GROUP adjusted the Lake Oswego USB 2009
employment estimates to year 2010 using current employment statistics for the January to
December 2010 time period by job sector based on Oregon Employment Department data for
Clackamas County.
Medium-High Growth Forecast assumes future job growth is consistent with the Oregon
Employment Department 2008-2018 employment sector forecasts for Region 15 (Clackamas
County). Long-term average annual growth rates for employment sectors are based on the
most recent 10-year (2008-2018) employment forecast for job sectors in Clackamas County
(Region 15), and are extrapolated to year 2035.
High Growth Forecast assumes that the job growth rate is consistent with the 2009 Metro Urban
Growth Report (UGR) assumptions (which are still being refined for release in December 2011).
18 Base year(2010) has been updated to reflect current Oregon Employment Dept.job estimates for Lake
Oswego USB (Dec. 2009) adjusted to Dec. 2010 using current monthly employment statistics for
Clackamas County.
03/18/13 Exhibit 5/Page 31
PP 22-0005 ATTACHMENT A/PAGE 68 OF 82
March 2013 Update
Table 12. Employment Growth Forecasts, Lake Oswego USB, 2010-203519
2010 2035 Change Average
Low Growth Forecast Estimate Projection 2010-2035 Annual AAGR*
Change
Employment 20,538 22,546 2,008 57 0.37%
Retail 1,551 1,760 209 6 0.51%
Commercial/Services 13,382 15,181 1,799 51 0.51%
Industrial 2,834 2,834 0%
Government/Education 2,771 2,771 0%
Medium Growth 2010 2035 Change Average
Forecast Estimate Projection 2010-2035 Annual AAGR*
Change
Employment 20,538 24,354 3,815 109 0.68%
Retail 1,551 1,948 396 11 0.91%
Commercial/Services 13,382 16,801 3,419 98 0.91%
Industrial 2,834 2,834 0%
Government/Education 2,771 2,771 0%
Medium-High 2010 2035 Change Average
Growth Forecast Estimate Projection 2010-2035 Annual AAGR*
Change
Employment 20,538 25,398 4,859 194 0.85%
Retail 1,551 2,142 590 24 1.30%
Commercial/Services 13,382 17,297 3,915 157 1.03%
Industrial 2,834 2,492 (142) (14) -0.51%
Government/Education 2,771 3,468 697 28 0.90%
2010 2035 Change Average
High Growth Forecast Estimate Projection 2010-2035 Annual AAGR*
Change
Employment 20,538 34,280 13,741 550 2.07%
Retail 1,551 2,691 1,140 46 2.23%
Commercial/Services 13,382 23,001 9,619 385 2.19%
I Industrial 2,834 4,251 1,417 57 1.63%
I Government/Education 2,771 4,336 1,565 63 1.81% 1
*AAGR=average annual growth rate
Note:a portion of the total net new job growth shown in Table 12 can and will occur within vacant buildings, including
Kruse Way Corridor and locations, and a portion will need to be accommodated on vacant lands and through
redevelopment opportunities.
Prepared by FCS GROUP.
Once the annual average job growth rates and job forecasts were created, a series of
assumptions were used to allocate: jobs to building types; building types to square feet of floor
area; and building floor area to redevelopment or vacant lands by general zone classification.
The following key assumptions are generally consistent with the Metro Urban Growth Report
(UGR) and local experience.
The methodology used to translate the employment growth forecast into the vacant land needs
forecasts involved a series of assumptions to allocate jobs to building types, and assumptions to
allocate building types into redevelopment and new construction floor area requirements; and
then building types into general land use classifications (see Appendix A). The assumptions for
19 In October 2012, the Lake Oswego City Council accepted the 2035 forecasts contained in the table on
page 4 of this report. The City's forecast reflects the Medium-High forecast from Table 12, which most
closely aligns with Metro-adopted forecast for Lake Oswego of 5,291 new jobs between 2010 and 2035.
03/18/13 Exhibit 5/Page 32
PP 22-0005 ATTACHMENT A/PAGE 69 OF 82
March 2013 Update
translating job forecasts into building and land needs were derived by FCS GROUP and City of
Lake Oswego Long Range Planning staff based on local observations; with assumptions that
are generally consistent with the methodology utilized by Metro in the Draft 2009-2030 UGR.
See Appendix B for more information.
As shown in Table 13, the long-term analysis of vacant land need for employment growth within
the Lake Oswego USB by year 2035 identifies a range in employment land needs from 14 acres
(low) to 23 acres (medium) to 56 acres (medium-high) and up to 141 acres (high).
Table 13. Vacant Employment Land Demand Forecast, Lake Oswego USB, 2010 to 2035
(gross buildable acres)
Vacant Land Demand
Land Use Classification Low Medium Med-High High
Commercial and Mixed Use 10 20 40 95
Institutional 1 1 9 21
Industrial 1 2 0 24
Total Vacant Land Demand 14 23 56 141
Source:compiled by FCS GROUP.
03/18/13 Exhibit 5/Page 33
PP 22-0005 ATTACHMENT A/PAGE 70 OF 82
March 2013 Update
ASSESSMENT OF EMPLOYMENT LAND NEEDS
A range of land need forecasts were prepared for consideration, including: low, medium,
medium-high and high land needs scenarios.
Table 14 summarizes Lake Oswego's land supply and demand for each employment growth
forecast. The Economic Opportunities Analysis requirements focus on an assessment of vacant
employment land, however due to Lake Oswego's limited supply of vacant employment land,
this report also assesses the potential to add jobs through redevelopment and through filling
vacant office space.
The results in Table 14 show that with the exception of Institutional demand in the medium-high
employment forecast, Lake Oswego's supply of vacant and redevelopable land along with
vacant office space, could provide the capacity for over 4,000 new jobs under the medium-high
job growth forecast. The limited vacant land supply can most easily accommodate the low
growth forecast without more focused economic strategies to support job growth. While
commercial and mixed-use land demand can only be met by vacant land in the low scenario,
the redevelopable land supply provides sufficient capacity to meet commercial/mixed-use
demand in all but the high growth forecast. For institutional uses, the vacant land supply can
accommodate the low and medium demand forecasts, while an additional 2.1 to 14.1 acres of
land would be needed for the medium-high and high forecasts. For industrial uses, the low to
flat demand in all but the high scenario, combined with over 30 acres of redevelopment potential
in the southwest Industrial Park zone, results in a surplus of industrial land for the low, medium
and medium-high employment forecasts.
Short-Term Land Supply and Need Determination
In addition to the long-term land supply, OAR 660-009-0005 also requires the identification of a
short-term supply of land meaning "suitable land that is ready for construction within one year of
an application of a building permit or request for a service extension." OAR 660-009-0025 also
requires that cities must provide "at least 25 percent of the total land supply within the urban
growth boundary designated for industrial and other employment uses as short-term supply."
In Lake Oswego's case all of the vacant employment land supply currently included within the
Lake Oswego USB has urban services and infrastructure (roads, water, sewer, storm water
drainage)facilities to handle some level of potential development, or such facilities could be
expanded within a 1-3 year time frame to render the inventory suitable for accommodating
short-term development.
03/18/13 Exhibit 5/Page 34
PP 22-0005 ATTACHMENT A/PAGE 71 OF 82
March 2013 Update
Table 14. Employment Vacant Land Needs and Vacant Land Supply, Lake Oswego USB,
2010 to 2035 (gross buildable acres)
Vacant & Redevelopment Potential Land Acreage
Low Growth Medium Med-High High Growth
Growth Growth
Scenario Scenario
Commercial & Mixed-Use Scenario Scenario
Land Supply- Vacant 12.3 12.3 12.3 12.3
Land Supply-Redevelopment 106.7 106.7 106.7 106.7
Land Supply Subtotal 119.0 119.0 119.0 119.0
Vacant Land Demand 10.0 20.0 40.0 95.0
Redevelopment Land Demand 1 8.7 21.8 49.4 91.7
Land Demand Subtotal 18.7 41.8 89.4 186.7
Overall Land Surplus/(Deficit) 100.3 77.2 29.6 (67.7)
Institutional
Land Supply- Vacant 6.9 6.9 6.9 6.9
Land Supply-Redevelopment n/a n/a n/a n/a
Land Supply Subtotal 6.9 6.9 6.9 6.9
Vacant Land Demand 1.0 1.0 9.0 21.0
Redevelopment Land Demand 2 0.5 1.0 16.7 37.6
Land Demand Subtotal 1.5 2.0 25.7 58.6
Overall Land Surplus/(Deficit) 5.4 4.9 (18.8) (51.7)
Industrial
Land Supply-Vacant 1.0 1.0 1.0 1.0
Land Supply-Redevelopment 37.5 37.5 37.5 37.5
Land Supply Subtotal 38.5 38.5 38.5 38.5
Vacant Land Demand 1.0 2.0 - 24.0
Redevelopment Land Demand 3 - - - 46.4
Land Demand Subtotal 1.0 2.0 - 70.4
Overall Land Surplus/(Deficit) 37.5 36.5 38.5 (31.9)
Note: Redevelopment assumptions assume portion of job growth is addressed though
building refill/vacancy absorption as noted in Appendix C.
03/18/13 Exhibit 5/Page 35
PP 22-0005 ATTACHMENT A/PAGE 72 OF 82
March 2013 Update
IMPLEMENTATION
Vacant Land Supply/Redevelopment
According to the City's BLI, Lake Oswego has a limited supply of vacant land area inside the
USB of approximately 20 acres, seven of which are at Marylhurst/Mary's Woods. Therefore, the
City must rely on its redevelopment capacity, and optimize of the remaining vacant land
inventory to retain and attract business investment and employment opportunities.
Possible Strategies for Policy Consideration
1. Identify areas for increased, redeveloped employment densities.
2. Strengthen the City's redevelopment program; identify redevelopment tools, strategies
and priorities.
3. Use incentive-based approaches and/or regulatory strategies to promote redevelopment
and greater development intensity (mixed-use redevelopment with combined retail or
office uses and housing), especially in centers and corridors. Options include, but are
not limited to:
• Using urban renewal and tax increment financing for the development of
infrastructure necessary to stimulate economic growth
• Exploring reduced system development charges where merited
• Changing development standards or restrictions (overall or for certain types of
desired development)
• Assembling land
• Investing in structured parking, requiring less parking and/or increasing public
transportation use
Commitment to Provide a Short-Term Land Supply
Cities must provide a competitive short-term supply of land. Short-term is defined as
developable within one year. Cities must also include detailed strategies for preparing the total
land supply for development and replacing the short-term supply of land as it is developed. The
policies should identify a process for regular review of the short-term supply of employment
land.
Possible Strategies
Monitor and update the Buildable Lands Inventory to assess annually the adequacy of short and
long-term supplies of buildable employment land.
Commitment to Provide Adequate Sites and Facilities
Cities must include policies to designate an adequate number of sites of suitable sizes, types
and locations for their employment need. Cities also must have policies that provide necessary
public facilities and transportation facilities through public facilities and transportation system
planning.
Possible Strateav
Address the public facility needs of business and economic development through identifying and
programming needed public facilities and services. Update public facility plans according to the
economic development vision, objectives and strategies.
Discuss and resolve the desired balance between industrial and employment land.
03/18/13 Exhibit 5/Page 36
PP 22-0005 ATTACHMENT A/PAGE 73 OF 82
March 2013 Update
Other Considerations
Small Businesses
Home occupations are an important form of land use efficiency in Lake Oswego. Home
occupations offer employment land use efficiency because they are typically located in existing
dwellings and do not require additional land or built space.
Possible Strateav
Emphasize policies that encourage or support home-based employment for sole practitioners
while balancing neighborhood quality of life. Provide more opportunities by adding greater
flexibility with home occupations.
03/18/13 Exhibit 5/Page 37
PP 22-0005 ATTACHMENT A/PAGE 74 OF 82
March 2013 Update
Appendix A. Assumptions for Vacant Land Needs Forecast
Assumptions for Allocating Employment Sectors to Building Types
Building Types
Employment
Sectors Office Institutional Flex/Bus. General Warehouse Retail Total
Park Industrial
Retail 5% 1% 5% 0% 0% 89% 100%
I Services 72% 1% 5% 0% 0% 22% 100%
I Industrial 0% 0% 67% 31% 2% 0% 100%
Government/ 30% 60% 5% 0% 0% 5% 100%
Education
Source:Metro Draft 2009-2030 Urban Growth Report;modified to reflect local observations.
Assumptions for Allocating Building Types to Land Needs*
Office Government/ Flex/Bus. General Warehouse Retail
Institutional Park Industrial
Vacant
Building/Redevelopment 70% 20% 70% 70% 70% 50%
Job Allocation'
I Vacant Land Allocation2 30% 80% 30% 30% 30% 50%
I Building SF Per Job2 250 600 550 700 1,100 500
I Floor-Area-Ratio2 0.50 0.35 0.35 0.30 0.30 0.30
Public Facility
Net:Gross Adjustment3 1.10 1.05 1.10 1.05 1.05 1.10
Work at Home
Adjustment4 0.15 0.05 0.05 0.05 0.03 0.05
*Assumptions are intended to reflect a long-term average.
1.Adjusts for building refill& vacancy allowances.
2. Building density assumptions for building types are generally consistent with the 2009 Metro Draft 2009-2030
Urban Growth Report development forecast methodology/assumptions.
3.Allowances take into account land dedicated to public/utility easements.
4.Allowance based on local business license data;and is generally consistent with national statistics by US Dept. of
Labor, Bureau of of Labor Statistics, Technical information: "Work at Home in 2004".
Source:assumptions are generally consistent with the Metro Draft 2009-2030 Urban Growth Report;modified to
reflect local observations.
Potential Employment Growth Forecasts and Required Building Floor Area, Lake Oswego
USB, 2010 to 2035
Potential Demand for Vacant Buildings/Redevelopment (floor area in Sq.Ft.)
Low Medium Med-High High
Office 133,000 253,000 437,000 1,064,000
Institutional 2,000 3,000 51,000 115,000
Flex/Business Park 25,000 48,000 11,000 550,000
General Industrial (47,000) 196,000
Warehouse (5,000) 20,000
Retail 95,000 180,000 324,000
Total 255,000 484,000 771,000 1,945,000
03/18/13 Exhibit 5/Page 38
PP 22-0005 ATTACHMENT A/PAGE 75 OF 82
March 2013 Update
Potential Demand for Development on Vacant Lands (floor area in Sq.Ft.)
Low Medium Med-High High
Office 57,000 108,000 187,000 456,000
Institutional 6,000 12,000 203,000 458,000
Flex/Business Park 11,000 21,000 5,000 236,000
General Industrial (20,000) 84,000
Warehouse (2,000) 9,000
Retail 95,000 180,000 324,000 732,000
Total 169,000 321,000 697,000 1,975,000
Total Potential Buildin l Floor Area Demand (floor area in Sq.Ft.)
Low Medium Med-High High
Office 190,000 361,000 624,000 1,520,000
Institutional 8,000 15,000 254,000 573,000
Flex/Business Park 36,000 69,000 16,000 786,000
General Industrial (67,000) 280,000
Warehouse (7,000) 29,000
Retail 190,000 360,000 648,000 732,000
Total 424,000 805,000 1,468,000 3,920,000
Source:compiled by FCS GROUP, 2011.
Building to Land Use Assignment Assumptions
Local Zoning Office Institutional Flex/Bus. General Warehouse Retail
Classification Park Industrial
Commercial 60% 30% 10% 10% 0% 65%
Mixed Use 30% 10% 5% 5% 0% 30%
Institutional 10% 60% 0% 0% 10% 0%
Industrial 0% 0% 85% 85% 90% 5%
Total 100% 100% 100% 100% 100% 100%
Assumptions by FCS GROUP and City of Lake Oswego planning staff based on local observations.
03/18/13 Exhibit 5/Page 39
PP 22-0005 ATTACHMENT A/PAGE 76 OF 82
March 2013 Update
Appendix B. Redevelopment Allocations and Land Needs by Forecast
Redevelopment Forecast, Low Growth Scenario, Lake Oswe jo USB, 2010-2035
Net New Potential Potential
Demand Absorption Absorption Potential Avg. Redevel-
for in Existing in Existing Absorption Building Most Building opment
Building Vacant Vacant for New Sq.Ft. Likely Floor- Land
Floor Area Buildings Buildings Redevelop- Per Job Job Area- Need
Building Type (Sq.Ft.) 1 (%) 2 (SF) ment(SF) 3 Growth Ratio 3 (acres)
Office 190,000 100% 190,000 - 250 760 0.50 -
Institutional 8,000 50% 4,000 4,000 600 13 0.35 1
Flex/Business
Park 36,000 100% 36,000 - 550 65 0.35 General Industrial - - - - 700 - - -
Warehouse - - - - 1,100 - - -
Retail 190,000 40% 76,000 114,000 500 380 0.30 9
Total 424,000 306,000 118,000 1,219 9
Redevelopment Forecast, Medium Growth Scenario, Lake Oswego USB, 2010-2035
Net New Potential Potential
Demand Absorption Absorption Potential Avg. Redevel-
for in Existing in Existing Absorption Building Most Building opment
Building Vacant Vacant for New Sq.Ft. Likely Floor- Land
Floor Area Buildings Buildings Redevelop- Per Job Job Area- Need
Building Type (Sq.Ft.) 1 (%) 2 (SF) ment(SF) 3 Growth Ratio 3 (acres)
Office 361,000 100% 361,000 - 250 1,444 0.50 -
Institutional 15,000 50% 7,500 7,500 600 25 0.35 1
Flex/Business
Park 69,000 100% 69,000 - 550 125 0.35 -
General Industrial - - - - 700 - - -
Warehouse - - - - 1,100 - - -
Retail 360,000 21% 75,600 284,400 500 720 0.30 22
Total 805,000 513,100 291,900 2,314 23
03/18/13 Exhibit 5/Page 40
PP 22-0005 ATTACHMENT A/PAGE 77 OF 82
March 2013 Update
Redevelopment Forecast, Medium-High Growth Scenario, Lake Oswego USB, 2010-2035
Net New Potential Potential
Demand Absorption Absorption Potential Avg. Redevel-
for in Existing in Existing Absorption Building Most Building opment
Building Vacant Vacant for New Sq.Ft. Likely Floor- Land
Floor Area Buildings Buildings Redevelop- Per Job Job Area- Need
Building Type (Sq.Ft.) 1 (%) 2 (SF) ment(SF) 3 Growth Ratio 3 (acres)
Office 624,000 80% 499,200 124,800 250 2,496 0.50 6
Institutional 254,000 10% 25,400 228,600 600 423 0.35 17
Flex/Business
Park 16,000 100% 16,000 - 550 29 0.35 -
General Industrial (67,000) - - (67,000) 700 (96) - -
Warehouse (7,000) - - (7,000) 1,100 (6) - -
Retail 648,000 12% 77,760 570,240 500 1,296 0.30 44
Total 1,468,000 618,360 849,640 4,142 66
Redevelopment Forecast, High Growth Scenario, Lake Oswego USB, 2010-2035
Net New Potential Potential
Demand Absorption Absorption Potential Avg. Redevel-
for in Existing in Existing Absorption Building Most Building op ment
Building Vacant Vacant for New Sq.Ft. Likely Floor- Land
Floor Area Buildings Buildings Redevelop- Per Job Job Area- Need
Building Type (Sq.Ft.) 1 (%) 2 (SF) ment(SF) 3 Growth Ratio 3 (acres)
Office 1,520,000 40% 608,000 912,000 250 6,080 0.50 42
Institutional 573,000 5% 28,650 544,350 600 955 0.35 38
Flex/Business
Park 786,000 10% 78,600 707,400 550 1,429 0.35 46
General Industrial 280,000 - - 280,000 700 400 - -
Warehouse 29,000 - - 29,000 1,100 26 - -
Retail 732,000 11% 80,520 651,480 500 1,464 0.30 50
Total 3,920,000 795,770 3,124,230 10,354 176
03/18/13 Exhibit 5/Page 41
PP 22-0005 ATTACHMENT A/PAGE 78 OF 82
March 2013 Update
Appendix C. Vacant Building Absorption Assumptions
Vacant Building Absorption Assumption (building
floor area in sq. ft.)
Low Medium Med-High High
Growth Growth Growth Growth
Scenario Scenario Scenario Scenario
1. Commercial & Mixed-Use (floor area sq.ft.) 266,000 436,600 576,960 688,520
2. Institutional (floor area sq. ft.) 4,000 7,500 25,400 28,650
3. Industrial (floor area sq. ft.) 36,000 69,000 16,000 78,600
03/18/13 Exhibit 5/Page 42
PP 22-0005 ATTACHMENT A/PAGE 79 OF 82
March 2013 Update
Appendix D. Stakeholder Interview Summary
ECONorthwest conducted interviews with five stakeholders in Lake Oswego. The stakeholders
were identified by City staff and included the following people:
1. Matt Coles with Shorenstein Properties
2. Jerry Wheeler with the Lake Oswego Chamber of Commerce
3. Steve Dodds with Norris, Beggs & Simpson
4. Robert LeFeber with Commercial Realty Advisors, Northwest LLC
5. Barry Cain and Matt Grady with Gramor Development
We asked the stakeholders what the opportunities and barriers to economic development in
Lake Oswego are. This appendix presents the themes from the interviews.
Opportunities for economic development in Lake Oswego
Interviewees identified the following opportunities to doing business in Lake Oswego:
1. High amenity. The amenities in Lake Oswego provide opportunities for business. The
amenities attract high-quality workers to the City and make the City attractive to
businesses that want to locate in a high amenity area. The amenities most frequently
mentioned were: high-end housing, parks, high environmental quality, the Lake,
restaurants, and retail.
2. Demographics. Lake Oswego's demographics are an opportunity, especially for retail
businesses. The demographics identified were: the concentration of high income
households, the aging population, family households, and high educational attainment.
The types of businesses that might be attracted to Lake Oswego because of the City's
demographics include services for the aging population (e.g., medical services) or high-
end retail.
3. Transportation access. The City's location along 1-5, access to 1-205, and access to
Highway 43 are an opportunity for businesses in Lake Oswego. The City's automotive
access provides easy access to the rest of the Portland metropolitan region. If the
streetcar is extended to Lake Oswego, that would provide earlier non-automotive access
to Portland.
4. Location. Lake Oswego's proximity to Portland and location near other communities in
the area is an opportunity, especially for businesses that prefer to locate near Portland
or other nearby businesses.
5. Small businesses. The greatest opportunity for business development in Lake Oswego
is for small businesses (those with 50 or fewer employees). Lake Oswego provides
opportunities for entrepreneurs, as well as high-paying services (e.g., attorneys,
engineering firms, or accounting firms).
6. Home occupations. Lake Oswego is attractive to people that want to live and work at
home, in a high amenity area. The City may have opportunity for reducing employment
land needs and providing opportunities for economic development through home
occupations and home offices.
7. Retail development. Lake Oswego has opportunities for retail development, such as
boutique retail and retail for residents in Downtown. Other areas of Lake Oswego
03/18/13 Exhibit 5/Page 43
PP 22-0005 ATTACHMENT A/PAGE 80 OF 82
March 2013 Update
provide opportunities for retail development, such as village development in Lake Grove
or high-end retail and services (e.g., a spa or financial institutions) in Lake View Village.
8. Office development. Kruse Way and Meadow Road provide opportunities for office
development and location of businesses that want a prestigious location, such as
regional or corporate headquarters. Building vacancies provide opportunities for
attracting new businesses to Lake Oswego.
9. Downtown. Lake Oswego's downtown provides small, infill or redevelopment
opportunities, as well as mixed-use opportunities with retail on the ground floor and
commercial uses on the upper floors.
10. City government. The City government has opportunities to improve the business
climate in Lake Oswego. Suggestions included: doing more to coordinate and promote
economic development (e.g., assist with parcel assembly to make larger redevelopment
project possible); modifying the planning process to make it easier and faster; modifying
the zoning code to allow more flexibility with building design, building height (to allow five
story buildings), and allow more flexibility with parking requirements. Several
interviewees acknowledged that the City has made progress in making the development
process easier but they felt it could be further improved.
11. Infill and redevelopment. The opportunities for employment growth in Lake Oswego
are primarily through increasing densities through infill and redevelopment. There is little
vacant land available for development but there is demand for commercial and retail
growth in Lake Oswego.
12. Potential UGB expansion. If Metro expands the UGB and Lake Oswego expands into
the Stafford basin, this would provide opportunities for light industrial and flexible
commercial space. Additional land for employment uses would increase economic
activity in Lake Oswego. Most interviewees said that they do not expect the City to
expand into the Stafford basin in the foreseeable future.
13. Urban renewal. The urban renewal district in Downtown has made funding
infrastructure improvements possible. Some interviewees suggested that the City should
expand the urban renewal district to other areas that need improvements, such as the
Foothills area.
Barriers to economic development in Lake Oswego
Interviewees identified the following barriers to doing business in Lake Oswego:
1. Land. The availability of land in Lake Oswego was the most commonly mentioned
barrier to economic development. The barriers included: availability of vacant land,
availability of sites over a few acres, and cost of land. The lack of light industrial land
with highway access or flex space is a problem because the City has so little industrial
land.
2. Infill and redevelopment. Infill and redevelopment, especially of sites larger than an
acre, is difficult. This is especially true in Downtown, where parcel assembly of sites is
very difficult because of the highly fragmented pattern of ownership. In addition, the
City's policies make it difficult to change existing uses through rezoning.
3. Parking. High land costs make providing parking costly, especially for structured or
underground parking. The need for parking, both because of the lack of transportation
alternatives and City policies, make it difficult to increase densities in areas with office
03/18/13 Exhibit 5/Page 44
PP 22-0005 ATTACHMENT A/PAGE 81 OF 82
March 2013 Update
buildings. In addition, the lack of parking in Downtown makes retail uses more difficult,
especially for small retailers that cannot afford to build parking structures. The City could
address this issue by building public parking structures.
4. Providing infrastructure. The cost of providing new infrastructure and funding
maintenance of existing infrastructure is a barrier to economic development. The lack of
needed infrastructure or maintenance is a barrier to economic development.
5. Downtown. The distance from Downtown to 1-5 and the capacity of Highway 43 and
local roads are a barrier to development in Downtown. The distance from 1-5 will prevent
Downtown from providing regional retail or services. In addition, increasing densities in
Downtown substantially may create capacity issues on the street system, especially if
people come from outside of Lake Oswego for retail and services.
6. Affordable housing. The lack of affordable housing, especially workforce housing, is a
barrier to businesses with lower paid employees. These employees generally cannot
afford to live in Lake Oswego and must commute from other communities.
7. Community attitudes. Community attitudes about development are a barrier to
development, especially development near established neighborhoods. In addition,
community concerns about development often make the development process slower.
8. City government. The complexity and speed of the planning process is a barrier to
economic development. Interviewees identified the following barriers to economic
development in City policies:
■ The City's design review process is inflexible and difficult.
■ The City's sign regulations are highly restrictive and do not allow retail
businesses enough latitude to advertise their business.
■ The City's zoning ordinance prevents increases in density in some instances,
with height limitations and parking requirements. The high cost of land combined
with zoning restrictions may make some projects unviable, including some that
the City might find desirable. For example, developers cannot build over four
stories tall and must provide a certain amount of parking. The cost of the land,
parking, and construction may make the project financially unviable. The same
project might be financially viable if the building could be one or two stories tall.
03/18/13 Exhibit 5/Page 45
PP 22-0005 ATTACHMENT A/PAGE 82 OF 82
80th OREGON LEGISLATIVE ASSEMBLY--2019 Regular Session
Enrolled
House Bill 2003
Sponsored by Representative KOTEK; Representatives FAHEY, KENY-GUYER, WILDE
CHAPTER
AN ACT
Relating to buildings; creating new provisions; amending ORS 197.296, 197.299, 197.303, 197.319,
197.320, 215.416, 215.441, 227.175, 227.500 and 455.062 and section 1, chapter 47, Oregon Laws
2018, and section 3, chapter 97, Oregon Laws 2019 (Enrolled Senate Bill 39); and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) As used in this section:
(a) "Area median income" means the median income for households established by the
United States Department of Housing and Urban Development.
(b) "Existing housing stock" means housing, by affordability level and type, actually
constructed in a city or Metro.
(c) "High income" means above 120 percent of the area median income.
(d) "Housing shortage" means the difference between the estimated housing units of
different affordability levels and housing types needed to accommodate the existing popu-
lation and the existing housing stock, measured in dwelling units.
(e) "Low income" means income above 50 percent and at or below 80 percent of the area
median income.
(f) "Metro" means a metropolitan service district organized under ORS chapter 268.
(g) "Moderate income" means income above 80 percent and at or below 120 percent of the
area median income.
(h) "Region" has the meaning given that term in ORS 284.752.
(i) "Very low income" means income at or below 50 percent of the area median income.
(2) The Housing and Community Services Department, in coordination with the Depart-
ment of Land Conservation and Development and the Oregon Department of Administrative
Services, shall develop a methodology for calculating:
(a) A regional housing needs analysis that identifies the total number of housing units
necessary to accommodate anticipated populations in a region over the next 20 years based
on:
(A) Trends in density and in the average mix of housing types of urban residential de-
velopment;
(B) Demographic and population trends;
(C) Economic trends and cycles; and
(D) Equitable distribution of publicly supported housing within a region.
(b) An estimate of existing housing stock of each city and Metro.
(c) A housing shortage analysis for each city and Metro.
Enrolled House Bill 2003 (HB 2003-C) Page 1
PP 22-0005 ATTACHMENT B/PAGE 1 OF 25
(d) An estimate of the number of housing units necessary to accommodate anticipated
population growth over the next 20 years for each city and Metro.
(3) The methodologies for calculating the regional housing needs analysis, the estimate
of existing housing stock, the housing shortage analysis and the estimate of housing neces-
sary to accommodate growth that are developed under subsection (2) of this section must
classify housing by:
(a) Housing type, including attached and detached single-family housing, multifamily
housing and manufactured dwellings or mobile homes; and
(b) Affordability, by housing that is affordable to households with:
(A) Very low income;
(B) Low income;
(C) Moderate income; or
(D) High income.
(4) No later than September 1, 2020, the Housing and Community Services Department,
in coordination with the Department of Land Conservation and Development and the Oregon
Department of Administrative Services, shall conduct for each region a regional housing
needs analysis and, for each city and Metro, shall estimate existing housing stock, conduct
a housing shortage analysis and estimate the housing necessary to accommodate growth.
(5) In developing the methodologies and conducting the analyses under this section, the
Housing and Community Services Department may:
(a) Consult or contract with subject matter experts, cities and Metro, regional solutions
centers described in ORS 284.754 (2) and other jurisdictions that have created or conducted
regional housing needs analyses.
(b) Consider the most recent consolidated population forecast produced by the Portland
State University Population Research Center in making any relevant calculation or forecast.
(c) Consider any other relevant existing analyses, data and other information collected
or produced by state agencies or public entities.
(d) Make changes to the regional boundaries in order to make regions more accurately
align with shared employment, transportation or housing market dynamics.
SECTION 2. (1) No later than March 1, 2021, the Housing and Community Services De-
partment, in consultation with the Department of Land Conservation and Development and
the Oregon Department of Administrative Services, shall submit a report, in the manner
provided in ORS 192.245 to an appropriate committee of the Legislative Assembly, that
summarizes the findings of the regional housing needs analysis, estimate of housing stock,
housing shortage analysis and estimate of housing necessary to accommodate growth con-
ducted under section 1 (4) of this 2019 Act.
(2) No later than March 1, 2021, the Department of Land Conservation and Development,
in consultation with the Oregon Department of Administrative Services and the Housing and
Community Services Department, shall submit a report, in the manner provided in ORS
192.245, to an appropriate committee of the Legislative Assembly that evaluates:
(a) Whether a regional housing needs analysis and housing shortage analysis described
in section 1 of this 2019 Act could appropriately allocate among the cities or local govern-
ments in a region the housing shortage described;
(b) How a regional housing needs analysis and housing shortage analysis may compare
to existing assessments of housing need and capacity conducted by local governments under
ORS 197.296 (3) and (10) in terms of:
(A) Cost and cost effectiveness;
(B) Reliability and accuracy;
(C) Repeatability; and
(D) Predictability;
Enrolled House Bill 2003 (HB 2003-C) Page 2
PP 22-0005 ATTACHMENT B/PAGE 2 OF 25
(c) How a regional housing needs analysis and housing shortage analysis may relate to
statewide planning goals related to housing and any rules and policies adopted pursuant to
these goals and ORS 197.295 to 197.314;
(d) Whether different boundaries would be more appropriate for defining regions within
the regional housing needs analysis based on:
(A) Relevance of data in appropriately defining a commuting, employment or housing
market; or
(B) Ease or cost of collecting or analyzing data;
(e) Other ways in which the regional housing needs analysis or housing shortage analysis
could be improved; and
(f) Whether the regional housing needs analysis, or an improved version, could serve as
an acceptable methodology statewide for land use planning relating to housing.
(3) In preparing the report required under subsection (2) of this section, the Department
of Land Conservation and Development may consult or contract with other state agencies,
subject matter experts, private firms, local governments, regional solutions centers de-
scribed in ORS 284.754 (2) and other jurisdictions that have created or conducted regional
housing needs analyses.
SECTION 3. Sections 4 to 6 of this 2019 Act are added to and made a part of ORS 197.295
to 197.314.
SECTION 4. (1) A city with a population greater than 10,000 shall develop and adopt a
housing production strategy under this section no later than one year after:
(a) The city's deadline for completing a housing capacity analysis under ORS 197.296
(2)(a);
(b) The city's deadline for completing a housing capacity analysis under ORS 197.296
(10)(b); or
(c) A date scheduled by the Land Conservation and Development Commission following
the allocation of housing capacity to the city by a metropolitan service district under ORS
197.299 (2)(d).
(2) A housing production strategy must include a list of specific actions, including the
adoption of measures and policies, that the city shall undertake to promote development
within the city to address a housing need identified under ORS 197.296 (6) for the most recent
20-year period described in ORS 197.296 (2)(b). Actions under this subsection may include:
(a) The reduction of financial and regulatory impediments to developing needed housing,
including removing or easing approval standards or procedures for needed housing at higher
densities or that is affordable;
(b) The creation of financial and regulatory incentives for development of needed hous-
ing, including creating incentives for needed housing at higher densities or that is affordable;
and
(c) The development of a plan to access resources available at local, regional, state and
national levels to increase the availability and affordability of needed housing.
(3) In creating a housing production strategy, a city shall review and consider:
(a) Socioeconomic and demographic characteristics of households living in existing
needed housing;
(b) Market conditions affecting the provision of needed housing;
(c) Measures already adopted by the city to promote the development of needed housing;
(d) Existing and expected barriers to the development of needed housing; and
(e) For each action the city includes in its housing production strategy:
(A) The schedule for its adoption;
(B) The schedule for its implementation;
(C) Its expected magnitude of impact on the development of needed housing; and
(D) The time frame over which it is expected to impact needed housing.
Enrolled House Bill 2003 (HB 2003-C) Page 3
PP 22-0005 ATTACHMENT B/PAGE 3 OF 25
(4) The housing production strategy must include within its index a copy of the city's
most recently completed survey under section 1 (2), chapter 47, Oregon Laws 2018.
(5) The adoption of a housing production strategy is not a land use decision and is not
subject to appeal or review except as provided in section 5 of this 2019 Act.
SECTION 5. (1) No later than 20 days after a city's adoption or amendment of a housing
production strategy under section 4 of this 2019 Act, a city shall submit the adopted strategy
or amended strategy to the Department of Land Conservation and Development.
(2) The submission under subsection (1) of this section must include copies of:
(a) The signed decision adopting the housing production strategy or amended strategy;
(b) The text of the housing production strategy clearly indicating any amendments to the
most recent strategy submitted under this section;
(c) A brief narrative summary of the housing production strategy; and
(d) The information reviewed and considered under section 6 (2) of this 2019 Act.
(3) On the same day the city submits notice of the housing production strategy or
amended strategy, the city shall provide a notice to persons that participated in the pro-
ceedings that led to the adoption of the strategy and requested notice in writing.
(4) Within 10 days of receipt of the submission under subsection (1) of this section, the
department shall provide notice to persons described under ORS 197.615 (3).
(5) The notices given under subsections (3) and (4) of this section must state:
(a) How and where materials described in subsection (2) of this section may be freely
obtained;
(b) That comments on the strategy may be submitted to the department within 45 days
after the department has received the submission; and
(c) That there is no further right of appeal.
(6) Based upon criteria adopted by the Land Conservation and Development Commission,
including any criteria adopted under section 6 (2) of this 2019 Act, the department shall,
within 120 days after receiving the submission under subsection (1) of this section:
(a) Approve the housing production strategy;
(b) Approve the housing production strategy, subject to further review and actions under
section 6 (2) of this 2019 Act; or
(c) Remand the housing production strategy for further modification as identified by the
department.
(7) A determination by the department under subsection (6) of this section is not a land
use decision and is final and not subject to appeal.
SECTION 6. (1) The Land Conservation and Development Commission, in consultation
with the Housing and Community Services Department, shall adopt criteria for reviewing and
identifying cities with a population greater than 10,000 that have not sufficiently:
(a) Achieved production of needed housing within their jurisdiction; or
(b) Implemented a housing production strategy adopted under section 4 of this 2019 Act.
(2) The criteria adopted by the commission under subsection (1) of this section may in-
clude the city's:
(a) Unmet housing need as described in ORS 197.296 (6);
(b) Unmet housing need in proportion to the city's population;
(c) Percentage of households identified as severely rent burdened as described in section
1, chapter 47, Oregon Laws 2018;
(d) Recent housing development;
(e) Recent adoption of a housing production strategy under section 4 of this 2019 Act or
adoption of actions pursuant to a housing production strategy;
(f) Recent or frequent previous identification by the Department of Land Conservation
and Development under this section; or
(g) Other attributes that the commission considers relevant.
Enrolled House Bill 2003 (HB 2003-C) Page 4
PP 22-0005 ATTACHMENT B/PAGE 4 OF 25
(3) The Department of Land Conservation and Development may review cities under the
criteria adopted under subsection (2) of this section for the purposes of prioritizing actions
by the department, including:
(a) Awarding available technical or financial resources;
(b) Providing enhanced review and oversight of the city's housing production strategy;
(c) Requiring a report and explanation if a city does not implement an action within the
approximate time frame scheduled within a housing production strategy;
(d) Entering into agreements with the city relating to the city's modification or imple-
mentation of its housing production strategy; or
(e) Petitioning the commission to act under ORS 197.319 to 197.335 to require the city to
comply with ORS 197.295 to 197.314 or statewide land use planning goals related to housing
or urbanization.
SECTION 7. No later than December 31, 2019, the Land Conservation and Development
Commission shall adopt a schedule by which metropolitan service districts and cities de-
scribed in ORS 197.296 (2)(a)(B) and (10)(c)(B) shall demonstrate sufficient buildable lands.
Dates in the schedule may not be earlier than two years following the commission's creation
of rules implementing sections 4 to 6 of this 2019 Act and the amendments to ORS 197.296
and 197.299 by sections 8 and 9 of this 2019 Act.
SECTION 8. ORS 197.296 is amended to read:
197.296. (1)(a) The provisions of subsections (2) to (9) of this section apply to metropolitan ser-
vice district regional framework plans and local government comprehensive plans for lands within
the urban growth boundary of a city that is located outside of a metropolitan service district and
has a population of 25,000 or more.
(b) The Land Conservation and Development Commission may establish a set of factors under
which additional cities are subject to the provisions of this section. In establishing the set of factors
required under this paragraph, the commission shall consider the size of the city, the rate of popu-
lation growth of the city or the proximity of the city to another city with a population of 25,000 or
more or to a metropolitan service district.
(2)(a) [At periodic review pursuant to ORS 197.628 to 197.651 or at any other legislative review
of the comprehensive plan or regional framework plan that concerns the urban growth boundary and
requires the application of a statewide planning goal relating to buildable lands for residential use,]
A local government shall demonstrate that its comprehensive plan or regional framework plan pro-
vides sufficient buildable lands within the urban growth boundary established pursuant to statewide
planning goals to accommodate estimated housing needs for 20 years:
(A) At periodic review under ORS 197.628 to 197.651;
(B) As scheduled by the commission:
(i) At least once each eight years for local governments that are not within a metropol-
itan service district; or
(ii) At least once each six years for a metropolitan service district; or
(C) At any other legislative review of the comprehensive plan or regional framework plan
that concerns the urban growth boundary and requires the application of a statewide plan-
ning goal relating to buildable lands for residential use.
(b) The 20-year period shall commence on the date initially scheduled for completion of the
[periodic or legislative] review under paragraph (a) of this subsection.
(3) In performing the duties under subsection (2) of this section, a local government shall:
(a) Inventory the supply of buildable lands within the urban growth boundary and determine the
housing capacity of the buildable lands; and
(b) Conduct an analysis of housing need by type and density range, in accordance with ORS
197.303 and statewide planning goals and rules relating to housing, to determine the number of units
and amount of land needed for each needed housing type for the next 20 years.
(4)(a) For the purpose of the inventory described in subsection (3)(a) of this section, "buildable
lands" includes:
Enrolled House Bill 2003 (HB 2003-C) Page 5
PP 22-0005 ATTACHMENT B/PAGE 5 OF 25
(A) Vacant lands planned or zoned for residential use;
(B) Partially vacant lands planned or zoned for residential use;
(C) Lands that may be used for a mix of residential and employment uses under the existing
planning or zoning; and
(D) Lands that may be used for residential infill or redevelopment.
(b) For the purpose of the inventory and determination of housing capacity described in sub-
section (3)(a) of this section, the local government must demonstrate consideration of:
(A) The extent that residential development is prohibited or restricted by local regulation and
ordinance, state law and rule or federal statute and regulation;
(B) A written long term contract or easement for radio, telecommunications or electrical facili-
ties, if the written contract or easement is provided to the local government; and
(C) The presence of a single family dwelling or other structure on a lot or parcel.
(c) Except for land that may be used for residential infill or redevelopment, a local government
shall create a map or document that may be used to verify and identify specific lots or parcels that
have been determined to be buildable lands.
(5)(a) Except as provided in paragraphs (b) and (c) of this subsection, the determination of
housing capacity and need pursuant to subsection (3) of this section must be based on data relating
to land within the urban growth boundary that has been collected since the last [periodic] review
[or] under subsection (2)(a)(B) of this section [five years, whichever is greater]. The data shall
include:
(A) The number, density and average mix of housing types of urban residential development that
have actually occurred;
(B) Trends in density and average mix of housing types of urban residential development;
(C) Demographic and population trends;
(D) Economic trends and cycles; and
(E) The number, density and average mix of housing types that have occurred on the buildable
lands described in subsection (4)(a) of this section.
(b) A local government shall make the determination described in paragraph (a) of this sub-
section using a shorter time period than the time period described in paragraph (a) of this sub-
section if the local government finds that the shorter time period will provide more accurate and
reliable data related to housing capacity and need. The shorter time period may not be less than
three years.
(c) A local government shall use data from a wider geographic area or use a time period for
economic cycles and trends longer than the time period described in paragraph (a) of this subsection
if the analysis of a wider geographic area or the use of a longer time period will provide more ac-
curate, complete and reliable data relating to trends affecting housing need than an analysis per-
formed pursuant to paragraph (a) of this subsection. The local government must clearly describe the
geographic area, time frame and source of data used in a determination performed under this para-
graph.
(6) If the housing need determined pursuant to subsection (3)(b) of this section is greater than
the housing capacity determined pursuant to subsection (3)(a) of this section, the local government
shall take one or more of the following actions to accommodate the additional housing need:
(a) Amend its urban growth boundary to include sufficient buildable lands to accommodate
housing needs for the next 20 years. As part of this process, the local government shall consider the
effects of measures taken pursuant to paragraph (b) of this subsection. The amendment shall include
sufficient land reasonably necessary to accommodate the siting of new public school facilities. The
need and inclusion of lands for new public school facilities shall be a coordinated process between
the affected public school districts and the local government that has the authority to approve the
urban growth boundary;
(b) Amend its comprehensive plan, regional framework plan, functional plan or land use regu-
lations to include new measures that demonstrably increase the likelihood that residential develop-
ment will occur at densities sufficient to accommodate housing needs for the next 20 years without
Enrolled House Bill 2003 (HB 2003-C) Page 6
PP 22-0005 ATTACHMENT B/PAGE 6 OF 25
expansion of the urban growth boundary. A local government or metropolitan service district that
takes this action shall monitor and record the level of development activity and development density
by housing type following the date of the adoption of the new measures; or
(c) Adopt a combination of the actions described in paragraphs (a) and (b) of this subsection.
(7) Using the analysis conducted under subsection (3)(b) of this section, the local government
shall determine the overall average density and overall mix of housing types at which residential
development of needed housing types must occur in order to meet housing needs over the next 20
years. If that density is greater than the actual density of development determined under subsection
(5)(a)(A) of this section, or if that mix is different from the actual mix of housing types determined
under subsection (5)(a)(A) of this section, the local government, as part of its periodic review, shall
adopt measures that demonstrably increase the likelihood that residential development will occur
at the housing types and density and at the mix of housing types required to meet housing needs
over the next 20 years.
(8)(a) A local government outside a metropolitan service district that takes any actions under
subsection (6) or (7) of this section shall demonstrate that the comprehensive plan and land use
regulations comply with goals and rules adopted by the commission and implement ORS 197.295 to
197.314.
(b) The local government shall determine the density and mix of housing types anticipated as a
result of actions taken under subsections (6) and (7) of this section and monitor and record the ac-
tual density and mix of housing types achieved. The local government shall compare actual and
anticipated density and mix. The local government shall submit its comparison to the commission
at the next [periodic review or at the next legislative] review of its urban growth boundary[, which-
ever comes first] under subsection (2)(a) of this section.
(9) In establishing that actions and measures adopted under subsections (6) and (7) of this sec-
tion demonstrably increase the likelihood of higher density residential development, the local gov-
ernment shall at a minimum ensure that land zoned for needed housing is in locations appropriate
for the housing types identified under subsection (3) of this section and is zoned at density ranges
that are likely to be achieved by the housing market using the analysis in subsection (3) of this
section. Actions or measures, or both, may include but are not limited to:
(a) Increases in the permitted density on existing residential land;
(b) Financial incentives for higher density housing;
(c) Provisions permitting additional density beyond that generally allowed in the zoning district
in exchange for amenities and features provided by the developer;
(d) Removal or easing of approval standards or procedures;
(e) Minimum density ranges;
(f) Redevelopment and infill strategies;
(g) Authorization of housing types not previously allowed by the plan or regulations;
(h) Adoption of an average residential density standard; and
(i) Rezoning or redesignation of nonresidential land.
(10)(a) The provisions of this subsection apply to local government comprehensive plans for
lands within the urban growth boundary of a city that is located outside of a metropolitan service
district and has a population of less than 25,000.
(b) [At periodic review pursuant to ORS 197.628 to 197.651 or at any other legislative review of
the comprehensive plan that requires the application of a statewide planning goal relating to buildable
lands for residential use,] As required under paragraph (c) of this subsection, a city shall, ac-
cording to rules of the commission:
(A) Determine the estimated housing needs within the jurisdiction for the next 20 years;
(B) Inventory the supply of buildable lands available within the urban growth boundary to ac-
commodate the estimated housing needs determined under this subsection; and
(C) Adopt measures necessary to accommodate the estimated housing needs determined under
this subsection.
(c) The actions required under paragraph (b) of this subsection shall be undertaken:
Enrolled House Bill 2003 (HB 2003-C) Page 7
PP 22-0005 ATTACHMENT B/PAGE 7 OF 25
(A) At periodic review pursuant to ORS 197.628 to 197.651;
(B) On a schedule established by the commission for cities with a population greater than
10,000, not to exceed once each eight years; or
(C) At any other legislative review of the comprehensive plan that requires the applica-
tion of a statewide planning goal relating to buildable lands for residential use.
[(c)] (d) For the purpose of the inventory described in this subsection, "buildable lands" includes
those lands described in subsection (4)(a) of this section.
SECTION 8a. If House Bill 2001 becomes law, section 8 of this 2019 Act (amending ORS
197.296) is repealed and ORS 197.296, as amended by section 5, chapter Oregon Laws
2019 (Enrolled House Bill 2001), is amended to read:
197.296. (1)(a) The provisions of subsections (2) to (9) of this section apply to metropolitan ser-
vice district regional framework plans and local government comprehensive plans for lands within
the urban growth boundary of a city that is located outside of a metropolitan service district and
has a population of 25,000 or more.
(b) The Land Conservation and Development Commission may establish a set of factors under
which additional cities are subject to the provisions of this section. In establishing the set of factors
required under this paragraph, the commission shall consider the size of the city, the rate of popu-
lation growth of the city or the proximity of the city to another city with a population of 25,000 or
more or to a metropolitan service district.
(2)(a) [At periodic review pursuant to ORS 197.628 to 197.651 or at any other legislative review
of the comprehensive plan or regional framework plan that concerns the urban growth boundary and
requires the application of a statewide planning goal relating to buildable lands for residential use,]
A local government shall demonstrate that its comprehensive plan or regional framework plan pro-
vides sufficient buildable lands within the urban growth boundary established pursuant to statewide
planning goals to accommodate estimated housing needs for 20 years:
(A) At periodic review under ORS 197.628 to 197.651;
(B) As scheduled by the commission:
(i) At least once each eight years for local governments that are not within a metropol-
itan service district; or
(ii) At least once each six years for a metropolitan service district; or
(C) At any other legislative review of the comprehensive plan or regional framework plan
that concerns the urban growth boundary and requires the application of a statewide plan-
ning goal relating to buildable lands for residential use.
(b) The 20-year period shall commence on the date initially scheduled for completion of the
[periodic or legislative] review under paragraph (a) of this subsection.
(3) In performing the duties under subsection (2) of this section, a local government shall:
(a) Inventory the supply of buildable lands within the urban growth boundary and determine the
housing capacity of the buildable lands; and
(b) Conduct an analysis of existing and projected housing need by type and density range, in
accordance with all factors under ORS 197.303 and statewide planning goals and rules relating to
housing, to determine the number of units and amount of land needed for each needed housing type
for the next 20 years.
(4)(a) For the purpose of the inventory described in subsection (3)(a) of this section, "buildable
lands" includes:
(A) Vacant lands planned or zoned for residential use;
(B) Partially vacant lands planned or zoned for residential use;
(C) Lands that may be used for a mix of residential and employment uses under the existing
planning or zoning; and
(D) Lands that may be used for residential infill or redevelopment.
(b) For the purpose of the inventory and determination of housing capacity described in sub-
section (3)(a) of this section, the local government must demonstrate consideration of:
Enrolled House Bill 2003 (HB 2003-C) Page 8
PP 22-0005 ATTACHMENT B/PAGE 8 OF 25
(A) The extent that residential development is prohibited or restricted by local regulation and
ordinance, state law and rule or federal statute and regulation;
(B) A written long term contract or easement for radio, telecommunications or electrical facili-
ties, if the written contract or easement is provided to the local government; and
(C) The presence of a single family dwelling or other structure on a lot or parcel.
(c) Except for land that may be used for residential infill or redevelopment, a local government
shall create a map or document that may be used to verify and identify specific lots or parcels that
have been determined to be buildable lands.
(5)(a) Except as provided in paragraphs (b) and (c) of this subsection, the determination of
housing capacity pursuant to subsection (3)(a) of this section must be based on data relating to land
within the urban growth boundary that has been collected since the last review [or six years,
whichever is greater] under subsection (2)(a)(B) of this section. The data shall include:
(A) The number, density and average mix of housing types of urban residential development that
have actually occurred;
(B) Trends in density and average mix of housing types of urban residential development;
(C) Market factors that may substantially impact future urban residential development; and
(D) The number, density and average mix of housing types that have occurred on the buildable
lands described in subsection (4)(a) of this section.
(b) A local government shall make the determination described in paragraph (a) of this sub-
section using a shorter time period than the time period described in paragraph (a) of this sub-
section if the local government finds that the shorter time period will provide more accurate and
reliable data related to housing capacity. The shorter time period may not be less than three years.
(c) A local government shall use data from a wider geographic area or use a time period longer
than the time period described in paragraph (a) of this subsection if the analysis of a wider ge-
ographic area or the use of a longer time period will provide more accurate, complete and reliable
data relating to trends affecting housing need than an analysis performed pursuant to paragraph (a)
of this subsection. The local government must clearly describe the geographic area, time frame and
source of data used in a determination performed under this paragraph.
(6) If the housing need determined pursuant to subsection (3)(b) of this section is greater than
the housing capacity determined pursuant to subsection (3)(a) of this section, the local government
shall take one or both of the following actions to accommodate the additional housing need:
(a) Amend its urban growth boundary to include sufficient buildable lands to accommodate
housing needs for the next 20 years. As part of this process, the local government shall consider the
effects of measures taken pursuant to paragraph (b) of this subsection. The amendment shall include
sufficient land reasonably necessary to accommodate the siting of new public school facilities. The
need and inclusion of lands for new public school facilities shall be a coordinated process between
the affected public school districts and the local government that has the authority to approve the
urban growth boundary.
(b) Amend its comprehensive plan, regional framework plan, functional plan or land use regu-
lations to include new measures that demonstrably increase the likelihood that residential develop-
ment will occur at densities sufficient to accommodate housing needs for the next 20 years without
expansion of the urban growth boundary. A local government or metropolitan service district that
takes this action shall adopt findings regarding the density expectations assumed to result from
measures adopted under this paragraph based upon the factors listed in ORS 197.303 (2) and data
in subsection (5)(a) of this section. The density expectations may not project an increase in resi-
dential capacity above achieved density by more than three percent without quantifiable validation
of such departures. For a local government located outside of a metropolitan service district, a
quantifiable validation must demonstrate that the assumed housing capacity has been achieved in
areas that are zoned to allow no greater than the same authorized density level within the local
jurisdiction or a jurisdiction in the same region. For a metropolitan service district, a quantifiable
validation must demonstrate that the assumed housing capacity has been achieved in areas that are
Enrolled House Bill 2003 (HB 2003-C) Page 9
PP 22-0005 ATTACHMENT B/PAGE 9 OF 25
zoned to allow no greater than the same authorized density level within the metropolitan service
district.
(c) As used in this subsection, "authorized density level" has the meaning given that term in
ORS 227.175.
(7) Using the housing need analysis conducted under subsection (3)(b) of this section, the local
government shall determine the overall average density and overall mix of housing types at which
residential development of needed housing types must occur in order to meet housing needs over the
next 20 years. If that density is greater than the actual density of development determined under
subsection (5)(a)(A) of this section, or if that mix is different from the actual mix of housing types
determined under subsection (5)(a)(A) of this section, the local government, as part of its periodic
review, shall adopt measures that demonstrably increase the likelihood that residential development
will occur at the housing types and density and at the mix of housing types required to meet housing
needs over the next 20 years.
(8)(a) A local government outside a metropolitan service district that takes any actions under
subsection (6) or (7) of this section shall demonstrate that the comprehensive plan and land use
regulations comply with goals and rules adopted by the commission and implement ORS 197.295 to
197.314.
(b) A local government shall determine the density and mix of housing types anticipated as a
result of actions taken under subsections (6) and (7) of this section and monitor and record the ac-
tual density and mix of housing types achieved following the adoption of these actions. The local
government shall compare actual and anticipated density and mix. The local government shall sub-
mit its comparison to the commission at the next [periodic review or at the next legislative] review
of its urban growth boundary[, whichever comes first] under subsection (2)(a) of this section.
(9) In establishing that actions and measures adopted under subsections (6) and (7) of this sec-
tion demonstrably increase the likelihood of higher density residential development, the local gov-
ernment shall at a minimum ensure that land zoned for needed housing is in locations appropriate
for the housing types identified under subsection (3) of this section, is zoned at density ranges that
are likely to be achieved by the housing market using the analysis in subsection (3) of this section
and is in areas where sufficient urban services are planned to enable the higher density development
to occur over the 20-year period. Actions or measures, or both, may include but are not limited to:
(a) Increases in the permitted density on existing residential land;
(b) Financial incentives for higher density housing;
(c) Provisions permitting additional density beyond that generally allowed in the zoning district
in exchange for amenities and features provided by the developer;
(d) Removal or easing of approval standards or procedures;
(e) Minimum density ranges;
(f) Redevelopment and infill strategies;
(g) Authorization of housing types not previously allowed by the plan or regulations;
(h) Adoption of an average residential density standard; and
(i) Rezoning or redesignation of nonresidential land.
(10)(a) The provisions of this subsection apply to local government comprehensive plans for
lands within the urban growth boundary of a city that is located outside of a metropolitan service
district and has a population of less than 25,000.
(b) [At periodic review pursuant to ORS 197.628 to 197.651 or at any other legislative review of
the comprehensive plan that requires the application of a statewide planning goal relating to buildable
lands for residential use,] As required under paragraph (c) of this subsection, a city shall, ac-
cording to rules of the commission:
(A) Determine the estimated housing needs within the jurisdiction for the next 20 years;
(B) Inventory the supply of buildable lands available within the urban growth boundary to ac-
commodate the estimated housing needs determined under this subsection; and
(C) Adopt measures necessary to accommodate the estimated housing needs determined under
this subsection.
Enrolled House Bill 2003 (HB 2003-C) Page 10
PP 22-0005 ATTACHMENT B/PAGE 10 OF 25
(c) The actions required under paragraph (b) of this subsection shall be undertaken:
(A) At periodic review pursuant to ORS 197.628 to 197.651;
(B) On a schedule established by the commission for cities with a population greater than
10,000, not to exceed once each eight years; or
(C) At any other legislative review of the comprehensive plan that requires the applica-
tion of a statewide planning goal relating to buildable lands for residential use.
[(c)] (d) For the purpose of the inventory described in this subsection, "buildable lands" includes
those lands described in subsection (4)(a) of this section.
SECTION 9. ORS 197.299 is amended to read:
197.299. (1) A metropolitan service district organized under ORS chapter 268 shall complete the
inventory, determination and analysis required under ORS 197.296 (3) not later than six years after
completion of the previous inventory, determination and analysis.
(2)(a) The metropolitan service district shall take such action as necessary under ORS 197.296
(6)(a) to accommodate one-half of a 20-year buildable land supply determined under ORS 197.296 (3)
within one year of completing the analysis.
(b) The metropolitan service district shall take all final action under ORS 197.296 (6)(a) neces-
sary to accommodate a 20-year buildable land supply determined under ORS 197.296 (3) within two
years of completing the analysis.
(c) The metropolitan service district shall take action under ORS 197.296 (6)(b), within one year
after the analysis required under ORS 197.296 (3)(b) is completed, to provide sufficient buildable land
within the urban growth boundary to accommodate the estimated housing needs for 20 years from
the time the actions are completed.
(d) The metropolitan service district shall consider and adopt new measures that the governing
body deems appropriate under ORS 197.296 (6)(b) and shall allocate any housing capacity that is
not accommodated under this section to be accommodated by the application of ORS 197.296
(6)(b) by cities within the metropolitan service district with a population greater than
10,000.
(e) Cities to which housing capacity is allocated under paragraph (d) of this subsection
shall take steps, at least once every six years as scheduled by the Land Conservation and
Development Commission, to demonstrably increase the likelihood that residential develop-
ment will occur at densities sufficient to accommodate housing needs for the next 20 years
as required by ORS 197.296 (6)(b).
(3) The [Land Conservation and Development] commission may grant an extension to the time
limits of subsection (2) of this section if the Director of the Department of Land Conservation and
Development determines that the metropolitan service district has provided good cause for failing
to meet the time limits.
(4)(a) The metropolitan service district shall establish a process to expand the urban growth
boundary to accommodate a need for land for a public school that cannot reasonably be accommo-
dated within the existing urban growth boundary. The metropolitan service district shall design the
process to:
(A) Accommodate a need that must be accommodated between periodic analyses of urban growth
boundary capacity required by subsection (1) of this section; and
(B) Provide for a final decision on a proposal to expand the urban growth boundary within four
months after submission of a complete application by a large school district as defined in ORS
195.110.
(b) At the request of a large school district, the metropolitan service district shall assist the
large school district to identify school sites required by the school facility planning process de-
scribed in ORS 195.110. A need for a public school is a specific type of identified land need under
ORS 197.298 (3).
(5) Three years after completing its most recent demonstration of sufficient buildable lands un-
der ORS 197.296, a metropolitan service district may, on a single occasion, revise the determination
Enrolled House Bill 2003 (HB 2003-C) Page 11
PP 22-0005 ATTACHMENT B/PAGE 11 OF 25
and analysis required as part of the demonstration for the purpose of considering an amendment to
the metropolitan service district's urban growth boundary, provided:
(a) The metropolitan service district has entered into an intergovernmental agreement and has
designated rural reserves and urban reserves under ORS 195.141 and 195.145 with each county lo-
cated within the district;
(b) The commission has acknowledged the rural reserve and urban reserve designations de-
scribed in paragraph (a) of this subsection;
(c) One or more cities within the metropolitan service district have proposed a development that
would require expansion of the urban growth boundary;
(d) The city or cities proposing the development have provided evidence to the metropolitan
service district that the proposed development would provide additional needed housing to the
needed housing included in the most recent determination and analysis;
(e) The location chosen for the proposed development is adjacent to the city proposing the de-
velopment; and
(f) The location chosen for the proposed development is located within an area designated and
acknowledged as an urban reserve.
(6)(a) If a metropolitan service district, after revising its most recent determination and analysis
pursuant to subsection (5) of this section, concludes that an expansion of its urban growth boundary
is warranted, the metropolitan service district may take action to expand its urban growth boundary
in one or more locations to accommodate the proposed development, provided the urban growth
boundary expansion does not exceed a total of 1,000 acres.
(b) A metropolitan service district that expands its urban growth boundary under this sub-
section:
(A) Must adopt the urban growth boundary expansion not more than four years after completing
its most recent demonstration of sufficient buildable lands under ORS 197.296; and
(B) Is exempt from the boundary location requirements described in the statewide land use
planning goals relating to urbanization.
SECTION 10. ORS 197.303 is amended to read:
197.303. (1) As used in ORS [197.307] 197.295 to 197.314, "needed housing" means all housing
on land zoned for residential use or mixed residential and commercial use that is determined to meet
the need shown for housing within an urban growth boundary at price ranges and rent levels that
are affordable to households within the county with a variety of incomes, including but not limited
to households with low incomes, very low incomes and extremely low incomes, as those terms are
defined by the United States Department of Housing and Urban Development under 42 U.S.C. 1437a.
"Needed housing" includes the following housing types:
(a) Attached and detached single-family housing and multiple family housing for both owner and
renter occupancy;
(b) Government assisted housing;
(c) Mobile home or manufactured dwelling parks as provided in ORS 197.475 to 197.490;
(d) Manufactured homes on individual lots planned and zoned for single-family residential use
that are in addition to lots within designated manufactured dwelling subdivisions; and
(e) Housing for farmworkers.
(2) Subsection (1)(a) and (d) of this section does not apply to:
(a) A city with a population of less than 2,500.
(b) A county with a population of less than 15,000.
(3) A local government may take an exception under ORS 197.732 to the definition of "needed
housing" in subsection (1) of this section in the same manner that an exception may be taken under
the goals.
SECTION 10a. If House Bill 2001 becomes law, section 10 of this 2019 Act (amending ORS
197.303) is repealed and ORS 197.303, as amended by section 6, chapter Oregon Laws
2019 (Enrolled House Bill 2001), is amended to read:
Enrolled House Bill 2003 (HB 2003-C) Page 12
PP 22-0005 ATTACHMENT B/PAGE 12 OF 25
197.303. (1) As used in ORS 197.295 to 197.314, "needed housing" means all housing on land
zoned for residential use or mixed residential and commercial use that is determined to meet the
need shown for housing within an urban growth boundary at price ranges and rent levels that are
affordable to households within the county with a variety of incomes, including but not limited to
households with low incomes, very low incomes and extremely low incomes, as those terms are de-
fined by the United States Department of Housing and Urban Development under 42 U.S.C. 1437a.
"Needed housing" includes the following housing types:
(a) Attached and detached single-family housing and multiple family housing for both owner and
renter occupancy;
(b) Government assisted housing;
(c) Mobile home or manufactured dwelling parks as provided in ORS 197.475 to 197.490;
(d) Manufactured homes on individual lots planned and zoned for single-family residential use
that are in addition to lots within designated manufactured dwelling subdivisions; and
(e) Housing for farmworkers.
(2) For the purpose of estimating housing needs, as described in ORS 197.296 (3)(b), a local
government shall use the population projections prescribed by ORS 195.033 or 195.036 and shall
consider and adopt findings related to changes in each of the following factors since the last [peri-
odic or legislative review or six years, whichever is greater,] review under ORS 197.296 (2)(a)(B) and
the projected future changes in these factors over a 20-year planning period:
(a) Household sizes;
(b) Household demographics [in terms of age, gender, race or other established demographic cate-
gory];
(c) Household incomes;
(d) Vacancy rates; and
(e) Housing costs.
(3) A local government shall make the estimate described in subsection (2) of this section using
a shorter time period than since the last [periodic or legislative review or six years, whichever is
greater,] review under ORS 197.296 (2)(a)(B) if the local government finds that the shorter time
period will provide more accurate and reliable data related to housing need. The shorter time period
may not be less than three years.
(4) A local government shall use data from a wider geographic area or use a time period longer
than the time period described in subsection (2) of this section if the analysis of a wider geographic
area or the use of a longer time period will provide more accurate, complete and reliable data re-
lating to trends affecting housing need than an analysis performed pursuant to subsection (2) of this
section. The local government must clearly describe the geographic area, time frame and source of
data used in an estimate performed under this subsection.
(5) Subsection (1)(a) and (d) of this section does not apply to:
(a) A city with a population of less than 2,500.
(b) A county with a population of less than 15,000.
(6) A local government may take an exception under ORS 197.732 to the definition of "needed
housing" in subsection (1) of this section in the same manner that an exception may be taken under
the goals.
SECTION 11. ORS 197.319 is amended to read:
197.319. (1) Before a person may request adoption of an enforcement order under ORS 197.320,
the person shall:
(a) Present the reasons, in writing, for such an order to the affected local government; and
(b) Request:
(A) Revisions to the local comprehensive plan, land use regulations, special district cooperative
or urban service agreement or decision-making process which is the basis for the order; or
(B) That an action be taken regarding the local comprehensive plan, land use regulations, spe-
cial district agreement, housing production strategy or decision-making process that is the basis
for the order.
Enrolled House Bill 2003 (HB 2003-C) Page 13
PP 22-0005 ATTACHMENT B/PAGE 13 OF 25
(2)(a) The local government or special district shall issue a written response to the request
within 60 days of the date the request is mailed to the local government or special district.
(b) The requestor and the local government or special district may enter into mediation to re-
solve issues in the request. The Department of Land Conservation and Development shall provide
mediation services when jointly requested by the local government or special district and the
requestor.
(c) If the local government or special district does not act in a manner which the requestor
believes is adequate to address the issues raised in the request within the time period provided in
paragraph (a) of this subsection, a petition may be presented to the Land Conservation and Devel-
opment Commission under ORS 197.324.
(3) A metropolitan service district may request an enforcement order under ORS 197.320 (12)
without first complying with subsections (1) and (2) of this section.
SECTION 12. ORS 197.320 is amended to read:
197.320. The Land Conservation and Development Commission shall issue an order requiring a
local government, state agency or special district to take action necessary to bring its comprehen-
sive plan, land use regulation, limited land use decisions or other land use decisions or actions into
compliance with the goals, acknowledged comprehensive plan provisions, [or] land use regulations
or housing production strategy if the commission has good cause to believe:
(1) A comprehensive plan or land use regulation adopted by a local government not on a com-
pliance schedule is not in compliance with the goals by the date set in ORS 197.245 or 197.250 for
such compliance;
(2) A plan, program, rule or regulation affecting land use adopted by a state agency or special
district is not in compliance with the goals by the date set in ORS 197.245 or 197.250 for such
compliance;
(3) A local government is not making satisfactory progress toward performance of its compliance
schedule;
(4) A state agency is not making satisfactory progress in carrying out its coordination agree-
ment or the requirements of ORS 197.180;
(5) A local government has no comprehensive plan or land use regulation and is not on a com-
pliance schedule directed to developing the plan or regulation;
(6) A local government has engaged in a pattern or practice of decision making that violates
an acknowledged comprehensive plan or land use regulation. In making its determination under this
subsection, the commission shall determine whether there is evidence in the record to support the
decisions made. The commission shall not judge the issue solely upon adequacy of the findings in
support of the decisions;
(7) A local government has failed to comply with a commission order entered under ORS 197.644;
(8) A special district has engaged in a pattern or practice of decision-making that violates an
acknowledged comprehensive plan or cooperative agreement adopted pursuant to ORS 197.020;
(9) A special district is not making satisfactory progress toward performance of its obligations
under ORS chapters 195 and 197;
(10) A local government's approval standards, special conditions on approval of specific devel-
opment proposals or procedures for approval do not comply with ORS 197.307 (4) or (6);
(11) A local government is not making satisfactory progress toward meeting its obligations un-
der ORS 195.065; [or]
(12) A local government within the jurisdiction of a metropolitan service district has failed to
make changes to the comprehensive plan or land use regulations to comply with the regional
framework plan of the district or has engaged in a pattern or practice of decision-making that vio-
lates a requirement of the regional framework plan[.]; or
(13) A city is not making satisfactory progress in taking actions listed in its housing
production strategy under section 4 of this 2019 Act.
SECTION 13. Section 1, chapter 47, Oregon Laws 2018, is amended to read:
Sec. 1. (1) For purposes of this section:
Enrolled House Bill 2003 (HB 2003-C) Page 14
PP 22-0005 ATTACHMENT B/PAGE 14 OF 25
(a) A household is severely rent burdened if the household spends more than 50 percent of the
income of the household on gross rent for housing.
(b) A regulated affordable unit is a residential unit subject to a regulatory agreement that runs
with the land and that requires affordability for an established income level for a defined period of
time.
(c) A single-family unit may be rented or owned by a household and includes single-family
homes, duplexes, townhomes, row homes and mobile homes.
(2)(a) The Housing and Community Services Department shall annually provide to the governing
body of each city in this state with a population greater than 10,000 the most current data available
from the United States Census Bureau, or any other source the department considers at least as
reliable, showing the percentage of renter households in the city that are severely rent burdened.
(b) [The Housing and Community Services Department, in collaboration with] The Department of
Land Conservation and Development, in consultation with the Housing and Community Services
Department, shall develop a survey form on which the governing body of a city may provide spe-
cific information related to the affordability of housing within the city, including[, but not limited
to:]
[(A)] the actions relating to land use and other related matters that the [governing body] city
has taken to encourage the development of needed housing, increase the affordability of housing
and reduce rent burdens for severely rent burdened households[; and].
[(B) The additional actions the governing body intends to take to reduce rent burdens for severely
rent burdened households.]
(c) [If the Housing and Community Services Department determines that at least 25 percent of the
renter households in a city are severely rent burdened,] The Department of Land Conservation and
Development shall provide the governing body of the city with the survey form developed pursuant
to paragraph (b) of this subsection.
(d) The governing body of the city shall return the completed survey form to the [Housing and
Community Services Department and the] Department of Land Conservation and Development [within
60 days of receipt] at least 24 months prior to a deadline for completing a housing production
strategy under section 4 of this 2019 Act.
(3)(a) In any year in which the governing body of a city is informed under this section that at
least 25 percent of the renter households in the city are severely rent burdened, the governing body
shall hold at least one public meeting to discuss the causes and consequences of severe rent burdens
within the city, the barriers to reducing rent burdens and possible solutions.
(b) The Housing and Community Services Department may adopt rules governing the conduct
of the public meeting required under this subsection.
(4) No later than February 1 of each year, the governing body of each city in this state with a
population greater than 10,000 shall submit to the Department of Land Conservation and Develop-
ment a report for the immediately preceding calendar year setting forth separately for each of the
following categories the total number of units that were permitted and the total number that were
produced:
(a) Residential units.
(b) Regulated affordable residential units.
(c) Multifamily residential units.
(d) Regulated affordable multifamily residential units.
(e) Single-family units.
(f) Regulated affordable single-family units.
SECTION 14. Section 15 of this 2019 Act is added to and made a part of ORS chapter 197.
SECTION 15. (1) As used in this section, "public property" means all real property of the
state, counties, cities, incorporated towns or villages, school districts, irrigation districts,
drainage districts, ports, water districts, service districts, metropolitan service districts,
housing authorities, public universities listed in ORS 352.002 or all other public or municipal
corporations in this state.
Enrolled House Bill 2003 (HB 2003-C) Page 15
PP 22-0005 ATTACHMENT B/PAGE 15 OF 25
(2) Notwithstanding any land use regulation, comprehensive plan, or statewide land use
planning goal, a local government may allow the development of housing on public property
provided:
(a) The real property is not inventoried as a park or open space as a protective measure
pursuant to a statewide land use planning goal;
(b) The real property is located within the urban growth boundary;
(c) The real property is zoned for residential development or adjacent to parcels zoned
for residential development;
(d) The housing complies with applicable land use regulations and meets the standards
and criteria for residential development for the underlying zone of the land or the adjacent
residential land described in paragraph (c) of this subsection;
(e) At least 50 percent of the residential units provided under this section is affordable
to households with incomes equal to or less than 60 percent of the area median income, as
defined in ORS 456.270; and
(f) The affordability of the residential units described in paragraph (e) of this subsection
is subject to an affordable housing covenant, as described in ORS 456.270 to 456.295, held by
the local government or the Housing and Community Services Department and with a dura-
tion of no less than 60 years.
(3) Notwithstanding any statewide land use planning goal, a local government may amend
its comprehensive plan and land use regulations to allow public property to be used for the
purposes described in subsection (2) of this section.
SECTION 16. Notwithstanding ORS 197.646, a local government required to comply with
the amendments to ORS 197.312 by section 6, chapter 745, Oregon Laws 2017, shall adopt land
use regulations, or adopt amendments to its comprehensive plan, to comply with the
amendments to ORS 197.312 by section 6, chapter 745, Oregon Laws 2017, no later than the
effective date of this 2019 Act.
SECTION 17. 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-
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 197.307 (5); or
(ii) Applications or permits reviewed under an alternative approval process adopted under ORS
197.307 (6).
Enrolled House Bill 2003 (HB 2003-C) Page 16
PP 22-0005 ATTACHMENT B/PAGE 16 OF 25
(c) A county may not [reduce the density of] condition an application for a housing development
on a reduction in density if:
(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 [reduce the height of] condition an application for a housing development
on a reduction in height if:
(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 [reduce the density
or height of] condition an application for a housing development on a reduction in density or
height only if the reduction is necessary 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 evi-
dence 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 197.763.
(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
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 be based on standards and criteria which
shall be set forth in the zoning ordinance or other appropriate ordinance or regulation of the county
and which shall relate approval or denial of a permit application to the zoning ordinance and com-
prehensive plan for the area in which the proposed use of land would occur and to the zoning or-
dinance and comprehensive plan for the county as a whole.
(b) When an ordinance establishing approval standards is required under ORS 197.307 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 be based upon and accompa-
nied by a brief statement that explains the criteria and standards considered relevant to the deci-
Enrolled House Bill 2003 (HB 2003-C) Page 17
PP 22-0005 ATTACHMENT B/PAGE 17 OF 25
sion, 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 be given to all parties to the proceeding.
(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 197.763 (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 197.763 as the basis for an appeal to the Land Use Board
of Appeals. At the de novo hearing:
(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.
Enrolled House Bill 2003 (HB 2003-C) Page 18
PP 22-0005 ATTACHMENT B/PAGE 18 OF 25
(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 197.763 (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 18. ORS 227.175 is amended to read:
227.175. (1) When required or authorized by a city, an owner of land may apply in writing to the
hearings officer, or such other person as the city council designates, for a permit or zone change,
upon such forms and in such a manner as the city council prescribes. The governing body shall es-
tablish fees charged for processing permits at an amount no more than the actual or average cost
of providing that service.
(2) The governing body of the city shall establish a consolidated procedure by which an appli-
cant may apply 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 227.178. The consol-
idated procedure shall be available for use at the option of the applicant no later than the time of
the first periodic review of the comprehensive plan and land use regulations.
(3) Except as provided in subsection (10) of this section, the hearings officer shall hold at least
one public hearing on the application.
(4)(a) A city may not approve an application unless the proposed development of land would be
in compliance with the comprehensive plan for the city and other applicable land use regulation or
ordinance provisions. The approval may include such conditions as are authorized by ORS 227.215
or any city legislation.
(b)(A) A city 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 city 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 197.307 (5); or
(ii) Applications or permits reviewed under an alternative approval process adopted under ORS
197.307 (6).
(c) A city may not [reduce the density of] condition an application for a housing development
on a reduction in density if:
(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 city may not [reduce the height of] condition an application for a housing development on
a reduction in height if:
(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
Enrolled House Bill 2003 (HB 2003-C) Page 19
PP 22-0005 ATTACHMENT B/PAGE 19 OF 25
(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 city may [reduce the density or
height of] condition an application for a housing development on a reduction in density or height
only if the reduction is necessary 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 city 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 may be held only after notice to the applicant and other inter-
ested persons and shall otherwise be conducted in conformance with the provisions of ORS 197.763.
(6) Notice of a public hearing on a zone use application 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 city planning authority; and
(b) The property subject to the zone use hearing is:
(A) Within 5,000 feet of the side or end of a runway of an airport determined by the Oregon
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 zone use hearing
need only be provided as set forth in subsection (6) of this section if the permit or zone change
would only allow a structure less than 35 feet in height and the property is located outside of the
runway "approach surface" as defined by the Oregon Department of Aviation.
(8) If an application would change the zone of property that includes all or part of a mobile
home or manufactured dwelling park as defined in ORS 446.003, the governing body shall give
written notice by first class mail to each existing mailing address for tenants of the mobile home
or manufactured dwelling park at least 20 days but not more than 40 days before the date of the
first hearing on the application. The governing body may require an applicant for such a zone
change to pay the costs of such notice.
(9) The failure of a tenant or an airport owner to receive a notice which was mailed shall not
invalidate any zone change.
(10)(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 197.763 (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 city's land use regulations. A city 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 ap-
Enrolled House Bill 2003 (HB 2003-C) Page 20
PP 22-0005 ATTACHMENT B/PAGE 20 OF 25
peal has expired. The notice also shall state that a person who is mailed written notice of the de-
cision 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 city. 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 197.763 as the basis for an appeal to the Land Use Board
of Appeals. At the de novo hearing:
(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.
(11) A decision described in ORS 227.160 (2)(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).
(12) At the option of the applicant, the local government shall provide notice of the decision
described in ORS 227.160 (2)(b) in the manner required by ORS 197.763 (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.
(13) Notwithstanding other requirements of this section, limited land use decisions shall be
subject to the requirements set forth in ORS 197.195 and 197.828.
SECTION 19. ORS 215.441 is amended to read:
Enrolled House Bill 2003 (HB 2003-C) Page 21
PP 22-0005 ATTACHMENT B/PAGE 21 OF 25
215.441. (1) If a church, synagogue, temple, mosque, chapel, meeting house or other nonresiden-
tial place of worship is allowed on real property under state law and rules and local zoning ordi-
nances and regulations, a county shall allow the reasonable use of the real property for activities
customarily associated with the practices of the religious activity, including:
(a) Worship services.
(b) Religion classes.
(c) Weddings.
(d) Funerals.
(e) Meal programs.
(f) Child care, but not including private or parochial school education for prekindergarten
through grade 12 or higher education.
(g) Providing housing or space for housing in a building or buildings that [is] are detached from
the place of worship, provided:
(A) At least 50 percent of the residential units provided under this paragraph are affordable to
households with incomes equal to or less than 60 percent of the median family income for the county
in which the real property is located;
(B) The real property is in an area zoned for residential use that is located within the urban
growth boundary; and
(C) The housing or space for housing complies with applicable land use regulations and meets
the standards and criteria for residential development for the underlying zone.
(2) A county may:
(a) Subject real property described in subsection (1) of this section to reasonable regulations,
including site review or design review, concerning the physical characteristics of the uses author-
ized under subsection (1) of this section; or
(b) Prohibit or restrict the use of real property by a place of worship described in subsection
(1) of this section if the county finds that the level of service of public facilities, including trans-
portation, water supply, sewer and storm drain systems is not adequate to serve the place of worship
described in subsection (1) of this section.
(3) Notwithstanding any other provision of this section, a county may allow a private or paro-
chial school for prekindergarten through grade 12 or higher education to be sited under applicable
state law and rules and local zoning ordinances and regulations.
(4) Housing and space for housing provided under subsection (1)(g) of this section must be sub-
ject to a covenant appurtenant that restricts the owner and each successive owner of [the] a build-
ing or any residential unit contained in [the] a building from selling or renting any residential unit
described in subsection (1)(g)(A) of this section as housing that is not affordable to households with
incomes equal to or less than 60 percent of the median family income for the county in which the
real property is located for a period of 60 years from the date of the certificate of occupancy.
SECTION 20. ORS 227.500 is amended to read:
227.500. (1) If a church, synagogue, temple, mosque, chapel, meeting house or other nonresiden-
tial place of worship is allowed on real property under state law and rules and local zoning ordi-
nances and regulations, a city shall allow the reasonable use of the real property for activities
customarily associated with the practices of the religious activity, including:
(a) Worship services.
(b) Religion classes.
(c) Weddings.
(d) Funerals.
(e) Meal programs.
(f) Child care, but not including private or parochial school education for prekindergarten
through grade 12 or higher education.
(g) Providing housing or space for housing in a building or buildings that [is] are detached from
the place of worship, provided:
Enrolled House Bill 2003 (HB 2003-C) Page 22
PP 22-0005 ATTACHMENT B/PAGE 22 OF 25
(A) At least 50 percent of the residential units provided under this paragraph are affordable to
households with incomes equal to or less than 60 percent of the median family income for the county
in which the real property is located;
(B) The real property is in an area zoned for residential use that is located within the urban
growth boundary; and
(C) The housing or space for housing complies with applicable land use regulations and meets
the standards and criteria for residential development for the underlying zone.
(2) A city may:
(a) Subject real property described in subsection (1) of this section to reasonable regulations,
including site review and design review, concerning the physical characteristics of the uses au-
thorized under subsection (1) of this section; or
(b) Prohibit or regulate the use of real property by a place of worship described in subsection
(1) of this section if the city finds that the level of service of public facilities, including transporta-
tion, water supply, sewer and storm drain systems is not adequate to serve the place of worship
described in subsection (1) of this section.
(3) Notwithstanding any other provision of this section, a city may allow a private or parochial
school for prekindergarten through grade 12 or higher education to be sited under applicable state
law and rules and local zoning ordinances and regulations.
(4) Housing and space for housing provided under subsection (1)(g) of this section must be sub-
ject to a covenant appurtenant that restricts the owner and each successive owner of [the] a build-
ing or any residential unit contained in [the] a building from selling or renting any residential unit
described in subsection (1)(g)(A) of this section as housing that is not affordable to households with
incomes equal to or less than 60 percent of the median family income for the county in which the
real property is located for a period of 60 years from the date of the certificate of occupancy.
SECTION 21. ORS 455.062 is amended to read:
455.062. (1) A Department of Consumer and Business Services employee acting within the scope
of that employment may provide typical plans and specifications:
(a) For structures of a type for which the provision of plans or specifications is exempted under
ORS 671.030 from the application of ORS 671.010 to 671.220 and exempted under ORS 672.060 from
the application of ORS 672.002 to 672.325; and
(b) Notwithstanding ORS 671.010 to 671.220 and 672.002 to 672.325, for structures that are metal
or wood frame Use and Occupancy Classification Group U structures under the structural specialty
code.
(2) A Department of Consumer and Business Services employee, who is licensed or reg-
istered under ORS 671.010 to 671.220 or 672.002 to 672.325, who is acting within the scope of
that employment and who is providing typical plans and specifications under subsection (1)
of this section, is not required to seal or sign the typical plans and specifications and is not
subject to disciplinary action under ORS 671.010 to 671.220 or 672.002 to 672.325 based on
providing those typical plans and specifications.
[(2)] (3) A building official or inspector, as those terms are defined in ORS 455.715, when acting
within the scope of direct employment by a municipality, may provide typical plans and specifica-
tions for structures of a type for which the provision of plans or specifications is exempted under
ORS 671.030 from the application of ORS 671.010 to 671.220 and exempted under ORS 672.060 from
the application of ORS 672.002 to 672.325.
[(3)] This [section] subsection does not alter any applicable requirement under ORS 671.010 to
671.220 or 672.002 to 672.325 regarding stamps and seals for a set of plans for a structure.
SECTION 21a. If Senate Bill 39 becomes law, ORS 455.062, as amended by section 2, chapter
97, Oregon Laws 2019 (Enrolled Senate Bill 39), and section 21 of this 2019 Act, is amended to read:
455.062. (1) A Department of Consumer and Business Services employee acting within the scope
of that employment may provide typical drawings and specifications:
Enrolled House Bill 2003 (HB 2003-C) Page 23
PP 22-0005 ATTACHMENT B/PAGE 23 OF 25
(a) For structures of a type for which the provision of drawings or specifications is exempted
under ORS 671.030 from the application of ORS 671.010 to 671.220 and exempted under ORS 672.060
from the registration requirements of ORS 672.002 to 672.325; and
(b) Notwithstanding ORS 671.010 to 671.220 and 672.002 to 672.325, for structures that are metal
or wood frame Use and Occupancy Classification Group U structures under the structural specialty
code.
(2) A Department of Consumer and Business Services employee, who is licensed or registered
under ORS 671.010 to 671.220 or 672.002 to 672.325, who is acting within the scope of that employ-
ment and who is providing typical [plans] drawings and specifications under subsection (1) of this
section, is not required to seal or sign the typical [plans] drawings and specifications and is not
subject to disciplinary action under ORS 671.010 to 671.220 or 672.002 to 672.325 based on providing
those typical [plans] drawings and specifications.
(3) A building official or inspector, as those terms are defined in ORS 455.715, when acting
within the scope of direct employment by a municipality, may provide typical drawings or specifi-
cations for structures of a type for which the provision of drawings or specifications is exempted
under ORS 671.030 from the application of ORS 671.010 to 671.220 and exempted under ORS 672.060
from the registration requirements of ORS 672.002 to 672.325. This subsection does not alter any
applicable requirement under ORS 671.010 to 671.220 or 672.002 to 672.325 regarding stamps and
seals for a set of plans for a structure.
SECTION 21b. If Senate Bill 39 becomes law, section 3, chapter 97, Oregon Laws 2019 (Enrolled
Senate Bill 39), is amended to read:
Sec. 3. The amendments to ORS 455.062 and 672.060 by sections 1 and 2 [of this 2019 Act],
chapter 97, Oregon Laws 2019 (Enrolled Senate Bill 39), and section 21a of this 2019 Act apply
to work performed, and offers made, on or after the effective date of [this 2019 Act] chapter 97,
Oregon Laws 2019 (Enrolled Senate Bill 39).
SECTION 22. In addition to and not in lieu of any other appropriation, there is appro-
priated to the Department of Land Conservation and Development, for the biennium begin-
ning July 1, 2019, out of the General Fund, the amount of $1,000,000, to provide technical
assistance to local governments to implement sections 4 to 6 and 15 of this 2019 Act and the
amendments to ORS 197.296, 197.299, 197.303, 197.319, 197.320, 215.416, 215.441, 227.175 and
227.500 and section 1, chapter 47, Oregon Laws 2018, by sections 8 to 13 and 17 to 20 of this
2019 Act.
SECTION 23. In addition to and not in lieu of any other appropriation, there is appro-
priated to the Housing and Community Services Department, for the biennium beginning
July 1, 2019, out of the General Fund, the amount of $655,274, for research, administration
and reporting that relate to a regional housing needs analysis described in section 1 of this
2019 Act.
SECTION 24. (1) Sections 4 to 6 of this 2019 Act and the amendments to ORS 197.296,
197.299, 197.303, 197.319 and 197.320 and section 1, chapter 47, Oregon Laws 2018, by sections
8 to 13 of this 2019 Act become operative on January 1, 2020.
(2) The Land Conservation and Development Commission, the Department of Land Con-
servation and Development and the Housing and Community Services Department may take
any action before the operative date specified in subsection (1) of this section that is neces-
sary for the departments and the commission to exercise, on or after the operative date
specified in subsection (1) of this section, all of the duties, functions and powers conferred
on the departments and the commission by sections 4 to 6 of this 2019 Act and the amend-
ments to ORS 197.296, 197.299, 197.303, 197.319, 197.320 and section 1, chapter 47, Oregon Laws
2018, by sections 8 to 13 of this 2019 Act.
SECTION 25. This 2019 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2019 Act takes effect
on its passage.
Enrolled House Bill 2003 (HB 2003-C) Page 24
PP 22-0005 ATTACHMENT B/PAGE 24 OF 25
Passed by House June 26, 2019 Received by Governor:
M., , 2019
Timothy G. Sekerak, Chief Clerk of House Approved:
M., , 2019
Tina Kotek, Speaker of House
Kate Brown, Governor
Passed by Senate June 30, 2019
Filed in Office of Secretary of State:
M., , 2019
Peter Courtney, President of Senate
Bev Clarno, Secretary of State
Enrolled House Bill 2003 (HB 2003-C) Page 25
PP 22-0005 ATTACHMENT B/PAGE 25 OF 25
Housing Production Strategies Open Forum
1C-4
February 23, 2021
Question and Answer Written Response D L C D
(Published March 10, 2021)
Open Forum Attendees
• Allan Lazo—FHCO • Karen Fox—City of • Ricky Hoffman—City
• Arini Farrell—City of Tualatin of Roseburg
Troutdale • Karen Swirsky—City • Ryan Potter—City of
• Brian Martin—City of of Bend Canby
Beaverton • Kate Srinivasan - • Stuart Cowie—City
• Clint Spencer—City OHCS of Roseburg
of Hermiston • Kim Armstrong— • Holly Kerns—City of
• Colin Cortes—City of Washington County Gladstone
Woodburn • Kim Rybold—City of • Kalli Light
• Dan Handel—City of Wilsonville • Victor Tran—
Woodburn • Laura Terway—City Cascadia Partners
• Daniel Riordan—City of Oregon City • DLCD Staff: Gordon
of Forest Grove • Lydia Ness— Howard, Ethan
• Don Hardy—City of Cascadia Partners Stuckmayer, Robert
Canby • Mac Corthell Mansolillo, Sean
• Emily Meharg—City • Mary Kyle McCurdy— Edging, Samuel De
of Sandy 1000 Friends of Perio Garcia,Jennifer
• Jamin Kimmell— Oregon Donnelly, Kevin
Cascadia Partners • Matthew Hastie— Young
• Jason Yaich—City of Angelo Planning
Corvallis Group
• Joel Madsen—Mid- • Michael Boquist—
Columbia Housing City of La Grande
Authority
Staff Presentation and Common Questions
Housing Production Strategy
Q 1: What is a Housing Production Strategy?
A: A new state requirement under HB 2003 for cities above 10,000. This report must be
completed one year after an HNA deadline and outlines strategies that a city will adopt to
promote the development of needed housing identified in the HNA.
Housing Production Strategies Open Forum Written Responses 1
Updated March 10, 2021
PP 22-0005 ATTACHMENT C/PAGE 1 OF 6
Q 2: What are the components of an HPS?
A: There are five major components of an HPS:
1. Contextualized Housing Need
• Socio-economic and demographic trends
• Existing adopted measures
• Market conditions
• Barriers to housing
• Housing needs of BIPOC, people experiencing homelessness, people with a
disability, and state and federal protected classes
2. Engagement
• Consumers of Needed Housing
• Producers of Needed Housing
• Summary of engagement, why stakeholders were engaged, and how
engagement influenced adopted strategies
3. Strategies to Meet Future Housing Need—A list of possible strategies to consider is
included as an attachment in OAR 660-008-0050
• Description of strategy
• Timeline for adoption
• Timeline for implementation
• Expected magnitude of impact
o Housing need addressed
o Estimated#of units expected
o Benefits and burdens analysis
4. Achieving Fair and Equitable Housing Outcomes
• Location/Transportation
• Fair Housing
• Housing Choice
• Homelessness
• Opportunities for Affordable Rental Housing and Homeownership
• Gentrification, Displacement, and Housing Stability
5. Conclusion
Q 3:Are there other requirements associated with an HPS?
A: Yes, cities are required to report at the mid-cycle of an HPS(i.e. three or four years after
adoption of an HPS)summarizing the progress a city has made in implementing strategies and
reflecting on fair and equitable housing outcomes.
Q 4: What is needed to develop an HPS that sufficiently addresses need?
A: Department staff and the Land Conservation and Development Commission will take a variety
of factors into account, including:
o Unmet housing need
Housing Production Strategies Open Forum Written Responses 2
Updated March 10, 2021
PP 22-0005 ATTACHMENT C/PAGE 2 OF 6
o Percentage of severely rent-burdened households
o Recent housing development
o Addressing homelessness
o Implementation progress of HPS strategies
o Elimination of housing barriers
Q 5: How will the Department enforce the Housing Production Strategy Program?
A: There are two "tracks"of enforcement for the Housing Production Strategy Program. First,
there are rule provisions for compliance if a city does not adopt an HNA/HPS in a timely manner.
Second, there are separate rule provisions for compliance if a city fails to adopt and implement
the specific strategies identified in the HPS in a timely manner. Both enforcement tracks prioritize
department collaboration with cities assist their participation in the program including providing
technical or financial assistance to bring them into compliance before punitive enforcement
measures.
Open Question and Answer Session
Q 6:Are there jurisdictions that have completed their Housing Needs Analysis that could be used as a
reference template for other cities?
A: Yes. The Housing Needs Analysis portion of the Oregon Housing Planning Framework not
changed with HB 2003. There are prototype Housing Production Strategies underway at the
current moment, including La Grande, Medford, and Tualatin. They will be available when the
projects are completed by June 30, 2021.
Q 7: If a City is currently conducting a Housing Needs Analysis and expecting adoption by this June,will
they also be subject to the requirement to finish their HPS within a year after that?
A: The schedule that has been published per HB 2003 requirements, begins with the first HNA
adopted in 2022. The Housing Production Strategy is tied to that deadline. If a City has a
deadline of 2022, but updates their HNA prior to that time, they "reset"their timeline. If a City
adopts an HNA prior to a 2022 deadline, they are not required to conduct a Housing Production
Strategy in conjunction with that "early"HNA. That said, nothing prohibits a City from
conducting an HPS with that HNA.
Q 8: If a city adopts an HNA by June 30 of this year, what is the earliest they would need to adopt an
HPS?
A: HB 2003 states that the first Housing Production Strategy cannot be required until 2023.A
Metro City that adopts an HNA in 2021, which is before the beginning of the HNA calendar,
would "reset"their HNA/HPS schedule. Their next HNA deadline would be six years later(2027)
and their first required HPS deadline would be (2028). For a Non-Metro City the cycle is every
eight years instead of six years.
Q 9: How specific must each strategy need to be in the HPS report?
Housing Production Strategies Open Forum Written Responses 3
Updated March 10, 2021
PP 22-0005 ATTACHMENT C/PAGE 3 OF 6
A: The HPS Program is structured around the City's identified housing need. It is up to the city to
determine what specific strategies they are proposing to accommodate the entire housing need
identified in their HNA. The City must include the following information for each proposed
strategy:
• A Description of strategy
• Anticipated Timeline for Strategy Adoption
• Anticipated Timeline for Strategy Implementation
• Expected Magnitude of Impact of the Strategy including:
o Identifying the specific housing need the strategy addresses
o Estimated number of units produced by the strategy
o An analysis of the strategies expected burdens and benefits on protected
classes
The city needs to show that the sum of all the proposed strategies is an appropriate set of
actions to address the housing need identified in the HNA.
Additionally, Cities will be required to respond to a series of six questions to better understand
the implications of proposed strategies on the location of housing in relation to transportation
options, Fair Housing, housing choice, homelessness, affordable rental housing and
homeownership, and gentrification, displacement, and housing stability.
Q 10: Does compliance with strategy implementation need to be demonstrated qualitatively or
quantitatively?
A:A combination of quantitative and qualitative factors. If there is an opportunity to show
quantitative analysis (e.g. an affordable housing bond), then it is more important to show
qualitative progress towards a proposed strategy. However, the Department understands that
many strategies do not lend themselves well to quantification, such as how many new dwelling
units might be produced as a result of SDC reductions. In these cases, a qualitative assessment of
progress is appropriate and sufficient(i.e. the city has waived SDCs for subsidized affordable
housing developments).
Q 11:You mention Portland State University researchers are working on an anti-displacement toolkit.
What is the timeframe for that?Will there be any drafts available to review in the near term?
A: The anti-displacement toolkit will be completed before June 30, 2021. There will also be
opportunities to review draft versions of the toolkit much earlier—primarily as part of the March
and May 2021 Land Conservation and Development Commission meetings. The project team has
developed a draft methodology and preliminary findings of the toolkit and has put together two
test cases in the City of Tigard and Hermiston.
Q 12: Can you cover what types of financial assistance resources are/will be available to help cities
comply?
A: House Bill 2003 allocated$1m in the 2019-2021 biennium, and those projects are in progress
today. There is conversation at the Legislature to continue this work for cities into the 2021-2023
Housing Production Strategies Open Forum Written Responses 4
Updated March 10, 2021
PP 22-0005 ATTACHMENT C/PAGE 4 OF 6
biennium. The Governor's Recommended Budget included extending funding to cities below
10,000. The Legislature will make the final decision and it is currently unclear if the Legislature
will continue that funding.
Q 13: How is the state measuring compliance with the HPS? Do cities send a draft to the state?
A: The HNA is adopted at the local level. There is no requirement to formally adopt an HPS as an
amendment to the comprehensive plan. However, it is a state requirement that must be
submitted to the Department by the established deadline. The Department will then review City
submittals based on criteria outlined in administrative rule to approve, approve with conditions,
or remand the Housing Production Strategy.
Q 14:Cities on the HNA schedule are expected to adopt HNAs before 2022. For those cities that adopt
those HNAs and are also subject to HB 2001, how would these two interact? Can cities adjust their HNA
findings based on taking actions in HB 2001? Some of these strategies will remove barriers to housing
development.
A: House Bill 2001 establishes a maximum assumed increase in efficiency of lands within the
UGB due to the adoption of middle housing measures of 3%. This change will be part of the HNA
framework moving forward.
Q 15: Is it possible to combine the Housing Needs Analysis and Housing Production Strategy?
A: Yes. The rules were structured to allow cities to build on existing housing work and outreach.
The City of Medford is currently doing these processes concurrently and will be available as a
model for other cities upon completion. In addition, Cities are also able, and encouraged, to
combine the outreach conducted from HNAs, Consolidated Plans, engagement from Severely
Rent burdened households, and other planning efforts within the city into the Housing
Production Strategy.
Feedback
Q 16: Where can we provide feedback on this meeting and future webinars?
A: The Department will send out a post-meeting survey where you can let us know your
thoughts.
Q 17:As a prototype city—I am wondering about case studies specifically for funding tools, not only
talking about what strategy, but how successful it was. Is that something that can be pulled together
and provided to cities?
A: The pool that can be drawn from to provide beat practices or case studies is limited, but there
is a lot of creative, innovative work that has been completed prior to HB 2003. This proposal
would be a great tool to provide cities an additional tool for financial incentives and will be part
of DLCD's guidance resources.
Q 18:What happens next with the Regional HNAs?
Housing Production Strategies Open Forum Written Responses 5
Updated March 10, 2021
PP 22-0005 ATTACHMENT C/PAGE 5 OF 6
A: The RHNA was a prototype analysis required by the Legislature—it does not have any
regulatory authority at this time. Any future implementation of something like a RHNA would
require action by the Legislature. The Department has published its recommendations and
analysis of the RHNA to the Oregon Legislature on March 1, 2021. The report can be viewed on
the DLCD website.
Q 19:Can successful outreach examples from other communities be shared?
A: Yes. That is a good idea. There is currently small sample size to choose from at this point, but
as communities adopt their HNAs and HPSs, there will be more opportunities to share what has
been done in terms of successful outreach efforts.
Housing Production Strategies Open Forum Written Responses 6
Updated March 10, 2021
PP 22-0005 ATTACHMENT C/PAGE 6 OF 6
Housing Capacity Analysis Update Schedule for Oregon
Cities with a population above 10,000 (Required by ORS 197.296)
OAR 660, Division 8 - Exhibit A
To be adopted by the Land Conservation and Development Commission in February 2022
Updated January 4, 2022
Cities must adopt updated Housing Capacity Analyses (HNA) by December 31stof the
listed year.
Cities not within a Metropolitan Service District
(must update HNA every eight years)
2022 2023 2024 2025 2026 2027 2028 2029
1 Grants Pass Independence Astoria Lincoln City Eugene Canby Albany Ashland
2 Lebanon McMinnville Bend Sandy Central Point Baker City Hermiston
3 Pendleton Medford Keizer Springfield Corvallis Coos Bay Newberg
4 Newport Molalla Salem The Dalles Cottage Grove Dallas Ontario
5 North Bend Prineville Klamath Falls
6 Redmond La Grande
7 Roseburg Monmouth
8 St. Helens Silverton
9 Woodburn
Cities within a Metropolitan Service District
(must update HNA every six years)
2022 2023 2024 2025 2026 2027 2028 2029
1 -None- Beaverton -None- Forest Grove Sherwood Gladstone N/A N/A
2 Fairview Troutdale Cornelius
3 Gresham Tualatin Tigard
4 Happy Valley Oregon City
5 Hillsboro
6 Lake Oswego
7 Milwaukie
8 Portland
9 West Linn
10 Wilsonville
PP 22-0005 ATTACHMENT D/PAGE 1 OF 3
Important Revisions in the 2022 HNA Schedule Update
DLCD recently published an updated version of the HNA Schedule on August 26, 2021.This updated
version was intended to reflect recent HNA adoptions in several cities. Adoptions of HNA prior to the
inaugural HNA year 2022 "reset the clock"for those jurisdictions (see note#4 below).The August 2021
version shifted the HNA deadline for the City of Lake Oswego from 2023 to 2024 inadvertently.This
error has been correct in this most recent version.
Pursuant to OAR 660-008-0045, cities with a population of 10,000 or greater, as determined by a
Portland State University Population Research Center certified population estimate, must adopt an HNA
on a regular schedule.The 2020 United States Census estimated that the population of the cities of
Astoria, Molalla, Monmouth, and North Bend exceeded 10,000. While the Portland State University
Population Research Center does not certify population estimates until December 15, 2021,the
estimates are based on US Census data.As a result, there is a high likelihood that the population of
these four cities will be certified over 10,000 when Portland State University published certified
estimates in December 2021. Molalla and North Bend received DLCD technical assistance funding to
complete an HNA in the current 2021-2023 biennium. Monmouth recently adopted an HNA in 2020.
Astoria has neither recently adopted an HNA or applied for technical assistance.
HNA Update Notes on Administration:
1. The deadline for adoption in any given year will be December 31st.
2. A city will be considered to have met its obligation to adopt the HNA update upon adoption by
ordinance at the local level.Any subsequent appeal will not be considered a failure to comply
with the update requirement.
3. The date of final adoption of the HNA at the local level will establish the next HNA update
deadline.The next update deadline will be six or eight years in the future, depending on
whether or not the subject city is in the boundary of a metropolitan service district.
4. Those cities that adopt an HNA prior to their listed deadline will effectively"reset the clock,"
such that their next applicable HNA deadline will be six or eight years after the early adoption,
depending upon whether or not they are within the boundary of a metropolitan service district.
5. House Bill 2003 stipulates that the first scheduled HNA update may be no less than two years
following adoption of administrative rules for another element of the bill, known as "housing
production strategies."The Land Conservation and Development Commission completed
rulemaking on housing production strategies (HPSs) in the fall of 2020 and adopted HPS rules as
amendments to OAR Chapter 660, Division 8 on November 12, 2020.
6. Please note that for the city's HNA update deadline to have been met, a city must adopt the
HNA by ordinance,typically as a supporting document to the city's comprehensive plan.
Adoption of the HNA by ordinance also allows city decision makers to utilize the HNA as a legally
defensible basis for decision-making.
7. Also, please note that, consistent with OAR Section 660-024-0050(4) a city must address a land
deficit identified in the HNA prior to, or concurrent with, adoption of the HNA.The local
government must amend the plan to satisfy the need deficiency, either by increasing the
development capacity of land already inside the city, by expanding the UGB, or both.
8. A city that adopts an HNA after December 31, 2021 but in a year that is prior to the deadline
established in this schedule is still required to complete a Housing Production Strategy one year
PP 22-0005 ATTACHMENT D/PAGE 2 OF 3
after the city's established HNA deadline.A city may complete a Housing Production Strategy
prior to the established deadline.
PP 22-0005 ATTACHMENT D/PAGE 3 OF 3
Housing Production Strategy Program - List of Tools, Actions, and Policies
OREGON ADMINISTRATIVE RULE CHAPTER 660, DIVISION 8, ATTACHMENT B
Revised -February 2022
Housing Production Strategy Guidance Document:
To assist cities in the creation and drafting of their Housing Production Strategy Report in compliance to HB 2003, the Department of Land Conservation and Development (DLCD) provided a guidance document of housing production strategies
a jurisdiction could employ to facilitate housing production in their community. The document contains a list of strategies assigned by categories. Each strategy includes a brief overview of its intent and purpose as well as a projection of its
expected impact by housing tenure and by income bracket. As the jurisdiction prepares a housing production strategy report, the jurisdiction would review the guidance document to select specific strategies that work best for their community
and that address their identified Housing Needs. The jurisdiction would simply reference the strategy number when describing the adoption, implementation, and expected magnitude of impact of each strategy in their report. If the jurisdiction has
a strategy that is not listed they would propose this under Category Z.
Categories of Tools, Actions, and Policies
The proposed categories contain tools, strategies, or policies that are intended to:
1. Reduce financial and regulatory impediments to develop Needed Housing;
2. Create financial and regulatory incentives for development of Needed Housing;
3. Provide access to local, state, and federal resources; and
4. Allow for local innovation.
EE/ These are strategies that a jurisdiction can take to proactively encourage
Category A Zoning and Code Changes needed housing production through zoning and code modifications. These
strategies may also include regulations to ensure housing goals are met.
* These strategies address known impediments to providing needed housing.
Category B X,b Reduce Regulatory Impediments These include but are not limited to zoning, permitting, and infrastructure
c�X impediments.
Category C Financial Incentives These are a list of financial incentives that jurisdictions can give to
4.9 developers to encourage them to produce needed housing.
These are a list of resources or programs at the local, state and federal level
Category D Financial Resources that can provide money for housing projects. The majority of these resources
are intended to provide money for affordable housing projects.
TAX These are a list of tax exemption and abatement programs that are intended
Category E Tax Exemption and Abatement
$= to encourage developers to produce housing.
These are strategies that secure land for needed housing, unlock the value of
Category F Land, Acquisition, Lease, and Partnerships land for housing, and/or create partnerships that will catalyze housing
developments.
Any other Housing Production Strategy not listed in Categories A through F
Category Z Custom Options that the jurisdiction wishes to implement will be outlined in this section and
numbered accordingly.
Equitable Outcomes Note: Some of the strategies may not create an overall housing production increase however, they do increase or maintain housing for a specific affordability target or population.
Caution Note: Jurisdictions should be careful when picking strategies to ensure that housing strategies together in their aggregate do not work to suppress the overall supply of housing of stiffle housing production.
PP 22-0005 ATTACHMENT E/PAGE 1 OF 13
Anti-Displacement and Gentrification Toolkit:
In the Spring of 2021 DLCD partnered with Portland State University to create an anti-displacement and gentrification toolkit.Though not mandatory to use,the toolkit was designed 1) help jurisdictions better measure the pressures of anti-displacement
and gentrification in their communities, and 2) direct HPS strategies towards mitigating these pressures as more housing is produced. In the process several additional columns were created to better understand the impact of each strategy when it
comes to anti-displacement work. These additional columns are defined as follows:
Housing Equity Impact: DIRECT, (DIRECT), INDIRECT,AND (INDIRECT)
DIRECT strategies for meeting housing equity needs are focused on the supply. They are needed immediately and persistently by groups that are vulnerable in the housing market.These strategies directly produce or protect affordable housing,
especially for communities of color and other protected class communities.They have strong impacts for anti-displacement that can be seen in the short-term. A(DIRECT) strategy is one that is specific to affordable housing and/or protected classes and
vulnerable populations, but does not actually create housing.
Strategies that allow for more housing overall are INDIRECT; strategies that are oriented towards smaller units or diverse housing types are (INDIRECT)-they are more likely to address equity needs, but may also require additional tools to focus on
adffordability,tenure, or accessibility. Likewise,strategies for housing preservation can be important for anti-displacement planning, if they are focused on maintaining affordability along with quality.
Neighborhood Typology:
The toolkit establishes a methodology for cities to categorize census tracts based on where gentrification and displacement pressures have already occurred or may occur in the future.These six Neighborhood Typologies (Affordable and Vulnerable,
Early Gentrification,Active Gentrification, Late Gentrification, Becoming Exclusive, and Advance Exclusive)reflect the spatial distribution of housing inequity. Cities should take special consideration of these spatial inequities in the development of their
Housing Production Strategies. Some Housing Production Strategies when applied flatly across an entire city result in negative or inequitable outcomes for communities members most at risk of displacement. The This section is intended to highlight
which strategies may have unintended negative impacts on particular neighborhood typologies.This is not to imply that all Housing Production Strategies will have negative impacts on housing equity- many strategies work without particular concern
across any kind of neighborhood. However,some housing production strategies are better suited for particular neighborhood types, and some strategies need special nuance or policy refinement to add special mitigation protections against further
potential displacement impacts.
Green: GO use and implement, especially if a tool is useful in this neighborhood type
Yellow: PROCEED CAUTIOUSLY and carefully.This means that a strategy needs to be monitored for impacts and possibly paired with more direct mitigating strategies in this neighborhood type.
Red: STOP AND PLAN. This strategy is highly likely to create displacement pressures and must be paired with mitigation measures in this neighborhood type.
PP 22-0005 ATTACHMENT E/PAGE 2 OF 13
Category A: Zoning and Code Changes
These are strategies that a city can take to proactively encourage needed housing production through zoning and code modifications. These Strategies may also include regulations to ensure housing goals are met.
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Ensure Land Zoned for Publicly-Subsidized (< 30% AMI)
This strategy will work on establishing minimum density standards, updating development codes to prohibit new single-family °
Higher Density is not Affordable (30-80% AMI) For Rent Planning and continued monitoring with attention to displacement in gentrifying
A01 detached housing in high density zones, and allow single-family detached homes in medium density zones only if they meet ° Morrow County HNA, 2017 INDIRECT All
Developed at Lower minimum density or maximum lot size requirements. Workforce (80-120 AMI) For Sale areas; add incentives for direct production of equity needs
Densities Market Rate (> 120/° AMI)
In many cities, towns, and counties, changes to local zoning policies can help to facilitate the development of lower-cost housing
Zoning Changes to types, such as Accessory Dwelling Units (ADU's), manufactured homes, multifamily housing, micro-units, or single-room ublicly-Subsidized (< 30% AMI)
Facilitate the Use of occupancy developments. Changes to local zoning policies can also help to facilitate the development of safe overnight sheltering For Rent
A02 Lower-Cost Housing options for unhoused residents, such as Safe Park programs, Conestoga Hut Micro-shelters, sleeping pod micro-shelters, and Workforce (80-120% AMI) For Sale Local Housing Solutions DIRECT All Planning and continued monitoring of production vs. needs
Types others.To increase the likelihood the market can produce lower-cost housing types, it is important to make them allowable as of Market Rate (> 120% AMI)
right in all locations and neighborhoods. If not, still provide flexibility in zoning code to still issue variance or conditional use
permits that allow deviations from existing regulations on a case-by-case basis.
FAR, Density, or Height ° Early Gentrification
A03 Bonuses for Affordable FAR, density, and height bonuses for affordable housing developments. Note: FAR/density bonuses do not work if there is not Affordable (30-80/° AMI) For Rent -- DIRECT Active Gentrication These tools work best in strongmarkets; have a medium impact on displacement
adequate height to make additional development feasible. Workforce (80-120% AMI) V1 .)CAIG p p
Housing Late Gentrification
Publicly-Subsidized (< 30% AMI)
Housing rehabilitation codes (or rehab codes) are building codes designed to reduce the costs of renovating and rehabilitating ° Early Gentrification
Housing Rehabilitation Affordable (30-80% AMI) For Rent Where naturally occurring affordable housing is being lost to rehab; add incentives
A04 existing buildings, thereby facilitating the continued availability and habitability of older rental housing and owner-occupied homes. ° Local Housing Solutions INDIRECT A- " "entriffication
Codes This is especially helpful to facilitate conversation into multiplex housing. Workforce (80-120% AMI) For Sale Late Gentrification to maintain affordability to increase anti-displacement impacts
Market Rate (> 120/° AMI)
ADUs are smaller, ancillary dwelling units located on the same lot as a primary residence. They are typically complete dwellings
with their own kitchen, bathroom and sleeping area. Given that ADUs are usually built by individual homeowners with limited ADUs, cottage, and middle housing have a medium impact on preventing
Code Provisions for experience or financial resources, code provisions can have a significant influence on the feasibility of their development and For Rent City of the Dalles Housing
A05 ADUs enable more widespreadproduction. For example, easingoccupancy requirements, allowingmore ADUs on a lot, and expanding Workforce (80-120% AMI) For Sale Strategy Report (2017) (INDIRECT) All displacement, with planning and continued monitoring of production; add incentives
p p p y q p g and programs to target affordability and increase impact
maximum size requirements. Certain building and development code regulations can inadvertently drive up ADU construction Market Rate (> 120% AMI)
costs. More flexibility in siting, design, construction and lower fees are also needed to achieve feasibility in many cases.
Affordable & Vulnerable
Publicly-Subsidized (< 30% AMI)
Broaden the definition of "housing unit" to allow for more flexibility across use types. For example, SROs are not always allowed in ° Early Gentrification
Broaden the Definition Affordable (30-80% AMI) For Rent Planning and continued monitoring of production and locations; add incentives and
A06 of Housing Type certain residential zones. Including them in the definition of housing unit, or broadening the set of uses allowed across all Workforce (80-120% AMI) For Sale -- (INDIRECT) Active Gentrification programs to increase impact and avoid clustering
residential districts, would allow for greater flexibility of housing type. Market Rate (> 120% AMI) Late Gentrification
Exclusive
Affordable & Vulnerable
Publicly-Subsidized (< 30% AMI)
Allow for Single Room Allow for SRO, Adult Dorms, and Cohousing in all residential zones. Note: SROs may be favored due to their ability to serve more Early Gentrification
Affordable (30-80% AMI) For Rent Planning and continued monitoring of production and locations; add incentives and
A07 Occupancy in people for less cost; it is not always a better housing type for all populations. Considerations should be given to ADA accessibility -- DIRECT Active Gentrfication(80-120% AMI) ror Sale cation
programs to increase impact and avoid clustering
Residential Zones when planning SROs. Market Rate (> 120% AMI) Late Gentrification
Exclusive
Cottage clusters are groups of relatively small homes typically oriented around shared common grounds with 4-14 homes typically
between 1,000-1200 square feet in size. By further defining cottage cluster design and development standards, housing code can
effectively address a predictable process for developers, and potentially encourage greater production for this housing type. Some
examples may include: allowing for a wide range of sizes and attached/detached options for housing; not specifying ownership Publicly-Subsidized (< 30% AMI) ADUs, cottage, and middle housing have a medium impact on preventing
Promote Cottage structure so that both renters/owners can live on the same cluster; ensuring that minimum site size, setbacks and building Affordable (30-80% AMI) For Rent City of the Dalles Housing
A08 Cluster Housingcoverage requirements do notprohibit cottage cluster development on smaller lots; draft design requirements that ensure Workforce 80-120% AMI) For Sale StrategyReport, April 2017 (INDIRECT) All displacement, with planning and continued monitoring of production; add incentives
g q g p g q ( p p and programs to target affordability and increase impact
neighborhood compatibility, and efficient use of land, but are not so specific as to restrict the ability to adapt to varying Market Rate (> 120% AMI)
neighborhood contexts. Other ideas include: uniformed codes, form-based codes, and allowing shared underground infrastructure
when practical (e.g. sewer lines from each cottage can connect to one main that runs out to street, rather than 8 parallel lines out
to street).
Short-term rentals can be seen as an investment strategy for small investors, but can also remove rental housing supply from the
Short-Term Rentals market, in effect driving up rent from the local housing market. To avoid this effect, regulations can include definitions for various Affordable (30-80% AMI) For Rent
A09 forms of short-term rentals, defining use, and occupancy standards, and even adding limits to the number of days that a short term ° Morrow County HNA, 2017 DIRECT All High impact on displacement especially in hot neighborhoods
Regulations rental can be in operation in order to mitigate their impact on the local housing market. Short Term Rental Regulation should begin Workforce (80-120% AMI)
with/include registration requirements for all short term rentals. Market Rate (> 120/° AMI)
Requiring that a portion of the units within a market rate development be set aside as affordable housing. This tool will often be
combined with property tax exemptions, fee waivers, or development bonuses to offset the cost of affordable housing units. Publicly-Subsidized (0 30% AMI) These tools work best in strong markets; have a medium impact on displacement;
A10 Inclusionary Zoning Careful consideration should be employed when enacting inclusionary zoning. Note: A number of studies, including those Affordable (30-80% AMI) For Rent -- DIRECT Active Gentification they pair with incentives that can be customized to context for maximum overall
analyzing the IZ Ordinance in Portland, have shown that IZ suppresses, rather than increases, the creation of new housing. Given Workforce (80-120% AMI) For Sale Late Gentrification
that, if IZ is proposed, the financial components need to be calculated right to ensure that the inclusionary rate is not too high for iviai neL r-vaLC `-- 1 cu to t\IVII) impact
the offsets provided and that overall housing production increases as a result.
PP 22-0005 ATTACHMENT E/PAGE 3 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Add Restrictive Adding restrictive covenants to ensure affordability over time at a certain income level for affordable housing developments. Publicly-Subsidized (< 30% AMI)
A11 Covenants to Ensure Restrictive covenants are usually placed on a property in exchange for a local or state government providing financial contribution Affordable (30-80% AMI) For Rent -- DIRECT All Strong tool for subsidized housing preservation in all markets
Affordability to the project. These covenants work best over the short-term (up to 30 years); after that they become unable to accommodate vorKrorce (dU-1 LU 7o NMI) For Sale
changed circumstances. Market Rate (> 120% AMI)
Align Lot Division Sometimes there are conflicting regulations between the density that is allowed by the zoning code versus the density that is
allowed when lot division (for fee-simple lots) is considered. This can cause unintentional reductions in density, only caused by the Affordable (30-80% AMI) For Rent Planning and continued monitoring of production; add incentives and programs to
Al2 Density with Zoning fact that the developer would like to create for-sale housingon fee-simple lots. Ideal) the densities would be aligned, so there is Workforce (80-120% AMI) For Sale -- INDIRECT All target affordabilityand increase impact
Density p P y' ° g p
not a density reduction between - condominium versus fee-simple developments. Market Rate (> 120/° AMI)
Enable and encourage Transfer of Development Rights (TDR) to maximize available Floor Area Ratio (FAR) provided public Early Gentrification
FAR & Density Transfer Affordable (30-80°/° AMI) For Rent These tools work best in strong markets; have a medium impact on displacement
A13 benefit (e.g. historic preservation & affordable housing) are attained and covenants ensure long term benefit. This strategy ° -- DIRECT Active Gentrification
Provisions assumes that there are adequate, realistic, and relatively easy receiving areas for TRDs. Workforce (80-120% AMI) Late Gentrification when pained with affordability tools
Market Rate (> 120% AMI)
Re-examine Critically re-assess requirements for ground floor retail; lively streetscape is a worthy goal, but not for every street. Jurisdictions Publicly-Subsidized (< 30% AMI)
Requirements for can inadvertently impose massive costs on developers by requiring ground floor retail and commercial space even when it's Affordable (30-80% AMI) For Rent
A14 --
Ground-floor unlikelyto be fullyoccupied orgenerate nearlyenough revenue topayfor itself. Ground floor uses should be driven bymarket Workforce 80-120% AMI) For Sale City of Bend INDIRECT All P g (
Retail/Commercial demand; with residential use more beneficial to meet needed housing in some cases (eg. affordable housing). Market Rate (> 120% AMI)
Enable developments that support multiple unit sizes, types, and tenure options to promote diverse housing options in Encourage Diverse high-
opportunity neighborhoods. With a goal of reversing historical patterns of racial, ethnic, cultural and socio-economic exclusion. Publicly-Subsidized (< 30% AMI)
Use an analysis of "Access to Opportunity" to decide which zones or locations (via zoning overlay) to determine where this is
Housing Types in High- Affordable (30-80% AMI) For Rent Late Gentrification Planning and continued monitoring of production; add incentives and programs to
A15 appropriate. Goal is to promote access to opportunity (e.g., high performing schools, multiple transportation options, services, ° -- (INDIRECT)
Opportunity etc.) to households with a range of backgrounds and incomes. The jurisdiction could pare this strategy with a robust program of Workforce (80-120% AMI) For Sale Exclusive target affordability and increase impact
Neighborhoods Market Rate (> 120/o AMI)
incentives (e.g, deeper financial incentives, greater range of housing types, more regulatory waivers, etc.) to be made available in
these areas than in other areas of the city.
Publicly-Subsidized (< 30% AMI)
Manufactured Housing Change the zoning of existing manufactured housing communities to be preserved to a single-use zone that only allows Affordable & Vulnerable
Affordable (30-80°/° AMI) For Rent City of Portland Mfd Dwelling Planning and monitoring for potential displacement; may need additional incentives
A16 Community manufactured housing communities. Consider lifting restrictions of stick-built homes in cooperatively-owned and other Workforce (80-120% AMI) For Sale Park Amendment DIRECT Early Gentrification and programs in active gentrification for higher impact
Preservation Zone manufactured homes. Market Rate (> 120% AMI) Active Gentrification
Allow a land division where small lots or parcels are created below the standard lot/parcel size for dwelling units that are limited in Publicly-Subsidized (< 30% AMI)
size. Calculate density differently for the dwelling units due to their limited size. Density example: ADUs, cottage, and middle housing have a medium impact on preventing
A17 Small Dwelling Unit Affordable (30-80°/° AMI) For Rent City (INDIRECT)
displacement,of Bend All with planningand continued monitoringof production; add incentives
Developments a. Dwelling units 600 square feet or smaller: 0.25 of a dwelling unit. Workforce (80-120% AMI) For Saleand programs to target affordability and increase impact
b. Dwelling units 601 to 1,200 square feet: 0.50 of a dwelling unit.
Adopt increased density codes by right near transit stations, with higher levels of density near high capacity/high frequency ° Affordable & Vulnerable
Increase Density near Publicly-Subsidized (< 30% AMI)
stations, then stepping back into residential areas. Automatically upzone based on transportation corridor classifications; meaning Early Gentrification Planning for transit extensions, especially in areas of early gentrification, is
A18 Transit Stations and wider ROWs get more flexibility in land use by right. This will add some flexibility for new transit stops, including bus stops. Be Affordable (30-80% AMI) For Rent __ (INDIRECT) Active Gentrification important; add incentives and programs to target affordability and increase impact
Regional Multi-use careful not to word the language so that people incorrectly assume that the density can only come after the transit has been put in Workforce (80-120% AMI) For Sale Late Gentrification for anti-displacement of transit-riding populations
Trails 0 place. Market Rate (> 12 /° AMI) Exclusive
High Density Requiring a certainportion of to-be-annexed land to include a percentage of high density. Be careful that this strategyis not used Affordable 30-80°/ AMI) For Rent Planningand continued monitoringfor housing add incentives for direct
A19 Requirements for to-be- q g p g g ( o City of Newberg INDIRECT All needs;
Annexed Land as a way for low density areas in high-infrastructure locations to shirk responsibility to upzone. Workforce (80-120% AMI) production of equity needs
Market Rate (> 120% AMI)
Providing a pre-approved set of plans for middle housing typologies (ex. Cottage clusters, townhomes, and SROs). The plans Publicly-Subsidized (< 30% AMI)
Pre-Approved Plan Sets ADUs, cottage, and middle housing have a medium impact on preventing
would be highly-efficient, designed for constrained lots and low cost solutions, and would allow for streamlined permitting. This Affordable (30-80°/° AMI) For Rent
A20 for Middle Housing would helpattract developers that typically developonly single-family housing to et into the missing middle housing production. Workforce 80-120% AMI For Sale -- (INDIRECT) All displacement, with planning and continued monitoring of production; add incentives
Typologies p Yp Y y g Y g g g g p ( ) and programs to target affordability and increase impact
Consider partnering with a university, design institution, or developing a competition to produce plans. Market Rate (> 120% AMI)
Provide a pre-approved set of plans for ADU designs (6-10 sizes/configurations) that, if chosen by a developer/owner, would lead ADUs have a medium impact on preventing displacement, with planning and
A21 Pre-Approved Plan to automatic approvals and reduced permitting schedule. Plans would reduce the need for architectural costs and reduce barriers Affordable (30-80°0o AMI) For Rent __ (INDIRECT) All continued monitoring of production; add incentives and programs to target
Sets for ADUs to entry. Workforce (80-120% AMI) For Sale affordability and increase impact
Market Rate (> 120% AMI)
Publicly-Subsidized (< 30% AMI)
Mixed Housing Types in Affordable (30-80% AMI) For Rent Cottage and middle housing have a medium impact on preventing displacement,
A22 Planned Unit Require or incentive a mix of housing types within Residential Planned Unit Developments (PUD). Workforce (80-120% AMI) For Sale City of Forest Grove INDIRECT All with planning and continued monitoring of production; add incentives and programs
Developments Market Rate (> 120% AMI) to target affordability and increase impact
PP 22-0005 ATTACHMENT E/PAGE 4 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Provide incentives in the development code to increase the number of units designed to meet Universal Design, Lifelong Housing Publicly-Subsidized (< 30% AMI)
A23 Accessible Design Certification, and other similar standards. Examples of incentives include: expedited review and permittingprocessing, planningAffordable (30-80/° AMI) For Rent -- DIRECT All Directlyaddresses equitable housingneed
g p p Workforce (80-120% AMI) For Sale q
and building fee reductions, system development charge deferrals, density or building height bonuses. Market Rate (> 120% AMI)
Many smaller housing formats are built on wheels, including tiny homes on wheels (THOWs), park model homes, and recreational
vehicles (RVs). providing occupants significant flexibility in where they site their homes, yet many local codes prohibit the siting of ublirIv_C1 ikeirli=orl /e 'VIOL "MI)
Legalize Alternative these housingtypes outside of manufactured homeparks and RVparks. Permittingthese housingtypes, with appropriate Affordable (30-80% AMI) For Rent Tiny House on Wheels (THOWS) -
A24 Housing Types on yp yp siting o (INDIRECT) All --
Wheels and in Parks standards to ensure adequate public facilities access and life/safety, can provide additional permanent or interim housing options Workforce (80-120/° AMI) For Sale City of Portland
outside of parks. Allowing broader siting of RV parks and amending standards to allow THOWs, park model homes, and other Market Rate (> 120% AMI)
housing types on wheels can also provide additional siting opportunities.
The Oregon Reach Code, Part II, defines a "tiny house" as a dwelling that is 400 square feet or less in floor area, excluding lofts.
Legalize and Encourage While many (though not all)jurisdictions allow tiny homes to be sited as a primary or accessory dwelling, few encourage their Publicly-Subsidized (< 74n°i AMI)
A25 Tiny Homes and development through regulatory incentives. Legalizing the siting of tiny homes as primary or accessory dwellings through the Affordable (30-80% AMI) For Rent __ (INDIRECT) All --
Villages removal of minimum unit size requirements can enable the development of this housing type. Jurisdictions can encourage the Workforce (80-120/° AMI) For Sale
development of tiny houses and tiny house villages by providing regulatory incentives — such as reductions in required off-street Market Kate (> -1LU/° Ptryii)
parking or open space — for units less than 400 SF in floor area
Category B : Reduce Regulatory Impediments
These strategies address known impediments to providing needed housing. These include but are not limited to process, permitting, and infrastructure impediments.
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Remove or Reduce Removing parking requirements for residential uses provides the opportunity to reduce the amount of lot area used for pavement Publicly-Subsidized (< 30% AMI)
and provides more space for housing and open space. This strategy offers greater flexibility to site housing and reduces costs Affordable (30-80% AMI) For Rent
B01 Minimum Parking associated with providing parking. Allow developers to respond to market demands and transit access without having the burden Workforce (80-120% AMI) For Sale City of Tigard INDIRECT All --
Requirements of parking minimums. Consider removing parking requirements near transit or for affordable housing. Market Rate (> 120% AMI)
Publicly-Subsidized (< 30% AMI)
Remove Development Streamlining the conversion of larger single-family homes into multi-unit dwellings (e.g. duplex or triplex). This should be aligned ° Converstions that upgrade and upscale may displace through broader
B02 Code Impediments for with reduced off-street parkingrequirements, so that conversion doesn't trigger the need to add additional driveways (or isn't Affordable (30-80/° AMI) For Rent Cityof Tigard (INDIRECT) Early Gentrification neighborhood changes; conversions that create more rental and moderate cost
p q gg y Workforce (80-120% AMI) 1 .�U1� g Active Gentrification g g '
Conversions halted by inability to add additional driveways). Market Rate (> 120% AMI)
housing may stabilize
Expedited permitting will help to reduce costs of development of Needed Housing as identified by the City. Consider projects with
direct or indirect funding from local government as essential and projects with long term affordability covenants through tax Publicly-Subsidized (< 30% AMI)
abatement or inclusionary requirements as high priority and/or only expedite housing according to the jurisdictions identified °
Expedite Permitting for Affordable (30-80% AMI) For Rent City of Portland (direct funding
B03 Needed Housing Types needed housing types. Workforce (80-120% AMI) For Sale only) (INDIRECT) All --
Localgovernments might also consider assigning a designating staff to shepherd projects through the construction process in Market Rate (> 120% AMI)
g g g g g p g
order to expedite process.
Publicly-Subsidized (< 30% AMI)
B04 Expedite Lot Division for Expedite lot divisions and subdivisions for affordable housing projects Affordable (30-80% AMI) For Rent -- (DIRECT) All --
Affordable Housing For Sale
Publicly-Subsidized (< 30% AMI)
Reduce Regulatory Remove barriers such as minimum street frontage, driveway requirements, etc., that impact minimum lot size/density during lot Affordable (30-80% AMI) For Rent Increased dendsity in gentrifying neighborhoods may not serve to stabilize; add
B05 Barriers to Lot Division division. Preferablyallow by-right lot division upto max number of units allowed. Workforce 80-120% AMI) For Sale -- (INDIRECT) All incentives and programs to target affordabilityand increase impact
( p g g p
Market Rate (> 120% AMI)
In some cities, towns, and counties, the process associated with obtaining approval for new construction is so time-consuming or
costly that it dampens the amount of new development and adds significantly to its costs. To help streamline the process, cities, Publicly-Subsidized (< 30% AMI)
Streamline Permitting towns and counties can initiate a comprehensive review of all steps in the development approval process to identify the factors Affordable (30-80% AMI) For Rent Planning and continued monitoring of production; add incentives and programs to
B06 Process that most significantly suppress new residential construction and redevelopment. With a clearerpicture of the obstacles, local Workforce (80-120% AMI) For Sale Local Housing Solutions INDIRECT All target affordabilityand increase impact
g Y pp p g p
leaders can then begin to assess whether they can be reduced or eliminated to stimulate development activity. In doing the Market Rate (> 120% AMI)
comprehensive review, it is critical that actual timeline performance be evaluated not just the planned timeline.
Flexible Regulatory Often, nonprofit housing developers and housing agencies face regulatory impediments to building affordable housing, which can Publicly-Subsidized (< 30% AMI)
often derail projects. This strategy provides a flexible framework for delivery of affordable housing including but not limited to Affordable (30-80% AMI) For Rent Planning and continued monitoring of production and locations; add incentives and
B07 Concessions for reduced minimum setbacks, height bonuses, and/or allowing for flexibility in how units are delivered. This strategy is not intended For Sale Morrow County HNA, 2017 (DIRECT) All programs to increase impact and avoid clustering
Affordable Housing to allow for a lower quality for affordable housing buildings.
PP 22-0005 ATTACHMENT E/PAGE 5 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Waive Off-Site Waive infrastructure build-out requirements for infill affordable or needed housing projects constructed in neighborhoods without a Publicly-Subsidized (< 30% AMI)
Infrastructure network of those amenities currently. Example: Waive requirements for curb, gutter and sidewalk build-out on the lot if it is Affordable (30-80% AMI) For Rent Clackamas CountyHousingPlanningand continued monitoringofproduction; add incentives and programs to
B08 Requirements for p q o (INDIRECT) All p g
Needed or Affordable located in an area without either connecting curb, gutter, and sidewalk currently or viable plans for funding infrastructure Workforce (80-120% AMI) For Sale Report target affordability and increase impact
Housing
construction within the next decade. This is especially relevant in smaller, more rural locations. Market Rate (> 120% AMI)
Programming work in a Capital Improvements Programming (CIP) so that projects are constructed sooner to support development Publicly-Subsidized (< 30% AMI)
Capital Improvements of middle housing or to open up more land in an Urban Growth Boundary (UGB) for development of middle housing. Coordinate Affordable (30-80% AMI) For Rent
B09 Pro rammin (CIP) housingplanningwith CIP work toprioritize those projects that would support development (e.g. new water line, sewer pumping Workforce (80-120% AMI) For Sale -- INDIRECT All --
Programming p 1 pp p p p g
station). If the UGB is amended or the premises on which the CIP were based changed substantially, the CIP should be revised. Market Rate (> 120% AMI)
sewer, and transportation PFPs and gettingcapital improvement projects (CIP) built so that costs to developon Publicly-Subsidized (< 30% AMI)
Completing water, p p p p J Affordable (30-80% AMI) For Rent City of Tigard
B10 Public Facility Planning land zoned for needed housing can be further anticipated and supported. In addition, public utilities planning also allows for more INDIRECT All --
unit capacity, especially in areas that are upzoned for denser housing. Workforce (80-120% AMI) For Sale City of Bend
Market Rate (> 120% AMI)
Change the culture of Planning / Development Services departments to have a pro-housing agenda for both rental and
homeownership. Supplement with fair housing education and education on the supply and demand impact on housing prices. The Publicly-Subsidized (< 30% AMI)
State could support jurisdictions in this effort by providing an incentive (e.g. funding set-aside) for jurisdictions that adopt Affordable (30-80% AMI) For Rent A more focused agenda on afffordable housing will address NIMBY and stigma
B11 Pro-Housing Agenda aggressive pro-housingpolicies. In the State of California housingfunds areprioritized for cities that adopt pro-housingpolicies. Workforce (80-120% AMI) For Sale -- INDIRECT All issues with rental housing, affordable housing, and protected classes
gg p g, g�
Though it may be counterintuitive, since this allows anti-housing cities to avoid housing altogether. Alternatively, the State of Market Rate (> 120% AMI)
Oregon could consider a stick rather than carrot approach (e.g. withholding highway funds).
Change the culture of Planning / Development Services departments to have a pro Affordable Housing agenda for both rental and
homeownership. Supplement with fair housing education and education on the supply and demand impact on housing prices. The Publicly-Subsidized (< 30% AMI) A pro-affordable housing agenda does not create housing directly; but it is an
Pro Affordable Housing State could support jurisdictions in this effort by providing an incentive (e.g. funding set-aside) for jurisdictions that adopt Affordable (30-80% AMI) For Rent important component of planning to ensure that equity is achieved. Including Fair
B12 Agenda aggressivepro Affordable Housingpolicies. This agenda should include aplan to ensure that affordable housingis not For Sale -- (DIRECT) All Housingand addressingprotected classes such as race/ethnicityand national
9 9g 9 �
suppressed in single-family zones or in wealthier communities. As part of this, encourage departments to look closely at how origin will further target this strategy to equitable outcomes
existing approaches may inadvertently favor one type of tenure over another.
Align Bike Parking Affordable (30-80% AMI) For Rent
B13 Requirements with Require bicycle parking requirements more in line with actual use. Example: No more than 1-1.5 bike parking stalls per unit. -- INDIRECT All --
Workforce (80-120% AMI)
Actual Use
Market Rate (> 120% AMI)
Amend the comprehensive plan to explicitly make Affirmatively Furthering Fair Housing a Housing Policy. Example below, based
on federal guidance on affirmatively furthering fair housing and current state protected classes. Jurisdictions may add additional
protected classes, such as ancestry, ethnicity, or occupation. Additionally, a jurisdiction could create an Analyis of Impediments to
Fair Housing (Al), even when not required, and conduct fair housing training for Council, Planning Commission, and other relevant
Adopt Affirmatively policymakers. Jurisdictions would work to make known evidence and best practices in planning, to reverse discrimination and Publicly-Subsidized (< 30% AMI) addressing affordability and equitable access for all people; as well as considering
B14 Furthering Fair Housing exclusion as well as concentrations of wealth, a required aspect of the comprehensive plan process. Affordable (30-80% AMI) For Rent -- (DIRECT) All neighborhood clustering and neighborhood change as part of access to
as a Housing Policy in Workforce (80-120% AMI) For Sale opportunity. It is an important undergirding for housing planning and directing
Comprehensive Plan Housing Policy x: Affirmatively Furthering Fair Housing Market Rate (> 120% AMI) resources; but does not create housing
[Jurisdiction] affirmatively furthers access to decent, affordable housing with convenient access to the services and destinations
Oregonians need to thrive without regard to their race, color, religion, national origin, sex, familial status, mental or physical
disability, source of legally-derived income, marital status, sexual orientation or gender identity.
Reduce the Power of Many jurisdictions give communities/neighborhoods too much veto power on both zoning policy, and particular project proposals Publicly-Subsidized (< 30% AMI)
to keep others who they don't approve of from moving in. Dedicate funds to educate citizens on poverty, exclusion, and racial AMI) For Rent removingpolicies ais a stronger and more direct impact than educating NIMBYism to stop, Affordable (30-80% g p
B15 slow, change, or reduce dynamics. Remove policies that allow neighborhood opposition to evidence based zoning proposals and individual projects. Workforce (80-120% AMI) For Sale -- (DIRECT) All communities.
affordable housing Decisions about what kind and how much housing goes where it needs to be data-driven and focused on equitable outcomes Market Rate (> 120% AMI)
instead of the best outcomes for those with the most money and/or privilege.
Holistic Planning to Geography is often at odds with social equity; natural beauty is often in wealthy neighborhoods, as are historic buildings, allowing Publicly-Subsidized (< 30% AMI)
them to exclude new development and affordable housing. Develop a targeted plan to distribute density within the jurisdiction Affordable (30-80% AMI) For Rent Planning and continued monitoring of production; add incentives and programs to
B16 Distribute New Density more equitably to areas with quality schools, access to natural resources etc. Additionally, work to distribute transit equitably to Workforce (80-120% AMI) For Sale -- (INDIRECT) All target affordability and increase impact
More Equitably ensure that exclusionary neighborhoods don't remain that way because they don't offer transit for higher density housing. Market Rate (> 120% AMI)
Reduce on-site Publicly-Subsidized (< 30% AMI)
Remove or reduce requirements for on-site common/active open space. Instead, ensure that adopted Parks plans fully consider Affordable (30-80% AMI) For Rent Affordable & Vulnerable Take care with neighborhoods that are seeking more holistic revitalization to
B17 Common/Active Open the needs of everyneighborhood, and that the jurisdiction is activelyworkingtoward satisfying those needs. Workforce 80-120% AMI) For Sale -- INDIRECT EarlyGentrification balance non-housingneeds with housingproduction
Space Requirements g J y g ( °
Market Rate (> 120/° AMI)
Jurisdictions would develop a comprehensive review of the impediments to the development of homeownership opportunities and
actionable steps to remove those impediments. ° To ensure access to homeownership to under-represented groups, pair
Prioritize Home Affordable (30-80% AMI) For Rent
B18 ° -- (INDIRECT) All development of owner-occupied housing types with homebuyer education, financial
Ownership Note:An important impediment to condominium development is the risk associated with the current condominium law in Oregon. A Workforce (80-120% AMI) For Sale
revamp of this law is needed to increase homeownership opportunities that are smaller in size. This would require action at the Market Rate (> 120% AMI) assistance like downpayments and low-cost loans, and affirmative marketing
state level.
PP 22-0005 ATTACHMENT E/PAGE 6 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Add a section to the city's development application asking developers how they decided on their development program and which
Survey Applicants on public incentives were part of the consideration. This would lead to better information about how to tailor city strategies toward Publicly-Subsidized (< 30% AMI)
B19 Development Program production. An alternative to requiring cities to collect this info, is to consider this approach as part of a production strategy. To be Affordable (30-80% AMI) For Rent Housing Production Strategy (INDIRECT) All --
Decision-Making a strategy it needs additional action like logging and making publicly available the aggregated survey information on the city's Workforce (80-120% AMI) For Sale Technical Advisory Committee
housing/development/planning webpage or similar. The information could be collected on a form separate from the development Market Rate (> 120% AMI)
application, so it is clear that the additional information is not part of the permit decision.
Category C : Financial Incentives
These are a list of financial incentives that cities can offer to developers to encourage them to produce needed housing.
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Reduce or Exempt Publicly-Subsidized (< 30% AMI)
C01 SDCs for Needed Reducing, deferring, and/or financing System Development Charges (SDCs) at a low interest rate for needed housing types. This Affordable (30-80% AMI) For Rent Cit of Ti and INDIRECT All Increase impacts by focusing SDC incentives on needed housing types from the
Housing strategy reduces development costs. Workforce (80-120% AMI) For Sale y g ( ) equity housing needs analysis
Market Rate (> 120/° AMI)
Updating SDC fee schedule so that is tied to dwelling size. This strategy ensures that smaller dwelling sizes in single and multi- Publiriv-si ihcirli7Prl o In°/ AMI)
CO2 Modify SDC fee family housing are not disproportionately burdened by fees and therefore encouraged. Consider per square foot fees rather than Affordable (30-80/°° AMI) For Rent City of Florence (INDIRECT) All Increase impacts by focusing SDC incentives on needed housing types from the
schedules per dwelling. Workforce (80-120% AMI) For Sale equity housing needs analysis
Market Rate (> 120% AMI)
Reduce or Exempt Waivers/reductions of SDCS for ADU production in order to improve the feasibility of the development. Create a model ordinance For Rent In strong market, this can produce more housing units; ADUs have medium anti-
0O3 City of Portland (INDIRECT) displacement impact, can be increased with programs to target affordability and
SDCs for ADUs for the waiver, or deferment, of SDCs. Scale SDCs based on size, resource efficiency, and access to alternative transportation. For Sale
equity
Incentivize Publicly-Subsidized (< 30% AMI)
Give Bonus Density Incentives for manufactured and factory built housing. Consider tying bonus to modular housing that Affordable (30-80% AMI) For Rent
C04 Manufactured and Metro KingRMHP (DIRECT) All --
Modular Housing demonstrates if housing meets affordability targets of below 120% AMI. Workforce (80-120% AMI) For Sale County
Market Rate (> 120% AMI)
Waive or Finance Park A policy providing for the exemption (preferred) or financing park impact fees (helpful) for affordable housing ensures a mix of For Rent Tualatin Hills Park &
C05 Impact Fees for affordable housing. Financing the fee while still collecting can mitigate the cost of the fee to coincide with the available cash flow Recreation District (DIRECT) All Reduced fees have medium impacts on displacement
Affordable Housing of the affordable housing. Market Rate (> 120% AMI)
Publicly Funded Publicly-Subsidized (< 30% AMI)
C06 Infrastructure Fund off-site improvements for workforce or affordable housing; e.g. street intersection improvements triggered bydevelopment. Affordable (30-80% AMI) For Rent
p p gg p __ (DIRECT) All Reduced fees have medium impacts on displacement
Workforce (80-120% AMI) For Sale
Improvements °
Market Rate (> 120/° AMI)
Publicly-Subsidized (< 30% AMI)
C07 Reconsider Applying If there are appropriate levels of parks and open space near the project, these impact fees should not be charged or should be Affordable (30-80% AMI) For Rent -- (INDIRECT) Reduced fees have medium impacts on displacement in strong markets; make more impact by
Park SDCs assessed at a much lower rate. They are not general funds to be allocated without a nexus to the development. Workforce (80-120% AMI) For Sale targeting to affordable development
Market Rate (> 120% AMI)
Tie transportation SDCs to the number of parking spaces, as the number of parking spaces is a more accurate predictor of the Publicly-Subsidized (0 30% AMI)
Transportation SDCsAffordable (30-80% AMI) For Rent Early GentrificW—. Reduced fees have medium impacts on displacement in strong markets; make more impact by
C08 number of trips that will start or end at every development. By tying transportation costs directly to vehicle storage, the system will -- (INDIRECT)
Tied to Parking both be assessing transportation impacts fairly and encouraging alternate modes of transportation. Workforce (80-120% AMI) For Sale Active Gentrification targeting to affordable development
Market Rate (> 120)/° AMI)
Category D : Financial Resources
These area list of resources or programs at the local, state, and federal level that can provide funding for housing projects, primarily subsidized affordable housing projects.
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
CDBG Grants are federal funds set aside in the form of grants to be used to meet national objectives: direct benefit for low and City of Tigard
City of Eugene
moderate income households; benefit to predominantly low income areas; elimination of slums and blight. Eligible activities City of Beaverton
include public works infrastructure, community facilities, new housing development, housing rehabilitation, and public services Publicly-Subsidized (< 30% AMI)
Community ° City of Hillsboro
D01 Development Block (counselling, social services & microenterprise training, including short-term emergency rent assistance). Eligibility is based upon Affordable (30-80/° AMI) For Rent City of Gresham DIRECT Affordable & Vulnerable --
Grant (CDBG) the levels of low- and moderate-income families that may benefit from services provided by the eligible projects. While Cities can City of Portland
rhnnca not to annlw fnr (`r1R(, rnntrnl of‘n,hathar nr not thaw raraiwa lr1R(, is I iltimatalw at tha rarlaral lawal and !ilea tha Ctata of
PP 22-0005 ATTACHMENT E/PAGE 7 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
VI IV V J V I IVl lV LI VV'y IVI V LJ LJ V, VVI Ill VI VI VVI IV LI IVI VI I IV LI IVy I V VV I V V V LJ LJV I lA I LII I ILl.VIy Ul LI IV I VVA VI LII IV V VI CAI IV III.V LI IV V LLV.l' VI City of Bend
Oregon, these funds can be used for things that have little to do with housing, so may have limited impact. A better gauge may be City of Redmond
HOW cities use their CDBG; for housing benefit or other. State of Oregon
Publicly-Subsidized (< 30% AMI)Federal tax provision that encourages private investment in affordable rental housing by providing qualified investors with a dollar- Early Gentrification In strong markets, LIHTC can be used to create mixed-income housing that provides
D02 Low Income Housing for-dollar reduction in federal income tax liability in exchange for investment in qualifying new construction and rehabilitation Affordable (30-80% AMI) For Rent Local Housing Solutions DIRECT Active Gentrification cross-subsidy to affordable units; LIHTC can also be combined with additional
Tax Credit (LIHTC) LIHTCs mayalso be paired with Tax Exempt Revenue Bonds. vvorKrorce (�u- �Lu�Yo AIVII) For Sale Late Gentrification programs to extend the affordabilityperiod for the housing
projects. p Market Rate (> 120% AMI) p g
- - - I - - -
Housing Trust Funds are a flexible source of funding that can be used to support a variety of affordable housing activities.
Because they are created and administered at the city, county, region, or state level, housing trust funds are not subject to the Publicly-Subsidized (< 30% AMI)
restrictions of federal subsidy programs and therefore can be designed specifically to address local priorities and needs. The Affordable (30-80% AMI) For Rent
D03 Housing Trust Funds entity administering the fund determines eligible activities, which can include anything from emergency rent assistance for families Local Housing Solutions DIRECT All --
facing the threat of eviction or homelessness to gap financing for new construction of affordable housing to repairs for older
homeowners.
Operating Subsidies for Publicly-Subsidized (0 30% AMI)
D04 Affordable Housing Operating subsidies are payments made annually (or more frequently) to owners of affordable housing developments that make Affordable (30-80% AMI) For Rent Local Housing Solutions DIRECT All --
Developments the housing more affordable by covering a portion of the ongoing costs of operating the development. vvu1KW !(..:C kou- ILu oo HMI) For Sale
Market Rate (> 120/o AMI)
Employer-assisted housing programs provide a channel through which employers can help their employees with the cost of Publicly-Subsidized (< 30% AMI)
Employer - Assisted owning or renting a home, typically in neighborhoods close to the workplace. Assistance may be provided in a variety of ways, Affordable (30-80% AMI) For Rent Early Gentrification Employer-assisted housing in areas near transit or near workplaces can support
D05 HousingPrograms includingthrough down paymentgrants or loans that are forgiven over aperiod of employment, homeownershipcounselingand Workforce (80-120% AMI) For Sale Local Housing Solutions (INDIRECT) Active Gentriciation stabilityand equity, and contribute to a 'pro-housing agenda'.
g g p Y g� p g g
education, rental subsidies and, less commonly, direct investment in the construction of rental housing.
HOME is a federal program established by Congress in 1990 that is designed to increase affordable housing for low- and very low- Publicly-Subsidized (< 30% AMI)
income families and individuals. All States and participating jurisdictions receive HOME funds from HUD each year, and may Affordable (30-80% AMI) For Rent
D06 HOME Program spend HOME on rental assistance, assistance to homebuyers, new construction, rehabilitation, improvements, demolition, V V VI I.,IJ,l,l. °c30-120/o ,AIVIl; For Sale -- DIRECT All --
relocation, and limited administrative costs. Market Rate (> 120% AMI)
Local Housing Solutions
Dedicated Revenue A dedicated revenue source for affordable housing provides an ongoing committed stream of revenue for affordable housing, often Publicly-Subsidized (< 30% AMI)
D07 Sources for Affordable deposited into a Housing Trust Fund. This can be helpful in increasing the total funding available for affordable housing. The fund Affordable (30-80% AMI) For Rent DIRECT All --
can receive its sources from: Transient Lodging Taxes collected from Short Term Rentals, developer fee and real estate transfer For Sale City of Portland Housing
Housing taxes (not constitutional in Oregon).
Investment Fund
Cities, towns, and counties establish demolition taxes and condo conversion fees as a way to generate revenue and replace Publicly-Subsidized (< 30% AMI)
affordable housing lost to these activities. The proceeds from both demolition taxes and condo conversion fees are typically ° Active Gentrification Medium impacts to prevent displacement in strong market with lots of demolition
D08 Demolition Taxes deposited in a Housing Trust Fund to support affordable housing activities. To ensure that a demolition tax on residential Affordable (30-80 0o AMI) For Rent Local Housing Solutions INDIRECT Late Gentrification and conversion, with impacts in the short term and potential to fund housing. Plan
development does not deter needed redevelopment - this strategy should only be applied if the housing replacement is 1:1. If the Workforce (80-120% AMI) For Sale Exclusive and monitor production vs. needs
proposed development is more dense than the original structure, there should not be a demolition tax. Market Rate (> 120/o AMI)
Publicly-Subsidized (< 30% AMI)
Construction Excise Tax A Construction Excise Tax (CET) is a tax on construction projects that can be used to fund affordable housing. According to state Affordable (30-80% AMI) For Rent City of Portland
D09 (CET) statutes, the tax may be imposed on improvements to real property that result in a new structure or additional square footage in an For Sale City of Eugene DIRECT All Plan and monitor production vs. needs
existing structure. City of Sisters
The TIF set-aside can fund housing; but it is a financing mechanism that relies on
Create a TIF set-aside for affordable housing development programs within designated Urban Renewal Areas (URAs). Target Publicly-Subsidized (< 30% AMI) overall property values increasing to create the increment. TIF is associated with
Tax Increment Affordable & Vulnerable
could be to begin setting aside funds for affordable housing projects as a medium-term action, over the next 5 years or so. For Affordable (30-80% AMI) For Rent gentrification and displacement, especially for people of color. This may be
D10 Financing (TIF) Set- example: Portland CityCouncil designates 45% of thegross amount of TIF for designated housingpurposes (rental housingfor Workforce (80-120% AMI For Sale City of Portland DIRECT Early Gentrification exacerbated byOregon's restriction of TIF funds to physical development; add
Aside p g g p p Active Gentrification g p y p '
households under 60% of Area Median Income (AMI) and homeownership for households under 80% of AMI. Market Rate (> 120% AMI) community and economic development activities for low-income and POC to
support their staying in place as neighborhoods improve
- - - - T - f
Public Housing Authorities have the ability to attach up to 20% of their voucher assistance to specific housing units for each low
income housing project, up to 25% of any single project. Project-Based Rental Assistance (PBRA) vouchers provide rental Publicly-Subsidized (< 30% AMI)
Flexible Use of Housing assistance for eligible individuals and families who occupy specific housing units managed by private owners who have entered Affordable (30-80% AMI) For Rent
D11 Choice Vouchers into agreements with a housingagency. The household pays an established amount to the owner each month (typically -or Local Housing Solutions DIRECT All --
g g Y� p Y ( Yp� Y
approximately 30% of monthly income) and the housing agency pays the balance of the rent due. If public housing authorities
include homeownership in their administrative plan, housing vouchers may also be used to facilitate low income homeownership.
Vouchers that target renters at the 60-80% AMI who are often left out of the housing funded by bond funds and other public
sources that are focused on lower income levels. Housing Authorities use affordable housing dollars and issue vouchers that are Affordable (30-80% AMI) For Rent
D12 Targeted Vouchers good for one year and pay any landlord the difference between what the tenant can afford and market rent. This takes the -- DIRECT All --
reporting burden off the landlord and essentially allows any existing unit to be affordable. Each year the tenant would have to wI S �v ou � For Sale
prove to the Housing Authority if they were still income qualified and if not. Market Rate (> 120% AMI)
PP 22-0005 ATTACHMENT E/PAGE 8 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Publicly-Subsidized (< 30% AMI)
Low-Interest Loans / Housing Repair and Weatherization Assistance for low and moderate income households may be capitalized by Tax Increment Affordable (30-80% AMI) For Rent
D13 Revolving Loan Fund Financing (TIF), Community Development Block Grant (CBDG) Funds, or local Housing Trust Funds. For Sale City of Portland DIRECT All --
Eviction Prevention Programs provide financial assistance to help renters facing eviction stay in their homes. These programs are Publicly-Subsidized (< 30% AMI) Affordable & Vulnerable
generally designed for families who are being evicted due to nonpayment of rent during or following an unforeseen crisis, such as Eviction prevention programs have high anti-displacement impacts, in the short-
Eviction Prevention job loss or serious illness, rather than those who face more persistent affordability challenges. Jurisdictions may be interested in Affordable (30-80% AMI) For Rent Local Housing Solutions DIRECT Early Gentrification term, and across all markets. They are especially useful in strong markets where
Programs investingin eviction prevention to address concerns about displacement of low-income renters and also to avoid or reduce use of vvorKrorce �tsu- i�u i° Hivii� For Sale Active Gentrification there are economic incentives to evict.
other more costly local services, like homeless shelters. p Market Rate (> 120% AMI) Late Gentrification
Bond - for Resident Publicly-Subsidized (< 30% AMI) ■
Limited Tax General Obligation Bond that creates a funding source for supportive housing services, such as access to health care,
D15 Support Services and mental health, and other social services that better support and stabilize residents who face complex challenges and will benefit Affordable (30-80% AMI) For Rent Oregon Metro DIRECT All --
Permanent Supportive from affordable housing programs. City of Portland
Housing Services
Following the passage of Measure 102 Oregon local governments, including cities and counties, can now issue voter-approved
general obligation bonds to provide direct funding for construction and other capital costs associated with the development and Publicly-Subsidized (< 30% AMI) Oregon Metro
General Obligation construction of affordable housing. These funds can be loaned or granted to both public and privately owned affordable housing Affordable (30-80% AMI) For Rent City of Portland
D16 Bonds — for Affordable projects. "Affordability" is required to be determined by voters and each jurisdiction, and can be above or below minimum DIRECT All --
Housing affordability levels established for the federal LIHTC program and other established federal and State affordable housing finance V V"'MU!
`C ko"- 'L"'° ~'v") For Sale
programs, defining affordability by reference to Area Median Income (AMI) as established by HUD. The bonds could be paired Market Rate (> 120% AMI)
with other financing such as Low Income Housing Tax Credits, or could be used for homeownership opportunities.
Oregon Measure 102
Use IHBG funds for Publicly-Subsidized (< 30% AMI)
Mixing of Indian Housing Block Grants (IHBG), typically used for housing for Native Americans on reservation land, with other Affordable (30-80% AMI) For Rent NAYA and CDP and Confederated
D17 Urban Native DIRECT All --
traditional affordable housing funding sources allows preference for Native members in urban affordable housing projects. Tribes of the Siletz
Americans
Publicly-Subsidized (< 30% AMI)
Weatherization Funds Affordable &Vulnerable Weatherization funds can address displacement by improving habitability in low-income
Use weatherization funds administered by statewide network of Community Action Agencies to preserve aging housing stock Affordable (30-80% AMI) For Rent
D18 through Community ° OHCS Weatherization Assistance DIRECT Early Gentrification neighborhoods; and by reducing energy costs and needs for expensive repairs that may displace
occupied by income-qualified residents. Norkforce (80-120% AMI, For Sale
Action Agencies Market Rate (> 120% AMI) Active Gentrification owners in gentrifying neighborhoods.
Publicly-Subsidized (< 30% AMI) Planning ahead for affordability in TOD is important for not displacing households who are most
Transit-Oriented Provide financial incentives to developers to create transit-oriented communities. Funding can be used for site acquisition, Affordable (30-80% AMI) For Rent
D19 Development Grants infrastructure projects and residential/mixed-use projects. Workforce (80-120% AMI) Oregon Metro TOD Program (INDIRECT) All likely to use transit (low-mod income, renters, POC, and immigrants); making it an effective
Market Rate (> 120% AMI) strategy for equity and to support multi-modal transportation.
Local Innovation and The Local Innovation and Fast Track (LIFT) Housing Program's objective is to build new affordable housing for low income Publicly-Subsidized (< 30% AMI)
Fast Track (LIFT) households, especially families. Funds are available for Serving Historically Underserved Communities, Rural and Urban Set- Affordable (30-80% AMI) For Rent OHCS Housing Development
D20 Program for Affordable DIRECT All --
asides, Urban Communities, Service to Communities of Color, and Rural Communities. Available for affordable homeownership Workforce (80-120% AMI; For Sale Program
Rental Housing units (below 80% AMI). Market Rate (> 120% AMI)
Development
Publicly-Subsidized (< 30% AMI)
D21 Mental Health Trust Administered by the Oregon Health Authority for capital construction costs. Affordable (30-80% AMI) For Rent -- DIRECT All --
Fund Awards
Publicly-Subsidized (< 30% AMI) Examples: Meyer Memorial
D22 Foundations Awards Local, regional, and national foundations provide both capital funding and program funding for a wide variety of innovative housing Affordable (30-80% AMI) For Rent Trust and Oregon Community DIRECT All --
models and programs. Workforce (80-120% AMI) For Sale Foundation (OCF)
Market Rate (> 120% AMI)
State of Oregon to offer non-recourse low-interest debt that can be used to fund workforce or affordable housing. This could be
provided through an existing relationship like Network for Oregon Affordable Housing (NOAH). This would be a valuable tool for
D23 State of Oregon Debt providing housing in rural communities, where conventional debt funding may not be readily available. Affordable (30-80% AMI) For Rent __ DIRECT All --
Workforce (80-120% AMI) For Sale
Note: This strategy has been suggested by the housing development community, but programs are not yet in place in the State of
Oregon.
State of Oregon to provide some form of collateralization to support private debt placement for a workforce or affordable housing
project. For example, the State could provide Letters of Credit and/or Guarantee on behalf of the developer to the private lender.
State of Oregon Debt This would be a valuable tool for providing housing in rural communities, where conventional debt funding may be hesitant to Affordable (30-80% AMI) For Rent
D24 -- DIRECT All --
Support invest without substantial backing that the State could provide. Workforce (80-120% AMI) For Sale
Note: This strategy has been suggested by the housing development community, but programs are not yet in place in the State of
Oregon.
PP 22-0005 ATTACHMENT E/PAGE 9 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Oregon State sales tax on luxury items, 2nd homes, etc. dedicated to providing funds for affordable housing funds. Publicly-Subsidized (< 30% AMI)
D25 Luxury Tax for Equitable Affordable (30-80% AMI) For Rent -- DIRECT All --
Housing Note: This strategy has been suggested by the housing development community, but programs are not yet in place in the State of Workforce (80-120% AMI) For Sale
Oregon.
Publicly-Subsidized (< 30% AMI)
Reallocate Health and Because healthy housing makes a huge difference in health care, public safety, and other costs, identify paths to redirect budgets Affordable (30-80% AMI) For Rent
D26 Public Safety from those sectors toward housing construction funds and supporting services. Use advanced modeling projections and adjust as -- DIRECT All --
workforce (80-120% AMI, For Sale
Resources to Housing needed over time. Market Rate (> 120°/° AMI)
Publicly-Subsidized (< 30% AMI) A land tax promotes equity among homeowners, if properly calibrated and incentives more
D27 Georgist Land Tax Generate tax revenue for affordable housing by reducing the gains accrued from public investments that are capitalized into Affordable (30-80% AMI) For Rent -- DIRECT All development of housing supply. This requires state law changes.
private value. https://www.pdx.edu/news/psu-study-portland-land-value-tax-would-improve-equity-
homeowners-incentivize-development
Category E : Tax Exemption and Abatement
These are a list of tax exemption and abatement programs that are intended to encourage developers to produce housing.
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Nonprofit Low-Income This tool can provide a simplified way for affordable housing owned and operated by a nonprofit (as well as land held by a Publicly-Subsidized (0 30% AMI)
nonprofit for future affordable housing development) or Community Land Trusts (at least in land value) to qualify for a property tax Affordable (30-80% AMI) For Rent See Oregon Revised Statute
E01 Rental Housing DIRECT Affordable & Vulnerable --
exemption. Work should be done to make it easier for projects/land to qualify; minimizing the number of taxing authorities needed Chapter 307.540
Exemption to grant an approval.
Property Tax Exemption Create a Property Tax Exemption for affordable housing that is tied to level of affordability instead of the ownership structure. For Publicly-Subsidized (< 30% AMI)
example, grant a property tax exemption for affordable housing that serves households making less than 60/° of AMI at initial ° Take care to include homebuyer and post-purchase financial education to avoid loss
E02 for Affordable Housing lease up. Don't tie the property tax exemption to ownership (LLC, non-profit, housingauthority) and onlyrequire income Affordable (30-80/o AMI) For Rent __ (DIRECT) Early Gentrification of assets in gentrifying neighborhoods, where owners can be pressured to sell or to
p p Y pp q °
Tied to Level of verification at the beginning of a residents tenancy. The property should still get the exemption even if the household increases Workforce (80-120% AMI) For Sale Active Gentrificatia take out refinance loans.
Affordability income after their initial lease up so they can build assets in place. Market Rate (> 120/° AMI)
Authorized by Oregon Revised
Statute, 307.841.
Partial property tax exemption program on improvements for new mixed use development. To qualify, a project must have P,,hlirlv_S„t,c;rI;,pH /< 'InkAMI\ City of Hillsboro
Vertical Housing improved, leasable, non-residential development on the ground floor and residential development on the floors above. A partial City of Beaverton
For Rent Active Gentrificatio Calibrate incentives to needed housing types, e.g., affordability levels. Incentives for
E03 Development Zone Tax abatement on land value is allowed for each equalized floor of affordable housing. This abatement could be made better by an ° City of Milwaukie DIRECT
Abatement adjustment to the floor equalization formula - right now, there is a 20% abatementper equalized floor, but if theproject ends upWorkforce (80-120/o AMI) Oregon CityLate Gentrificatior inclusion of affordable units work best in strong markets.
q g q Market Rate (> 120% AMI) g
being 3.8 equalized floors it only gets 3 floors worth of the abatement rather than an apportioned abatement. City of Gresham
City of Tigard
City of Wood Village
City of Forest Grove
Multiple Unit Property ublicly-Subsidized (< 30% AMI)
This strategy can be used to incentivize production of multifamily housing with particular features or at particular price points by For Rent See Oregon Revised Statute, Active Gentrification Calibrate incentives to needed housing types, e.g., affordability levels. Incentives for inclusion of
E04 Tax Exemption offeringqualifying developments apartial property tax exemption over the course of severalyears. Workforce (80-120% AMI) For Sale Chapter 307.600 (INDIRECT) Late Gentrification affordable units work best in strongmarkets.
(MUPTE) q Y g p p p Y p
Market Rate (> 120% AMI)
Authorized by Oregon Revised
Statute, Chapter 307.600
Multiple Unit Limited Under the Multiple-Unit Limited Tax Exemption (MULTE) Program, multiple-unit projects receive a ten-year property tax For Rent Active Gentrification Calibrate incentives to needed housingtypes, e.g., affordabilitylevels. Incentives for inclusion of
E05 Tax Exemption p p g p p Y p p Y (INDIRECT) yp g'
p exemption on structural improvements to the property as long as program requirements are met. Workforce (80-120% AMI) Multiple Unit Limited Tax Late Gentrification affordable units work best in strong markets.
(MULTE) Market Rate (> 120% AMI) Exemption (MULTE) - City of
Portland
Authorized by Oregon Revised
Homebuyer Opportunity ° Statute, 307.651.
E06 Limited Tax Exemption Under the HOLTE Program, single-unit homes receive a ten-year property tax exemption on structural improvements to the home Affordable (30-80% AMI) (INDIRECT) Affordable & Vulnerable Calibrate incentives to needed housing types, e.g., affordability levels. Incentives for inclusion of
Program (HOLTE)
as long as the property and owner remain eligible per program requirements. Workforce (80-120% AMI) For Sale Homebuyer Opportunity Limited affordable units work best in strong markets.
Market Rate (> 120% AMI) Tax Exemption (HOLTE) - City of
Portland
Publicly-Subsidized (< 30% AMI)
E07 Homestead Tax Consider allowing Homestead Tax on second homes to support development of affordable housing. Affordable (30-80% AMI) For Rent -- (DIRECT) Affordable & Vulnerable --
Property taxes are based on property values and so can go up regardless of the taxpayers' ability to pay. In the case of
PP 22-0005 ATTACHMENT E/PAGE 10 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
I IIJI I IGi.JVVI!GI J, IIJII Iy 1.J1 .JIJGI Ly LCIAGJ l+Clll IJG CII1 VIJJLCIL.i1G Lt./ IIIJUJII Iy CII ILJI UciI./IIILV cii ILA JLQLJIIILy. r LVVI UJGU III Cl IIUII ILJGI VI JUI IJUIL..LIVI IJ Publicly-Subsidized (< 30% AMI)
Property Tax Relief for for mitigating these effects on those with limited incomes is by capping the amount of property tax that homeowners have to pay ° Active Gentrification
Affordable (30-80% AMI) For Rent Supporiting owners to stay in place as housing markets heat up is an important preservation
E08 Income-Qualified as a share of their income. Some jurisdictions also provide relief to lower-income renters by treating some portion of their rent as Local Housing Solutions (DIRECT) Late Gentrification
Homeowners attributable to property taxes and then providing an income tax credit to offset the increase in taxes. In addition to basing the VVorktorce (t3U-11U`% HMI) For Sale Exclusive strategy; it does not maintain the affordability of the unit at stake.
benefit on income, eligibility for caps can also be restricted to specific populations such as seniors, disabled persons, and/or Market Rate (> 120% AMI)
veterans.
Qualified Opportunity Zones (QOZ) were created by the 2017 Tax Cuts and Jobs Act. These zones are designed to spur economic Affordable &Vulnerable The OZ program has been found to be generally poorly targeted and monitored; as with any
E09 Investing into Federal development and job creation in distressed communities throughout the country and U.S. possessions by providing tax benefits to Affordable (30-80% AMI) For Rent Opportunity Zones FAQ(IRS) INDIRECT EarlyGentrification investment incentive it is important to include stronganti-displacement protections for
Opportunity Zones (OZ) investors who invest eligible capital into these communities. Taxpayers may defer tax on eligible capital gains by making an Workforce (80-120% AMI) p p
appropriate investment in a Qualified Opportunity Fund and meeting other requirements. Market Rate (> 120% AMI) Active Gentrification vulnerable residents and ensure their inclusion in economic opportunities.
Allow housing to be built and operated at market rate while allowing developers to choose a path that maintains or reduces rents Publicly-Subsidized (0 30% AMI)
E10 Delayed Tax Affordable (30-80%over time. Once the property falls below 80%AMI (but maintains HUD quality standards), tax exemptions would kick in. This ° AMI) For Rent -- (INDIRECT) All --
Exemptions could be an alternative to upfront incentive dollars, SDC reductions, etc for providing affordable housing. Workforce (80-120/o AMI) For Sale
Market Rate (> 120% AMI)
Category F : Land, Acquisition, Lease, and Partnerships
These are strategies that secure land for needed housing, unlock the value of land for housing, and/or create partnerships that will catalyze housing developments.
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Public purchasing of vacant/under-utilized sites of land in order to save for future affordable housing development. House Bill
2003, section 15 supports land banking: Publicly-Subsidized (< 30% AMI)
Affordable (30-80% AMI) For Rent Active Gentrification Planning ahead for areas of public investment wth land banking can support affordable housing
F01 Land Banking Workforce (80-120% AMI) For Sale Metro TOD Program (DIRECT) Late Gentrification development without needing to purchase lots. In already developed, exclusive areas, using
Exclusive public land may be the only cost effective strategy for building new affordable units.
SECTION 15. (1) As used in this section, "public property" means all real property of the state, counties, cities, incorporated towns
or villages, school districts, irrigation districts, drainage districts, ports, water districts, service districts, metropolitan service
districts, housing authorities, public universities listed in ORS 352.002 or all other public or municipal corporations in this state.
- - - - ' - - -
The Federal Transit Administration (FTA) enables local transit agencies to enter into Joint Development Agreements (JDAs) with Publicly-Subsidized (< 30% AMI)
private or non-profit developers of low income housing, market-rate housing, and/or commercial development. Joint Development
Joint Development Affordable (30-80% AMI) For Rent Important foundation with focus on housing for transit dependent people (Low income, renters,
F02 Agreements is a process by which public transit or other local or state agencies agree to make land available at donated or reduced prices for Workforce (80-120% AMI) For Sale -- (INDIRECT) All POC and immigrants)
private development, which may include affordable housing. Projects must demonstrate benefit to transit operations (ridership)
Rad!1 UL INcILC k� I LU%o /AIVl l)
and infrastructure and are subject to FTA approval.
Land acquired by nonprofits or community-based organizations that maintain permanent ownership of land. Prospective Publicly-Subsidized (< 30% AMI)
homeowners are able to enter long-term (i.e., 99-year), renewable leases at an affordable rate. Upon selling, homeowners only Affordable (30-80% AMI) Land trusts area very strong anti-displacement measure in all neighborhood types, with
F03 Community Land Trusts earn aportion of the increased property value, while the trust keeps the remainder, therebypreservingaffordabilityfor future low- Workforce (80-120% AMI) For Sale -- DIRECT All immediate and long-term impacts.
p p Y p g p
to moderate-income families Market Rate (> 120% AMI)
Affordable & Vulnerable
Publicly-Subsidized (< 30% AMI)
Partnerships between government and the private sector and/or nonprofits have the capacity to bring resources to the table that ° Early Gentrification Setting clear public goals; including monitoring of provision of public benefits; and including
Public/Private Affordable (30-80% AMI) For Rent
F04 would otherwise not be available if each institution were able to help communities provide housing on its own. This can come in ° -- (INDIRECT) Active Gentrification financial penalties for not meeting goals are important for strengthening community benefits
Partnerships (P3) the form of coalitions, affordable housing task forces, and collaboratives. Workforce (80-120/o AMI) For Sale Late Gentrification agreements in public-private partnerships.
Market Rate (> 120% AMI) g p p p p
Exclusive
Preventing displacement and preserving "naturally occurring" affordable housing through acquisition, low-interest loans/revolving Publicly-Subsidized (< 30% AMI)
Preserving Low-Cost Early Gentrification
loan fund for preservation, and/or code enforcement. Example: The Oregon Legislature committed $15 million in lottery bonds to Affordable (30-80% AMI) For Rent Preservation is cost-effective compared to new construction and can prevent displacement in
F05 Rental Housing to NOAH Impact Fund DIRECT Active Gentrification
Mitigate Displacement Oregon Housing and Community Services (OHCS) in 2019 to create a naturally occurring affordable housing loan fund. Modeled Late Gentrification the immediate term for households in place.
after the Greater Minnesota Housing Fund.
Manufactured home parks often provide a form of affordable housing stock, but are particularly vulnerable to redevelopment City of Portland
pressures since lots are temporarily leased out. In order to preserve safe, affordable options into the future, manufactured home Publicly-Subsidized (< 30% AMI)
Preserving Safe, parks may be protected through assistance that allows community purchase of the underlying land, manufactured homes and ° Affordable & Vulnerable
Affordable (30-80% AMI) For Rent F06 Affordable provide funds used to maintain upkeep of these dwelling units. This strategy is often implemented through use of Land Trusts, DIRECT Early Gentrification�d0-120% AMI) For Sale
Manufactured Homes Resident-Owned Cooperatives, Public Ownership of Land, or Condominium Conversion of the real estate assets to preserve the °""""'"" ° Active Gentrification
communit ies . Oregon Housingand CommunityServices (OHCS) has regularly received lotterybonds orgeneral funds from the Market Rate (> 120/o AMI) OHCS Mfd Dwelling Parks
y( ) g g y Program
Oregon Legislature to preserve manufactured home parks through either Resident Owned Cooperatives or Non-profit ownership.
I
Providing Information Providing information to small, local developers that will help them understand land use permitting processes and give them a For Rent
F1)7 anti Frfucatinn to SmallI -- I INDIRECTI All --
PP 22-0005 ATTACHMENT E/PAGE 11 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
_. _.._ ________ __ _.. - sense of clarity and certainty about requirements so they can better provide smaller scale housing at an affordable level. Workforce (80-120% AMI) For Sale ""-"--- '
Developers °
Market Rate (> 120/o AMI)
Conversion of Publicly-Subsidized (< 30% AMI) Affordable & Vulnerable
Underperforming or Acquisition of underperforming or distressed commercial assets (commercial, retail, industrial, or hotel) or partnerships with Affordable (30-80% AMI) For Rent
F08 Distressed Commercial owners of the assets for conversion into needed housing. Workforce (80-120% AMI) -- DIRECT Early Gentrification Most likely to be cost effective in some neighborhood market types.
I VI JQIG
Assets Market Rate (> 120% AMI) Active Gentrification
The US Department of Veterans Affairs (VA) maylease land for upto 85years to developers of projects whichprovide the VA Publicly-Subsidized (< 30% AMI)
Enhanced Use Lease of p p p Affordable (30-80% AMI) For Rent Housing Authority of Douglas
F09 Federal Land with compensation. Such enhanced use leases have been used to provide land for permanent affordable housing for people County (DIRECT) All --
experiencing homelessness including veterans in Oregon, Minnesota and Washington States.
Prioritize Housing on Publicly-Subsidized (< 30% AMI)
F10 City/County Owned Surplus property suitable for housingis offered upfor affordable development. Affordable (30-80% AMI) For Rent City of Eugene (DIRECT) All --
Land y p p p y p --
Workforce orkforce (80-120% AMI) For Sale
Combine Community Publicly-Subsidized (< 30% AMI)
F11 Land Trust with Limited Combine a Community Land Trust (CLT) with a Limited Equity Cooperative for a lower barrier entry to homeownership of a share Affordable (30-80% AMI) SquareOne Villages DIRECT All --
Equity Cooperative of a permanent small/tiny home community. Workforce (80-120% AMI) For Sale
Model
Sell land at the State or City's cost (below market) to developers of affordable housing. Long-term lease at very minimal cost to Publicly-Subsidized (< 30% AMI)
F12 Surplus Land for developers for land the Cityis notyet readyto surplus. Countysurplus of foreclosed land to affordable housingdevelopers and/or Affordable (30-80/° AMI) For Rent Cityof Bend (DIRECT) All --
Affordable Housing p p p p Workforce (8U-12U% AMI) For Sale
housing authority. °
Market Rate (> 120% AMI)
Publicly-Subsidized (< 30% AMI)
F13 McKinney-Vento For Rent
Cities may partner with the Federal Government to surplus Federal land for homeless housing or services under McKinney Vento. City of Bend (DIRECT) All --
Federal Surplus
Affordable housing providers could be offered a Right of First Refusal for city, county, or state owned land when the land would be Publicly-Subsidized (< 30% AMI)
Right of First Refusal forAffordable (30-80% AMI) For Rent CASA of Oregon - Mfd Housing Co
F14 Land Purchase used for affordable housing. Examples include a manufactured home program where residents can buy out the manufactured ��/orkforce (80-120% AMI; For Sale Op Dev (DIRECT) All --
home park when the owner is ready to sell. Market Rate (> 120% AMI)
Ordinances that Publicly-Subsidized (< 30% AMI)
F15 Address Zombie More assertive tax foreclosures to enable zombie housingto be rehabbed into occupied housing. Affordable (30-80% AMI) For Rent -- INDIRECT Affordable & Vulnerable --
p --
Workforce (80-120% AMI) For Sale
Housing Market Rate (> 120% AMI)
Publicly-Subsidized (< 30% AMI)
F16 Regulatory Agreement Regulatory Agreement, between the jurisdiction and developer, in place with the land sale that keeps the units affordable for 20 Affordable (30-80% AMI) For Rent Cityof Beaverton (DIRECT) Active Gentrification Prepare for agreement expiration withpreservation plans
g y g years in exchange for SDC waivers. This is straightforward without going through a difficult or costly process. Workforce (80-120% AMI) For Sale Late Gentrification p g p
Iv— I .u1„ \ 120% AMI)
A jurisdiction would establish designated sites with a completely different set of regulations than apply to the balance of the public Publicly-Subsidized (< 30% AMI)
Designated Affordable and private building sites. The sites would be overseen by an Affordable Housing Commission, that is empowered to prioritize, Affordable (30-80% AMI) For Rent
F17 Housing Sites fast track, and approve affordable housing projects (with designated and required affordability objectives) and bypass the majority Workforce (80-120% AMI) -- (DIRECT) All --
of the city's fees and regulations. The Commission would have its own set of requirements (structural approval, zoning allowance,
etc.), but they would be streamlined, and tailored to facilitate a quicker and much less expensive process.
Over the past few decades, faith institutions across the country have been declining. This has prompted conversations within
Utilize Surplus Land different faith communities about how to refocus their mission of social change. The housing affordability crisis in many cities Publicly-Subsidized (< 30% AMI) Expanding Opportunities for
Owned by Faith-Based around the country has brought these institutions into the work of creating affordable housing in their communities. This strategy Affordable (30-80% AMI) For Rent
F18 Organizations for would: 1) Identify faith and community-based organizations that are interested in offering their available land for development of Workforce (80-120% AMI) For Sale Affordable Housing, Metro and (DIRECT) All --
Affordable Housing affordable housing, 2) Provide design and finance consultation for three organizations to prepare them for future affordable Market Rate (> 120% AMI) City of Portland
housing development projects, and 3) Determine barriers to development and how those can be addressed and/or streamlined.
The Center for Housing Policy,
Publicly-Subsidized (< 30% AMI) Washington DC
Affordable Housing Prepare an inventory of subsidized and naturally occurring affordable housing to support proactive policies intended to preserve Affordable (30-80% AMI) For Rent
F19 Preservation Inventory the affordable housing stock. This strategy is intended to help offset some of the need for costly new construction. For Sale Opportunity Zone Toolkit, US (DIRECT) All --
Department of Housing and
Urban Development
PP 22-0005 ATTACHMENT E/PAGE 12 OF 13
Tenure Housing Neighborhood
# Strategy Description Affordability Target Target Source (if available) Equity Typology Mitigating Measures
Impact
Provide residents, property owners, property managers, realtors, lenders and others involved with real estate transactions with Publicly-Subsidized (< 30% AMI)
Fair Housing Education, access to Fair Housing information and referrals. Ensure that city staff know how to identify potential Fair Housing violations and Affordable (30-80% AMI) For Rent
F20 Referral, and Other make referrals to the Fair Housing Council of Oregon and state and local enforcement agencies. Partner with and fund Fair Workforce (80-120% AMI) -- (DIRECT) All --
Services Housing Council of Oregon to provide periodic Fair Housing Audit Testing, customized outreach and education and other Market Rate (> 120% AMI)
specialized services.
Most public subsidies and tax incentive programs are complex due to the need for regulation and corruption prevention, imposing
many impediments to developing affordable housing. Jurisdictions would participate in a public REIT that buys turn-key projects
for set costs. This would motivate mission-minded developers to drive down cost knowing that risk is minimal by having a buyer at Publicly-Subsidized (< 30% AMI)
Public or Mission-Driven the end. If the developer doesn't deliver the required specs, quality, and competitive construction cost, then they have to sell or Affordable (30-80% AMI) For Rent
F21 REITs and Turn-Key rent on the open market or find other incentives in current, standard fashion. The jurisdiction could invest state pension funds in Workforce (80-120% AMI) For Sale -- (DIRECT) All --
Delivery these REITs.
Note: Though this strategy has been suggested by the housing development community, it is not clear if this program is currently
available to jurisdictions in the State of Oregon
Category Z: Custom Options
Any other Housing Production Strategy not listed in Categories A through F that the jurisdiction wishes to implement will be outlined in this section and numbered accordingly.
# StrategyDescription AffordabilityTarget Tenure Source (if available) Housing Neighborhood Typology Mitigating Measures
p g Target Equity Impact g yp gy g g
Z01 TBD Any other Housing Production Strategy not listed above in Categories A through F that the jurisdiction wishes to implement should
-- -- -- -- --
be filled in here and numbered accordingly.
PP 22-0005 ATTACHMENT E/PAGE 13 OF 13
House Bill 2003— Draft Work Plan
Tentative Schedule
HB 2003 Background and Requirements,Work Plan:
CC Study Session Jun 21, 2022
PC Work Session Jun 27, 2022
Refine Work Plan based on CC/PC input, Request for Proposals Aug—Sep 2022
Consultant selection and contracting Sep—early Oct 2022
City Council Appoints Advisory Committee Members Sep—Oct 2022
Project Kickoff Oct—Dec 2022
Education, Outreach, and Engagement Oct 2022—Mar 2024
Housing Needs Projection Oct 2022—Feb 2023
Buildable Lands Inventory Oct 2022—Mar 2023
Residential Land Needs Analysis Mar—Jun 2023
Final HNA Report Jun—Sep 2023
Analyze Housing Land Supply Policy Options Jun—Sep 2023
Adoption of HNA Sep- Dec 2023
Analyze Housing Production Strategies (HPS) Jun 2023—Feb 2024
Final HPS Report Feb 2023—Mar 2024
Adoption of HPS Apr—Jul 2024
Draft Scope of Work
1. Task 1:Project Kickoff
(October—December 2022)
1.1 Conduct research and information gathering.
1.2 Refine project schedule and plan for public involvement.
1.3 Create initial outreach materials.
1.4 Host kickoff meeting.
Work Products:
• Refined Project Schedule and Public Involvement Plan
• Summary of major tasks, including technical memorandums and outreach events
• Initial Outreach Materials
Meetings:
• Two (2) Project Management Team (PMT) meetings
• Project Kick-off meeting
2. Task 2:Housing Needs Analysis
(October 2022—September 2023)
PP 22-0005 ATTACHMENT F/PAGE 1 OF 2
2.1 Draft Housing Needs Projection.
2.2 Draft Residential Buildable Lands Inventory(BLI).
2.3 Draft Residential Land Needs Analysis(RLNA).
2.4 Draft Housing Needs Analysis (HNA)Summary.
2.5 Adopt HNA as an appendix to Comprehensive Plan.
Work Product: Housing Needs Analysis Report
Meetings: Monthly Project Management Team (PMT) meeting(s)
3. Task 3:Housing Production Strategy
(June 2023—March 2024)
3.1 Outline housing strategy alternatives.
3.2 Refine housing strategy recommendations.
3.3 Draft Housing Production Strategy.
3.4 Adopt HPS as an appendix to Comprehensive Plan.
Work Products:
• Housing Strategy Options Memo
• Housing Production Strategy Report
PP 22-0005 ATTACHMENT F/PAGE 2 OF 2