Staff Memo 12-29-22 PC Mtg 01-09-23 w-Attach PP 22-0001 p s� MEMORANDUM
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TO: Planning Commission
FROM: Scot Siegel, Community Development Director
SUBJECT: Update on Climate Friendly and Equitable Communities Rules (PP 22-0001)
DATE: December 29, 2022
On January 9, 2023, staff will update the Planning Commission on the City's compliance with
the State of Oregon's Climate-Friendly and Equitable Communities (CFEC) Rules. The City
Council and Planning Commission previously received briefings on the State's then-temporary
CFEC rules, respectively, June 21, 2022 and June 27, 2022.
The Land Conservation and Development Commission has since adopted permanent rules,
which were filed with the Secretary of State on August 17, 2022. Staff has reviewed those rules
and determined the City already complies with some provisions (e.g., designation of Climate-
Friendly Areas, and Parking-Phase A), but will need more time to implement others.
On discussing the City's long-range planning work program with the Department of Land
Conservation and Development (DLCD), including our efforts to comply with other state
mandates, specifically House Bill 2003 (2019) Housing Needs and Production Strategy, DLCD
advised that the City could request additional time (an alternative date) for CFEC compliance.
Therefore, the City is requesting an alternative date for compliance with CFEC's Parking-Phase B
rules. See Attachment 1. These rules require that the City select from three parking policy
reform "Options", including one that would repeal minimum parking requirements citywide, as
summarized in the June 27, 2022 Planning Commission Memo. The extension is necessary due
to workload and to coordinate changes in parking policy with development of the City's
Housing Production Strategy (HPS). These projects are interrelated, and consideration of
housing and parking policies together will result in better outcomes for our community.
The Planning Commission will not be taking any action at this time. Staff proposes a follow up
work session on February 27, after DLCD has made a decision on our request.
ATTACHMENTS
1. CFEC Rules Alternative Date Request, 12/19/2022
Respect, Excellence. Trust. Service.
503-675-3984 380 A AVENUE PO BOX 369 LAKE OSWEGO,OR 97034 WWW.LAKEOSWEGO.CITY
COMMUNITY DEVELOPMENT
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Go.:
December 19, 2023 (via email)
Director Dr. Brenda Ortigoza Bateman
c/o— Bill Holmstrom
Oregon Land Conservation and Development
Dear Dr. Bateman:
The City of Lake Oswego is requesting an alternative date for compliance with the Climate
Friendly and Equitable Communities rules for parking, as provided by OAR 660-012-0012(3)(a).
Our request and background follow.
Alternative Date Request
Lake Oswego requests a one-year extension, from June 30, 2023 to December 31, 2024, for
adopting code changes implementing the State's Climate Friendly and Equitable Communities
(CFEC) rules for Parking in OAR 660-012-0400, OAR 660-012-00405, and OAR 660-012-0415
through OAR 660-012-0450. The extension is needed due to workload constraints and to
coordinate changes in parking policy with development of the City's Housing Production
Strategy (HPS) under House Bill 2003 (2019). These projects are interrelated, and consideration
of housing and parking policies together will result in better outcomes for our community.
Work Completed or Underway
The City of Lake Oswego has completed or is in the process of developing policies and
regulations to implement CFEC rules, as follows:
• Climate-Friendly Areas. Lake Oswego complies with CFEC rules for Climate-Friendly
Areas (CFAs). We have already designated and adopted implementing regulations for
our two Town Centers (Downtown Lake Oswego and Lake Grove) in compliance with
Metro's 2040 Growth Concept and Urban Growth Management Functional Plan.
• Parking Reforms
o Lake Oswego code already allows shared parking, requires parking maximums
(<120% of minimum), and encourages redevelopment of underutilized parking for
other uses consistent with OAR 660-012-0405. As evidence, recent redevelopment
projects include high-density mixed-use developments with structured parking on
sites that formerly contained surface parking, such as The Windward,
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Beacon/Ironlight, and Mercato Grove. These and other parking efficient projects are
located in our downtown and Lake Grove town centers, both areas the CFEC rules
define as Climate-Friendly Areas.
o Lake Oswego code already partially complies with OAR 660-012-0425 through 0450,
by requiring that, (a) Garages and carports may not be required for residential
developments; (b) Garage parking spaces shall count towards off-street parking
mandates; (c) Provision of shared parking shall be allowed to meet parking
mandates; and, (d) Required parking spaces may be provided off-site, provided ADA
requirements for accessible parking are met. Lake Oswego is also subject to
Department of Environmental Quality commute trip reduction rules, which require
employers of 50 or more employees to mitigate commute trips by single-occupant
vehicles; and our code provides for no additional required parking for certain
changes of use in a portion of our downtown.
o The City will meet the December 31, 2022 deadline for compliance with OAR 660-
012-0430 and 660-012-0440 - Reduced Parking Mandates. These rules will be
applied directly, and we have published technical resources to aid in that process.
The exemption for areas with priority transit covers our entire downtown and
Highway 43 corridor, a significant portion of the city and its highest density area. A
map of properties within %-mile of priority transit can be found on our website: PP
22-0001: Implementation of State Requirements for Climate-Friendly and Equitable
Communities I City of Lake Oswego. The City is also promoting the exemption by
making the information available on our public-facing, interactive GIS map.
• Electric Vehicle Charging. Lake Oswego will begin implementing OAR 660-012-0410,
requiring Electric Vehicle (EV) charging capability in certain developments, March 31,
2023, as required by the State Building Code.
• Transportation System Plan. Lake Oswego will review and make any required updates
to its Transportation System Plan (TSP) after Metro has adopted an updated Regional
Transportation Plan (RTP), scheduled for 2023, in compliance with the Metro Urban
Growth Management Functional Plan and CFEC rules.
Proposed Approach and Additional Time
Our City Council and Planning Commission each received briefings on the CFEC rules in
September 2022. At that time, the Council was undecided on which of the three Parking B
options they preferred and requested staff provide more analysis and outreach. Accordingly,
staff has outlined the following process, below, which is intended to align the City's work on
CFEC compliance with ongoing work to adopt an Housing Production Strategy in 2024.
PP 22-0001 ATTACHMENT 1/PAGE 2 OF 1I Respect. Excellence. Trust. Service.
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CFEC Parking and Housing Production Strategy
HB 2003 (HPS)Tasks Meetings Timeline
HPS and Parking Alternatives PC, HPS Task Force Nov 2023—Jan 2024
Initial Recommendations Public Forum, HPS Task Force Feb—Jun 2024
Final HPS Report& Parking Concepts PC and CC Hearings Aug—Sep 2024
Parking Code Amendments PC Mtg, PC and CC Hearings Oct— Dec 2024
In summary, the City of Lake Oswego requests an extension to December 31, 2024 for adopting
code changes implementing CFEC's Parking rules, so that we can coordinate this work with
development of our Housing Production Strategy (HPS) under House Bill 2003 (2019). By
allowing additional time for our community to consider CFEC's policy options for parking reform
together with HB 2003's tools for housing production, we expect to achieve better outcomes
for the climate while encouraging the production of needed housing.
We appreciate having the opportunity to request more time to coordinate this important work
with other critical planning required by the State.
Sincerely,
Scot Siegel, FAICP
Community Development Director
Cc: Martha Bennett, City Manager
Erica Rooney, City Engineer-Public Works Director
Erik Olson, Long-Range Planning Manager
Kelly Reid, DLCD Regional Representative
Encl: HNA/HPS Work Program and Timeline
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503-635-0290 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
City of Lake Oswego Housing Needs Analysis and Housing Production Strategy
Project Timeline and Work Program
DRAFT PROJECT TIMELINE
Preliminary work: [Jun—Oct 2022]
City Council Study Session (CC-SS) #1 Jun 21, 2022
Planning Commission Work Session (PC-WS) #1 Jun 27, 2022
HPS Task Force Appointed by Council Oct 4, 2022
Contract Execution Oct 14,2022
Task 1: [Oct 2022—Jan 2023]
PMT—Kickoff Meeting Oct 24, 2022
HPS Task Force Kickoff Meeting (#1) Nov-Dec 2022
Task 1—Drafts Dec 2, 2022
Task 1—Complete Dec 16, 2022
PC-WS#2: Overview and Work Plan Jan 23, 2023
CC-SS#2 Feb 21, 2023
Task 2: [Feb—Nov 2023]
Task 2.1—Draft Housing Needs Projection Mar 13,2023
Task 2.2—Draft Residential Buildable Lands Inventory Mar 13,2023
HPS Task Force Meeting#2 Late Mar 2023
Community Forum/ Public Workshop Event#1 Late Mar 2023
PC-WS#3: Discussion of Task 2 Draft Docs Apr 10, 2023
CC-SS#3: Discussion of Task 2 Draft Docs Apr 18, 2023
Task 2.3—Residential Land Needs Analysis May 22, 2023
Task 2.4—Final Housing Needs Analysis Report Jun 12, 2023
DLCD Public Hearing notice sent Jun 19, 2023
Planning Commission Public Hearing (PC-PH) Jul 24, 2023
Adoption of Findings Aug 14, 2023
City Council Public Hearing(CC-PH) + Sep 5, 2023
Adoption of Findings Sep 19, 2023
Task 3: [Nov 2023—May 2024]
HPS Task Force Meeting#3 Jun 2023
PC-WS#4 Oct 2023
HPS Task Force Meeting#4 Sep 2023
Task 3.1—Housing Strategy Alternatives Memo Nov 13, 2023
PC-WS#4: HPS Alternatives Memo Dec 11, 2023
HPS Task Force Meeting#5 Dec-Jan 2024
Task 3.2—Initial Recommendations Memo Feb 12, 2024
Community Forum/ Public Workshop Event#1 Mar 2024
Task 3.3—Refine HPS recommendations May 6, 2024
HPS Task Force Meeting#6 May 2024
Task 3.4—Draft HPS Report Jun 3, 2024
Task 3.5—Final HPS Report Jul 1,2024
Planning Commission Public Hearing (PC-PH)
+Adoption of Findings Aug-Sep 2024
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City of Lake Oswego Housing Needs Analysis and Housing Production Strategy
Project Timeline and Work Program
City Council Public Hearing(CC-PH)
+Adoption of Findings Sep-Oct 2024
Task 1—Project Kickoff
City staff will work with the selected Consultant to familiarize them with the proposed project and local
conditions, providing relevant documents, maps, and history related to the project.The Consultant will
work with City Staff to develop and refine a schedule based upon a mutual understanding of project
goals and objectives, and will coordinate with City staff to lead a Kickoff Meeting with the HPS Task
Force.
Subtasks:
1.1 Research and information gathering.The City shall provide the Consultant with relevant
background information and documents, maps, and plans, including, but not limited to:
• City of Lake Oswego Comprehensive Plan, including 2013 Housing Needs Analysis and
Economic Opportunities Analysis
• Planning permit application data for last 5 years
• Residential zone change data for last 5 years
• Boones Ferry Road Affordable Housing Initiative—Values Summary (2022)
• Lake Oswego Neighborhood Character Report (2021)
• Lake Oswego Middle Housing Opportunities Report (2021)
• Summary of SB 4006 (2018) Public Meeting on Rent Burden (2019)
• Geographic Information Systems data
• Lake Oswego Community Development Code (LOC Ch. 50) [Ordinances can be found
under the Code's table of contents, "Ordinance Table", following Chapter 60. Click on
the PDF icon.]
The Consultant shall obtain necessary background information and documents from relevant
agencies, including the most recent versions of, but not limited to:
• Applicable Metro Regional Population and Employment Range Forecasts
• Most recent Metro Urban Growth Management Report
• Housing affordability indices, including relevant data from the Housing Authority of
Clackamas County and Oregon Department of Housing and Community Services
1.2 Refine project schedule. The Consultant shall work with City staff to confirm the objectives of the
project and refine a proposed project schedule.
1.3 Develop plan for public involvement:The selected Consultant will develop a Public Involvement
Plan that focuses on how to productively engage housing consumers within the City through
methods such as public events, interviews,focus groups, surveys, or other similar efforts. Public
engagement shall prioritize underrepresented communities, including renters; low-income
households; seniors; people with disabilities; persons of color; immigrant or refugee
communities; formerly or currently homeless people; and individuals with limited English
proficiency.
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City of Lake Oswego Housing Needs Analysis and Housing Production Strategy
Project Timeline and Work Program
City staff will provide the selected Consultant with a list of groups and organizations that need
to be engaged through the course of the project. Public engagement efforts shall build upon the
City's previous housing-related outreach related to House Bill 2001 and affordable housing, and
should be coordinated with the event(s) required under HB 4006 for severely rent burdened
communities. Stakeholders also include those who are currently developing affordable housing
in Lake Oswego, including the Mercy Housing Northwest (Marylhurst Commons) and Habitat for
Humanity(West Lake Grove townhomes), and others who are assisting the City and Metro in
planning for development of affordable housing. See the Boones Ferry Road Affordable Housing
Initiative.
1.3 Create outreach materials. The selected Consultant will create graphic and written materials to
help educate the community about the goals and objectives of the project, including a
description of the basic elements of a Housing Needs Analysis (HNA) and Housing Production
Strategy (HPS), and how this planning effort could help improve the availability of needed
housing within the community.
The City will host a project webpage,with the Consultant being responsible for producing
informational materials in a format suitable for use as both website content and handouts.
1.4 Establish Housing Production Strategy Task Force. The City will recruit and appoint members of a
Housing Production Strategy Task Force (HPS Task Force) in order to provide guidance
throughout the course of the project.
1.5 Host kickoff meeting. Consultant will facilitate HPS Task Force Meeting No. 1 to provide an
overview of the project, solicit feedback on the draft public engagement plan, discuss and
confirm desired outcomes, and review the project schedule. City staff will prepare minutes for
all task force meetings, and the selected Consultant will be responsible for drafting summaries
of surveys,focus group discussions, and other engagement opportunities.
Task 1 Meetings:
• PMT kickoff meeting
• HPS Task Force kickoff meeting
Task 1 Consultant Work Products:
• Project schedule
• Public Involvement Plan
• Summary of major tasks, including technical memorandums and outreach events
• Presentation and other materials for HPS Task Force meeting
Task 2—Draft Housing Needs Analysis
Sub tasks:
2.1 Draft Housing Needs Projection. The Consultant will prepare a draft housing needs projection
consistent with OAR Chapter 660, divisions 7 and 8.The housing needs projection will be used to
determine the City's residential land need in Task 2.3 and is a baseline set of data that the
Consultant will build upon to contextualize current and future housing needs for the Housing
Production Strategy (HPS), considering population and market trends.
Analysis of contextualized housing needs will include:
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City of Lake Oswego Housing Needs Analysis and Housing Production Strategy
Project Timeline and Work Program
• Socio-economic and demographic trends of a jurisdiction's population, disaggregated by
race to the extent possible with available data;
• Market conditions affecting the provision of needed housing, including demand for
seasonal housing, as applicable;
• Existing and expected barriers to the development of needed housing;
• Housing need for those experiencing homelessness, using the best available data;
• Percentage of Rent-Burdened Households;
• Household income;
• Household size;
• Housing by Tenure (owner vs renter);
• Percentage of housing stock that is market rate vs. subsidized; and
• Units that are in the development pipeline by housing type and affordability if
subsidized.
The Consultant will develop a draft of the housing needs projection and a framework outlining
the socio-economic and demographic data.The analysis will be vetted with, and draw upon,
information gathered through engagement with housing consumers, including
underrepresented communities, before being presented at HPS Task Force Meeting No. 2.The
Consultant will address HPS Task Force comments and draft a Contextualized Housing Needs
Memorandum, which will later become a section of the HPS.
The City will review and provide feedback to the Consultant on the draft work products, assist
with coordinating and facilitating outreach and engagement, and provide staff support for the
HPS Task Force, including preparation of meeting notices, agendas, and minutes for HPS Task
Force Meetings Nos. 2 and 3.The Consultant will coordinate all meeting materials, including
presentations with the City's project manager and facilitate the meetings.The Consultant should
be prepared to present multiple deliverables at each meeting in order to keep the project on
schedule.
2.2 Draft Residential Buildable Lands Inventory(BLI):The selected Consultant will prepare a draft
inventory of the supply of buildable lands and a determination of the actual density/mix of
housing consistent with OAR Chapter 660, Division 8.The draft report shall include map(s)
showing vacant, partially developed and redevelopable lands where needed housing is allowed;
and an inventory report describing the methodology.
The development of the BLI shall be a combined effort between the Consultant and the City
with input from the HPS Task Force. It is envisioned that the Consultant will provide technical
and other recommendations to refine the draft BLI and ensure that it is consistent with DLCD's
Workbook. The City shall provide the GIS resources and staffing to refine the inventory.
The City is the lead for coordination with Metro,the County, and DLCD, with the Consultant
providing support and participating in meetings with the agencies as needed.
The City will schedule and provide notice and an agenda for HPS Task Force Meeting No. 4 to
review the draft BLI.The Consultant will coordinate with City on all materials, including the
presentation with the City's project manager and facilitate the meeting.
2.3 Draft Residential Land Needs Analysis(RLNA). The Consultant shall prepare a Residential Land
Needs Analysis that incorporates local, regional, and state housing and income data and is
consistent with and builds upon the methodology described in DLCD's Planning for Residential
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City of Lake Oswego Housing Needs Analysis and Housing Production Strategy
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Growth: A Workbook for Oregon's Urban Areas.The RLNA shall project housing units needed by
housing type and density over the 20-year planning period, including housing affordable to
those earning less than the area median income.
The RLNA shall include but not be limited to the following:
a. Population Projection/ Base Case Housing Unit Projection—Estimate the additional
housing units (type and density) required for a 20-year period. Using a 20-year
projection to 2030, the Consultant shall determine a "base case" housing units needs by
using the most up-to-date and available information from the US Census, Portland State
University Center for Population Research and Census, Metro, and/or other reliable
sources.
b. Demographic and Economic Trend Analysis—Identify relevant economic and household
trends that relate to the demand for different types of housing.The Consultant shall rely
on the most up-to-date and available information from the US Census, Portland State
University Center for Population Research and Census, Metro, and/or other reliable
sources to examine historical demographic and economic trends at the local, county,
and statewide level.
c. Identify Affordable Housing Types and Allocations— Determine the types of housing that
are likely to be affordable to the projected households based on household income.
d. Identify Needed Densities by Plan Designation/Zoning District—Estimate the number
of additional needed units by structure type.
2.4 Prepare Final HNA Report. Following review by staff and revisions as needed, the consultant will
prepare a final draft of the Housing Needs Analysis Report and present it to the HPS Task Force,
Planning Commission, and City Council.The consultant will summarize HPS Task Force
comments on the draft and make any minor updates to the draft following Task Force review.
Following public review and comment,the consultant will produce a final version of the HNA
Report.The Final HNA Report will contain an Executive Summary and narrative, tables, and
maps describing the city's existing housing stock, projected housing needs, and other data,
conclusions, and recommendations from the preceding tasks.
The Consultant will present the Final HNA report at one public workshop or open house to solicit
input from the public. The consultant will coordinate all meeting materials and the presentation
with City staff.
Task 2 Meetings:
• PMT Meetings (5 total)
• HPS Task Force Meetings (3 total)
• Public Workshop or Open House
Task 2 Consultant Work Products:
• Draft and Final Housing Needs Analysis Report, including:
o Executive Summary
o Housing Needs Projection;
o Residential Buildable Lands Inventory;
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City of Lake Oswego Housing Needs Analysis and Housing Production Strategy
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o Residential Needs Analysis; and
o Conclusions and Recommendations.
• Presentation and other materials for all meetings
Task 3:Housing Production Strategy
3.1 Evaluate existing housing strategies. The consultant will review the policies and other measures
already adopted by the City for their effectiveness in promoting the development of needed
housing.The City will identify and provide all available information about existing relevant
measures.The consultant will also interview key City staff and up to eight (8) housing producers
and/or service providers to seek input on existing policies and programs, and potential new
strategies for housing.This input will be used to identify strategy alternatives to address the
most housing and residential land needs as determined in previous tasks.
3.2 Outline housing strategy alternatives, which shall be summarized in a Housing Strategy
Alternatives Memo.
The Consultant shall draft a Housing Strategy Alternatives Memo addressing any changes to the
City's comprehensive plan, public facility master plans, land use regulations,fees, and other
policies and programs, as applicable,that would be most effective in supporting the production
of needed housing. For example,the Memo might identify strategies for prioritizing
infrastructure investments, amendments to zoning and development standards, and new
incentives (regulatory or financial)to encourage the production of needed housing, considering
the results of previous tasks.
The Consultant will present the Memo to the HPS Task Force in two meetings in order to
introduce the housing strategy alternatives and receive input.The consultant will coordinate
with the City on all meeting materials and presentations with City staff, and facilitate the HPS
Task Force meetings.
3.3 Refine housing strategy recommendations. The consultant will work with City staff and the HPS
Task Force to refine the list of alternative housing strategy options developed in Task 3.2 in an
Initial Housing Strategy Recommendations Memo, pursuant to direction from the Planning
Commission and City Council.
The Consultant shall draft a Housing Strategy Recommendations Memo with a refined list of
strategies based on input from Task 3.2.The Consultant will also attend and present this Memo
at 2 HPS Task Force meetings for review and input in order to develop a preferred list of
strategies for inclusion in the HPS. Recommended strategies will be presented to the Planning
Commission and City Council for further direction.
The City will schedule and provide notice and an agenda for each HPS Task Force meeting.The
consultant will be expected to coordinate all meeting and presentation materials with City staff,
and facilitate the meetings.The HPS Task Force may review more than one strategy option at
each meeting.The Consultant shall provide a brief paper, case study, or similar written
description illustrating each strategy, as generally outlined below.
For the strategies that are recommended for inclusion in the City's HPS, the consultant will
produce the following for each strategy within the Initial Housing Strategy Recommendations
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City of Lake Oswego Housing Needs Analysis and Housing Production Strategy
Project Timeline and Work Program
Memo, based on the consultant's evaluation, input from staff, and feedback gathered through
outreach and engagement:
• A description of the strategy;
• Identified housing need being fulfilled and analysis of the income and demographic
populations that will receive benefit and/or burden from the strategy, including low-
income communities, communities of color, and other communities that have been
discriminated against, according to fair housing laws;
• Approximate magnitude of impact, including(where possible/applicable) an estimate of
the number of housing units that may be created, and the time frame over which the
strategy is expected to impact needed housing;
• Timeline for adoption and implementation;
• Actions necessary for the local government and other stakeholders to take in order to
implement the strategy;
• Potential cost and funding source options;
• Feasibility of the strategy based on a general assessment of opportunities and
constraints.
3.4 Draft Housing Production Strategy(HPS)Report. The consultant will prepare a first draft of a
Housing Production Strategy Report for City review and feedback.The consultant's analysis will
be informed by the recommendations contained in the HNA, and shall be developed in
consultation with the HPS Task Force,the Planning Commission, and the City Council before
being synthesized into a draft HPS.
The HPS Report is to incorporate the results of Tasks 3.1, 3.2, and 3.3, including an explanation
of how the City's existing measures and final proposed strategies help to achieve fair and
equitable housing outcomes, affirmatively further fair housing, and overcome discriminatory
housing practices and racial segregation.
HPS Report shall include:
1. A qualitative assessment of how the strategies collectively address the contextualized
housing needs identified in the HNA and, taken collectively, will increase housing
options for population groups experiencing a current or projected disproportionate
housing need, including:
o Existing City policies, codes, and programs;
o Proposed actions;
2. An explanation for any identified needs not otherwise addressed above; and
3. An outline the City's plan for monitoring progress on the housing production strategies.
3.5 Finalize the HPS for adoption as an appendix to the Comprehensive Plan. Following review by
staff and revisions, as needed,the consultant will produce a public review draft of the Final HPS
Report for review and comment by the HPS Task Force, Planning Commission, City Council, and
other interested parties.The consultant will summarize the HPS Task Force comments on the
draft and make any minor updates to the draft as required. Following public review and
comment,the consultant will produce a final version of the HPS Report.
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City of Lake Oswego Housing Needs Analysis and Housing Production Strategy
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The City will host one public open house or similar meeting to present and receive feedback on
the key strategies outlined in the draft HPS.The consultant will assist staff with the
presentation.
Task 3 Meetings:
• PMT Meetings (4 total)
• HPS Task Force Meetings 2 total)
• Public Workshop or Open House
Task 3 Work Products:
• Housing Strategy Alternatives Memo
• Initial Housing Strategy Recommendations Memo
• Draft and Final Housing Production Strategy Report
• Presentation and other materials for public workshop or open house event
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