State Rules and Guidelines
House Bill 2001 requires the City of Lake Oswego and other “Large Cities” (Portland metro area cities, and cities with more than 25,000 residents) to allow all middle housing types in areas zoned for detached single-family dwellings. This entails nearly all of the residential zones in the City, as shown in green on the map below:
The bill also outlines that cities may regulate siting and design of middle housing. However, cities may not adopt standards or requirements that result in unreasonable cost or delay in the development of middle housing.
The Department of Land Conservation and Development (DLCD) adopted minimum standards for compliance with HB 2001 (Division 46) as well as a Middle Housing Model Code in December 2020. Though these standards are relatively prescriptive in defining what cities can and cannot do, they do provide some flexibility for the City to make decisions within certain parameters - as long as the proposed changes do not result in "unreasonable cost or delay" for middle housing development.
This means that the City can:
- Apply the same minimum lot size standard that applies to single-family housing (except not to townhouses);
- Apply the same design standards that apply to single-family housing; and
- Apply the same dimensional standards (maximum height, setbacks, lot coverage, maximum floor area, etc.) that apply to single-family housing.
According to Division 46, the City generally cannot:
- Limit middle housing to a small area within residential zones;
- Require significantly larger lots for middle housing than single-family housing;
- Apply more restrictive design or dimensional standards to middle housing than single-family housing; or
- Require more than one parking space per middle housing unit.
Because Lake Oswego’s existing development code does not comply with Division 46, the City is proposing to amend the Community Development Code in order to comply with the bill.