(1) As used in this section:

(a) ‘City’ or ‘city with a population of 25,000 or greater’ includes, regardless of size, any city within Tillamook County and the communities of Barview/Twin Rocks/Watseco, Cloverdale, Hebo, Neahkahnie, Neskowin, Netarts, Oceanside and Pacific City/Woods.

(b) ‘Cottage clusters’ means groupings of no fewer than four detached housing units per acre with a footprint of less than 900 square feet each and that include a common courtyard.

(c) ‘Middle housing’ means:

(A) Duplexes;

(B) Triplexes;

(C) Quadplexes;

(D) Cottage clusters; and

(E) Townhouses.

(d) ‘Townhouses’ means a dwelling unit constructed in a row of two or more attached units, where each dwelling unit is located on an individual lot or parcel and shares at least one common wall with an adjacent unit.

(2) Except as provided in subsection (4) of this section, each city with a population of 25,000 or greater and each county or city within a metropolitan service district shall allow the development of:

(a) All middle housing types in areas zoned for residential use that allow for the development of detached single-family dwellings; and

(b) A duplex on each lot or parcel zoned for residential use that allows for the development of detached single-family dwellings.

(3) Except as provided in subsection (4) of this section, each city not within a metropolitan service district with a population of 2,500 or greater and less than 25,000 shall allow the development of a duplex on each lot or parcel zoned for residential use that allows for the development of detached single-family dwellings. Nothing in this subsection prohibits a local government from allowing middle housing types in addition to duplexes.

(4)(a) Except within Tillamook County, this section does not apply to:

(A) Cities with a population of 1,000 or fewer, except inside of Tillamook County;

(B) Lands not within an urban growth boundary;

(C) Lands that are not incorporated and also lack sufficient urban services, as defined in ORS § 195.065; or

(D) Lands that are not incorporated and are zoned under an interim zoning designation that maintains the land’s potential for planned urban development.

(b) This section does not apply to lands that are not zoned for residential use, including lands zoned primarily for commercial, industrial, agricultural or public uses.

(5) Local governments may regulate siting and design of middle housing required to be permitted under this section, provided that the regulations do not, individually or cumulatively, discourage the development of all middle housing types permitted in the area through unreasonable costs or delay. Local governments may regulate middle housing to comply with protective measures adopted pursuant to statewide land use planning goals.

(6) This section does not prohibit local governments from permitting:

(a) Single-family dwellings in areas zoned to allow for single-family dwellings; or

(b) Middle housing in areas not required under this section.

(7) A local government that amends its comprehensive plan or land use regulations relating to allowing additional middle housing is not required to consider whether the amendments significantly affect an existing or planned transportation facility. [Formerly 197.758]

Sections 3 and 4, chapter 639, Oregon Laws 2019, provide:

(1) Notwithstanding ORS § 197.646, a local government shall adopt land use regulations or amend its comprehensive plan to implement ORS § 197.758 [renumbered 197A.420] no later than:

(a) June 30, 2021, for each city subject to ORS § 197.758 (3) (2021 Edition);

(b) June 30, 2022, for each local government subject to ORS § 197.758 (2) except as provided in paragraph (d) of this subsection;

(c) June 30, 2025, for each city subject to ORS § 197.758 (3), as amended by section 20 of this 2023 Act; or

(d) July 1, 2025, for each city, as defined in ORS § 197.758, in Tillamook County.

(2) The Land Conservation and Development Commission, with the assistance of the Building Codes Division of the Department of Consumer and Business Services, shall develop a model middle housing ordinance no later than December 31, 2020.

(3) A local government that has not acted within the time provided under subsection (1) of this section shall directly apply the model ordinance developed by the commission under subsection (2) of this section under ORS § 197.646 (3) until the local government acts as described in subsection (1) of this section.

(4) In adopting regulations or amending a comprehensive plan under this section, a local government shall consider ways to increase the affordability of middle housing by considering ordinances and policies that include but are not limited to:

(a) Waiving or deferring system development charges;

(b) Adopting or amending criteria for property tax exemptions under ORS § 307.515 to 307.523, 307.540 to 307.548 or 307.651 to 307.687 or property tax freezes under ORS § 308.450 to 308.481; and

(c) Assessing a construction tax under ORS § 320.192 and 320.195. [2019 c.639 § 3; 2023 c.223 § 21; 2023 c.283 § 3]

(1) The Department of Land Conservation and Development may grant to a local government that is subject to ORS § 197.758 [renumbered 197A.420] an extension of the time allowed to adopt land use regulations or amend its comprehensive plan under section 3, chapter 639, Oregon Laws 2019.

(2) An extension under this section may be applied only to specific areas where the local government has identified water, sewer, storm drainage or transportation services that are significantly deficient and for which the local government has established a plan of actions that will remedy the deficiency in those services that is approved by the department. The extension may not extend beyond the date that the local government intends to correct the deficiency under the plan.

(3) In areas where the extension under this section does not apply, the local government shall apply its own land use regulations consistent with section 3 (1), chapter 639, Oregon Laws 2019, or the model ordinance developed under section 3 (2), chapter 639, Oregon Laws 2019.

(4) A request for an extension by a local government must be filed with the department no later than:

(a) December 31, 2020, for a city subject to ORS § 197.758 (3) (2021 Edition).

(b) June 30, 2021, for a local government subject to ORS § 197.758 (2).

(c) June 30, 2024, for each city subject to ORS § 197.758 (3), as amended by section 20 of this 2023 Act.

(5) The department shall grant or deny a request for an extension under this section:

(a) Within 90 days of receipt of a complete request from a city subject to ORS § 197.758 (3).

(b) Within 120 days of receipt of a complete request from a local government subject to ORS § 197.758 (2).

(6) The department shall adopt rules regarding the form and substance of a local government’s application for an extension under this section. The department may include rules regarding:

(a) Defining the affected areas;

(b) Calculating deficiencies of water, sewer, storm drainage or transportation services;

(c) Service deficiency levels required to qualify for the extension;

(d) The components and timing of a remediation plan necessary to qualify for an extension;

(e) Standards for evaluating applications; and

(f) Establishing deadlines and components for the approval of a plan of action. [2019 c.639 § 4; 2023 c.223 § 22]