OregonHB 23472025 Regular SessionHouseWALLET

Relating to land use planning.

Sponsored By: Sponsor information unavailable

Became Law

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Bill Overview

Analyzed Economic Effects

19 provisions identified: 12 benefits, 1 costs, 6 mixed.

Easier siting for group homes and facilities

Cities and counties cannot deny siting a residential home in the listed residential or commercial zones. They also cannot deny a residential facility in zones that allow multiunit housing unless they adopted a siting procedure under ORS 197.667. Local zoning codes must be updated during regular plan reviews to follow these rules.

More paths to build affordable housing

Affordable housing means homes for people earning at or below 60% of county or state median income (whichever is higher) with a recorded covenant that keeps them affordable for at least 60 years from occupancy. On land inside an urban growth boundary owned by a religious nonprofit, cities can apply only clear, objective rules or health, safety, habitability, or infrastructure standards. Affordable housing built on nonresidential land next to residential can follow the adjacent residential rules with no rezoning; the highest‑density adjacent zone applies. The law also defines multiunit housing as three or more homes, each with its own kitchen, bath, and living spaces.

More rural housing options allowed

Counties may allow one ADU on rural residential lots of at least two acres with an existing home. The ADU must be 900 square feet or less, within 100 feet of the main home, meet sanitation and fire rules, and not be used for vacation stays. If your lot has a historic home built in 1850–1945, you may build one new home if you convert the historic home into the ADU, keep the ADU at or below 120% of its original size, and do not split the lot, rebuild the ADU after fire, or add more ADUs. Counties may also allow one residential RV on a rural lot when the owner lives in the main home, there are no other rentals, the tenant owns or leases the RV, essential services are provided, and it is not used for short‑term stays. RVs sited this way are not subject to the state building code.

RVs allowed as homes in more cases

State and local governments cannot ban using an RV as a home just because it is an RV when certain rules are met. This protection applies if the RV is allowed under ORS 215.490, is in a manufactured dwelling, mobile home, or RV park with lawful utility hookups, or is on a lot where the main home is uninhabitable from a natural disaster. In the disaster case, RV living is allowed during repair or replacement, when officials find repairs are unreasonably delayed, or for up to five years.

Automatic design flex for housing

For new housing inside an urban growth boundary, local governments must grant up to 10 requested adjustments when you meet the rules. Projects must meet minimum density and be net new housing such as single‑unit, middle housing, multiunit, mixed‑use with mostly housing, ADUs, or manufactured‑home parks. You must show a public benefit like lower prices, more homes, long‑term affordability, or better accessibility. Allowed flex can cut setbacks, open space, parking minimums, lot size, and height transitions within set caps. These are limited land use decisions, and only the applicant may appeal.

Cities must adopt housing plans

Cities with 10,000 or more people must adopt a housing production strategy. The plan must list actions with clear deadlines to add needed homes, keep housing diverse and accessible, and further fair housing. The strategy’s index must include the latest implementation report. Adopting a strategy is not a land‑use decision and has a narrow appeal path. By January 1, 2026, the state adopts clear, model housing ordinances for small, medium, and large cities covering single‑unit homes, middle housing, ADUs, and multiunit housing.

More places must allow homes

In cities over 25,000 people, you can build at least one home on each platted lot zoned for single‑unit homes, unless utilities, steep slopes, flood risk, or state natural‑resource rules block it. Inside urban growth boundaries, cities must allow manufactured and prefabricated homes in single‑unit zones, except in historic districts or next to a historic landmark. Residential homes are allowed in all residential zones and in commercial zones that allow a single‑unit home, with no stricter rules than for single‑unit homes. Residential facilities are allowed anywhere multiunit housing is allowed (or conditional where multiunit is conditional). The law defines needed housing broadly, including single‑unit, middle housing, multiunit, manufactured homes, farmworker, student, senior, disability‑accessible, and single‑room occupancy housing. In urban reserves, local rules cannot newly forbid a single‑unit home that was allowed before reserve status. Cities must also approve affordable housing on qualifying nonprofit religious land inside a boundary when it touches residential zoning and is not industrial.

Plan enough land for housing

Urban reserves must be planned for growth 40 to 50 years ahead, or 20 to 30 years after the 20‑year buildable‑lands period. Outside Metro, local governments must inventory buildable land and housing capacity at least every eight years or when the urban growth boundary is reviewed. If housing need is higher than capacity, the government must expand the boundary for 20 years of need (including school sites) or take actions that clearly increase housing capacity without expanding it. Counties are responsible for Metro urban unincorporated lands unless a written agreement says otherwise.

State help for local housing plans

The state provides technical help and grants to Oregon cities, counties, and federally recognized tribes to plan and encourage needed housing. Local governments can use intergovernmental agreements and housing strategies to plan Metro urbanizable lands to meet housing needs. Cities with fewer than 10,000 people can also choose to prepare a housing production strategy. The law does not set specific dollar amounts.

Stevens Road: dense, long‑term affordable homes

For the Stevens Road area, the state approves the plan only if it protects listed resources, adds parks and open space, meets wildfire rules, sets aside job land and mixed‑use areas, and provides streets and connections. Housing rules there must allow all needed housing types, exceed the city’s shares of attached and multiunit homes, and average at least nine homes per gross acre. At least 20 net acres must be conveyed to the city for homes that stay affordable for 50 years: at least 12 acres at 60% AMI or less, at least 6 acres at 80% AMI or less, and at least 2 acres where 80% of units in each tract are affordable at 80% AMI or less. For 99 years after the city’s purchase, when the city resells these lots it may recover only its purchase and resale costs.

Pay back farm tax before building

If your land gets a special farm‑use tax assessment, you must first disqualify the parcel and pay any extra tax before a dwelling is finally approved. Building officials cannot issue a building permit until the county assessor’s additional tax is paid.

Child care easier to open and site

A certified or registered family child care home for up to 16 children is treated like a normal home use in all residential and commercial zones. Cities and counties cannot ban it or add special fees or stricter land‑use rules than for other homes; counties may set reasonable rules in farm zones. Child care centers are a permitted use in commercial and industrial zones (not heavy industrial), with no stricter rules or special fees than other uses. Local governments generally cannot re‑check state certification requirements unless facts changed, new info is needed, or to respond to residents. They may restrict siting on properties listed for known or suspected contamination to protect children.

Faster, clearer housing application timelines

If your application was complete when first filed, the city or county uses the rules in effect then. For housing, you can ask to use newer rules; that restarts timelines and limits extra fees and duplicate steps. Cities and counties cannot force you to waive the 120‑day decision deadline or refund rights, unless your application is filed and considered with a plan amendment. If you do not answer a missing‑information notice by day 181, your application is void. Your own extension requests are capped: up to 245 days total in cities and 215 days total in counties; mediation time does not count.

More options for ADUs and manufactured homes

Local governments cannot apply stricter rules to manufactured or prefabricated homes than to the same site‑built houses inside urban growth boundaries. Cities and counties cannot set a minimum lot size over one acre for manufactured‑dwelling parks in residential zones. Any covenant signed on or after January 1, 2021 that allows a single house but bans an ADU or middle housing is not enforceable. Private recorded covenants can still block manufactured or prefabricated homes.

Faster housing permits and refunds

Cities must make a final decision on permits and zone changes within 120 days after your application is complete. Counties must act within 120 days for some permits and 150 days for others inside an urban growth boundary. If a city misses 120 days (and you did not ask for more time), it must refund the greater of the unspent fees or 50% of your fees, decide the amount in 7 days, pay in 30 days, and add 1% interest per month after that. Counties must also refund the greater of the unspent fees or 50% if they miss their deadline. Cities and counties must tell you within 30 days exactly what is missing from an incomplete application. A qualifying multiunit project with five or more homes, at least 50% affordable, inside a boundary gets a final decision in 100 days. If your needed‑housing permit matches the plan and rules, it must be approved; you may amend to fix conflicts; if it cannot be made consistent, it must be denied. You and the city or county may add up to 90 days for mediation by agreement.

Workforce housing grants with covenants

The state gives cities grants to build infrastructure that enables housing inside urban growth boundaries. The project must finish within 24 months after funds are sent. The property owner must build a set number of homes by the later of 36 months after project completion or 60 months after disbursement. At least 30% of homes must be under a covenant keeping them affordable to workforce households (at or below 130% of county median income) for at least 10 years. If the owner fails to build or keep homes affordable, the owner must repay the grant, unless the delay is outside the owner’s control.

Who gets county workforce housing tax break

The law clarifies county workforce‑housing property tax exemptions. Eligible housing is a newly built single‑unit house (not the land). The eligible owner is the first person to own and live in it as a primary home. “Newly constructed” means building starts on or after the effective date of the county’s workforce‑housing exemption law.

Space for trash and recycling in buildings

New multiunit buildings with more than 10 homes and new commercial, industrial, or institutional buildings should include space and easy access for trash and recycling containers. This design expectation aims to make collection safer and simpler for tenants and crews.

New rules for farm homes and uses

Approvals for some single homes in farm or forest zones now require a recorded waiver. It binds current and future owners from bringing claims over normal farm or forest practices. The law also expands what counts as “farm use” to include equine stabling and training, and certain aquaculture or wildlife propagation allowed by the Fish and Wildlife Commission, plus on‑site equipment and facility work.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 88 • No: 13

Senate vote • 4/30/2025

Third reading. Carried by Anderson. Passed.

Yes: 22 • No: 6

Senate vote • 4/16/2025

Housing and Development: Heard and Reported Out

Yes: 5 • No: 0

House vote • 2/27/2025

Third reading. Carried by Andersen. Passed.

Yes: 49 • No: 7

House vote • 2/19/2025

Housing and Homelessness: Heard and Reported Out with Amendments

Yes: 12 • No: 0

Actions Timeline

Chapter 38, (2025 Laws): Effective date January 1, 2026.
5/20/2025House
Governor signed.
5/8/2025House
President signed.
5/1/2025Senate
Speaker signed.
5/1/2025House
Third reading. Carried by Anderson. Passed.
4/30/2025Senate
Carried over to 04-30 by unanimous consent.
4/29/2025Senate
Carried over to 04-29 by unanimous consent.
4/28/2025Senate
Second reading.
4/24/2025Senate
Recommendation: Do pass the A-Eng. bill.
4/24/2025Senate
Work Session held.
4/16/2025Senate
Public Hearing held.
3/10/2025Senate
Referred to Housing and Development.
3/4/2025Senate
First reading. Referred to President's desk.
3/4/2025Senate
Vote explanation(s) filed by Diehl.
2/27/2025House
Third reading. Carried by Andersen. Passed.
2/27/2025House
Second reading.
2/25/2025House
Recommendation: Do pass with amendments and be printed A-Engrossed.
2/24/2025House
Work Session held.
2/19/2025House
Public Hearing held.
2/5/2025House
Referred to Housing and Homelessness.
1/17/2025House
First reading. Referred to Speaker's desk.
1/13/2025House

Bill Text

Enrolled
4/30/2025
PDF
A-Engrossed
2/24/2025
PDF
House Amendments to Introduced
2/24/2025
PDF
HHOUSH Amendment -1 (Proposed)
2/19/2025
PDF
HHOUSH Amendment -2 (Adopted)
2/19/2025
PDF
HHOUSH Amendment -1 (Proposed)
2/5/2025
PDF
Introduced
1/10/2025
PDF

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