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OregonHB 23472025 Regular SessionHouseWALLET

Relating to land use planning.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

22 provisions identified: 16 benefits, 0 costs, 6 mixed.

Fairer zoning for farmworker housing

Farmworker housing must be allowed in residential or commercial zones that allow the same housing type. It cannot face stricter zoning rules than comparable housing. Government-assisted housing cannot face extra approval standards that do not apply to similar unassisted housing. Local governments also cannot ban attached or detached single-unit or multiunit housing across all residential zones.

Homebuilding rights survive urban reserve designation

Local governments cannot prohibit a single-unit home on a qualifying legal parcel within an urban reserve. The home must have been allowed under the law before the parcel received that designation.

More backyard homes for homeowners

Covered cities and counties must allow at least one accessory dwelling unit for each detached home. This applies inside urban growth boundaries on land zoned for detached homes. It covers cities above 2,500 people and counties above 15,000. Local rules cannot require owner occupancy or extra off-street parking. Vacation stays can have separate rules.

More duplexes and other neighborhood homes

Covered residential areas must allow more housing types where detached homes are allowed. Cities with at least 25,000 people, and cities or counties within a metropolitan service district, must allow all middle housing types. Qualifying cities outside those districts with 2,500 to fewer than 25,000 people must allow duplexes. Specified land outside urban growth boundaries and some unincorporated land are excluded. Cities of 1,000 or fewer are generally excluded, except in Tillamook County. Local design rules cannot discourage required housing through unreasonable costs or delays.

More single-room rental housing options

Local governments must allow qualifying single-room rental housing inside urban growth boundaries. Buildings must have at least four attached, independently rented, lockable units with living and sleeping space. Bathrooms or food-preparation areas are shared. Lots allowing detached homes can have up to six units. Elsewhere, unit counts follow applicable density standards on residential lots allowing five or more units.

More urban sites for manufactured homes

Local governments must allow manufactured and prefabricated homes on land allowing single-unit homes inside urban growth boundaries. Siting rules cannot be stricter than those for a site-built home of the same type on the same land. State planning-goal protections and the stated thermal-envelope certification requirement still apply. Historic districts and residential land immediately next to historic landmarks are excluded.

New homes can qualify for exemptions

County workforce housing exemptions cover newly built single-unit dwellings rather than only the former single-family definition. The county must have adopted an exemption law, and construction must begin on or after that local law's effective date. The first owner must also be the first occupant and use the home as a primary residence. Land is excluded, and the provision does not state the exemption amount.

Faster decisions for affordable housing projects

Covered cities and counties must finish qualifying affordable housing reviews, including local appeals, within 100 days after applications are complete. Projects must be inside urban growth boundaries, have at least five homes, and make at least half affordable. Affordable homes serve households at or below 60% of county median income, or state median income if higher. Affordability must be secured for 60 years. The deadline covers applications under the specified procedures in cities above 5,000 people and counties above 25,000.

Housing builders can adjust design rules

Local governments must grant up to 10 qualifying design adjustments for net new housing on eligible residential or mixed-use land. Land must be city-annexed and inside an urban growth boundary; projects must meet minimum density and application requirements. Requests must identify a listed benefit, such as housing feasibility, affordability, added units, accessibility, or shared equity. Limits include 10% changes to listed setbacks, lot dimensions, and building coverage, and 25% reductions to specified landscaped or open-space areas. Window area can fall up to 30%, but windows must still cover at least 12% of the facade. Adjustments cannot waive protected safety, affordability, accessibility, fire-access, environmental, or other non-land-use requirements.

More locations for child care providers

Certified or registered family child care homes serving no more than 16 children are permitted residential uses in residential and commercial zones. Local governments cannot impose stricter land-use rules, special fees, or conditions than they apply to other homes in the zone. Counties can impose reasonable conditions on farm-zoned land. Certified child care centers are permitted in commercial and industrial zones, except areas specifically designated for heavy industry. Centers also receive protection against stricter rules and special fees than other uses, while reasonable industrial-site conditions remain allowed, including contaminated-site limits.

Stevens Road land reserved for affordability

Stevens Road planning approval requires resource protections, recreation and open space, varied housing, and at least nine homes per gross residential acre. At least 20 net acres must be designated for housing at nine units per gross acre, with affordability preserved for 50 years. At least 12 net acres must serve households at or below 60% of area median income, including an approved income-averaging option. At least six net acres must serve households at or below 80%, with education-provider employee priority where legally allowed. Another two net acres must have at least 80% of units affordable at the 80% income level in each contiguous development tract. At least one of those acres must prioritize education-provider employees where legally allowed. Once the parcels are created, owners must transfer them to the city at the price set by the referenced 2021 law. For 99 years after purchase, city resale proceeds can cover only its purchase and resale costs.

More commercial event options for farms

Counties can permit up to six farm-tourism or commercial events per tract yearly, each lasting no more than 72 hours. A separate authorization allows up to 18 yearly events supporting area farms or agricultural businesses. A standard single-event authorization allows 72 hours, 500 attendees, and 250 vehicles; an expedited license allows 100 attendees and 50 vehicles. Events generally must remain secondary to farm use; temporary structures must be removed, and event-related land alteration cannot be approved. Limited-use permits can last two calendar years and be renewed; more-frequent-event permits require county review every four years.

More farm sites for service businesses

Landscape contracting and landscape architecture businesses can operate on exclusive farm use land alongside growing and marketing nursery stock there. Equine-related therapy and counseling can also operate in qualifying farm buildings. Existing buildings must have been lawfully built before January 1, 2019. New buildings must be secondary to farm use. Therapy and counseling providers must stay within the scope of any required state licenses.

More rural school and childcare sites

Public and private kindergarten-through-grade-12 schools can operate on exclusive farm use land when they mainly serve local rural residents. Buildings essential to school operations are included. Authorized child care, preschool, and recorded school-age programs can also operate there when they mainly serve local residents' and workers' children. These programs must share a site with an allowed school or community center.

Housing plans must reflect real needs

City housing-needs plans must include detached homes, middle housing, and multiunit housing that fit allocated income needs and market trends. Covered local governments and Metro must account for existing homes and other structures when estimating buildable land and housing capacity. Metro's specified planning rules use a separate definition covering needed homes at affordable prices or rents for varied county incomes. Local governments can plan Metro urbanizable land using agreements, housing strategies, corrective plans, or housing-capacity findings. Counties retain responsibility for Metro urban unincorporated land unless an agreement explicitly delegates it.

More buildings covered by waste-space guidance

Housing buildings with more than 10 units should provide adequate space and access for garbage and recycling containers. The same guidance covers commercial, industrial, and institutional buildings. It is no longer limited to buildings constructed after October 4, 1997.

State helps communities update housing rules

The state land-use commission must adopt three model housing ordinances by January 1, 2026. They cover cities under 2,500 people, from 2,500 to fewer than 25,000, and at least 25,000. Models cover detached homes, middle housing, accessory units, and multiunit housing inside urban growth boundaries, with presumed clear and objective standards. Cities can adopt all or part of a model for a larger city. The state land-use department can also provide planning help and grants to local governments and federally recognized Oregon tribes. Support covers housing-law implementation and needed housing within their jurisdictions or on tribally owned or managed land; no grant amount is specified.

Housing applicants can request newer standards

City and county decisions generally use standards in effect when an application was first submitted, once completeness requirements are met. Housing applicants can ask to use standards in effect when they make that request. Review deadlines restart on the request date. A city or county can deny the request after public notice or after a previous request to change standards.

Rural vehicle rentals gain regulated permission

Counties can allow one recreational vehicle as a residential rental on rural property outside an urban reserve. The owner must live in the property's only home and cannot rent out any part of that home. The tenant must own or lease the vehicle; the owner must supply essential services, and short-term stays are prohibited. Counties can require registration, written leases, reasonable cost-based payment limits, and appearance, repair, inspection, or siting standards. The vehicle is exempt from the state building code.

Second forest homes carry lasting restrictions

Counties can approve a second home on qualifying forest-use parcels meeting minimum-size rules and containing exactly one lawful home. The existing home must house the owner or a relative; the new home's occupant must also help with specified forest work. The new home must be within 200 feet, meet wildfire building rules, and sit within a rural fire protection district. Owners must record permanent restrictions against separating the homes and must follow a written working-forest management plan. Neither home can be used for vacation occupancy.

Affordable housing mandates get firm limits

Local affordable-unit mandates apply only to new multiunit projects with at least 20 homes and can cover no more than 20%. Developers must receive an option to pay a locally set fee instead. Developers who provide units must receive proportionate incentives, such as fee reductions, financing help, or property-tax exemptions. For these local rules, the law's affordability definition refers to households earning at least 80% of county median income. Mandates cannot apply to housing with specified permit applications submitted before the local requirement took effect.

City housing grants require affordable homes

The Oregon Business Development Department provides city grants for infrastructure supporting identified housing developments inside urban growth boundaries. Cities must finish infrastructure within 24 months of payment and sign property-owner agreements before funds are paid. Owners must build the agreed minimum homes by the later of 36 months after completion or 60 months after payment. At least 30% of homes need affordability covenants lasting at least 10 years for households earning no more than 130% of county median income. Owners can owe repayment for failing construction or affordability commitments, except for delays outside their control; no grant amount is specified.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

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

  1. Chapter 38, (2025 Laws): Effective date January 1, 2026.

    5/20/2025House

  2. Governor signed.

    5/8/2025House

  3. President signed.

    5/1/2025Senate

  4. Speaker signed.

    5/1/2025House

  5. Third reading. Carried by Anderson. Passed.

    4/30/2025Senate

  6. Carried over to 04-30 by unanimous consent.

    4/29/2025Senate

  7. Carried over to 04-29 by unanimous consent.

    4/28/2025Senate

  8. Second reading.

    4/24/2025Senate

  9. Recommendation: Do pass the A-Eng. bill.

    4/24/2025Senate

  10. Work Session held.

    4/16/2025Senate

  11. Public Hearing held.

    3/10/2025Senate

  12. Referred to Housing and Development.

    3/4/2025Senate

  13. First reading. Referred to President's desk.

    3/4/2025Senate

  14. Vote explanation(s) filed by Diehl.

    2/27/2025House

  15. Third reading. Carried by Andersen. Passed.

    2/27/2025House

  16. Second reading.

    2/25/2025House

  17. Recommendation: Do pass with amendments and be printed A-Engrossed.

    2/24/2025House

  18. Work Session held.

    2/19/2025House

  19. Public Hearing held.

    2/5/2025House

  20. Referred to Housing and Homelessness.

    1/17/2025House

  21. First reading. Referred to Speaker's desk.

    1/13/2025House

Bill Text

  • HHOUSH Amendment -1 (Proposed)

    2/19/2025

    PDF

  • HHOUSH Amendment -2 (Adopted)

    2/19/2025

    PDF

  • HHOUSH Amendment -1 (Proposed)

    2/5/2025

    PDF

  • A-Engrossed

    PDF

  • Enrolled

    PDF

  • House Amendments to Introduced

    PDF

  • Introduced

    PDF

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