The department is required to determine the lowest performing cities, if any, on an annual basis. To provide a consistent and predictable framework by which the department dedicates staff time and resources to implementing this rule, the department must refer any lowest performing city to the housing acceleration program via the following process:

1. (1) The department must annually determine the maximum number of both standard and comprehensive audits completed under this rule within a calendar year, in consideration of the following factors:

   1. (a) The capacity of department staff to conduct audits under OAR 660-008-0325, develop housing acceleration agreements under OAR 660-008-0330, and support local implementation of housing acceleration agreements as specified in ORS 197A.130(7);
   2. (b) The number of housing capacity analyses due under OAR 660-008-0045;
   3. (c) The number of housing production strategies due under OAR 660-008-0045;
   4. (d) The number of midpoint reports due under OAR 660-008-0230;
   5. (e) The number of referrals to the housing acceleration program related to the implementation of housing production strategies made under OAR 660-008-0310 to OAR 660-008-0315, including its impact on subsection (a);
   6. (f) The availability of funding to support the implementation of actions identified in a housing acceleration agreement developed in response to an audit;
   7. (g) Whether the department or cities with a population of 10,000 or greater are subject to separate housing-related legislation, administrative rule, or orders that obligate capacity and funding for implementation, including but not limited to rulemaking or local comprehensive plan or development code amendments; and
   8. (h) For audits requesting concurrent review under ORS 197A.205, the capacity of the Housing and Community Services Department to concurrently participate in and support audits. The department must consult with the Housing and Community Services Department in determining capacity under this section.

2. (2) The department must annually determine which cities, if any, are eligible for referral to the housing acceleration program. Eligible cities must meet the following criteria:

   1. (a) The city was required to submit a midpoint report the previous year under OAR 660-008-0230; and

   2. (b) The city is underperforming on its total housing production target or its housing production target for household incomes at or below 80 percent area median income, which includes:

      1. (A) The city is not meeting its total housing production target and is performing below the 50th percentile in comparison to the region or market peers, as determined by the housing production dashboard; or
      2. (B) The city is not meeting its housing production target for incomes at or below 80 percent area median income and is performing below the 50th percentile in comparison to the region or market peers, as determined by the housing production dashboard.
      3. (C) For the purposes of determining comparative progress for referral under this section, the department will utilize a city’s adopted housing production target and market peers determined for the adoption year of the housing production strategy under OAR 660-008-0045. Where a city does not have an adopted housing production target, the department will use the most recently published housing production target under ORS 184.455.
3. (3) Where a city does not have market peers for comparison as provided under ORS 456.601, the department will consider progress relative to the region only.
4. (4) Among eligible cities, the department must remove from consideration a city that had been referred to the housing acceleration program under this section at the previous midpoint report.

5. (5) The department must prioritize the referral to the housing acceleration program of cities determined eligible under section (2) and (3), up to the maximum number of audits determined under section (1), based on each of the following priority considerations:

   1. (a) Severity of underproduction of total housing units, in comparison to the region and market peers as determined by the housing production dashboard;

   2. (b) Severity of underproduction of housing affordable to households earning at or below 80 percent area median income, in comparison to the region and market peers as determined by the housing production dashboard. In determining prioritization for referral to the housing acceleration program, the department will consider the severity of underproduction at each of the following income levels:

      1. (A) Housing affordable to households making less than 30 percent of area median income;
      2. (B) Housing affordable to households making 31 percent or more and less than 60 percent of area median income;
      3. (C) Housing affordable to households making 61 percent or more and less than 80 percent of area median income; and
      4. (D) Housing affordable to households making 81 percent or more and less than 120 percent of area median income.
   3. (c) Housing equity indicators as they relate to fair housing issues identified under OAR 660-008-0075.

6. (6) The department shall prioritize comprehensive audits under OAR 660-008-0325(4) where the priority considerations in section (5) indicate a need for a contextual audit under OAR 660-008-0325 or coordinated action from multiple public bodies. Priority actions include one or more of the following:

   1. (a) Removing barriers to the development of housing affordable to households earning at or below 80 percent area median income;

      1. (A) For referrals of cities to the housing acceleration program under this subsection, the department must request concurrent review by the Housing and Community Services Department.
      2. (B) Nothing in this subsection prohibits the department from coordinating with the Housing and Community Services Department for any referral to the housing acceleration program.
   2. (b) Addressing or improving fair and equitable housing outcomes or addressing barriers to fair housing choice.
7. (7) The department may refer to the housing acceleration program less than the maximum number of audits determined under section (1) when the number of eligible cities determined under sections (2) and (3) is less than the maximum determined under section (1).

Statutory/Other Authority

ORS 197.040

Statutes/Other Implemented

ORS 197A.130

History

LCDD 8-2025, amend filed 12/23/2025, effective 01/01/2026
LCDD 15-2024, adopt filed 12/20/2024, effective 01/01/2025