For cities referred to the housing acceleration program under ORS 197A.130(3), within six months of issuance of public notice of referral under section (1), the department must, in cooperation with the city, complete an audit of specific housing barriers.

1. (1) The department must provide public notice of referral for each city referred to the housing acceleration program under OAR 660-008-0310 to OAR 660-008-0320, to notice recipients under OAR 660-008-0215, to all tribal governments as identified under OAR 660-008-0075(5)(c)(B), and to affected public bodies by July 1 of each calendar year. The notice must include:

   1. (a) Findings documenting the basis of referral for each city referred to the housing acceleration program, including one or more of the following:

      1. (A) Failure to adopt a housing capacity analysis, housing production strategy, or midpoint report as provided under OAR 660-008-0310;
      2. (B) Failure to undertake an action or actions in an adopted housing production strategy as provided under OAR 660-008-0315;
      3. (C) Referral to the housing acceleration program by the commission under ORS 197A.130(3)(d); or
      4. (D) Referral to the housing acceleration program based on city performance as provided under OAR 660-008-0320.
   2. (b) A description of the housing acceleration program and procedures provided in this rule;
   3. (c) Any required actions or materials that a referred city must complete or submit to the department under section (2) and how and where these materials may be freely obtained by the public;
   4. (d) That the public may submit comment to the department within 45 days of notice provided under section (3); and
   5. (e) That actions taken by the city or the department under the housing acceleration program are not land use decisions and are not subject to appeal or review.
   6. (f) For notice to tribal governments, specific and direct outreach to each of the tribal governments as identified under OAR 660-008-0200(1)(c)(B) by inviting government-to-government consultation from tribal leadership and coordination from tribal staff regarding the identification of barriers to housing production in the audit.

2. (2) For all audits, within 45 days of public notice of referral to the housing acceleration program, a referred city must provide the notice of referral to the governing body of the city and submit to the department the following information, if available and relevant to the basis for referral:

   1. (a) The adopted housing capacity analysis, housing production strategy, adoption record including all public testimony, and midpoint report, if not already submitted to the department. A city referred to the housing acceleration program under OAR 660-008-0310 may submit any available draft materials related to an impending housing production strategy;
   2. (b) Information related to actions and inactions that impact local fair and equitable housing outcomes, environmental justice, climate resilience and location choice that is not otherwise captured in the housing production strategy;
   3. (c) Any summary materials related to engagement conducted by the city that is not otherwise captured in the housing production strategy;
   4. (d) Information related to current funding and staff capacity of the city, including publicly-available departmental budget and staffing information;
   5. (e) Any localized information or studies related to housing market dynamics such as localized market pricing and rents, local housing development dynamics, or other market-related factors that are not otherwise captured by state data sources, if available;
   6. (f) Information related to the local development of housing development at or below 80 percent of average median income, including local development contacts, local funding programs/investments, or recent development projects, if available;

   7. (g) Information related to the local development of housing, including:

      1. (A) Land use planning regulations, including zoning and development code;
      2. (B) Permitting and approval processes relating to development of housing and infrastructure supporting housing;
      3. (C) Required fees, exactions, and improvements; and
      4. (D) Any public facilities plans, capital improvement plans, or actions or investments to prepare land for residential development;

   8. (h) Any potential barriers or issues that the city requests consideration by the department in the audit, including but not limited to:

      1. (A) Local resource deficiencies, including staffing, public facilities, capital improvements to infrastructure, availability of buildable lands, and actions or investments to prepare land for development;
      2. (B) Specific additional state resources that could support housing production;
      3. (C) Any state laws or rules or the regulations, policies, actions or inactions of any public body that could impact housing production; and

      4. (D) Other factors limiting housing that are not within the city’s control.

         1. (i) Where a city does not have access to or fails to provide suitable information under this section, the department may utilize best available information to support the findings of an audit;
   9. (j) Nothing in this section prohibits the department from utilizing other sources of relevant data or information, including but not limited to information collected under sections (3) and (4).

3. (3) For all audits, within ten days of receipt of the submission under section (2), the department must compile submitted information and notify recipients under section (1) that public comment may be submitted to the department within 45 days of the notice date. The department must:

   1. (a) Provide in a publicly available format any relevant audit materials, including the notice provided under section (1) and materials submitted under section (2);
   2. (b) Instructions for delivering public comment to the department; and
   3. (c) Append any comments submitted within 45 days to the audit published under section (6).

4. (4) For comprehensive audits, in addition to public comment under section (3), the department must solicit and consider additional contextual information to support audit findings, which may include:

   1. (a) In consideration of engagement summaries submitted under subsection (2)(c), supplemental equitable engagement and invited feedback from interested parties, including but not limited to:

      1. (A) City staff and public officials;
      2. (B) Local or regional market-rate housing developers;
      3. (C) Local or regional subsidized affordable housing developers serving households with 0-30 percent, 31-60 percent, and 61-80 percent median family income;
      4. (D) Local or regional community-based and non-governmental organizations;
      5. (E) Community members, including those described under OAR 660-008-0200(1) and (2)(b);
      6. (F) Other relevant public bodies that affect housing production within the city;
      7. (G) Tribal governments within the region, if any; and
      8. (H) Other relevant market or affordable housing-related actors that affect housing production within the city, including lenders, laborers, and occupants.

   2. (b) Engagement and coordination with affected public bodies on barriers or issues that extend beyond a city’s control, including:

      1. (A) County or regional coordination as it relates to urbanization and regional programs and resources, including Metro for cities within Metro;
      2. (B) Special district and utility coordination as it relates to the provision of public facilities to support housing production; and
      3. (C) State agency coordination as it relates to policies and programs that affect housing production within a city.

   3. (c) For audits focused on affordable housing production at 0-30 percent, 31-60 percent, and 61-80 percent median family income, concurrent review with the Housing and Community Services Department. In addition to the materials submitted under section (2), the department may require the following additional information from a city, if available:

      1. (A) Any contextual information related to affordability not reflected in statewide housing data, including but not limited to naturally occurring affordable housing at 0-30 percent, 31-60 percent, and 61-80 percent median family income tenant assistance or vouchers, or homeownership programs; or

      2. (B) Information related to subsidized affordable housing development proposals and inquiries, including any contact information, permitting information, and public record information relating to development application approvals or denials:

         1. (i) For cities within Metro, the previous six calendar years.
         2. (ii) For cities outside of Metro, the previous eight calendar years.
         3. (d) Nothing in this section prohibits the department from soliciting or considering additional contextual information or invited stakeholder feedback for audits that are not comprehensive audits.

5. (5) In conducting the audit, the department must evaluate and prioritize the following, including the provision of resources and intergovernmental coordination to support local actions related to:

   1. (a) Existing and expected barriers to fair housing choice, including barriers contributing to fair housing issues identified under OAR 660-008-0075 in the most recently adopted or amended housing production strategy;
   2. (b) Barriers to adoption or implementation of actions described in OAR 660-008-0200(3);
   3. (c) Barriers to adoption or implementation of relevant adoption-ready actions.
   4. (d) Barriers to housing production in climate-friendly areas under OAR 660-012-0310;

   5. (e) Acceleration of total production and production of housing affordable to households earning at or below 80 percent area median income, compared to the city’s previous housing production strategy cycle and relative to the region and market peers as determined by the housing production dashboard. Pursuant to data availability, the department will consider acceleration of production 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 30 percent or more and less than 60 percent of area median income;
      3. (C) Housing affordable to households making 60 percent or more and less than 80 percent of area median income;
      4. (D) Housing affordable to households making 80 percent or more and less than 120 percent of area median income.

6. (6) Within six months of public notice issued under section (1), the department must publish an audit of specific housing barriers, including those identified in the contextualized housing need under OAR 660-008-0075. The audit that must include an analysis of the factors provided in ORS 197A.130(4). For each identified barrier, the audit must contain:

   1. (a) A description of the identified barrier. The department must consider existing and expected local barriers as they relate to identified fair housing issues in the contextualized housing need analysis under OAR 660-008-0075. This description must include:

      1. (A) Explanation of how the barrier relates to the city’s basis for referral to the housing acceleration program, and
      2. (B) Identification of the barrier as development or zoning code that does not meet the applicable standards represented in OAR 660-008-0200(3) and (4).

   2. (b) An evaluation of factors that may affect or relate to an identified barrier, including:

      1. (A) Market conditions and factors related to or affecting the barrier;
      2. (B) City context, including existing actions, investments, policies, or programs related to the barrier and an evaluation of city funding and staff capacity to undertake additional action;
      3. (C) Regional context, including actions, investments, policies, or programs of relevant local or regional public bodies that affect the barrier, if applicable; and
      4. (D) Statewide context, including actions, investments, policies, or programs of relevant statewide public bodies that affect the barrier, if applicable;
   3. (c) Identified regional, state, and federal orders, agreements, actions, programs, or investments that could support or hinder local action to addressing the identified barriers, if any;
   4. (d) An identification of relevant actions proposed in the existing housing production strategy and evaluation of the efficacy of the action or actions to address identified barrier;

   5. (e) If the barrier can be partially or wholly addressed via city action, one or more alternative actions provided by the department that can address the identified barrier. Any action provided under this section must include:

      1. (A) A description of the action, including any relevant case studies, resources, or adoption-ready policies furnished by the department;
      2. (B) An evaluation of the approximate funding and staff capacity necessary to undertake action;
      3. (C) An evaluation of the city’s proportionate financial resources and staff capacity to undertake an action;
      4. (D) If the action requires multiple public bodies for implementation, a description of the public bodies and concurrent actions necessary for local implementation; and
      5. (E) An evaluation of the approximate magnitude of impact that the action will likely have on the identified barrier.

7. (7) For each barrier identified in the audit, the department must determine whether the factors affecting housing production, affordability, and choice are a consequence of policies and practices that are directly within the city’s control under ORS 197A.130(8)(a). Actions identified under subsection (6)(e) are directly within a city’s control if the action:

   1. (a) Is within the jurisdictional control of the city;
   2. (b) Can reasonably be implemented with available city resources and staff capacity identified under paragraph (6)(e)(C), supported by technical and financial assistance provided by the department; and
   3. (c) The department can sufficiently provide technical and financial assistance necessary to support city implementation.

8. (8) Where the department concludes under section (7) that a city lacks reasonable existing resources and staff capacity to implement actions to address an identified barrier, the audit must also include and prioritize actions that build city capacity, including consideration of:

   1. (a) Any identified state or federal programs or investments that can increase local capacity; and
   2. (b) Existing and projected city revenue that can increase local capacity, including actions that increase or stabilize local revenue or dedicate funds for increased local capacity.
9. (9) After the department publishes an audit under section (6) it shall notify all parties described in section (1) through (4) and provide access to the published audit in a publicly available format. The city must provide the published audit to the governing body of the city.

10. (10) Any local government may voluntarily request the department conduct an audit of local, regional, or state barriers.

    1. (a) A request by a local government or city may be submitted to the department at any time. The request must specify:

       1. (A) The scope of issues or barriers the audit is intended to address;
       2. (B) The preferred timeframe for an audit to occur;
       3. (C) Any relevant local or regional governments or state agencies that relate to the identified issue or issues; and
       4. (D) How the request relates to current or future work the local government or city will complete, including an adopted or future housing production strategy.
    2. (b) If the department accepts the request, the requirements of ORS 197A.130 and OAR 660-008-0325 to OAR 660-008-0335 do not apply, and the findings of the audit are non-binding on the department and the local government or city.

    3. (c) In considering whether to approve a request made under this section, the department must prioritize:

       1. (A) Mandatory referrals to the housing acceleration program made under OAR 660-008-0310 to 660-008-0320,
       2. (B) Supporting the implementation of an existing or future housing production strategy under ORS 197A.100,
       3. (C) Addressing substantial issues that inhibit housing production, affordability, and choice or best advances the purpose described in OAR 660-008-0000, and
       4. (D) Issues or barriers that are most readily addressed by an audit or intervention by the department.
    4. (d) In lieu of an audit, the department may provide alternative options to a local government or city to address an identified issue or issues in an audit request, including the provision of technical or financial support, as available.
    5. (e) Nothing in this section prohibits the department from making mandatory referrals to the housing acceleration program under ORS 197A.130(3).
11. (11) As part of the summary of housing production strategies under OAR 660-008-0215(9), the department will incorporate a summary of any state policies or programs identified in audits conducted under OAR 660-008-0325.
12. (12) The department may grant limited extensions to any of the deadlines of this rule for emergencies, good cause, or other factors outside of the city’s control. Upon a request for a timeline extension, the department must provide a written decision within 30 days of the request, including the rationale for the extension and a revised timeline.

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