Where a model ordinance is applied comparatively to local land use regulations for the purpose of demonstrating sufficiency of a local action as part of a housing production strategy under OAR 660-008-0200 or housing acceleration agreement under OAR 660-008-0330, a city may alternatively demonstrate that locally-applied land use regulations facilitate the same or comparable development outcomes to the model ordinance. The city must demonstrate the following criteria are met, as applicable:

1. (1) The housing type is a permitted use under clear and objective standards, conditions, and procedures in applicable zones or land use districts, including all applicable overlay zones or districts.

   1. (a) The housing type may not be subject to a ground-floor commercial requirement or other requirement to incorporate nonresidential uses to qualify under this section.
   2. (b) Nothing in this section otherwise limits or prohibits a city’s ability to established mixed-use zones or land use districts, including overlay zones or districts.

2. (2) Siting and design standards allow for the same or greater achievable number of dwelling units as permitted in the model ordinance, or otherwise facilitate comparable development outcomes.

   1. (a) For the purposes of calculating the achievable number of dwelling units, a city may assume the following average square footage per dwelling unit:

      1. (A) For detached single-unit dwellings: 1,800 gross square feet;
      2. (B) For townhouses and duplexes: 1,500 gross square feet; and
      3. (C) For all other housing types: 1,200 gross square feet.
   2. (b) A city may assume an alternative average square footage per dwelling unit if production data spanning a minimum of six years supports the alternative assumption.

   3. (c) Siting and design standards that do not otherwise restrict the achievable number of dwelling units do not create substantial feasibility limitations to applicable development, including:

      1. (A) Standards that affect the configuration or orientation of units on a site do not render the achievable number of dwelling units in subsection (a) or (b) impracticable; and
      2. (B) Standards that affect the cost or quantity of land, construction, or materials used in development are reasonable and proportionate as provided in subsection (7)(a) to (f).
   4. (d) Minimum density requirements in the model ordinance are not a requirement nor a consideration under this section.
3. (3) Procedural regulations allow applicable development under the same or less restrictive clear and objective requirements and development review timelines as permitted in the model ordinance, or otherwise facilitate comparable development outcomes.
4. (4) Other applicable land use regulations do not create unreasonable cost or delay to the development of housing as provided in ORS 197A.400.

5. (5) Regulatory incentives or bonuses to encourage accessible or adaptable housing or housing affordable to households specified in a model ordinance provide comparable or greater economic incentives or benefits through clear and objective standards, conditions, and procedures, including:

   1. (a) The total additional achievable number of dwelling units or floor area are comparable to or greater than the model ordinance;
   2. (b) Other provisions offering flexibility to local land use regulations or streamlined procedural review reduce cost and delay to or increase projected revenue from development comparable to the model ordinance;
   3. (c) A city may additionally consider local financial incentives that offer comparable or greater economic incentives or benefits; and

   4. (d) Nothing in this section prohibits a city from establishing incentives or bonuses for alternative quantities or household incomes of affordable, accessible, or adaptable units in lieu of those specified in a model ordinance, provided:

      1. (A) The alternative household incomes of affordable units do not exceed those specified in the model ordinance; and
      2. (B) The city determines that the alternative quantities or household incomes of affordable, accessible, or adaptable units in lieu of those specified in the model ordinance are feasible in one or more local market studies or other comparable analysis.
6. (6) Nothing in this rule affects the applicability of a protective measure adopted or applied pursuant to a statewide planning goal. A city is not required to consider the effect of such a protective measure in making a demonstration under this rule.

7. (7) As used in this rule, “comparable development outcomes” means that applicable land use regulations do not, individually or cumulatively, create additional disproportionate cost or delay to the development of housing in comparison to a model ordinance. At a minimum, the demonstration must evaluate the following impacts of applicable local land use regulations on residential development:

   1. (a) The total time and cost of construction, including design, labor, and materials;
   2. (b) The total cost of land, including requirements that necessitate additional land to satisfy;
   3. (c) The availability and acquisition of land, including in areas with existing development;
   4. (d) The total time, cost, and certainty of permitting required to make land suitable for development;
   5. (e) The cumulative livable floor area and the quantity of units that can be produced; and
   6. (f) The proportionality of cumulative time and cost imposed by applicable land use regulations in relationship to the public need or interest the land use regulations fulfill.

Statutory/Other Authority

ORS 197.040

Statutes/Other Implemented

ORS 197A.100

History

LCDD 8-2025, adopt filed 12/23/2025, effective 01/01/2026