1. (1) As used in this section and ORS 197A.421:

   1. (a) “City” includes a local government with jurisdiction over unincorporated lands within an urban growth boundary.
   2. (b) “City with a population of 25,000 or greater” includes, regardless of size, any city within Tillamook County and the communities of Barview/Twin Rocks/Watseco, Cloverdale, Hebo, Neahkahnie, Neskowin, Netarts, Oceanside and Pacific City/Woods.

   3. (c) “Cottage cluster” means a grouping of dwelling units:

      1. (A) That are detached or attached in subgroupings of up to four units in any configuration;
      2. (B) That have a common courtyard; and
      3. (C) That each have a small footprint or floor area.
   4. (d) “Duplex” means two attached or detached dwellings in any configuration on a lot or parcel, other than a lot or parcel created by a middle housing land division.

   5. (e)

      1. (A) “Middle housing” means housing that consists of duplexes, triplexes, quadplexes, cottage clusters or townhouses.

      2. (B) “Middle housing” includes dwelling units that are:

         1. (i) Additional units allowed under ORS 197A.421; and
         2. (ii) Existing dwelling units to which additional units are added under subsection (4) of this section.
   6. (f) “Middle housing land division” has the meaning given that term in ORS 92.031.
   7. (g) “Quadplex” means four attached or detached dwellings in any configuration on a lot or parcel, other than a lot or parcel created by a middle housing land division.
   8. (h) “Townhouse” means a dwelling unit constructed in a row of two or more attached units, where each dwelling unit is located on an individual lot or parcel and shares at least one common wall with an adjacent unit.
   9. (i) “Triplex” means three attached or detached dwellings in any configuration on a lot or parcel, other than a lot or parcel created by a middle housing land division.

   10. (j) “Zoned for residential use” means land that:

       1. (A) Is within an urban growth boundary;
       2. (B) Has base zoning for, or is designated to allow, residential uses;
       3. (C) Allows the development of a detached single-unit dwelling;
       4. (D) Is not zoned primarily for commercial, industrial, agricultural or public uses; and
       5. (E) Is incorporated or urban unincorporated land.
2. (2) Except as provided in subsection (4) of this section, each county, each city with a population of 25,000 or greater, and each city with a population of 1,000 or greater within Metro, shall allow the development of all middle housing types on each lot or parcel zoned for residential use.
3. (3) Each city not within Metro with a population of 2,500 or greater and less than 25,000 shall allow the development of a duplex on each lot or parcel zoned for residential use.

4. (4)

   1. (a) Each city required to allow middle housing under subsection (2) or (3) of this section, excluding urban unincorporated land not within Metro, shall allow the lot or parcel to include existing housing consisting of:

      1. (A) One single-unit dwelling;
      2. (B) One single-unit dwelling plus one accessory dwelling unit; or
      3. (C) One duplex.
   2. (b) The city may require only the new units, and not the existing units, to comply with siting and design standards adopted under subsection (5) of this section.
   3. (c) Existing units on the lot or parcel may be separated from the new units by a middle housing land division and are considered a single unit for the purposes of such division.

5. (5) Local governments:

   1. (a) May regulate siting and design of middle housing required to be permitted under this section, provided that the regulations do not individually or cumulatively discourage, through unreasonable costs or delay, the development of all middle housing types permitted in the area.
   2. (b) May regulate middle housing to comply with protective measures adopted pursuant to statewide land use planning goals.

6. (6)

   1. (a) A local government may not, based on traffic impacts from any individual middle housing development allowed under this section or ORS 197A.421:

      1. (A) Require a traffic impact analysis; or
      2. (B) Attribute an exaction other than a generally applicable system development charge or fee-in-lieu variance charge or a development requirement specific to the lot or parcel or its frontage.

   2. (b) This subsection does not apply to:

      1. (A) Developments of townhouses or cottage clusters with more than 12 units.
      2. (B) Lots or parcels created by a division of land, other than a middle housing land division, that occurred within the previous five years.

7. (7) This section does not prohibit local governments from permitting:

   1. (a) Single-unit dwellings in areas zoned to allow for single-unit dwellings; or
   2. (b) Middle housing in areas not required under this section.
8. (8) A local government that amends its comprehensive plan or land use regulations relating to allowing additional middle housing is not required to consider whether the amendments significantly affect an existing or planned transportation facility.

Note: Sections 3 and 4, chapter 639, Oregon Laws 2019, provide:

Sec. 3. (1) Notwithstanding ORS 197.646, a local government shall adopt land use regulations or amend its comprehensive plan to implement ORS 197A.420 or section 3 of this 2025 Act [197A.421] no later than:

(a) June 30, 2021, for each city subject to ORS 197.758 (3) (2021 Edition) as in effect on January 1, 2023;

(b) June 30, 2022, for each local government subject to ORS 197A.420 (2), except as provided in paragraphs (d) to (f) of this subsection;

(c) June 30, 2025, for each city subject to ORS 197A.420 (3) but not included in paragraph (a) of this subsection;

(d) July 1, 2025, for each city, as defined in ORS 197A.420, in Tillamook County;

(e) Except as provided in paragraph (f) of this subsection, January 1, 2027, for cities to conform with section 3 of this 2025 Act or the amendments to ORS 197A.420 by section 1 of this 2025 Act; or

(f) January 1, 2028, for cities to conform with amendments to ORS 197A.420 by section 1 of this 2025 Act pertaining to changes relating to cottage clusters.

(2) The Land Conservation and Development Commission, with the assistance of the Building Codes Division of the Department of Consumer and Business Services, shall develop a model middle housing ordinance no later than December 31, 2020.

(3) A local government that has not acted within the time provided under subsection (1) of this section shall directly apply the model ordinance developed by the commission under subsection (2) of this section as provided by ORS 197.646 (3) until the local government acts as described in subsection (1) of this section.

(4) In adopting regulations or amending a comprehensive plan under this section, a local government shall consider ways to increase the affordability of middle housing by considering ordinances and policies that include but are not limited to:

(a) Waiving or deferring system development charges;

(b) Adopting or amending criteria for property tax exemptions under ORS 307.515 to 307.523, 307.540 to 307.548 or 307.651 to 307.687 or property tax freezes under ORS 308.450 to 308.481; and

(c) Assessing a construction tax under ORS 320.192 and 320.195. [2019 c.639 §3; 2023 c.223 §21; 2023 c.283 §3; 2025 c.476 §4]

Sec. 4. (1) The Department of Land Conservation and Development may grant to a local government that is subject to ORS 197A.420 an extension of the time allowed to adopt land use regulations or amend its comprehensive plan under section 3, chapter 639, Oregon Laws 2019.

(2) An extension under this section may be applied only to specific areas where the local government has identified water, sewer, storm drainage or transportation services that are significantly deficient and for which the local government has established a plan of actions that will remedy the deficiency in those services that is approved by the department. The extension may not extend beyond the date that the local government intends to correct the deficiency under the plan.

(3) In areas where the extension under this section does not apply, the local government shall apply its own land use regulations consistent with section 3 (1), chapter 639, Oregon Laws 2019, or the model ordinance developed under section 3 (2), chapter 639, Oregon Laws 2019.

(4) A request for an extension by a local government must be filed with the department no later than:

(a) December 31, 2020, for a city subject to ORS 197.758 (3) (2021 Edition), as in effect on January 1, 2023.

(b) June 30, 2021, for a local government subject to ORS 197A.420 (2).

(c) June 30, 2024, for each city subject to ORS 197A.420 (3).

(d) June 30, 2026, only for unincorporated urban lands.

(5) The department shall grant or deny a request for an extension under this section:

(a) Within 90 days of receipt of a complete request from a city subject to ORS 197A.420 (3).

(b) Within 120 days of receipt of a complete request from a local government subject to ORS 197A.420 (2).

(6) The department shall adopt rules regarding the form and substance of a local government’s application for an extension under this section. The department may include rules regarding:

(a) Defining the affected areas;

(b) Calculating deficiencies of water, sewer, storm drainage or transportation services;

(c) Service deficiency levels required to qualify for the extension;

(d) The components and timing of a remediation plan necessary to qualify for an extension;

(e) Standards for evaluating applications; and

(f) Establishing deadlines and components for the approval of a plan of action. [2019 c.639 §4; 2023 c.223 §22; 2025 c.476 §5]

[Formerly 197.758; 2025 c.38 §24; 2025 c.476 §1]