1. (1) In developing and implementing this section and performing its duties under ORS 197.319 (4), the Department of Land Conservation and Development shall be guided by ORS 197A.025 (1) and the following principles:

   1. (a) Increasing housing production;
   2. (b) Developing affordable and equitable housing;
   3. (c) Forming partnerships with cities and with other public bodies;
   4. (d) Responding proportionately to housing underproduction;
   5. (e) Escalating enforcement to address persistent, repeated or deliberate noncompliance with housing production strategies and action items; and
   6. (f) Considering the availability of state resources to support housing production.

2. (2)

   1. (a) In determining whether a city should be referred under subsection (3) of this section, the department may base its evaluation on the city’s relative performance with consideration of its region, as established in the Oregon Housing Needs Analysis under ORS 184.451 (1), on any one of, or any combination of, the following:

      1. (A) A city’s progress, proportionate to its population size, toward the total housing production target under ORS 184.455 (2)(a).
      2. (B) A city’s progress, proportionate to its population size, toward the housing production targets for those affordability levels for families making less than 80 percent of median family income under ORS 184.455 (2)(b).
      3. (C) The city’s performance as demonstrated by a statewide housing equity indicator under ORS 456.602.
   2. (b) The department may not base a determination made under this subsection solely on a city’s performance on any single equity indicator.

3. (3) Each year, the department shall refer into its housing acceleration program, under subsection (4) of this section:

   1. (a) Of those cities that adopted a housing production strategy more than three but less than four years ago, including as required by subsection (7)(a) of this section, the lowest performing cities, if any exist, as determined under subsection (2) of this section;
   2. (b) Each city that has failed to adopt a housing production strategy by the deadline under ORS 197A.100 (1);
   3. (c) Each city that has failed to undertake actions in its housing production strategy by the deadline under ORS 197A.100 (4); and
   4. (d) Cities referred under ORS 197.319 (4).

4. (4) For each city referred to the housing acceleration program, within six months, the department shall, in cooperation with the city, complete an audit of specific housing barriers, that must include an analysis of the following factors affecting housing production, affordability and choice:

   1. (a) The existing housing production strategy and the documents and record supporting the strategy;
   2. (b) Public written comments and invited stakeholder feedback received by a date specified by the department;
   3. (c) Land use planning regulations, including zoning and development code;
   4. (d) Permitting and approval processes relating to development of housing and infrastructure supporting housing;
   5. (e) Required fees, exactions and improvements;
   6. (f) Actions and inactions that can impact fair and equitable housing outcomes, environmental justice, climate resilience and location choice;
   7. (g) Local resource deficiencies, including staffing, public facilities, capital improvements to infrastructure, availability of buildable lands and actions or investments to prepare land for development;
   8. (h) Specific additional state resources that could support housing production;
   9. (i) Changes to state laws or rules or the regulations, policies, actions or inactions of any public body, as defined in ORS 174.109, as that could impact housing production; and
   10. (j) Other factors limiting housing that are not within the city’s control.

5. (5) In performing an audit under subsection (4) of this section, the department:

   1. (a) May request concurrent review of the city’s measures and housing production strategies under ORS 197A.205; and
   2. (b) Shall notify any public body identified under subsection (4)(i) of this section.
6. (6) Within six months following an audit under subsection (4) of this section, the city and the department must enter into a housing acceleration agreement that is based on and proportionate to the city’s basis for referral under subsection (3) of this section and informed by the audit under subsection (4) of this section.

7. (7) Under the housing acceleration agreement, the department shall agree to provide:

   1. (a) Specified technical assistance, regulatory support and other assistance, to assist the city in performing its agreement under subsection (8) of this section;
   2. (b) Specific funding under the department’s control; and
   3. (c) Specified assistance in pursuing other state or public funds.

8. (8) Under the housing acceleration agreement, the city shall agree to:

   1. (a) If the department determines that the factors affecting housing production, affordability and choice are a consequence of policies and practices that are directly within the city’s control, adopt an amended housing production strategy within six months that includes:

      1. (A) A timeline for performance under ORS 197A.100 (4) of no less than one year; and

      2. (B) Specified actions which may include, but are not limited to:

         1. (i) Actions under ORS 197A.100 (3);
         2. (ii) Dedicating funds for increased local capacity to facilitate housing production, affordability and choice;
         3. (iii) Dedicating funds for public facilities and infrastructure necessary to support housing production;
         4. (iv) Taking measures that increase the availability of development-ready land;
         5. (v) Amending the development code, approval criteria or procedures to reduce cost or delay to housing production; and
         6. (vi) Taking emergency temporary measures to support housing production; and
   2. (b) Join any department initiated interagency mediation to identify policies and resources that would support housing production in the city.
9. (9) The department may require that a city that is not required to adopt an amendment to its housing production strategy under subsection (8)(a) of this section include findings at the time that the city is next required to adopt a housing production strategy under ORS 197A.100 (1) that describe how the city has addressed the audit’s findings and any suggested actions.
10. (10) The department may grant limited extensions to deadlines under subsections (3)(b) and (c) and (8)(a) of this section for emergencies, good cause or other factors outside of the city’s control.
11. (11) The actions by a city or department under this section are not land use decisions and are not subject to appeal or review.
12. (12) All public bodies, as defined in ORS 174.109, are directed to assist cities and the department in the performance of their duties under this section and to take timely action to ensure that the agency’s rules or policies do not unduly delay implementation of a housing acceleration agreement under this section.

[Formerly 197.293]