SALEM, OR – On December 5, 2024, the Land Conservation and Development Commission (LCDC) unanimously adopted the first set of rules the state will use to implement comprehensive, system-wide housing planning reforms to address Oregon's housing crisis.
The adopted rules direct the approaches and methods local governments will use to reverse decades of underinvestment in housing production and meet community needs. They do this by:
• Standardizing planning: Local governments across the state will use the same methods to determine local housing need, creating a better statewide assessment of need and allowing to coordination across regions.
• Supporting local governments: Accountability measures will allow the state to track local progress toward housing targets and help when cities or counties have difficulty making progress. Technical assistance, funding and other resources from the state will be available to help local governments meet their housing goals.
• Reducing legal vulnerability for local governments: Local governments will have clearer obligations for meeting housing needs.
• Focusing on Equity: The community engagement required of cities ensures that housing policies address the needs of marginalized and underserved groups.
The second phase of rulemaking will seek to provide clarity and certainly in how cities assess the capacity of land within an urban growth boundary to meet their community's housing need. The third phase will include the development of a suite of adoption ready actions and other resources local governments can use to address housing need. The three phases of rulemaking, concluding before January 2026, will result in Oregon's most significant housing reform in decades.
Oregon's current housing undersupply threatens the core of our common purpose as Oregonians. To address this statewide need, the Department of Land Conservation and Development (DLCD) was charged by the Oregon Legislature in House Bill 2001 (2023) to develop rules that chart a new direction to meet housing needs more fully and equitably.
"The level of effort and care that our commission, staff, and partners have taken with these rules is a testament to our collective desire to serve Oregonians," said Brenda Ortigoza Bateman, DLCD Director. "These rules will help Oregon communities accurately identify and characterize housing need. Meeting that need through housing production will require a multi-disciplinary effort, involving infrastructure and development-ready land, local government staffing capacity, and access to capital."
"It is truly rewarding to reach this important milestone having witnessed the immense efforts devoted to this process over the last two years," said Anyeley Hallova, LCDC Chair. "As a real estate developer, I'm keenly aware of the scope of investment and lending that is critical in supporting the housing solutions we desperately need in Oregon and how we need to address the current gap. As commission chair, I'm encouraged that our newly developed rules build a strong framework to better serve our diverse communities and increase equitable housing production across the state."
Former Director of the Oregon Fair Housing Council and Vice-Chair for the commission, Allan Lazo served as commission liaison to the rulemaking effort and has been deeply engaged in this work throughout development of the rules. "We know that every part of the state is in a housing crisis, and these rules in front of us today, this is the part of the solution this commission plays," he shared during commission's deliberation. "These rules address all three legs of the stool - production, affordability and choice. There are going to be pieces of this we don't agree with, that we won't get right, that we will need to come back to; but every benchmark we reach as a commission moves us leaps and bounds above our last step. There are capacity issues in cities and local governments, shifting regulations that they are being asked to comply to - which really emphasizes the ongoing support this program needs. This will take a long-term commitment from all involved agencies and the legislature for more than just production, for affordability and choice. I think there is something in this program for every community. And it sends the message that we are doing what we can do to move Oregon beyond a crisis."
This initial reform to Oregon's rules for planning for housing is accompanied by a suite of services and tools created by partner agencies:
• The Oregon Department of Administrative Services (DAS) will develop methodology to estimate the state's 20-year housing needs and set housing production benchmarks for local government progress and outcomes. DAS must publish the methodology and production targets annually, with the first release scheduled for January 1, 2025.
• The Oregon Department of Housing and Community Services (OHCS) will develop a housing production dashboard to monitor local governments' permitting progress toward housing production targets. Additionally, OHCS will establish indicators for monitoring equitable housing outcomes by local governments. OHCS must publish the dashboard and equity indicators annually, with the first release scheduled for January 1, 2025.
• DLCD will adopt and amend all rules associated with the legislation by January 2026. DLCD aims to reform the implementation of housing planning from a narrow focus on zoning and land capacity towards a more comprehensive framework that emphasizes local actions to promote housing production, affordability, and choice within communities and across the state.
Oregon Housing Needs Analysis – Adopted Rules
"Boosting housing supply demands that we activate bold, practical actions to support our local leaders in tackling one of the state's biggest challenges. We know housing is a platform for quality of life and strong communities. As a government agency that exists to serve the people of Oregon, we will not be timid in pursuing solutions for the betterment of those we serve," said OHCS Director Andrea Bell. "As the Oregon Housing Needs Analysis details, Oregon can't move toward a more equitable economy or address the full complexity of the homelessness crisis unless we substantially increase our supply of homes."
This suite of rules and dramatic reform to Oregon's housing planning process would not be possible without the support of the Governor's Office and the many community members and partners who contributed to the overall process and project. DLCD would like to extend their appreciation for this dedication of support, time, and expertise.
If you have questions or feedback about this project, contact the DLCD Housing Team at [email protected].
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