Lebanon staff, consultants present final housing code update package ahead of adoption hearings

Lebanon city staff and planning consultants presented a consolidated package of zoning and code amendments designed to implement the city’s Housing Production Strategy and move into the public hearing phase in April–May.

The package, described by Brandon Crawford, lead planner for consulting firm MIG, includes regulations to allow small-lot single-family homes with a 2,500-square-foot minimum lot, new rules for cottage clusters with a reduced minimum lot size of 7,000 square feet and unit caps, updated standards to align manufactured-dwelling rules with state law, standards for tiny homes (including tiny homes on wheels when used as ADUs or inside manufactured-dwelling parks), and zoning changes to incentivize affordable housing with density, height and parking bonuses.

Why it matters: the amendments are the first phase of an eight-year implementation plan meant to increase housing variety and regulated affordability in Lebanon. Staff said they will file the required 35-day notice with the Oregon Department of Land Conservation and Development (DLCD) and proceed with local notice and adoption hearings in April and May.

Key proposed changes and details - Small-lot single-family: The consultancy recommended allowing “small lot single family” as an outright housing type in medium- and high-density zones with a minimum lot size of 2,500 square feet and development standards intended to keep units compact. Crawford said, “We recommended that the minimum lot size for small lot single family be 2,500 square feet.”

- Cottage clusters: The package would allow cottage clusters through administrative review in residential zones, reduce the minimum lot size to 7,000 square feet, and add design and open-space standards based on state model code. The advisory committee recommended raising parking for cottage clusters to two off‑street spaces per unit, with one space allowed for units of one bedroom or less, and suggested a 900-square-foot unit cap to support affordability.

- Manufactured dwellings and parks: Amendments aim to make local rules consistent with state law by allowing manufactured-dwelling parks through an administrative (clear-and-objective) review rather than a conditional-use process, updating definitions to match state statute, and adding clear-and-objective design standards for narrow dwellings. Staff cautioned these local standards could be affected by pending state legislation; city staff noted, “there is a bill that's currently going through the state legislature this year, that would pretty much strip out city's abilities, for single family homes and subdivisions and and that kind of thing to do design standards.” The transcript identified that bill as House Bill 2258 and said it remains under amendment.

- Tiny homes: The proposed language allows tiny homes as accessory dwelling units (ADUs), inside manufactured-dwelling parks, and within cottage clusters. Draft standards mirror Oregon building-code approaches: a 400-square-foot maximum, skirting for wheeled units, hard all-weather pad, pitched roof, and separate utility connections where required. Staff stressed that tiny homes classified as ADUs are subject to the same state limitations as other ADUs (for example, the city cannot require separate off-street parking for ADUs). The packet recommends one off-street parking space per tiny home unless it is an ADU; the state prohibits requiring minimum off‑street parking for ADUs.

- Affordable-housing zoning bonuses and conversions: To align with SB 8 and other state rules, the draft would allow development incentives for multifamily projects that include affordable units: density and height bonuses, parking reductions, open-space reductions, and increased lot coverage tied to affordability thresholds delineated by HUD/area median income standards and recorded affordability covenants. The consultants said these bonuses follow state thresholds and are intended to “incentivize affordable housing.” The amendments also incorporate state laws allowing conversion of hotels/motels for emergency/affordable housing and permitting single-room-occupancy/group housing and emergency housing in more zones.

- Cleanup items and remaining issues: Package 2 contains code cleanups: removing the city’s residential infill standards in favor of standard zoning, simplifying nonconforming-use language, revising ADU setbacks, and lowering the 0-lot-line minimum lot size to 2,500 square feet to match the small-lot standard. One unresolved item remains the rules limiting units served by access easements or flag-lot access; staff said that will be worked further with the development-review team and developers to create clearer, less restrictive language before hearings.

Public and advisory input at the briefing City staff and MIG reported the project advisory committee (PAC) generally supported the consolidated package after extended review. Committee members and several commissioners raised concerns about parking, design integrity of tiny homes on wheels, emergency access, maintenance/nuisance enforcement, and the possibility that pending state legislation could preempt local design standards. One commissioner said tiny homes on wheels “are just a modified version of a travel trailer” and expressed concern about long-term maintenance and visual impacts; staff replied the proposed design standards address appearance, access, and utility hook-ups and that existing code enforcement and nuisance standards would apply.

Next steps Staff will finalize edits, send the mandatory 35-day notice to DLCD, complete local notice, and hold adoption hearings in the coming months with an adoption target in May. City staff said the amendments are intended to be iterative; if issues appear post-adoption, the code can be revisited and revised.

What was not decided There were no final votes in the joint briefing. The package is still at the adoption-ready stage pending the formal hearing process, public testimony, and any further edits identified during DLCD notice and review.