Milwaukie planning commission recommends council approve code amendments tied to Oregon Senate Bill 1537

The Milwaukie Planning Commission on Feb. 4 recommended unanimously that the City Council approve code amendments (File ZA-2024-002) implementing aspects of Oregon Senate Bill 1537 and allowing the city to seek an exemption from parts of the law.

Senior Planner Vera Coley summarized the state law and the local amendments under consideration. “Senate Bill 1537 was signed into law ... the law became effective on January 1st this year, and it sunsets on January 2, 2032,” Coley said, and she described the bill’s purpose as addressing housing supply and affordability by creating an administrative pathway for developers to request variances from certain development and design standards.

Coley told commissioners that SB 1537 establishes a specific review path (administrative type 2 review) and that only the applicant would have standing to appeal those administrative approvals under the statute. She explained several key thresholds and provisions in the state law, including a minimum applicability density of 17 units per acre for eligible proposals and prescribed limits on variances available for development standards and design details. Coley also explained a local exemption process administered by the Oregon Department of Land Conservation and Development (DLCD), which allows a city to be exempt from applying some provisions of SB 1537 if it meets specified criteria.

Staff proposed two primary local code changes: (1) allow variances to maximum density where the current code prohibits them and (2) permit a type 2 variance to increase the maximum density by up to 25 percent. Coley said the changes would allow Milwaukie to request the state exemption and preserve local control over how density and development standards are applied. She noted that the city’s existing type 2 variances for some standards already exceed the thresholds in SB 1537.

Commission discussion supported the staff recommendation. Vice Chair Edge said the findings linked the proposal to the city’s comprehensive plan and housing policies; Commissioner Pinnick and others praised staff for the clarity of the findings and for aligning city code with housing goals. Commissioners also noted that Milwaukie has approved a high percentage of variance requests in recent years, which is relevant to seeking a state exemption.

There was no public testimony at the hearing. A commissioner moved and a second supported a motion to recommend approval of ZA-2024-002 to the City Council with the findings distributed by staff. The motion passed unanimously. The Planning Commission’s recommendation will be forwarded to a City Council public hearing, tentatively scheduled for Feb. 18.