Milwaukie staff outline proposed zoning incentives to spur affordable housing; council raises concerns on duration and design trade-offs

City planning staff on Tuesday presented a proposed Milwaukie zoning amendment that would consolidate affordable-housing incentives into a single code section intended to speed construction and increase the number of income-restricted units.

The proposal packages multiple land-use variances—such as reduced setbacks, increased lot coverage and an increased maximum density—into an expedited “type 2” review with a 100-day timeline, and ties eligibility to minimum unit counts and income-targeting rules. Staff said qualifying developments must include at least three dwelling units and meet one of several affordability tests; the draft ties continued affordability to deed restrictions for 99 years. City leaders and staff debated whether those thresholds and requirements would be usable for small builders and whether some incentives would undercut design standards or green-space goals.

Why it matters: The change is part of Milwaukie’s housing production strategy, adopted in 2023, and is intended to make it easier for developers to build more affordable units without going through multiple individual variance processes. Councilors said the draft raises trade-offs—less green space and altered downtown design rules for affordable projects—while also asking how the city would ensure long-term affordability and whether the rules would be practical for small-scale or middle-housing projects.

“What we have before us is a code-based approach to addressing affordable housing supply and affordability,” Michael, the city’s planning manager, told…