Oregon City staff brief commissioners on new state housing laws; planning code changes expected

City Attorney Carrie Richter briefed the Oregon City Commission on Aug. 12 about major housing bills from the 2024 and 2025 Oregon Legislature and what the city will need to change in local code and procedures.

"The purpose of this quick presentation is to share with you some of the more important bills that came out of the 2025 legislature regarding ... housing," Richter said. She told commissioners the briefing was intended to highlight measures "that Salem says we must do" and to give staff time to prepare code amendments and process changes.

Why it matters: Richter said several measures narrow local discretion and create new state timelines that will affect development review, historic-district design review and what kinds of local requirements the city may apply to middle housing, single-room-occupancy (SRO) projects and greenfield subdivisions. Staff flagged several items that will require code work, new internal procedures and outreach to applicants and the public.

Key points Richter highlighted: - Senate Bill 1537 (2024) adjustment/exemption process: Oregon City applied for an exemption from the statute's mandatory adjustment requirement; that application is in the Housing Accountability and Production Office (HAPO) notice period. "We expect a decision in the fall," Richter said. HAPO reviews adjustment applications and can grant full approval (broad exemption), a limited approval covering some adjustments, or a denial. - Senate Bill 974 (referred to in the presentation as "9 74"): includes a design-standard preemption for…