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Lake Oswego planning commission reviews proposed development-code audit to address housing and business barriers

5561684 ยท July 29, 2025
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Summary

City staff outlined a Metro-funded code-audit project intended to identify regulatory barriers to housing production and business development; the project is contingent on a Metro 2040 grant and would run through mid-2027 if funded.

The Lake Oswego Planning Commission on Aug. 11 heard a staff presentation on a proposed audit of the city's development code intended to identify barriers to housing production and business activity and to recommend targeted code amendments.

"My name is Evan Franstead, senior planner. Tonight, I'll be providing an update on the city's recently initiated code audit project," Evan Franstead said as he opened the work session on the code audit and amendments for housing and business.

The commission was briefed on the project purpose, team, process overview and a tentative schedule. City staff said the audit was identified in the city's 2022 economic development strategy and the 2024 housing production strategy, and is supported by a 2025 City Council initiative to review the development code (referred to in the presentation as the CDC) to identify and address obstacles to housing and economic development.

Staff described draft objectives: identify code standards that could be streamlined or updated to reduce complexity and costs, ensure consistency and clarity for applying development standards, remove procedural requirements that delay projects, and evaluate opportunities to consolidate or simplify zoning districts and overlays.

Franstead said the department applied for a Metro 2040 planning and development grant to hire a consultant. If the grant is awarded, staff said the city would release a request for proposals in October and aim to select a consultant in December. Under the tentative schedule presented, the consultant'led work would start with a January 2026 kickoff, an audit phase in April'July 2026, a draft audit and recommendations in August'November 2026, drafting of code amendments beginning December 2026, and final adoption phases in spring'summer 2027 โ€” a total roughly spanning 23 months that could conclude around August 2027 if funding and timelines hold.

Franstead outlined a two-phase process with public involvement to include a technical advisory committee, stakeholder interviews, open houses, surveys and public hearings. He said the draft audit report would identify specific CDC sections needing updates to comply with existing state land use laws and with legislation passed during the 2025 legislative session, and would recommend where standards or procedures discourage housing through delays or added costs.

Commissioners asked about alternative funding if the Metro grant is not awarded; staff said no firm plan B exists at present and that the RFP and consultant hire are contingent on funding. Staff noted Metro's planning and development grant recently moved to a quarterly cycle and that other jurisdictions in the region, including Clackamas County, Multnomah County, Gresham, Hillsboro and Hood River, have pursued similar audits or diagnostic reports.

Earlier in the meeting the commission unanimously approved the minutes from its July 28, 2025 meeting.

Next steps described to the commission: await Metro Council action on the grant application in late September, release an RFP if funded, and return to the commission for work sessions and public hearings as the project proceeds. The commission was also informed the department will present a draft public involvement strategy for the Foothills framework plan update at the Aug. 25 meeting.