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Planning staff propose microvillage and SRO standards to expand deeply affordable housing options
Summary
Staff proposed adding 'microvillage' housing to Eugene’s land-use code and expanding standards for single-room occupancies (SROs) to create smaller, lower-cost dwelling options; incentives include unit-size bonuses for accessible or <80% AMI units and a 4:1 density calculation for small units.
City staff presented a package of land‑use code changes to the Eugene Planning Commission on May 26 that would create a permanent land‑use category for microvillage housing and set clearer development rules for single‑room occupancies (SROs).
Leah Rous, senior planner, described microvillage housing as "very small dwelling units with an in‑unit bathroom at under 400 square ft" with shared community buildings and on‑site services; staff would allow a size bonus up to 600 square feet for accessible units or units affordable to households earning under 80% of area median income. Rous said microvillages could be developed through community land trusts or cooperatives to enable ownership or deeply affordable rental models.
Why it matters: Eugene’s 2026 Oregon Housing Needs Analysis shows the city must plan for nearly 26,000 new dwellings over the next 20 years, including roughly 700 affordable units per year for the lowest‑income households. Staff told commissioners microvillage and SRO options are intended to add housing types that can reach deeper affordability without relying entirely on subsidy.
Key details: Staff proposed that microvillage dwellings and SROs use the same density calculation—"for every four SRO units or microvillage dwellings, that would equal one dwelling for the purposes of calculating maximum density"—which affects how projects count toward zoning density limits. Microvillage developments would have minimum site sizes (at least eight units and at least one community building per site), and limited neighborhood commercial uses would be allowed in some zones to support on‑site services or workforce opportunities. SRO changes reflect state law that allows detached or attached SRO units and permits up to six units in low‑density zones.
Commissioners pressed staff for details on demand and program outcomes. Staff said there is not yet a definitive count of microvillage units in the city (microvillage is not currently a permanent type), and that the city has tracked 44 net new SRO units since 2012. Staff also said the exact role microvillage and SROs will play in meeting the 20‑year need (the share of the 700 affordable units per year) will be decided through further housing‑need analysis and incentives tied to other city housing tools.
Context and next steps: Staff emphasized the microvillage standards were refined after outreach and prior briefings and noted draft code language is already available and will be included in the public packet before the June 23 public hearing on the 2026 package. Commissioners and staff discussed how incentives, community land trusts, and the city’s affordable‑housing tools might be used to steer microvillage projects toward deeper affordability.
The Planning Commission will take public testimony at a June 23 hearing and deliberate in July; staff said final recommendations on this package will move to city council later in the year.
