Milwaukie council hears DLCD‑funded high‑density study; some members urge targeted affordability tools

Milwaukie — Planning staff briefed the council on a DLCD‑funded study of the city’s Residential High‑Density (RHD) zones and a two‑phase project to complete a code audit and a feasibility analysis, followed by community engagement and potential code/map amendments.

Planning Manager Vera Colias explained that phase 1 will deliver an opportunities and barriers report, pro‑forma analysis and displacement‑risk review by late fall, with a final report expected in winter 2026. The second phase will convert findings into proposed code and map amendments and public engagement.

Council debate was robust. One councilor cautioned against broad, city‑wide RHD deregulation that could disproportionately benefit market‑rate developers and recommended a targeted approach that couples density allowances with stronger requirements or incentives for affordability, land banking, and financing tools. That councilor cited recent local project rents and questioned whether RHD by itself will produce lower rents for existing residents.

Other councilors and staff emphasized that RHD is one tool among many in the city’s Housing Production Strategy (HPS), pointing to ongoing work on land banking, a multi‑unit property tax exemption study, and a revolving loan fund for homeownership. Staff said earlier developer interviews had focused on local builders and affordable‑housing providers and that the phase‑1 scope includes displacement and feasibility analysis.

Next steps: staff will finish the code audit, convene the project team and present a preliminary feasibility study area; the council asked staff to keep an affordability lens in the analysis and to return with concrete options for incentives or tiered density tied to affordability.