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City attorney details Moratorium 5.0: lottery and first-come rules to allocate 190 ERUs
Summary
Draft Moratorium 5.0 would create a Development Allocation Program to distribute 190 newly available ERUs: 7 reserved for ADUs, 128 for economic development (first-come with criteria), and 42 for residential projects via lottery. The draft aligns ERU expirations and sets 12/31/2027 as an expiration alignment date.
Josh Silver, the city attorney, briefed commissioners on draft Moratorium 5.0 and the Development Allocation Program (DAP) intended to distribute up to 190 conditional ERUs the city expects to receive from EPA and DEQ. Silver said state statute (transcribed as ORS 197.520 in the packet) requires the city to design a program that addresses economic development and housing needs when additional ERU capacity becomes available.
Silver described a proposed allocation: 7 ERUs set aside for accessory dwelling units (ADUs) awarded on a first-come basis, 128 ERUs for economic-development or employment lands (first-come with eligibility criteria), and 42 ERUs for residential uses (other than ADUs) to be allocated via a lottery. He told commissioners the draft document contains the details and that some minor revisions are expected before the item goes to the city council.
On lottery mechanics, Silver said the council decided to run a new lottery when additional ERUs become available rather than keeping a standing winners' list; the city could choose when to run subsequent lotteries so it does not need to hold a new drawing immediately when a single ERU becomes available. He also said staff intends to align expiration dates of previously allocated ERUs to 12/31/2027 and that an ERU is deemed used when a building permit is issued.
