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Staff: new law retroactively voids private covenants that bar middle housing

Lake Oswego Planning Commission · July 29, 2026
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Summary

City staff told the Planning Commission that House Bill 2138 retroactively voids private covenants, conditions and restrictions (CC&Rs) that unreasonably restrict middle housing or ADUs, potentially unlocking development in neighborhoods previously limited by HOAs.

Eric Olson, Lake Oswego's long-range planning manager, told the commission the law has an immediate and practical effect on private restrictions. "It basically retroactively voided any, private restriction ... any CC and R provisions that might unreasonably restrict middle housing or accessory dwelling units are now retroactively voided," Olson said.

Olson cautioned that the city does not manage or change private covenants; the statute's change affects private transactions and enforcement. "No changes to our code are needed for this and no changes really, by the city at all because this isn't really something that we are involved with," he said. Commissioners noted this could shift development potential on lots tied to HOAs or prior deed restrictions and asked for staff materials summarizing the effect; Olson said a summary attachment was included in the meeting packet.