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Housing Needs and Production (House Bill 2003)

Picture of a triplex in Salem, Oregon.In 2019, the Oregon Legislature passed House Bill 2003 to help communities meet the diverse housing needs of Oregonians. The law requires Oregon's medium and large cities to study the future housing needs of their residents and to develop strategies to produce the housing their residents need.

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Housing Needs and Production Strategies

Oregon cities have long been required to study their community's future housing needs when proposing to expand their urban growth boundary. House Bill 2003 requires cities over 10,000 people to analyze what housing is needed for current and future residents every six to eight years. Cities within Metro are required to update their Housing Needs Analysis every six years; cities outside Metro must update their Housing Needs Analysis every eight years.

The bill then requires each city to adopt a housing production strategy within a year of completing the housing needs analysis. The strategy must list specific actions a city will take – such as revising regulations or providing financial incentives – to promote the development of all identified housing needs.

House Bill 2003 also directs the Oregon Housing and Community Services to conduct a pilot project to calculate housing needs for the next 20 years in each region of the state, for all income levels. The Department of Land Conservation and Development (DLCD) must then report to the legislature on the effectiveness of the regional approach.

Housing Needs Analysis Schedule

House Bill 2003 directs the Land Conservation and Development Commission to adopt a schedule for cities over 10,000 people to update their Housing Needs Analyses (HNAs). That schedule must be adopted by December 31, 2019. The law requires cities within the Portland Metro region to update their HNA every six years. Cities outside Metro must update their HNA every eight years.

To create the schedule, DLCD surveyed Oregon cities about their most recent HNA and other housing-related planning work that they are engaged in. This information was used to guide the creation of the HNA schedule. Following the survey period, DLCD sent a draft HNA Update Schedule to affected cities and to people who signed up to receive notices about housing-related rulemaking activities. The agency also provided the draft schedule on this webpage for public comment.

Memo from DLCD Director Rue
Final Housing Needs Analyses Schedule

Affordable Housing on Public Lands and next to Places of Worship

The bill also authorizes cities to allow affordable housing to be built on public land inside urban growth boundaries, and allows multiple buildings for affordable housing to be built next to places of workshop.

Technical Assistance to Local Governments

House Bill 2003 provides $1 million to DLCD to provide technical assistance to cities working to complete their required housing needs analysis and production strategies. These funds will be made available to local governments in 2020-2021. Please visit the Grant Opportunities page for more information.

DLCD recently conducted a webinar to explain the proposed planning assistance funding in detail and answer participant questions. You can find a video recording of the webinar here (Note: This is a large ZIP file and may take several minutes to download) and presentation slides here.

Rulemaking

House Bill 2003 requires cities with a population greater than 10,000 to prepare and adopt a housing production strategy within one year of each city's Housing Needs Analysis (HNA) update deadline. The strategy must be created in accordance with rules adopted by DLCD. A housing production strategy must include a list of specific actions that the city shall undertake to promote development within the city to address housing needs identified in their HNA. Administrative rules for housing production strategies are currently in development.

If you would like to receive email updates on housing rulemaking, sign up to the Housing Rulemaking GovDelivery list.

For more information on DLCD's housing-related rulemaking activities, go to Housing Rulemaking.

Stay Connected – Provide Comments

Rules for HB 2001 and 2003 are currently in development. The Land Conservation and Development Commission (LCDC) will hold a public hearing where members of the public may submit public comments. For administrative rules applicable to housing prodution strategies, the anticipated hearing will occure on November 12-13. Public comments may be submitted in-person at these hearings or emailed to DLCD to housing.dlcd@state.or.us.

Community Conversations:

November 6, 2019 - McMinnville

December 10, 2019 – Medford

January 29, 2020 – Portland West

January 30, 2020 – Portland East

February 10, 2020 – Hermiston

February 11, 2020 – Redmond

If you would like to receive email updates on rulemaking on House Bill 2003, sign up to the Housing Rulemaking GovDelivery list.

If you would like to receive email updates on general DLCD housing work, sign up to the Housing GovDelivery list.

Local planners should contact their DLCD Regional Representative for more information.

OHCS has this webpage explaining its work to implement the Regional Housing Needs Analysis portion of the law.

More Resources

Information about House Bill 2001: a related housing bill from the 2019 legislative session.

More DLCD Housing Resources



Contacts

Ethan Stuckmayer
Senior Planner of Housing Programs
ethan.stuckmayer@state.or.us
Phone: 503-934-0619

Kate Srinivasan
Research Analyst, Oregon Housing and Community Services
kate.srinivasan@oregon.gov
(503) 986-5468

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