Courtesy of Flynn Casey and Christiana Hedlund
In 2022, the U.S. Economic Development Administration (EDA) awarded DLCD a federal grant to support the state’s growing mass timber industry. Using this funding, DLCD developed a suite of resources for local governments, referred to as the Code-UP project, to encourage streamlined development processes for mass timber and modular, or pre-fabricated, housing. DLCD is not currently providing local governments with direct technical assistance under Code-UP, but continues to pursue funding for Oregon and actively supports the mass timber industry’s economic development potential for rural and urban areas of the state. Resources developed through this project are linked below.
EDA awarded the Oregon Mass Timber Coalition (OMTC) $41.4 million to develop and expand Oregon’s emerging mass timber industry. This grant specifically focused on utilizing mass timber products in prefabricated, modular home construction. OMTC member organizations and state agencies, including DLCD, dedicated this funding to:
- Research and development projects
- Efforts to streamline state and local regulations that impede growth in the industry
- Capital improvements at the Port of Portland
- Industry and community engagement efforts
DLCD used a portion of this funding to help cities update and modernize local development codes to allow and encourage the use of modular housing through the Code-UP project. Ten Oregon communities were selected to receive technical assistance. Wildfire affected and rural communities were given funding priority.
Code-Up Tools for Local Governments
Pre-Fabricated and Modular Housing Model Code
This guidance document includes resources to assist local governments in updating their development codes to facilitate construction of all factory-built housing, including prefabricated, modular, and manufactured housing. The document serves as an audit workbook to help local governments identify and address regulatory barriers to prefabricated/modular housing in their codes. It also provides model code language that can be adopted into local development codes to better facilitate development of this housing type.
Additional Model Code Resources:
Recommendations for State and Local Policymakers to Support Mass Timber Industry Growth
DLCD contracted Cascadia Partners to engage community members in 10 jurisdictions across the state to understand the constraints, challenges, and opportunities for housing and workforce development related to the mass timber industry. The
Mass Timber Modular Housing Community Engagement StoryMap summarizes feedback from community engagement activities and provides policy recommendations. These policy recommendations focus on how the state can collaborate with regional and local partners to meet rural housing and workforce needs through mass timber and modular housing. Interviews with interested parties, in-person engagement events, and survey responses informed these recommendations.
Completed Code-UP Project Activities
Local Government Direct Technical Assistance
DLCD contracted with the planning and urban design firm MIG to help cities update their development codes. From 2024 to 2025, DLCD assisted ten jurisdictions to allow and encourage factory-built housing by entitling thousands of residential lots through updated development codes. The participating jurisdictions were Chiloquin, Clatsop County, Creswell, Gates, Lincoln City, Mt. Vernon, Phoenix, Rufus, Sandy, and Talent. Consistent with the federal grant award, the department prioritized assistance to wildfire affected and rural communities.
Economic Development District Industry Engagement
DLCD funded industry engagements efforts led by four of
Oregon's Economic Development Districts (EDDs) to support mass timber and modular housing development. This work focused on providing capacity to under-resourced regions of the state and communities needing investment in housing. The EDDs convened local housing developers to learn about opportunities for factory-built housing solutions, and they initiated local collaborative efforts in support of the mass timber industry.
Columbia Pacific Economic Development District, Cascades West Economic Development District, Greater Eastern Oregon Development Corporation, and Northeast Oregon Economic Development District each participated in this project in 2025.
The Oregon Mass Timber Coalition
DLCD is a founding member of the Oregon Mass Timber Coalition (OMTC). The OTMC is a partnership between Oregon’s leading research universities and government agencies. Our vision is to enhance and expand Oregon’s established mass timber industry ecosystem, growing it into a significant regional cluster.
For more information on the suite of OMTC projects, visit:
https://www.masstimbercoalition.org.