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Housing Needs and Production (House Bill 2003)

In 2019, the Oregon Legislature passed House Bill 2003 which aims to help communities meet the housing needs of Oregonians. The law requires Oregon's cities over 10,000 population to study the future housing needs of their residents and to develop strategies that encourage the production of housing their residents need. In addition, HB 2003 initiated a prototype Regional Housing Needs Analysis to investigate a program where housing need is estimated and allocated on a regional level.

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Quick Links

Text of House Bill 2003
House Bill 2003 Overview One-Pager
Technical Overview of House Bill 2003
Map of Affected Cities
List of Affected Cities

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 to analyze what housing is needed for current and future residents every six or eight years. Cities within the Portland Metro Boundary are required to update their Housing Needs Analysis (HNA) every six years; cities outside the Portland Metro Boundary must update their Housing Needs Analysis every eight years.​

The bill also requires each city to adopt a Housing Production Strategy (HPS) within a year of the housing needs analysis deadline. The strategy must include a list of 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 directs the Land Conservation and Development Commission (LCDC) to adopt a schedule for cities over 10,000 people to update their Housing Needs Analysis (HNA). That schedule was adopted on December 20, 2019 and updated on November 23, 2020. The law requires cities within the Portland Metro region to update their HNA every six years. Cities outside the Portland Metro must update their HNA every eight years. The schedule can be found as an attachment to OAR 660-008-0045, or at the following link:

Adopted Housing Needs Analysis Schedule

Housing Needs Analysis and Housing Production Strategy Timeline

In addition to the adoption of the HNA schedule described above, House Bill 2003 requires cities over 10,000 population to adopt a Housing Production Strategy (HPS) one year following their HNA adoption deadline. The HPS must outline a list of specific tools, actions, and policies that the city plans to take to address the housing need identified in the HNA. This also includes the city's plan and timeline for adopting and implementing each strategy. DLCD will review and approve each city's HPS based on the adequacy of strategies to meet all identified housing needs, the appropriateness of strategies to facilitate the production of needed housing, as well as how well the strategies, taken as a whole, will achieve fair and equitable housing outcomes. Cities must reflect and evaluate the progress and effectiveness of their HPS at a mid-term checkpoint (every 3 or 4 years, depending on the HNA schedule) to see what strategies worked, which ones did not, and any course corrections being made to ensure all housing needs are addressed.

Throughout 2020, DLCD led rulemaking efforts to help cities comply with the requirements of House Bill 2003. This work established the components required for a Housing Production Strategy report and created compliance criteria for cities that fail to meet their housing need. The resulting Oregon Administrative Rules are in place and can be viewed on the Secretary of State web page (OAR 660-008-0045 through -0070).

Additionally, staff crowd-sourced a list of example actions that encourage housing production that cities can implement to promote housing within their jurisdictions. The list of example strategies can be found as an attachment to OAR 660-008-0050, or at the following link:

List of HPS Tools, Actions, and Policies

For more information on the rulemaking process including past meeting materials and summaries, please visit the Housing Rulemaking web page.​

On February 23, 2021 DLCD hosted the first in a series of webinars to build local government understanding, knowledge, and capacity around the implementation of HB 2003. In the webinar, DLCD staff outlined the major sections of a HPS Report and described the review and enforcement process. The webinar also included a time for attendees to ask clarifying questions and to get further guidance from the Department. A written response to each question asked during the webinar is provided below.

Housing Production Strategy Open Forum Questions and Answers(updated March 10, 2021)

Information about future webinars in this series will be posted to this webpage and will be distributed via email. If you would like to be notified of future webinars, please contact DLCD at housing.dlcd@dlcd.oregon.gov.​

In the spring of 2021, DLCD partnered with Portland State University Professor Lisa Bates, Ph.D., and researcher Seyoung Sung, Ph.D., to create an Anti-Displacement and Gentrification Toolkit. In conjunction with the Housing Production Strategy Program, the toolkit provides a resource for cities wanting to pursue development without displacement. The toolkit walks practitioners through step-by-step analyses they can replicate in order to better understand the gentrification and displacement dynamics occurring in their communities, and with this knowledge, link appropriate housing production strategies to stabilize these communities.

DLCD Toolkit Guide

Attachment A - Portland State University Anti-Displacement and Gentrification Toolkit

Attachment B - HPS Strategies

This toolkit was presented and published during a September 9th, 2021 webinar. The recording of the webinar was too large to warehouse on this website but can be provided upon request by email housing.dlcd@dlcd.oregon.gov.

Presentation Slidedeck

Webinar Notes

House Bill 2003 directed Oregon Housing and Community Services (OHCS) and the Department of Land Conservation and Development (DLCD) to pilot and evaluate a methodology that estimates and allocates housing need for all communities in Oregon. In the 2021 Legislative Session, DLCD and OHCS were directed to develop policy recommendations on the incorporation of this methodology into state and local planning processes.

To learn more about this effort, please visit the Oregon Housing Needs Analysis project page.

Stay Connected

Please continue to revisit this page frequently, as information will be updated as local governments progress towards implementation of House Bill 2003. Questions or comments about House Bill 2003 implementation can be directed to DLCD at housing.dlcd@dlcd.oregon.gov.

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

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

More Resources

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

Contacts

Ethan Stuckmayer
Senior Planner of Housing Programs
ethan.stuckmayer@dlcd.oregon.gov
Phone: 503-302-0937

Sean Edging

Housing Policy Analyst
sean.edging@dlcd.oregon.gov
Phone: 971-375-5362