The Association of Oregon Counties (AOC), the League of Oregon Cities (LOC), and the executive branch spent the last four months in complex negotiations surrounding rulemaking for the Middle Housing Oregon Homes Program, created by House Bill 2258 (2025). The final rules were adopted by the Land Conservation and Development Commission (LCDC) on Oct. 22.
The Middle Housing Oregon Homes Program (known simply as Oregon Homes) allows housing developers to submit pre-approved housing development plans to any planning department in the state for automatic approval – assuming the necessary site requirements are met.
HB 2258 lists the site requirements that must be met. Lots or parcels must be inside an established urban growth boundary (UGB) or city limit boundary, on a slope averaging no more than 15%, and not within a mapped area of environmentally sensitive natural resources. Additionally, trees of specific diameter must be preserved.
Initial proposed rules from the Department of Land Conservation and Development (DLCD) prohibited a local government from considering many factors in the permitting process which typically would be grounds for altering a development plan. AOC, LOC, and local jurisdictions coordinated to provide comprehensive comments in opposition to the proposed preemptions. These coordinated efforts proved successful when LCDC declined to approve the initial draft and directed DLCD to incorporate local government concerns in a new draft. LCDC was further informed during a meeting in August that additional alterations needed to occur. At the conclusion of negotiations, local governments secured significant adjustments to address concerns raised throughout the process.
Under the final version of Oregon Homes (OAR 660 Div. 47) housing developments are required to follow the DLCD’s height restrictions when located near airports and airstrips (ORS 836.608 and OAR 660 Div. 13); the defensible space code, and the Oregon Fire Code. Oregon Homes’ projects will also be required to offer one parking location per dwelling. Local governments, in addition to using established comprehensive plans to identify environmentally sensitive and natural hazard areas, may now also use locally adopted ordinances or resolutions.This includes the Department of Geology and Mineral Industries IMS, OFR and SLIDO areas as well as FEMA Flood Maps.
DLCD ended up addressing setbacks differently depending on the jurisdiction issuing the permit. Oregon Homes’ projects within UGBs (unincorporated communities) will be required to have a 15-foot setback in the front and 10 feet on all remaining sides of the structure.However, within city limits the requirement is 5 feet on all sides. The larger setback for counties is to accommodate the urban services that would need to be provided once annexed into city jurisdiction at a later date.
LCDC approved OAR 660 Division 47 (MHOR Homes) on Oct. 22 and went into effect immediately.
Contributed by: Branden Pursinger | Legislative Affairs Manager