These regulations are intended to implement the provisions of Oregon Revised Statutes (ORS) 197A.445, 197A.460, and 197A.470 (5)—(6) related to siting of affordable housing.

(Ord. No. 2024-01, § 1(Exh. A), 2-20-2024)

ORS 197A.445 (added through Senate Bill 8, 2021) requires local governments to allow affordable housing without requiring a zone change or conditional use permit if certain criteria and standards are met. ORS 197A.460 (added through House Bill 3395, 2021) also requires local governments to allow affordable housing for low- and moderate-income households on lands zoned to allow commercial uses. These requirements are implemented by this section.

A.

Applicability.

1.

At the applicant's request, a proposed affordable housing project that meets the applicability criteria in Subsection B. of this section shall be subject to the standards in Subsection C.

2.

At the applicant's request, a proposed affordable housing that meets the applicability criteria in Subsection D. of this section shall be subject to the standards in Subsection E.

3.

For a proposed affordable housing project that meets the criteria in both Subsections B. and D., the applicant may choose to follow either the standards in Subsections C. or E.

B.

ORS 197A.445 Applicability Criteria. Affordable housing projects are allowed pursuant to ORS 197A.445 provided they meet the affordability criteria in Subsection 1., and meet either the ownership criteria in Subsection 2. or the zoning criteria in Subsection 3., or both. Affordable housing provided pursuant to ORS 197A.445 is only allowed on property zoned for industrial uses if the criteria in Subsection 4. are met.

1.

Affordability.

a.

Units are made affordable pursuant to either Subsection i., ii., or iii.

i.

Each unit on the property is made available to own or rent to families with incomes of 80 percent or less of the area median income as defined in ORS 456.270;

ii.

The average of all units on the property is made available to families with incomes of 60 percent or less of the area median income; or

iii.

A manufactured dwelling park is operated that serves only households with incomes of 120 percent or less of the area median income.

b.

The affordability of the units, including affordability under a covenant as described in ORS 456.270 to 456.295, is enforceable for a duration of no less than 30 years.

2.

Ownership. Except as specified under Subsection 4., below, the housing is owned by:

a.

A public body, as defined in ORS 174.109;

b.

A nonprofit corporation that is organized as a religious corporation;

c.

A nonprofit corporation that is organized as a public benefit corporation whose primary purpose is the development of affordable housing;

d.

A housing authority, as defined in ORS 456.005; or

e.

A manufactured dwelling park nonprofit cooperative, as defined in ORS 62.803.

3.

Zoning. The property is zoned: for commercial uses; to allow places of assembly for religious institutions; or as public lands.

a.

Eligible commercial zoning districts are: Central Business District (C-1), General Commercial (C-2), Village Commercial (C-3).

b.

Except as provided in Subsection 4 below, eligible industrial zoning districts are: Industrial Park (I-1), and Light Industrial (I-2).

4.

Eligibility of Industrial Property. The standards in Subsection C. apply on property zoned to allow industrial uses only if the property is:

a.

Publicly owned;

b.

Adjacent to lands zoned for residential uses or schools; and

c.

Not specifically designated for heavy industrial uses (this excludes the General Industrial (I-3) zoning district).

C.

ORS 197A.445 Standards. Affordable housing projects proposed to be developed pursuant to ORS 197A.445 are subject to the following standards.

1.

Site Suitability. The site shall be suitable for development of affordable housing. Affordable housing shall not be located on lands where the City determines that one or more of the following apply:

a.

The development on the property cannot be adequately served by water, sewer, storm water drainage or streets, or will not be adequately served at the time that development on the lot is complete;

b.

The property contains a slope of 25 percent or greater;

c.

The property is within a 100-year floodplain;

d.

The development of the property is constrained by land use regulations based on statewide land use planning goals relating to: natural disasters and hazards; or natural resources, including air, water, land or natural areas (but not including open spaces or historic resources); or

e.

The property is zoned for industrial use and does not meet the criteria in Subsection 17.88.10.B.4 above.

2.

Density and height in areas that are zoned for residential uses. Except as provided by Subsection c. below, the greater of density and height standards in Subsections a. or b. below, shall apply:

a.

Any City density bonus for affordable housing; or

b.

Without consideration of any local density bonus for affordable housing:

i.

For property with existing maximum density of 16 or fewer units per net acre, based on the proposed housing type, 200 percent of the existing density and 12 additional feet; or

ii.

For property with existing maximum density of 17 or more units per net acre, and 45 or fewer units per acre, based on the proposed housing type, 150 percent of the existing density and 24 additional feet.

c.

Exceptions to the density and height bonuses.

i.

The density and height bonuses provided by this section do not apply to housing in areas that are not zoned for residential uses.

ii.

The City may reduce the density or height of the bonus as necessary to address a health, safety or habitability issue, including fire safety, or to comply with a protective measure adopted pursuant to a statewide land use planning goal provided the City adopts findings supported by substantial evidence demonstrating the necessity of this reduction.

3.

Density and height in nonresidential zones. The maximum density and height shall be based on the density and height standards applicable to the Medium Density Residential (R-2) zone, as provided in Chapter 17.38.

4.

Standards and Procedure. Affordable housing projects allowed pursuant to this subsection B. are subject to the clear and objective development standards in the SDC applicable to the proposed housing type. A Type II Design Review approval is required.

D.

ORS 197A.460 Applicability Criteria. Affordable housing projects are allowed pursuant to ORS 197A.460 provided they meet the affordability and structure type criteria in Subsection 1. and the zoning criteria in Subsection 2. below.

1.

Affordability and Structure Type. Units are made affordable pursuant to either Subsection a. or b.

a.

The residential structure is subject to an affordable housing covenant as provided in ORS 456.270 to 456.295 making each unit affordable to a household with income less than or equal to 60 percent of the area median income as defined in ORS 456.270; or

b.

Mixed use structures with ground floor commercial units and residential units, each of which is subject to an affordable housing covenant as provided in ORS 456.270 to 456.295 making the properties affordable to moderate income households, as defined in ORS 456.270.

2.

Zoning. The property is zoned to allow only commercial uses and not industrial uses. Eligible zoning districts are: Central Business District (C-1), General Commercial (C-2), and Village Commercial (C-3) district.

E.

ORS 197A.460 Standards. Affordable housing developed pursuant to ORS 197A.460 is subject to the following standards.

1.

Site Suitability. Affordable housing developed under this subsection E. shall not be located on lands where the City determines that one or more of the following apply:

a.

The development on the property cannot be adequately served by water, sewer, storm water drainage or streets, or will not be adequately served at the time that development on the lot is complete;

b.

The property contains a slope of 25 percent or greater;

c.

The property is within a 100-year floodplain;

d.

The development of the property is constrained by land use regulations based on statewide land use planning goals relating to: natural disasters and hazards; or natural resources, including air, water, land or natural areas (but not including open spaces);

e.

The property is vacant (as defined in OAR 660-038-0060(2)) at the time of application submittal; or

f.

The property was added to the urban growth boundary within the last 15 years prior to the application submittal.

2.

Standards and Procedure.

a.

Affordable housing projects allowed pursuant to this subsection E., including the residential component of an eligible mixed use structure, are subject to the clear and objective development standards in the SDC applicable to the residential zone that is most comparable in density to the allowed commercial uses in the subject zone, as provided below:

i.

In the Central Business District (C-1) and General Commercial (C-2) districts, the standards applicable to the High Density Residential (R-3) district shall apply.

ii.

In the Village Commercial (C-3) district, the standards applicable to the Medium Density Residential (R-2) district shall apply.

b.

A Type II Design Review approval is required.

(Ord. No. 2024-01, § 1(Exh. A), 2-20-2024)

ORS 197A.470(5)—(6) (added through House Bill 2008, 2021) and this section establish standards to allow a nonprofit corporation organized as a religious corporation to develop affordable housing.

A.

Applicability Criteria. Affordable housing projects allowed pursuant to this section must meet subsection 1. and 2. below:

1.

Affordability. The housing is affordable to households with incomes equal to or less than 60 percent of the median family income for Clackamas County or for the state, whichever is greater, that is subject to an affordable housing covenant, as provided in ORS 456.270 to 456.295, that maintains the affordability for a period of not less than 60 years from the date of the certificate of occupancy.

2.

Ownership. The property is owned by a nonprofit corporation organized as a religious corporation.

B.

Standards.

1.

Residential and nonresidential sites. The City shall only apply restrictions or conditions of approval to the development of affordable housing that are:

a.

Clear and objective as described in ORS 197A.400; or

b.

Discretionary standards related to health, safety, habitability or infrastructure. For the purposes of this standard, that means that affordable housing shall not be located on lands where the City determines that the development on the property cannot be adequately served by water, sewer, storm water drainage or streets, or will not be adequately served at the time that development on the lot is complete.

2.

Nonresidential sites.

a.

The City shall approve the development of affordable housing on property not zoned for housing if:

i.

The property is not zoned for industrial uses; and

ii.

The property is contiguous to property zoned to allow residential uses.

b.

Affordable housing allowed under this subsection shall be subject only to the restrictions applicable to the contiguously zoned residential property as limited by Subsection B.2.a. and without requiring that the property be rezoned for residential uses. If there is more than one contiguous residential property, the zoning of the property with the greatest density applies.

(Ord. No. 2024-01, § 1(Exh. A), 2-20-2024)