Cities may require affordable homes in some larger housing projects

Cities and counties may set prices for, or require affordable homes in, some new multiunit housing. It covers buildings with 20 or more homes, or 10 or more homes in the Portland metro area outside Portland city. The homes must share a wall, floor, or ceiling. Builders must have the option to pay a locally set fee instead of providing the required affordable homes. A city or county may not apply the rule if a permit application was submitted and deemed complete, or a building permit application was submitted, before the rule takes effect. The rule does not apply to a continuing care retirement community that records a promise to operate all units as such. Units later used as regular housing must follow the applicable rules. These provisions become operative on January 1, 2028.

Cities and counties in the Portland metro area must offer offsets for certain housing rules to be enforceable. This applies to cities and counties in the Portland metro area. The 2028 rule covers rules for rental housing; the 2029 rule covers rules under the amended section, including those for homes for sale. For rental housing, the rule requires offsets worth at least the expected average loss in value and an economic analysis adopted by ordinance within the previous six years. Offsets may include cash, property tax relief, or fee reductions. A fee can count only if it was charged for multiunit housing in at least 30 of the prior 72 months. The rental housing rule becomes operative January 1, 2028. The broader rule becomes operative January 1, 2029.

Local governments may apply appearance-focused design standards only in the cases the law allows. For housing applications inside an urban growth boundary, local governments may apply these standards if the project has fewer than 20 homes or is for a multiunit structure with 10 or more homes sharing a wall, floor, or ceiling. The standards cover appearance features such as exterior materials, roofs, windows, and landscaping. Exceptions include rules for setbacks, height, accessibility, fire access, public health and safety, water quality, hazardous site cleanup, wildlife, and certain natural resources and hazards. This provision becomes operative on January 1, 2028.