Planning Commission

AGENDA Phone: 541-682-5481 Meeting Location: www.eugene-or.gov/pc Virtual Meeting (Via Zoom) The Eugene Planning Commission welcomes your interest in these agenda items. As the City transitions in response to lifting of COVID-19 restrictions by Governor Brown, meetings will continue to be held remotely using virtual meeting technology until further notice. Information about online or other options for access and participation is available on the last page of this agenda. For the hearing impaired, assistive-listening devices or an interpreter can be provided with 72- hour notice prior to the meeting. Spanish-language interpretation may also be provided with 72-hour notice. These services may not be available during the Planning Commission meeting based on service availability but may occur as a follow up service. To arrange for these services, contact the Planning Division at 541-682-5675. TUESDAY, AUGUST 10, 2021 – Regular Meeting 5:30 pm to 7:30 pm Commissioners: Ken Beeson (Vice Chair); Tiffany Edwards; Thomas Fiorelli; Lisa Fragala; Dan Isaacson; Chris Ramey (Chair); Kristen Taylor A. PUBLIC COMMENT The Planning Commission reserves 10 minutes at the beginning of this meeting for public comment. The public may comment on any matter, except for items scheduled for public hearing or public hearing items for which the record has already closed. Generally, the time limit for public comment is three minutes; however, the Planning Commission reserves the option to reduce the time allowed each speaker based on the number of people requesting to speak. B. WORK SESSION: MIDDLE HOUSING CODE AMENDMENTS Staff: Terri Harding, 541-682-5635, THarding@eugene-or.gov C. ITEMS FROM COMMISSION AND STAFF 1. Other Items from Staff 2. Other Items from Commission 3. Learning: How are we doing? 1 of 16 HOW TO ACCESS THE MEETING To watch a webcast of the meeting live: Visit: https://www.eugene-or.gov/2109/Planning-Commission-Webcasts To be able to participate in Public Comment join using one of the two following options: 1. Join on your computer, tablet or smartphone Visit: https://eugene-or-gov.zoom.us/j/98939251956 Sign up to speak by clicking once on the “raise hand” icon 2. Join on your phone Dial one of the below numbers and enter the Webinar ID: 989 3925 1956 +1 833-548-0276 (Toll Free); or +1 833-548-0282 (Toll Free); or +1 877-853-5257 (Toll Free); or +1 888-475-4499 (Toll Free); For higher quality, dial a number based on your current location. International numbers available: https://eugene-or-gov.zoom.us/u/acRDLxDSxE Sign up to speak by dialing *9 (Star-9) 2 of 16  AGENDA ITEM SUMMARY August 10, 2021 To: Eugene Planning Commission From: Terri Harding, City of Eugene Planning Division Subject: Middle Housing Code Amendments (Implementation of House Bill 2001- Land Divisions (SB 458) and Metro Plan Amendments ACTION REQUESTED At this meeting, the Planning Commission will have the opportunity to learn about legislation that requires middle housing to be divided into individual lots under Senate Bill 458 (2021), and review a draft change to the Metro Plan necessary to implement the middle housing code amendments. INTRODUCTION The Eugene Middle Housing Code Amendments project seeks to implement Oregon House Bill 2001 (2019), which requires large cities such as Eugene to allow middle housing including duplexes, triplexes, fourplexes, cottage clusters, and rowhouses, in more places across the City, in order to increase housing choice and supply. By June 30, 2022, the City must have regulations in place that comply with state law. Otherwise, the state’s model code will apply in Eugene. PROJECT APPROACH An important component of the project approach is the focus on equity and inclusion in the public outreach process. To support that focus, the Commission has heard from participants in the Equity RoundTable, Healthy Democracy panel, and developers focus group, as well as a University of Oregon Law School professor at meetings between December 2020 and May 2021. In addition, the Commission wrote and presented a letter to the City Council to express support for the project’s focus on equity and approach to encouraging and incentivizing middle housing across Eugene through the land use code. The letter is attached to the June 14, 2021 Planning Commission meeting packet. At the Commission’s June 21, 2021 meeting, Patrick Wingard provided comments from his perspective as Eugene’s representative of the Department of Land Conservation and Development (DLCD). Patrick gave feedback in support of the middle housing project approach, focus on equity and inclusion, and effort to hear from new and diverse voices in the planning process. On June 28, 2021, the Commission heard from Josh Berman, the City staff person leading the work on the Housing Implementation Pipeline (HIP). Josh talked about the connections between the Middle Housing Code Amendments and the City’s ongoing housing program work. 3 of 16 The project team’s recommended land use code amendments, developed through 10 months of community engagement, technical analysis and work sessions with the Planning Commission, are currently in legal review by the City Attorney’s Office. Once this review is complete, anticipated for early September, staff will publish a preliminary staff recommendation of land use code and plan amendments to put before the public at a Planning Commission hearing. The public hearing is currently scheduled for October 12, 2021. The Commission will meet on September 28, 2021 for an overview of the recommended code and plan amendments ahead of the hearing. PUBLIC ENGAGEMENT SUMMARY The project’s Public Involvement Plan (PI Plan) outlines the outreach process from concept development through adoption of land use code and policy amendments. The PI Plan includes opportunities for the community to engage in the planning process and information on how individuals and organizations can effectively participate and is consistent with the City’s Public Participation Guidelines and Statewide Planning Goal 1. The Planning Commission approved the PI Plan in August 2020 and has been regularly meeting to advise staff on the project approach. In the fall of 2020, public outreach focused on providing information about the house bill and forming outreach groups to develop values and principles to guide the technical phase of work. In February 2021, the project team began to gather community-wide input on how to approach implementation of the house bill. The main opportunity for input centered on levels of implementation: we asked community members whether the City should Allow, Encourage, and/or Incentivize middle housing through the land use code requirements. Throughout the project, the goal of the public engagement has been to be meaningful, accountable, inclusive, transparent, realistic, and outcome oriented. A comprehensive report on the February outreach is available on our website. The Healthy Democracy process included a thorough information gathering phase, small and large group discussion, deliberation and voting on recommendations related to the middle housing code amendments. It also included reflections on the process and general public engagement recommendations for the City’s consideration into the future. The April and May outreach meetings included the final three Healthy Democracy Panel meetings, a fifth Equity RoundTable meeting, and a combined Boards and Commissions and Local Partners RoundTable meeting discussing how well the draft code meets the values and principles, and how well it encourages affordability. In addition, two Developer Focus Group meetings were held with market rate and affordable housing developers to gather feedback on the code recommendations and affordability strategies. Results from these conversations informed the draft code language staff brought to the Commission in June for review. Overall, people we heard from through our community engagement efforts were overwhelmingly supportive of going beyond the minimum standards required by the state and implementing a combination of the Encourage and Incentivize middle housing options. 4 of 16 SENATE BILL 458 – MIDDLE HOUSING LAND DIVISIONS The memo in Attachment A provides an overview of Senate Bill 458 (2021), which requires cities to allow middle housing land divisions. The memo summarizes what the project team currently knows (based on the information and guidance provided so far), what some of the implications are, and what options the City of Eugene has in complying with the legislation. At this meeting, staff invites Planning Commission discussion and feedback on the information presented. It is likely that middle housing land division code amendments will proceed on a separate public hearing timeline than the rest of the middle housing code amendments. Staff will continue to update the Commission as we prepare draft code amendments to implement this new law. EUGENE-SPRINGFIELD METRO AREA GENERAL PLAN (Metro Plan) The Metro Plan serves as the blueprint for comprehensive planning in the Eugene-Springfield metropolitan area. Some sections of the plan apply to both communities, and others apply to only one jurisdiction. Eugene and Springfield began working on their own land supply inventories and urban growth boundaries after the passage of House Bill 2237 in 2007. Eugene adopted its own UGB in 2017, along with associated residential and employment land supply studies, and several chapters of the Envision Eugene Comprehensive Plan, including a UGB chapter, Economic Development, and an Implementation chapter including growth monitoring policies. Eugene currently relies on the Metro Plan for residential policies, which are applicable to both Eugene and Springfield. The Metro Plan also contains a land use diagram showing where residential, commercial, industrial, public and other land uses are envisioned to occur as the metro area develops. Along with the diagram, residential land policy A.9 describes three residential land use designations: low density (0-10 dwellings per acre), medium density (10-20 dwellings per acre), and high density (over 20 dwellings per acre). With the passage of House Bill 2001, these residential density categories are not consistent with state law requiring cities to plan for middle housing throughout residential areas. To align Eugene’s middle housing code amendments with the Metro Plan, staff prepared the attached draft amendment to Metro Plan policy A.9 (Attachment B). The proposal is to clarify that the residential density categories in the Metro Plan are not applicable to middle housing. At this meeting, staff invites Planning Commission discussion and feedback on the draft language. NEXT STEPS The adoption process for land use code amendments includes a Planning Commission public hearing and recommendation, followed by a City Council public hearing and action. The adoption package is anticipated to be shared with the Commission and the public in September, ahead of the Planning Commission public hearing, which is planned for October 12, 2021. As noted above, the process to implement SB 458 will likely proceed on a separate public hearing timeline than the rest of the middle housing code amendments. 5 of 16 The project’s Engage Eugene and web page are frequently updated with opportunities to engage community members and provide information about middle housing in Eugene. Additionally, the overall project schedule for upcoming adoption phase is included below. Middle Housing Adoption Phase Timeline ATTACHMENTS A. Senate Bill 458 Memo – (Angelo Planning Group, August 2, 2021) B. Draft Metro Plan Amendment Language FOR MORE INFORMATION Staff Contact: Terri Harding Telephone: (541) 682-5635 Staff E-Mail: THarding@eugene-or.gov 6 of 16  Attachment A LAND USE PLANNING TRANSPORTATION PLANNING PROJECT MANAGEMENT MEMORANDUM Overview of Senate Bill 458 – Middle Housing Land Divisions Eugene Middle Housing Code Amendments D AT E August 2, 2021 TO Eugene Planning Commission FROM Kate Rogers and Matt Hastie, APG CC City of Eugene Middle Housing Project Team This memo provides an overview of Senate Bill 458, which requires cities to allow middle housing land divisions. The memo summarizes what the project team knows now (based on the information and guidance provided so far), what some of the implications are, and what options the City of Eugene has in complying with the legislation. The memo also includes a simplified scenario of a middle housing land division, which is intended to illustrate some of the basic implications of the legislation. Overview Senate Bill (SB) 458 was passed by the Oregon Legislature in May 2021. The bill is a follow-up to House Bill 2001—the bill that requires many cities throughout the state to allow the development of middle housing types in residential zones. SB 458 allows lot divisions for middle housing, enabling dwelling units to be sold and owned individually without the need to go through the condominium conversion process. The legislation requires cities to allow land divisions for any HB 2001 middle housing type (duplexes, triplexes, fourplexes, rowhouses, and cottage clusters) built in accordance with the cities’ middle housing code provisions adopted under ORS 197.758. The result of such a “middle housing land division” will be exactly one dwelling on each resulting lot. Even though the land may be divided, the bill specifies that “The type of middle housing developed on the original parcel is not altered by a middle housing land division.” For example, the units in a subdivided cottage cluster will not become single detached dwellings—they will remain cottage cluster units for the purpose of applying the development code. This means that cities will not be obligated to allow ADUs on the resulting small individual cottage lots or to allow the resulting lots to be further divided. As another example, a partitioned attached triplex will not become townhouses—the units will remain triplex units, even though they each now sit on their own lots. SB 458 also establishes the conditions cities may impose during review and approval of middle housing land division applications, and prevents homeowner associations or restrictive covenants from prohibiting land divisions. The provisions of SB 458 apply to middle housing land divisions permitted on or after July 1, 2022. ANGELO PLANNING GROUP angeloplanning.com 921 SW Washington Street, Suite 468 p: 503.224.6974 Portland, OR 97205 7 of 16 f: 503.227.3679 Overview of SB 458 2 of 7 Below is a summary of some initial considerations and potential implications of SB 458, based on the project team’s current understanding and the information and guidance that the Oregon Department of Land Conservation and Development (DLCD) has provided so far. The project team is still considering the full implications of SB 458 and will provide updated information to the Planning Commission in the future, if needed. What Eugene must require/allow as part of a middle housing land division: • All Middle Housing Types. SB 458 applies to any lot that allows middle housing under ORS 197.758, including rowhouses. This is somewhat counterintuitive, because by definition, rowhouses are already divided so that each unit is on its own lot. The basic implication is that cities must allow rowhouse proposals to be reviewed under the expedited land division procedure (see below for details). • Resulting Lots. The land division must result in exactly one dwelling per lot (i.e., you cannot divide an 8-unit cottage cluster into four individual lots and fifth lot with four units). The only exception is that common areas may be located in a separate lot or shared tract. • Utilities. Separate utilities for each dwelling unit must be provided if a development is to qualify for a middle housing land division under the bill. • Easements. Easements are required for: o Pedestrian access (e.g., all pedestrian paths in a cottage cluster) o Common areas (e.g., common courtyards, community buildings) o Driveways and parking areas (if shared) o Utilities • Building Code. The proposal must meet the requirements of the building code (Oregon Residential Specialty Code). For example, if an attached duplex is being divided, there must be firewall construction between the two units. • Timing. In a typical land division, the land is divided prior to building permits being reviewed and issued for construction. However, SB 458 does not state that a middle housing land division must occur either before or after the issuance of a building permit. Therefore, arguably land could be divided pursuant to SB 458 prior to submission of an application for building permits, after a middle housing development is approved for development, or after it is constructed. SB 458 even appears to allow division of existing middle housing that was developed prior to HB 2001 taking effect—as long as the development meets the City’s adopted middle housing code standards. SB 458 also gives cities the option of allowing concurrent review of building permits and the land division. In all cases, the land division application must include a middle housing development (either proposed or built) that complies with the building code and the City’s middle housing development code. What Eugene may require/allow: • Street Frontage Improvements. SB 458 specifies that cities can require street frontage improvements for newly created lots abutting a street. Land divisions are often a trigger for requiring frontage improvements, whereas infill development on an existing lot may not trigger APG Eugene Middle Housing Code Amendments 8 of 16 August 2, 2021 Overview of SB 458 3 of 7 such improvements. Therefore, under SB 458, frontage improvements may be required with a middle housing land division even if those improvements would not be required for a single-lot development. Such improvement would be dependent upon the City making findings to demonstrate consistency with constitutional requirements (i.e., Dolan). • Right-of-way Dedication. SB 458 specifies that cities may require dedication of right-of-way if the original parcel did not previously provide a dedication. Like frontage improvements, such a dedication requirement would be dependent upon the City making findings to demonstrate consistency with constitutional requirements (i.e., Dolan). • Concurrent Review. As noted above, Eugene may allow concurrent review of building permits and a land division for a middle housing development. • Tentative/Final Plats. Cities may require that applicants submit tentative and final plats in a manner consistent with their applicable platting standards. What Eugene cannot require as part of a middle housing land division: • Street Frontage. Typically, newly created lots are required to have frontage on a public or private street. SB 458 specifies that cities cannot require street frontage for lots created through a middle housing land division (e.g., lots at the rear of the site could only have access to the street via access easement). • Parking or Driveway Access to Each Lot. While the housing must meet applicable parking requirements, Cities cannot require that each resulting lot have its own parking space or driveway access. For example, a triplex could have a shared parking area with three spaces; the City cannot preclude the triplex lot from being divided such that two of the resulting lots only have access to the parking area via access easement. • Minimum Lot Size or Dimensions. Cities cannot specify minimum area or dimensions for lots resulting from a middle housing land division. • Other Review Criteria. The City cannot apply any approval criteria other than the approval criteria specified in SB 458 to applications for middle housing land divisions—these include the City’s standards for middle housing development, separate utilities, easements, one dwelling on each lot, and building code compliance. Expedited Land Division Procedure SB 458 requires cities to apply the expedited land division process to middle housing land divisions. The expedited land division process is outlined in ORS 197.360 to 197.380 and provides an alternative procedure intended to streamline the review of residential land divisions under state law. Currently, land divisions must meet very specific criteria to qualify for an expedited land division. SB 458 expands the applicability to all middle housing land divisions that meet the standards outlined in the bill. The expedited land division process is outlined below: • Submittal requirements are consistent with typical land divisions. • Completeness review must occur by City within 21 days of application submittal. • Notice is given to properties within 100 ft of the site and to applicable neighborhood association(s). APG Eugene Middle Housing Code Amendments 9 of 16 August 2, 2021 Overview of SB 458 4 of 7 • There is a 14-day comment period. • A decision must be made by the city within 63 days after a complete application is submitted (unless extended). • Only the applicant and any person or organization who files written comments in the comment period as specified in the bill may appeal. An appeal must be filed within 14 days of mailing the notice of decision. • A City-appointed “referee” decides any appeal decision—often this is a city’s Hearings Official, who must issue a decision within 42 days of the appeal being filed. The decision of the referee is the final local decision on the middle housing land division application. • Appeals of the referee’s decision go to the Oregon Court of Appeals. Considerations and Options • Submittal Requirements. SB 458 does not specify submittal requirements for a tentative plan or final plat application for a middle housing land division. Since middle housing land divisions could be fairly complicated, it will be important to ensure that staff has all the information needed to evaluate whether middle housing land divisions meet all the City’s applicable standards. The City will need to determine what materials applicants will need to submit in order to demonstrate compliance with the building code, development code, utility requirements, etc., and to demonstrate that all necessary easements are provided. • Ensuring improvements are constructed as proposed. If a middle housing land division is requested prior to applying for building permits, it will be important to ensure that all improvements will be constructed as proposed. For example, a large cottage cluster development may include a variety of shared improvements, including a common courtyard, pedestrian paths, shared parking areas, and a community building. Under a typical subdivision, lots are often sold after the land is subdivided, and another developer (or developers) will acquire the lots and construct the units. If cottage cluster lots were to be similarly sold off, how would the City ensure that all the required improvements would actually be constructed? One potential option is to require that improvements be constructed prior to final plat approval (i.e., not allow lots to be finalized and sold until improvements are in place). Another potential option is to require construction of improvements prior to occupancy of any units. • Housing Type Definitions. SB 458 says “The type of middle housing developed on the original parcel is not altered by a middle housing land division.” It may be useful to acknowledge this in the middle housing type definitions. For example, a duplex could be defined as two units on a single lot, or on separate lots if divided pursuant to a middle housing land division. • Land Division Procedures. It is recommended to create a new procedure/application type for middle housing land divisions in the 9.8000s section of the Eugene Code. This would likely have a similar structure as the existing regulations for Tentative Plan/Final Plat for subdivisions and partitions, but would include the provisions specified by SB 458. It also may be helpful to incorporate the expedited land division procedures into the code’s application procedures section (9.7000s). Currently, if applicants opt into an expedited land division, the City must directly apply the ORS provisions to the application (the expedited option is called out Eugene’s subdivision/partition application forms). However, it may be beneficial to incorporate the APG Eugene Middle Housing Code Amendments 10 of 16 August 2, 2021 Overview of SB 458 5 of 7 procedures into the Eugene Code itself, given that expedited land divisions may become more prevalent under SB 458. • Existing Land Division Procedures. In addition to the “middle housing land division” path, cities can continue allowing a more standard path for creation of rowhouses and cottage clusters that follows the City’s current procedures. Because of the restrictions associated with the SB 458 process, some applicants may prefer the more traditional path; therefore, it may be advantageous to include both options. • Duplex Division Lots. The City currently allows existing duplexes to be divided into two separate lots under the provisions of EC 9.2777. These include certain restrictions, including minimum area for the original lot and for resulting lots (which are proposed to be amended through the HB 2001 project). These provisions are more or less pre-empted by SB 458, since the City cannot require minimum sizes for resulting lots; therefore, the City may consider removing the provisions. APG Eugene Middle Housing Code Amendments 11 of 16 August 2, 2021 Overview of SB 458 6 of 7 Example Scenario: Fourplex Divided through Middle Housing Land division Below is a simplified scenario of a fourplex divided through a middle housing land division. The intent is to illustrate some of the basic implications of SB 458. Original Fourplex – meets all EC standards (as drafted) Middle Housing Land Division APG Eugene Middle Housing Code Amendments 12 of 16 August 2, 2021 Overview of SB 458 7 of 7 Middle Housing Land Division APG Eugene Middle Housing Code Amendments 13 of 16 August 2, 2021  ƚƚĂĐŚŵĞŶƚ Metro Plan Amendments for Middle Housing Code Amendments DRAFT Applicable State Law/Case Law Housing Density Requirements Applicable Law Type Minimum Maximum Duplexes Per OAR 660-046-0205(1), If a Medium City applies density Large Cities must apply maximums in a zone, it may not apply siting standards to Duplexes those maximums to the development in the same manner as of Duplexes. required for Medium Cities in OAR 660-046-0120. Triplexes OAR 660-046-0220(2)(b) If a Large City applies density maximums in a zone, it may not apply those maximums to the development of Quadplex and Triplexes Quadplexes OAR 660-046-0220(2)(b) If a Large City applies density maximums in a zone, it may not apply those maximums to the development of Quadplex and Triplexes Townhouses OAR 660-046-0220(3)(c) If a Large City applies density maximums in a zone, it must allow four times the maximum density allowed for detached single-family dwellings in the same zone for the development of Townhouses or 25 dwelling units per acre, whichever is less. Cottage OAR 660-046-0220(4)(c) A Cottage Cluster A Large City may not apply density Clusters development must meet maximums to the development of a minimum density of at Cottage Clusters. least four units per acre. 14 of 16 Eugene’s Proposed Middle Housing Code Amendments (pre-legal review) 9.2751 Special Development Standards for Table 9.2750. (1) Density. (b) The following exceptions to residential density requirements in Table 9.2750 apply to middle housing: 1. The maximum residential density requirements do not apply to duplexes, triplexes, fourplexes, or cottage clusters. 2. A duplex shall be permitted on any lot where are a single detached dwelling is permitted or on a duplex lot with a lot area that is at least 2,250 square feet. 3. A triplex shall be permitted on any lot with a lot area that is at least 3,500 square feet. 4. A fourplex shall be permitted on any lot with a lot area that is at least 4,500 square feet. 5. A cottage cluster shall be permitted on any lot with a lot area that is at least 4,500 square feet. 6. Lot Area Reduction for Small Dwelling Units. When the average size of proposed dwelling units in a duplex, triplex, fourplex, or cottage cluster is less than 900 square feet, the lot area thresholds listed in 2 through 5 above shall be reduced by 25 percent. 7. Cottage clusters in the R-1 zone shall have a minimum net density of 4 units per acre. 8. Rowhouses in the R-1 zone shall have a maximum net density of 25 units per acre. Rowhouses in the R-2 zone shall have a maximum net density of 39 units per net acre. 15 of 16 Proposed Metro Plan Amendments Policy A.9 from the residential chapter of the Metro Plan prescribes minimum and maximum densities and conflicts directly with HB 2001. The text in bold italics is proposed to be added to this policy and be applicable to Eugene. Chapter III Specific Elements A. Metropolitan Residential Land Use and Housing Element Residential Density Policies A.9 Establish density ranges in local zoning and development regulations that are consistent with the broad density categories of this plan. Low density: Through 10 dwelling units per gross acre (could translate up to 14.28 units per net acre depending on each jurisdictions implementation measures and land use and development codes) Medium density: Over 10 through 20 dwelling units per gross acre (could translate to over 14.28 units per net acre through 28.56 units per net acre depending on each jurisdictions implementation measures and land use and development codes) High density: Over 20 dwelling units per gross acre (could translate to over 28.56 units per net acre depending on each jurisdiction’s implementation measures and land use and development codes) The Low, Medium, and High density ranges established in this policy A.9, do not apply to the following housing types located within the City of Eugene: duplexes, triplexes, quadplexes, cottage clusters, and townhouses. The City of Eugene may establish density requirements which comply with state law for duplexes, triplexes, quadplexes, cottage clusters, and townhouses. If an adopted refinement plan is inconsistent with this policy, this policy will prevail. 16 of 16