In a major step to address Oregon’s housing shortage, the state House passed House Bill 2138, which expands and accelerates middle housing across more areas by loosening regulations. The measure, backed by Governor Tina Kotek, now heads to the Senate, with promises of more affordable, community-based housing options statewide.

Middle Housing Push Expands

Oregon lawmakers approved a bill on June 18 aimed at boosting “middle housing” options like duplexes, triplexes, and cottage clusters. House Bill 2138 mandates that these homes be allowed in urban unincorporated areas and overrides private restrictions that limit their development.

Defining Middle Housing

Under HB 2138, middle housing refers to duplexes, triplexes, quadplexes, townhouses, and cottage clusters defined as four or more homes sharing a courtyard, whether attached or detached. The bill targets zoning reform, enabling these types of land to be traditionally limited to single-family units.

Addressing The Housing Crisis

Governor Tina Kotek emphasized the urgency of the bill, saying, “The goal of House Bill 2138 is to build on the bold, bipartisan policies already in place, and continue to work on those to make Oregon a national leader in innovative housing policies that will bring down the cost of housing.” With a shortfall of over 500,000 homes projected over the next two decades, the legislation builds on prior efforts to increase housing density.

Expedited Land Division

The bill eliminates several hurdles to middle housing. Local governments can no longer require traffic impact analyses for developments with fewer than 12 units. In addition, only the developer can appeal an expedited land division, streamlining the approval process. “Notification for land divisions is unnecessary and confusing as it is not related to the actual development of the units but rather the ownership model of those units,” said Rep. Pam Marsh.

Funding Local Implementation

HB 2138 allocates nearly $4 million in state funds: $2.4 million for hiring staff within the Department of Land Conservation and Development, and $1.5 million in grants to local governments. The funding supports rulemaking, planning, and enforcement of the bill’s provisions.

Incentives for Affordability

To encourage affordability, the bill includes a “bonus density” clause. If developers include affordable or accessible housing, they may add extra units. Duplexes and triplexes can include one additional dwelling, while quadplexes and cottage clusters may gain two more units.

Opposition Voices Concerns

The bill passed 33-17, with 10 members excused. Some lawmakers, including Rep. Christine Drazan, criticized the bill’s impact on local governance. “When we look at legislation like this, it screams a level of desperation that refuses to acknowledge the fact that what we actually need to do is have a much larger conversation on our 50-plus-year-old land use system in the state of Oregon,” Drazan said.