About the State Land Use Compliance Project

Project purpose

The State Land Use Compliance Project updates Portland's Zoning Code in response to several legislative bills that were passed in 2025 and 2026 by the Oregon State legislature. The bills directly affect zoning code regulations related to middle housing, residential treatment facilities, and land use review procedures. Some of these bills are already in effect, while others will become effective in the future.

The project is making changes that are necessary to comply with the bills and corresponding state statutes. The scope of this project is narrowly focused on compliance. While there may be related development standards or processes that could also be improved to facilitate better zoning code implementation, additional changes require more time for analysis, community engagement, and deliberation than the impending compliance deadlines allow.

Project background

Over the course of the 2025 and 2026 Oregon legislative session, five bills were passed that contain provisions affecting the Portland Zoning Code. The bills are:

• House Bill 2138 – Middle Housing and Land Division Procedures – 
  Various effective dates between July 17, 2025, and January 1, 2028
• Senate Bill 974 - Limiting Hearings on Certain Land Use Applications – 
  Effective July 1, 2026
• House Bill 4037 – Limiting Notice for Clear and Objective Reviews - 
  Effective July 1, 2026
• House Bill 2005 – Residential Treatment Facilities – 
  Effective July 24, 2025
• Senate Bill 1561 – Replace dwellings damages by natural causes – 
  Effective January 1, 2027

Proposals

The State Land Use Compliance Project includes a total of 13 proposals that are divided into three broad categories:

1. Middle housing development standards

The first category largely addresses HB2138 including updating the definitions of middle housing, adding required bonuses for middle housing, and changing some development standards that apply to middle housing land divisions (MHLD).

2. Land use review procedures

The second category addresses procedural changes required by HB2138, SB974, and HB4037. These include:

• Adjusting the timing of MHLD applications,
• Consolidating land division reviews,
• Revising notification requirements for Type II and Type IIx procedures,
• Removing public hearing requirements for residential zone changes and planned developments,
• Allowing only an applicant to appeal an MHLD or other clear and object review.

3. Allowed uses

The third category responds to HB 2005 and SB 1561 and expands where residential treatment facilities are allowed and allows the replacement of nonconforming household living uses (dwelling units) that are damaged by natural causes.

Project steps and timeline

Week of June 1, 2026: Proposed Draft available for public review

June 23, 2026: Planning Commission hearing

Fall 2026: City Council process begins

January 1, 2027: Anticipated implementation date