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State Legislative Updates
Oregon Legislative Changes 2025 - 2026
Recent housing legislation passed by the Oregon Legislature in 2025 and 2026 may affect use allowance and/or the development review processes for qualifying applications. Below is a brief summary of each bill and a link to the full text of the bill. The summary only highlights some of the relevant elements and it’s recommended that you review the entire bill so that you can determine how it may impact development proposals. Some bills are in effect now and some will become effective over the next several months. If there is a conflict between the adopted city code and the provisions of effective bills, the language of the bills will be directly applied to development proposals until the city updates the Tualatin Development Code.
HB 2138- Middle Housing
- This bill is effective 7/17/25, however, different sections have different implementation dates.
- Tree removal codes related to the development of housing must be clear and objective, effective 7/17/25
- Middle housing land divisions (MHLD), effective 7/17/25
- Concurrent subdivision and MHLD permitted
- Allows a middle housing land division before, after, or concurrently with the submission of a building permit
- Unit and density bonuses for affordable/accessible units
- Clarifying language related to utility connections
- Expedited Land Divisions (ELD), effective 7/17/25
- Now limited land use decisions
- Only can provide notice to applicant, can’t allow any third party to intervene, no hearing
- Limits appeal of ELD to applicant
- Middle housing revisions (subject to DLCD rulemaking), effective 1/1/27 including but not limited to:
- Amends definitions of duplex, triplex, and quadplex to include detached units
- Traffic Impact Analysis not required for middle housing of 12 units or less and on lots created by land division more than five years prior, beginning
- Accessible/Affordable Bonuses for middle housing
- Cottage Cluster changes (subject to DLCD rulemaking) effective 1/1/28
- Removes minimum density requirement
SB 974
- New timeline requirements for “final engineering plans” for residential development applications, beginning 7/1/2026
- Cannot apply certain design standards for housing developments of 20 or more units (which do not meet multi-family definition), beginning 7/1/26
- Facade materials, colors or patterns;
- Roof decoration, form or materials;
- Accessories, materials or finishes for entry doors or garages;
- Window elements such as trim, shutters or grids;
- Fence type, design or finishes;
- Architectural details, such as ornaments, railings, cornices and columns;
- Size and design of porches or balconies;
- Variety of design or floorplan; or
- Front or back yard area landscaping materials or vegetation.
- No hearing for the following, beginning 7/1/26
- Zone Change to apply a denser residential zone
- Planned Unit Development
- Variance/Adjustment from residential approval standard
HB 3560
- Childcare centers are a permitted use, beginning 5/19/26, on land:
- Zoned for multi-unit residential min 17 du/na
- Zoned for residential use provided center collocated with legally established institutional use including civic center, rec center, park, place of worship, school. If institutional use is established via CUP, not additional approvals/conditions
- Zoned for commercial/industrial except areas designated heavy industrial
HB 2005 (2025)
- Residential treatment facilities and homes are permitted on properties, effective 7/24/25:
- Owned by public body OR
- Zoned for residential, commercial, employment uses OR
- Industrial land if property is publicly owned, within 250 feet of residential and not for heavy industrial
SB 1099
- Childcare/preschool/pre-k must be allowed outright as accessory use to places of worship, effective 5/27/25
HB 4037 (2026)
- For eligible middle housing, multifamily, accessory, and affordable housing dwellings, the following will apply beginning 7/1/26:
- Notice of application only to property owners within 100-ft for projects with 19-units or less and within 500-ft for projects with 20-units or more.
- No public hearing prior to making land use decision
- Opportunity to appeal only to the applicant
