On Real Estate & More – October 2026

OREGON’S NEW housing laws are changing how certain residential projects are reviewed and approved throughout the state. House Bill 4037 and Senate Bill 974 are intended to increase housing production by creating more predictable approval processes, establishing government review timelines and limiting some local requirements. In a small community such as Jacksonville, however, the practical effect may be more limited than in cities with large tracts of undeveloped land.

Jacksonville has relatively few large vacant lots available for new construction. Much of the community is already developed, constrained by existing streets and utilities, or located within or near the town’s historic district. As a result, future housing is more likely to come through infill development, redevelopment of existing properties, additions, lot divisions, duplexes or small-scale multifamily projects than through large subdivisions.

That makes the balance between housing production and local character especially important. Jacksonville must accommodate additional housing while protecting the historic scale, appearance and neighborhood patterns that define the community. The new laws do not eliminate local zoning, historic preservation, infrastructure or environmental requirements, but they may change how those requirements are applied and how quickly qualifying projects must move through review.

HB 4037 establishes procedures for qualifying residential applications and standards intended to make approvals more predictable. Depending on zoning and the applicable approval process, eligible projects may include new single-family homes, duplexes and other residential development. The law also limits certain building-permit plan-review requirements for housing containing one or two dwelling units.

Because Jacksonville has few large development sites, HB 4037 may be most relevant to smaller infill opportunities. A vacant lot, an underused parcel or a property suitable for redevelopment could potentially support a new home or duplex. If the project meets the law’s criteria, the approval process may be more streamlined, with fewer opportunities for extended local review.

At the same time, the limited supply of vacant land means that even small projects could have a noticeable effect on established neighborhoods. Infill development may involve access, parking, stormwater, utility capacity, tree removal, setbacks and compatibility with nearby homes. Those issues remain important, but the state’s requirements could reduce the ability of local decision-makers and residents to review or impose additional standards on qualifying projects.

There is an important limitation: HB 4037 excludes residential development in historic areas designated for protection from its new housing approval provisions. Projects within Jacksonville’s protected historic district cannot use HB 4037 to bypass applicable historic-preservation requirements. This distinction is important because many potential redevelopment sites may be located in historically significant areas.

SB 974 focuses more heavily on the development-review process. It requires local governments and special districts to complete final review of final engineering plans for qualifying residential development within an urban growth boundary within 120 days. The legislation is particularly relevant to projects involving substantial engineering and infrastructure work, including subdivisions, townhome developments and multifamily housing so it will likely not be generally applicable in a small town such as Jacksonville.

SB 974 also limits certain residential design standards for qualifying developments containing 20 or more residential units within an urban growth boundary. Although Jacksonville may have few sites capable of accommodating a project of that size, the law could still matter if several parcels are assembled or an existing commercial, institutional or industrial property is redeveloped for housing.

Local governments retain requirements involving public safety, accessibility, building height, setbacks, environmental protection and infrastructure. However, the law places boundaries on some local standards and review procedures. For Jacksonville, that could mean a more structured process and less time for public discussion of how a larger redevelopment project fits within the surrounding community.

The central challenge will be accommodating housing on a constrained land base without eroding the qualities that make Jacksonville distinctive. Careful, appropriately scaled development may add housing, but the community will need to pay close attention to how individual projects affect historic resources, infrastructure and established neighborhoods.

If you have questions about the new laws and how they may impact your project, contact staff at Jacksonville City Planning or the Planning Dept in the city/county in which your property is located in.