On Real Estate & More – April 2025

OREGON’S HOUSING production is not keeping pace with demand. This lack of housing is impacting affordability. As affordability becomes more problematic, people drive longer distances between a home that is affordable and where they work, or double up to share space, both of which reduces quality of life and produces negative environmental impacts. Beyond traditional market-rate construction and government subsidized production and preservation there are alternative housing models and emerging trends that can contribute to addressing home supply and affordability in Oregon. One such example gaining popularity are Accessory Dwelling Units, (ADUs) also referred to as second units, in-law units, or granny flats.

ADUs are an affordable type of home to construct because they do not require paying for land or major new infrastructure. ADUs are a different form of housing that can help Oregon meet its diverse housing needs. ADUs give homeowners the flexibility to share independent living areas with family members and others, allowing seniors to age in place as they require more care and helping extended families be near one another while maintaining privacy. By design, ADUs are more affordable and can provide additional income to homeowners.

To address Oregon’s housing shortage, the Oregon legislature has been working to allow ADUs on certain rural properties. Senate Bill 391 was passed in 2021, allowing ADUs outside of Urban Growth Boundaries (UGBs) that meet certain parameters but relied upon a Statewide Wildfire Risk Map first be adopted.

Senate Bill 644 passed in 2023, which decoupled ADUs outside UGBs from the State Wildfire Risk Map requirement. The goal was to increase the State’s supply of housing—and potentially affordable housing—in areas where higher densities are not otherwise allowed.

Once Senate Bill 644 was adopted, the Jackson County Board of Commissioners initiated a Major Text Amendment to the Jackson County Land Development Ordinance to adopt regulations allowing ADUs in Residential zones.

Those regulations (Ordinance 2024-06) became effective on November 25, 2024, which allows residents to construct ADUs in residential zones, subject to certain restrictions. Outside of an Urban Growth Boundary and Urban Reserve area, ADUs are now allowed on parcels in Rural Residential zoning districts. They are subject to the following standards:

  • The lot or parcel is at least two acres in size
  • Only one detached single-family dwelling is sited on the lot or parcel
  • Only one ADU is permitted per lot or parcel
  • The ADU shall not include more than 900 square feet of usable floor area (defined as all areas of an accessory dwelling unit included within the surrounding exterior walls)
  • The ADU shall be located no further than 100 feet from the existing single-family dwelling (measured from the exterior wall of the existing detached single-family dwelling to the nearest wall of the usable floor area of the accessory dwelling unit)
  • The ADU shall comply with all applicable setbacks, including riparian and resource setbacks, as well as fire safety, floodplain, and overlay requirements of this Ordinance
  • The ADU has adequate access for firefighting equipment, safe evacuation and staged evacuation areas
  • A deed declaration that stipulates that the ADU and the detached single-family dwelling cannot be used for vacation occupancy shall be recorded prior to the issuance of permits
  • All building and fire codes shall be met

ADUs are also subject to the following Site Conditions:

  • No subdivision, partition or other division of a lot or parcel with an approved ADU will be permitted if the subdivision, partition, or other division of the lot or parcel will result in an ADU being located on a different lot or parcel than the detached single-family dwelling unit
  • No accessory structures will be permitted as incidental or customarily subordinate to an ADU

For additional questions about these regulations contact Jackson County Development Services Department.