On Real Estate & More – May 2019

Oregon has a housing shortage and that shortage has been growing in part because of a lack of housing being constructed combined with an influx of people moving to the state—lured by the state’s job opportunities and its forests, mountains, coastline and quality of life. While Oregon’s land use system aims to preserve farmland for agricultural uses and forestland for forestry uses, lawmakers have increasingly been concerned about housing shortages across the state. And while we might not all agree on legislators’ methods to solve the housing shortage, one recent proposal, Senate Bill (SB) 800, is getting a lot of attention.

If the legislation were approved, counties would be authorized to allow landowners in rural residential zones to construct an accessory dwelling unit (ADU). Such ADUs are currently prohibited outside city limits. ADUs would only be permitted in rural residential zones, as opposed to exclusive farm use or forest zones intended for agriculture or forest uses. Allowing rural residential ADUs would not be mandatory under the proposal, which would let individual counties decide whether to allow such structures. Another controversial aspect of ADUs—whether they can be used for short-term vacation rentals—would also fall to county government discretion. In Jackson County, short-term vacation rentals are not currently allowed. Whether ADUs contribute to traffic congestion or cause other undesirable conditions could be considered in the county’s decision whether to allow them.

Under SB 88, the following conditions must be met for approval of an ADU:

1.The rural residential zoned parcel is not located in an urban reserve;

2. The parcel must be at least 2 acres and only a single ADU per parcel would be permitted;

3. The ADU cannot be larger than 900 square feet and must be built within 100 feet of the primary dwelling;

4. If the water source is a well, the ADU cannot be built within an area where groundwater withdrawals have been restricted;

5. The parcel must be located in a rural fire protection district;

6. The ADU must comply with all laws and rules related to sanitation and wastewater disposal;

7. The ADU must comply with restrictions related to fire safety;

8. Allows a county to prohibit outright or impose conditions on ADU use for vacation occupancy;

9. Prohibits county from allowing lot or parcel division so that ADU is on a different parcel than the primary dwelling or allowing more than one ADU on the same parcel;

10. Allows county to require the ADU to be served by the same water source as the primary dwelling and meet required setbacks; and

11. Allows county to impose additional restrictions.

What the measure will do, if it becomes law, is make it possible to add to the state’s housing stock, and that’s important. The measure does something else. Unlike much of Oregon’s land use planning, counties, not the state, will decide whether or not to allow ADUs. The bill will soon go to the full Senate and then to the House.