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PC Agenda 6-2-25 and PacketPLANNING COMMISSION AGENDA – June 2, 2025 City of Tigard | 13125 SW Hall Blvd., Tigard, OR 97223 | 503-639-4171 | www.tigard-or.gov | Page 1 MEETING DATE: June 2, 2025 - 7:00 p.m. HYBRID MEETING IN-PERSON: City of Tigard – Town Hall SW HALL BLVD 13125 SW Hall Blvd., Tigard, OR 97223 MS TEAMS: https://www.tigard-or.gov/virtualPC 1. CALL TO ORDER 7:00 p.m. 2. ROLL CALL 7:01 p.m. 3. COMMUNICATIONS 7:02 p.m. 4. APPROVE DRAFT MINUTES 7:10 p.m. a. May 5, 2025 5. RIVER TERRACE 2.0 COMMUNITY PLAN UPDATE – HOUSING PLAN 7:15 p.m. Assistant Director of Community Development Schuyler Warren & Sr. Planner Brittany Gada 6. Tigard HOME Kick-off UPDATE 8:20 p.m. Associate Planner Trin Miller 7. OTHER BUSINESS 8:50 p.m. 8. MOTION FOR ADJOURNMENT 9:00 p.m. City of Tigard P lanning Commission Agenda Planning Commission Meeting Minutes|May 5, 2025 Page 1 of 6 MINUTES – May 5, 2025 Location: Town Hall, 13125 SW Hall Blvd. - Hybrid Meeting CALL TO ORDER President Jackson called the meeting to order at 7:00 PM. ROLL CALL Present: President Jackson, Commissioner Bowerman, Commissioner Sabbe, Commissioner Schuck, Commissioner Tiruvallur, and Commissioner Murphy, Alternate Commissioner Sprague, Commissioner Brandt (remote), Commissioner Choudhury (remote). Council President Wolf (remote), Councilor Schlack. Excused: Vice-President Miranda Staff Present: Assistant Director of Community Development Schuyler Warren, Senior Planner Agnes Lindor, Planning Commission Secretary Joanne Bengtson. COMMUNICATIONS President Jackson asked if there were any external communications to share. Seeing none, he mentioned that City Council would be considering food carts on May 6, a subject that came to the Planning Commission in previous meetings. On March 4, Council discussed closing the loophole on SDCs in cases of temporary Certificates of Occupancy. APPROVE DRAFT MINUTES President Jackson asked for changes or corrections to the draft minutes of February 3, 2025. Seeing none, Commissioner Schuck motioned to approve the minutes as written. Commissioner Bowerman seconded the motion. LEGISLATIVE PUBLIC HEARING: FEMA ENDANGERED SPECIES ACT (ESA) COMPLIANCE CODE AMENDMENTS: DCA2025-00001 Senior Planner Agnes Lindor President Jackson read a brief description of the hearing process, order of presentations and comments. He then opened the public hearing and introduced Senior Planner Agnes Lindor to present the staff report. STAFF REPORT/APPLICANT PRESENTATION Community Development’s Senior Planner Agnes Lindor provided a brief review of the FEMA flood Insurance Program, national flood maps and how they’re used to determine local regulations and determine flood insurance need and rates. Because the proposed amendments in this case are Legislative in nature, they are reviewed under the Legislative procedure. This process requires public hearings by the Planning Commission (tonight’s hearing) and City Council (scheduled for June 10, 2025). In July 2024, Oregon jurisdictions received a letter from FEMA stating that all NFIP participating communities must select one of three pre-implementation compliance measures and notify FEMA of the choice by December 1, 2024, and start implementing it. Tigard chose number one: 1. Adopt a model ordinance that considers impacts to species and their habitat and requires mitigation to a “no net loss” standard; 2. Require a habitat assessment and mitigation plan for development on a permit-by-permit basis; or Planning Commission Meeting Minutes|May 5, 2025 Page 2 of 6 3. Prohibit all development in the Special Flood Hazard Area (SFHA). We notified FEMA we’d begin working toward adoption of the model ordinance to the city’s Municipal Code and Community Development Code. Sr. Planner Lindor stated DCA2025-00001 contains no changes to FEMA’s flood maps, only proposed updates to the development and municipal codes necessary to incorporate regulatory changes required for Tigard’s continued participation in the National Flood Insurance Program (NFIP). The proposed amendments include updates to Municipal Code Chapter 9.10 that add new definitions and “no net loss” standards; Chapter 18.510, Sensitive Lands, to require a “no net loss” analysis with a sensitive lands review for development within areas of special flood hazard; and general reorganization and clean-up of Chapter 18.510, Sensitive Lands. Sr. Planner Lindor stated she received three additional public comments following publication of the staff report, which she shared with the commission: • 5/5/25, a phone call from Mr. Mike Westfall, curious to learn more about the regulations were about the hearing process, the meaning of “no net loss”, and when these changes would be effective. • 5/5/25, an e-mail from Mr. Pascal Pascuzzi asking about these regulations and how they would impact wetlands and any associated buffers. Sr. Planner Lindor stated for the Commission – there’s no impact to wetlands with these regulations. • 5/5/25, a written comment from Mr. Robert Ruedy forwarded to Planning Commission late this afternoon requesting a continuance and stating economic concerns for taxpayers. Commissioner Jackson submitted comments to Sr. Planner Lindor with scrivener errors, which will be incorporated into the Planning Commission’s recommendation. STAFF RECOMMENDATION Sr. Planner Lindor recommends that the Planning Commission find in favor of the proposed development code and municipal code text amendments and make a final recommendation to Tigard City Council for its approval. QUESTIONS President Jackson asked if there was a map. Ms. Lindor said no because there are no changes to the map. While waiting for one to be pulled up to display, she estimated 400 parcels citywide could be affected, with perhaps 120 of those being owned by the city. The Special Flood Hazard area runs along Fanno Creek, Summer Creek, Ash Creek around Oak St., most of Cook Park and along the Tualatin River. Commissioner Schuck asked if the three options were the only ones available to us and why did we choose the first one? Sr. Planner Lindor said yes, those were the choices, and the city had to choose an option or we could be dropped from the Flood Insurance Program. Option #2 didn’t consider Oregon’s requirement for notices and the legislative process that must be followed. FEMA didn’t expected Option #2 to require any kind of code amendment to process a permit-by- permit basis. FEMA also stated that Option #2 would not be an option for long-term implementation measures. Option #3 would prohibit all development and could result in litigation and loss for the city. This is why staff went with Option #1. Planning Commission Meeting Minutes|May 5, 2025 Page 3 of 6 President Jackson asked if staff knew of any existing non-conforming developments that could be affected. Planner Lindor said she didn’t, but parcels that are non-conforming today will remain that way. It’s likely that dwellings on such a parcel were built above flood level, while a yard, garden bed or shed might be in the special flood area. However, if the resident is in the floodplain and they remove more than 50% of the structure, they would need to comply with all NFIP national requirements to rebuild. President Jackson moved to the public testimony portion and provided instructions for in-person and remote testimony in support, neutral and against, in that order. However, many attendees didn’t indicate or weren’t sure of their position, so the President called in order of sign-up. PUBLIC TESTIMONY - Randy Killion, 11825 SW Katherine Street, had questions about whether these regulations apply when flood insurance is not required and if existing structures can remain. - Robert Ruedy, 14185 SW 100th Avenue, spoke about land takings, property value and loss of tax revenues, and compliance with the NFIP. Mr. Ruedy also submitted written comments for the Commissioners to consider. He outlined his concerns about diminished property values, increasing taxpayer burdens and density even though his property isn’t in a floodplain. - Paula Beck, 11765 SW Katherine Street, has questions about existing structures and how these regulations impact her property (specifically what is permissible and prohibited). - Mark Gunderson, 10765 SW Ponderosa Place, expressed opposition and concerns about how these regulations would limit use of property and change his property value. - Shelly McCargar, 11895 SW Katherine Street, expressed opposition and stated her concerns about significant erosion occurring along Summer Creek as well as a lot of wildlife activity. - Michael Westfall, 12180 SW Merestone Court, feels like he doesn’t have enough information to know if he is against or for these regulations. He would like to know if these regulations will diminish property values or incur more costs for property owners with the code changes. - Robert Clapham, 10900 SW 76 th Place, received notice, but his property is not within the floodplain and feels like he doesn’t have enough information and asked what determines when a property is within the flood zone. - Liz Jodeway, 11048 SW Greenburg Road, has concerns about compensation and property values. - Mike Stevenson, 9400 SW Burnham Street, stated he doesn’t understand what is being proposed and how this affects his property values. - Kenny Neal, 10705 SW Ponderosa Place, stated he would like to see some actionable items on what is proposed and how it will impact properties. He wants clarity on whether these changes will require him to get flood insurance. STAFF RESPONSE & QUESTIONS Asst. Director Warren projected an area map and looked at some of the properties that were the subject of the evening’s testimony. Sr. Planner Lindor clarified that new regulations aren't going to affect existing structures, it’s only if there is new ground disturbance proposed on a parcel within the area of special flood hazard. Mr. Killian’s property has some floodplain, but his dwelling is completely outside the floodplain, so he probably wasn't required to have flood insurance. There were questions about the requirement to obtain insurance. Planner Lindor stated that obtaining flood insurance isn’t a city requirement, it's required by mortgage lenders. There's no requirement on the city's part Planning Commission Meeting Minutes|May 5, 2025 Page 4 of 6 to participate in the National Flood Insurance Program. Asst. Director Warren reiterated that these proposed amendments are not changing the FEMA flood insurance maps. Property owners who question whether their property is truly in a floodplain can contact FEMA and go through their review process to remove the floodplain designation from their dwelling or their entire property. Assistant Director Warren said some residents were confused about why they got notice of this action. Staff sent a notice to every landowner with even a tiny sliver of floodplain on their property, as well as anyone who signed up to the ‘Interested Parties’ list which would deliver notice to property owners outside the floodplain. Regarding the question of taking, the city is already required by FEMA to have certain regulations that apply to the floodplain. This package of proposed amendments changes the way those regulations are implemented – with a tightening of some regulations and loosening other regulations. The current development code prohibits all development in the floodplain in residential zones. The proposed amendments would create a process for development opportunities in residential zones that is more streamlined and less expensive. Applications would be reviewed and decided by professional staff instead of the Hearings Officer, reducing time and expense. Sr. Planner Lindor said all materials have her contact information, and she urged people to contact by phone, email or in person with the Planner On Duty at Tigard Permit Center. Staff will help property owners find out if/how their properties are affected and answer questions. President Jackson asked staff to define “No Net Loss”, a recurring question in much of the evening’s testimony. Sr. Planner Lindor said it focuses on three functions of the floodplain: Floodplain Storage, Water Quality and Vegetation – primarily trees. If you remove trees from the floodplain, you must mitigate at a higher rate to replace those trees. If you add impervious surface, you’re required to either take impervious surface away or treat it per approved stormwater standards. The same applies to adding fill into the floodplain. If you fill the floodplain, you would be required to remove fill somewhere else within the special Flood Hazard area on your property. This is the balance of three floodplain functions. Commissioner K7 asked staff to address the impact of regulations on property value. Sr. Planner Lindor stated there are too many factors to apply one answer that fits all properties. Asst. Director Warren stated properties that might be most impacted are owned by the city or an HOA (open space) and considered non- developable. Staff has looked at this closely and even with properties entirely within the floodplain, it does not completely remove all economic value from the property. Asst. Director Warren stated that the federal government functions as an insurer of last resort and the National Flood Insurance program has helped replace homes in communities impacted by flood, hurricanes, and serious weather events. Protecting the economic value of a property is supported by Tigard’s participation in the National Flood Insurance Program - an important economic factor for the livability of our city and the sustainability of residences within flood hazard areas. Commissioner Bowerman asked about garden beds, fire pits, things that are not structural and how these amendments would affect those property amenities. Sr. Planner Lindor said removable features like fire pits are not within the purview of this regulation. Commissioner Schuck pointed out the city doesn't draw the floodplain map, and it’s not changing with this amendment so the speaker who might remodel his house, if he came to the city today with plans to extend into the floodplain, would be rejected? Sr. Planner Lindor said yes, if he’s located in a residential zone. He asked if the amendment is approved, would the resident have a chance to remodel if it went into the floodplain? Sr. Planner Lindor confirmed that if the no net loss standards are met, yes. Planning Commission Meeting Minutes|May 5, 2025 Page 5 of 6 The last question was about public concerns about water flow and impact of wildlife. Sr. Planner Lindor stated that these amendments have no connection to that issue. If the public is concerned about maintenance, or erosion issues please contact Planning or Public Works. The language used in the public notice is required by the State Statute, but staff is happy to answer questions. Please contact Sr. Planner Lindor or the Planner on Duty at the front counter in the Permit Center. President Jackson then closed the public portion of the hearing and thanked staff. Before moving to deliberation, he mentioned Mr. Ruedy’s request for a continuance. In cases of quasi- judicial hearings, the Planning Commission would be obliged to honor his request for either continuance or seven days public comment but since this is legislative hearing, we’ll proceed without granting the continuance. The public will have more opportunities to comment when it goes to City Council for a final decision in June. DELIBERATION Commissioner Bowerman said none of the three choices are optimal and she understands why staff recommend #1. She said her main concern is knowing that people who may need this coverage won’t have access to government funded flood insurance if a decision isn’t made. Therefore, Commissioner Bowerman supports staff’s recommendation as written. Commissioner Murphy said he’s 100% in support. President Jackson and Alt. Commissioner Sprague said they’d like to see more outreach to educate the community about this subject. With so many members of the public asking questions tonight, staff should take more opportunities to share information to reduce confusion. Commissioner K7 thanked residents for giving feedback. MOTION | DCA2025-00001 FEMA Endangered Species Act (ESA) Compliance Amendments Commissioner Murphy motioned, “for the Planning Commission to forward a recommendation of approval for DCA 2025-00001 to the City Council and that we adopt the findings and recommendations of the staff.” Commissioner Bowerman seconded the motion. President Jackson asked if there were any motions to amend and none were raised so he moved to the vote. VOTE President Jackson asked those in favor of the motion to say ‘Aye’ and Commissioners Bowerman, Sabbe, Schuck, Tiruvallur, Murphy, Brandt, Choudhury and Alternate Commissioner Sprague, and President Jackson responded that way. Although everyone voted with an ‘aye’, he asked if there were any “Nays”, and hearing none stated the motion’s unanimous passage. The hearing date for City Council is June 10, 2025, and urged everyone to stay involved. Other Business:  Asst. Director Warren recapped the city’s food cart open house on April 24 in Town Hall. We talked with prospective and current food cart owners to answer questions about regulations and gather feedback about their concerns. Staff briefed City Council with results on April 25.  Schuyler announced the addition of Senior Planner Brittany Gada to the CD team. She comes to us from Beaverton and will be Tigard’s project manager for River Terrace 2.0. She worked on the Cooper Mountain plan and her experience with land use, development, code writing, and more makes her a great addition to our team. She’ll give the Commission a progress report on the RT2.0 Housing plan on June 2, 2025. Because the Housing piece is funded by a grant from the Department of Land Conservation and Development we must complete work by June 30. Planning Commission Meeting Minutes|May 5, 2025 Page 6 of 6  On June 16, we’ll be back with RT2.0 consultants to present the Transportation plan, including a preliminary report on Tile Flat Road options.  On June 2, our Associate Planner Trin Miller will share a briefing on Tigard HOME. She’s completed the scoping work and will give you a briefing on work to be accomplished.  Commissioner K7 asked if anything is happening with the Washington Square Mall. Schuyler said there’s not much to share, just that we’ve had conversations with the mall owners, and they don’t have an application submitted for consideration. The redevelopment application approved by the Planning Commission a few years ago is the most recent action.  Asst. Director Warren gave a brief update on SB1537, the Governor's marquee housing bill. The last legislative session approved changes to mixed-use requirements (residential over retail development and mid-rise, 4-6 story buildings). One of the mandatory adjustments: if we have a zone that has a mixed-use ground floor commercial requirement, we're now required to allow someone to develop without that ground floor commercial. It’s somewhat disappointing, but mixed-use as a rule will continue and developers will likely see the benefit in it. MOTION FOR ADJOURNMENT Commissioner Tiruvallur made a motion for adjournment; seconded simultaneously by Commissioner Schuck and Commissioner Sabbe and unanimously approved, concluding the meeting at 8:39 PM. Joanne Bengtson, Planning Commission Secretary ATTEST: President Nathan C. Jackson River Terrace 2.0 Housing Plan Update Tigard Planning Commission June 2, 2025 Presentation Topics RT 2.0 Housing Plan Update •Housing Plan Overview •Project Schedule and Engagement Update •Draft Housing Approach •Next Steps Housing Plan Overview Housing Plan Purpose and Content Housing Plan Overview •Informs the Community Plan, code amendments, and other implementation items •Includes: •Housing policies •Regulatory approach •Supporting Strategies •Informed by: •Public engagement •Advisory committees •Professional expertise Project Schedule & Engagement Update Project Schedule Update Housing Plan Engagement •Public Open Houses – 1 in-person and 1 online •Advisory Committees: •2 CAC meetings •4 HAC meetings •1 TAC meeting •Focus Groups: •Spanish-speakers •Students •Housing-specific group (upcoming) •Meetings with housing experts Project Schedule & Engagement Update What have we heard from the community? Project Schedule & Engagement Update •Wide variety of housing types with under-supplied options to meet everyone’s needs •Meet housing needs while balancing preservation of natural resources •Distribute density in areas with good vehicular access •Housing with shared green space and close to parks •Walking distance to commercial areas What have we heard from developers? Project Schedule & Engagement Update •Surety, timing, and the ability to innovate are critical. •Feasibility concerns about housing mix rules, need for strong incentives •Density hubs around commercial areas more feasible than distributed ➢Gap between community priorities and developer feedback Housing Plan Schedule Project Schedule & Engagement Update •May 30th – Draft submitted to Department of Land Conservation and Development (DLCD) ➢Met DLCD grant deadline •June 2nd – Planning Commission meeting •June 10th – City Council meeting •June/July – Housing Focus Group •Mid- to Late Summer – Refine Housing Plan Draft Housing Approach Guiding Policies & Principles Draft Housing Approach •20 dwelling units per acre for at least 3,000 homes •Diversity of housing choices to serve all needs and affordability levels •Integrate market-rate and regulated affordable housing •Facilitate affordable homeownership •Integrate housing with natural resources, parks, and commercial areas Draft Regulatory Approach Proposed Land Use Map SW Beef Bend Rd Complementary Strategies Draft Housing Approach •Financial, programmatic, and regulatory •Support ambitious Concept Plan goals for affordability and housing diversity •Reduce risk and cost for regulated affordable and smaller-scale developers •Can help bridge the gap between community needs and preferences and development feasibility Next Steps Next Steps •Gather remaining community feedback •Refine and finalize the Housing Plan •Begin drafting code amendments •Next Planning Commission Meeting – July 16th Transportation Update River Terrace 2.0 Housing Plan City of Tigard, OR This project is funded by Oregon general fund dollars through the Department of Land Conservation and Development. The contents of this document do not necessarily reflect the views or policies of the State of Oregon. May 2025 ECOnorthwest 920 SW 6th Ave • Suite 1400 • Portland, OR 9720 4 • 503-222 -6060 Tigard River Terrace 2.0 Housing Plan 1 Acknowledgment s ECOnorthwest prepared this report with support from the guidance and input of several partners, including members, staff, and leadership of the City of Tigard . Most notably we are appreciative of the involvement and input of Schuyler Warren and Brittany Gada . Other firms, agencies, and staff contributed to other research that this report relied upon, specifically Code Studio. This work was financially supported by funding from Oregon’s Department of Land Conservation and Development and support from Metro. That assistance notwithstanding, ECOnorthwest is responsible for the content of this report. The staff at ECOnorthwest prepared this report based on their general knowledge of the economics of recreation, amenities, and regional economies. ECOnorthwest staff contributing to this study included Becky Hewitt, Celia Beauchamp, Mary Chase, and Ciara Williams. ECOnorthwest also relied on information derived from government agencies, private statistical services, the reports of others, interviews of individuals, or other sources believed to be reliable. ECOnorthwest has not independently verified the accuracy of all such information and makes no representation regarding its accuracy or completeness. Any statements nonfactual in nature constitute the authors’ current opinions, which may change as more information beco mes available. For more information about this report please contact: Becky Hewitt hewitt@econw.com ECOnorthwest 503-222-6060 Tigard River Terrace 2.0 Housing Plan 2 Table of Contents 1. Introduction and Context ..................................................... 1 2. Density and Zoning Strategy ................................................ 7 3. Preliminary Form -Based Code Approach ............................ 14 4. Complementary Strategies ................................................ 18 Appendix A. Summary of State and Regional Requirements ....... 27 Appendix B. CAC Engagement Activity ...................................... 35 Appendix C. Additional Housing Strategies ............................... 38 Tigard River Terrace 2.0 Housing Plan 1 1. Introduction and Context Introduction River Terrace 2.0 is an urban growth area that will become a new neighborhood in the City of Tigard. In 2021, the River Terrace 2.0 Concept Plan laid out an ambitious vision for how this area will contribute to local and regional housing production and set a new standard for equitable, climate -resilient development. The vision is for an innovative approach to greenfield development that creates a livable and sustainable mixed -income community while delivering housing in the near term. This type of innovation can be challenging to implement due to financial, regulatory, and other types of barriers , and will require both thoughtful regulations and intentional support outside the zoning code to succeed . ECOnorthwest and Code Studio worked with the City of Tigard to translate guidance from the Concept Plan into direction for development regulations and recommendations for non -zoning strategies to support the desired housing and land use outcomes for River Terrace 2.0. The team also worked with several advisory committees to refine concepts, including a Housing Advisory Committee, Community Advisory Committee, and Technical Advisory Committee (see section below for more detail). This report refines the original vision for housing in River Terrace 2.0 to set the course for development with housing strategies and a density and zoning approach . The Housing Plan will inform the creation of a Community Plan , code amendment s, and other implementation actions to achieve the housing objectives of Riv er Terrace 2.0. Policy objectives for housing in River Terrace 2.0 The River Terrace 2.0 Concept Plan envisions the future of development in the community with specific goals related to housing affordability , housing mix, and density as well as commercial uses. In addition, the River Terrace 2.0 community planning effort has set goals for climate resilience, including several focused on housing and development. The Concept Plan principles and goals and climate goals that informed this housing plan have been articulated as policy objectives below. Density and Housing Options  Deliver an overall density of 20 dwelling units per net acre (du/ac) and at least 3,000 units in River Terrace 2.0 to achieve City and regional goals for housing production.  Design an integrated mix of densities and housing types throughout River Terrace 2.0 , limiting reliance on designated high-density areas to achieve the average density goal. Tigard River Terrace 2.0 Housing Plan 2  Provide a diversity of housing choices to serve a full range of housing needs for Tigard’s current and future residents.  Integrate opportunities for market -rate and regulated affordable housing across a wide range of income levels with market -rate and regulated affordable homeownership and rental units integrated into future neighborhoods. Walkable Neighborhoods  Design residential areas to support and provide walkable access to future commercial centers and mixed-use nodes .  Design future neighborhoods and commercial areas to maximize walkability and transit service potential .  Locate private parking and automobile infrastructure away from the street and public view as much as possible, while prioritizing space for high -quality, permanent transit stations.  Incentivize or support commercial uses and businesses focused on daily goods and services for RT2.0 residents , emerging small businesses with green practices, and spaces or businesses that can serve as resiliency hubs. Climate -Resilient Development and Integrating Natural Areas  Design future n eighborhoods to thoughtfully incorporate adjacent natural areas and provide equitable access to nature for future residents of all types of housing.  Integrate green infrastructure and shade into future development .  Encourage housing with shared walls and ceilings/floors and smaller unit sizes per person that reduce energy use and greenhouse gas emissions .  Incentivize electrification, energy efficiency, and climate -friendly and carbon - responsible building techniques beyond those required under building code, such as passive heating and cooling, high -efficiency envelopes, and zero -emissions climate control system, while disincentivizing natural gas hookups.  Promote microgrid renewable and shared energy opportunities for neighborhood resiliency at key locations. State & Regional Legal and Planning Framework State and regional housing and land use regulations also provide important context that will guide housing development standards and approval processes for River Terrace 2.0. Some state regulations have either changed or been adopted since the River Terrace 2.0 Concept Plan. In general, these rules require local jurisdictions to allow for a wider range of housing types, provide flexibility for affordable housing, and remove bar riers for housing development. Tigard River Terrace 2.0 Housing Plan 3 KEY STATE STATUTES AND RULES Several state laws and rules apply to how the City regulates housing in River Terrace 2.0.  Housing must be allowed under clear and objective standards and procedures. Under Oregon statute, cities may only apply clear and objective standards to housing, and those standards and the procedures for approval must not create ‘unreasonable cost or delay’ through discretionary review.  Middle housing and accessory dwelling units (ADUs) must be allowed on every lot that allows for single dwelling s. This includes housing types like duplexes, triplexes, quadplexes, cottage clusters, and townhouses. The City of Tigard is above the population threshold of state legislation (25,000 residents or more) required to allow all identified middle housing types. The City’s current code complies with this rule.  Affordable housing must be allowed in commercial zones regardless of other existing development standards. By state requirement, affordable housing owned by a public agency or nonprofit must be allowed without a zone change or conditional use permit on commercial, religious, or public land regardless of other existing development standards. Additionally, afford able housing developments automatically qualify for height and density bonuses.  Cities must provide flexibility on certain types of standards for affordable housing and other qualifying housing to make development more feasible. This includes adjustments for height and density requirements to allow for development of regulated affordable units. Appendix A includes a more detailed summary of relevant state and regional rules. What input informed housing recommendations? These recommendations were developed through an iterative process with City staff and Advisory Committee members. The development process focused on achieving community goals while supporting development feasibility . Appendix B includes supporting materials and photos from related activities. Engagement for developing these strategies included:  Housing Advisory Committee : a group of experts with multiple perspectives on housing and the development process. This group met four times to discuss the following topics: ➢ Housing Opportunities and Barriers : Challenges around developing desired housing mix and densities and potential solutions . ➢ Other Development Considerations: Implications of planning for parks, natural resources, and stormwater on development . ➢ Housing Strategies: Refinements to zoning and other strategies and feedback on what will be most effective for achieving goals . Tigard River Terrace 2.0 Housing Plan 4 ➢ Land Use Concept and Recommended Strategies: Initial concepts for zoning and strategy recommendations.  Community Advisory Committee : a group of residents from around Tigard reflecting a range of lived experiences. This group discussed housing at two meetings: ➢ Housing Mix and Density: Participants engaged in an interactive game to envision different pathways for achieving the plan goals around density, housing mix, affordability, and other objectives while evaluating tradeoffs. ➢ Land Use Concept and Zoning Strategy : Feedback on a preliminary land use map and code concepts related to housing mix.  Technical Advisory Committee : R epresentatives from adjacent jurisdictions and partner agencies, including TriMet, ODOT, Metro, Clean Water Services, and others. This group provided feedback on a preliminary land use map and concepts related to housing mix and housing strategies.  Housing Conversations. Stakeholders participated in one -on-one conversations with the project team to give expert technical insight on community land trusts and considerations for various ownership models.  Open Houses. A broad community audience gave feedback on desired housing outcomes and highlighted importance of homes for purchase at a range of prices that are affordable to households of all sizes and incomes and visitability. What are the key development challenges for achieving River Terrace 2.0’s housing goals? A bold, innovative vision for future development like that for River Terrace 2.0 can be challenging to implement as it stretches the development industry outside of the models that are familiar and established . This plan aims to set the course for implementation that considers these challenges for desired types of development to identify appropriate solutions to help overcome those barriers for River Terrace 2.0. Historic regulatory environments have hindered middle housing development in areas like River Terrace 2.0 . Decades of regulatory norms in the United States have prioritized single -detached homes on fee-simple lots in suburban areas like River Terrace 2.0. As a result, much of the infrastructure for delivering housing, from financing to construction, is geared for this housing type alone. This means that there is a lack of institutional knowledge of how to successfully develop middle housing, and developers often find it more challenging to finance middle housing types compared to large -scale multi-unit or single -family subdivisions. Lenders and investors may be concerned about the desirability of other housing types and consider developments that emphasize new forms of middle housing too risky for financing. Tigard River Terrace 2.0 Housing Plan 5 Regulated affordable housing most often takes the form of higher -density multi-unit buildings. Most units developed through the predominant funding source for affordable housing in the United States today , the Low-Income Housing Tax Credit or LIHTC, are built as apartments (multi -unit rental housing).1 LIHTC developers generally must achieve sufficient density to justify pursuing a project, satisfy program requirements, and attract other public and private financing sources to make the project financially viable. As a result, affordable housing development under this program typically tends towards larger apartment buildings. Middle housing types are often more associated with infill development in established areas than greenfield contexts . Middle housing types like duplexes, triplexes, quadplexes, townhomes, and cottage clusters are more typically developed in areas where infrastructure and services are already in place. Existing road networks, water and sewer systems, transit access, schools, and nearby commercial amenities or job opportunities can reduce development costs and increase the market appeal of these housing types. Infill development in more established areas allows developers to more easily integrate middle housing into walkable neighborhoods with lower demand for parking. Another contributing factor is that many production builders that have experience and access to capital to develop at scale in a greenfield context have limited experience developing and marketing middle housing (particularly for forms beyond townhouses), while small builders that have more experience with middle housing often do not the same access to capital and ability to operate at scale as the production builders. Planned community features that will reduce reliance on cars (including future transit service and walkable commercial services) will likely lag initial housing development, which could make it harder to market housing designed for walkable places in early development phases. The area’s location at the edge of the Urban Growth Boundary (UGB) and the more auto-oriented character of surrounding existing development may create a perception during early phases of housing development that the area is more auto - dependent than it will ultimately be when fully developed and served. This could make housing with little or no parking less desirable initially, and deter developers and homebuilders from producing low - or zero-parked housing in early phases. Land and infrastructure costs (including System Development Charges) can be challenging for developing regulated affordable housing and other needed housing options . Holding costs and infrastructure needs can pose financial challenge s for regulated affordable housing developers. Affordable housing developers typically rely on a complex funding stack that often includes public subsidies and/or equity from tax credit investors 1 Urban Institute 2023 https://www.urban.org/urban -wire/lihtc-provides-much-needed-affordable -housing-not- enough-address-todays-market-demands. Tigard River Terrace 2.0 Housing Plan 6 through LIHTC. Assembling this funding stack takes time and means that affordable housing developers may need to hold the land for an extended period before development , which can increase the cost of development. Areas with comparatively high costs for System Development Charges (SDCs) can also make it harder to deliver affordable projects, which are often subject to subsidy limits and other funding requirements that limit their ability to absorb these costs . In addition, neither land nor off -site infrastr ucture costs can generally be covered with LIHTC, making it important to keep these costs low for much affordable housing development . Uncertainty in infrastructure costs (and other costs) also creates challenges for affordable housing developers who may have few options to close late - emerging funding gaps. This can make building affordable housing i n newly planned areas like River Terrace 2.0 where infrastructure may not yet be in place at time of development particularly challenging . High land and/or infrastructure costs can also make middle housing types less feasible and less affordable in greenfield development areas. Compared to market-rate single- detached homes (which can sometimes absorb higher cost s), prior analysis by ECOnorthwest shows that the lower sales prices typical of smaller middle housing units often result in tighter financial margins. While middle housing allows developers to spread fixed costs such as land and infrastructure across a larger number of units, each unit tends to have less ability to absorb these costs compared to a larger and higher -priced unit where a marginal increase in sales price may be less of a deterrent to buyers. This can make the feasibility of developing middle housing more sensitive to increases in land and infrastructure costs. Costs like SDCs that are charged per unit can also disproportionately impact smaller middle housing units.2 2 OREGON SYSTEM DEVELOPMENT CHARGES STUDY: WHY SDCs MATTER AND HOW THEY AFFECT HOUSING (December 2022), by ECOnorthwest, Galardi Rothstein Group, and FCS GROUP; prepared for Oregon Housing and Community Services (OHCS). https://www.oregon.gov/ohcs/development/Documents/Oregon%20SDC%20Study_FinalReport_121422.pdf Tigard River Terrace 2.0 Housing Plan 7 2. Density and Zoning Strategy A well-calibrated approach to land use and zoning will be critical for meeting the objectives of River Terrace 2.0 for housing diversity and density. This section includes an implementable strategy for achieving the City’s goals for housing mix and overall density of 20 dwelling units per net acre. The neighborhood typologies presented in the housing component of the River Terrace 2.0 Concept Plan are the foundation of this strategy, with refinements to specify and expand on the City’s approach . The strategy presented in this plan informs future code amend ments. The zoning strategy assumes the City will create area-specific zones applicable only in River Terrace 2.0 that have been configured to meet Concept Plan goals, rather than changing citywide standards to meet project goals . This strategy also assumes the City will create a Plan District with requirements that are not zone -specific or are better addressed outside of the framework of specific zones . This chapter also provides an overview of two options for approval processes which offer a clear and objective pathway for residential development in all zones, as well as a more flexible option for planned development. Land Use Map Exhibit 1 shows the Concept Plan’s original land use concept developed for River Terrace 2.0, including the general location and distribution of three housing typologies: Main Street, Even Mix, and Feathered Edge as well as the Commercial and Neighborhood Nodes. The proposed land use map in Exhibit 2 below generally aligns with the Concept Plan but has refined the potential locations and land areas of the higher and lower intensity residential areas and the commercial and mixed use areas. This land use map will be further refined with the Exhibit 1. Concept Plan Land Use Map Source: River Terrace 2.0 Concept Plan Tigard River Terrace 2.0 Housing Plan 8 creation of a zoning map, which will be the regulatory map applied to these areas with adoption of the Community Plan . Exhibit 2 . Proposed River Terrace 2.0 Land Use Map Residential Areas To achieve Concept Plan goals of a mix of housing types and achieving an overall density of 20 dwelling units per net acre, residential areas in River Terrace 2.0 would be divided into three different residential zones with varying levels of development intensity that emphasize compact development and housing variety in all neighborhoods. These new zones would have some parallels to existing residential zones used elsewhere in the city ; the lower intensity residential , medium intensity residential , and higher intensity residential designations are similar to the existing RES -C, RES-D, and RES-E zones. Residential development in all zones would have the option of meeting a set of clear and objective standards to proceed through a staff -level administrative review process or a more flexible pathway through a discretionary review process (additional detail included in Section 3 of this report ). Key features for all proposed residential zones include: Tigard River Terrace 2.0 Housing Plan 9  Minimum Density: All zones would require developers to meet an overall minimum density, calculated across all developable land within each development site. The minimum density requirement would vary slightly across the different zones.  Integrating Under -Supplied Housing Options: All residential zones would require development to integrate under -supplied housing options based on a menu of options, such as: ➢ Small units (e.g., <1,200 square feet) ➢ Less common housing forms (e.g., quads, ADUs, units with shared open space like courtyards and cottage clusters, etc.) ➢ Accessible/adaptable units (e.g., s ingle-story and zero -step units , units that meet accessibility/adaptability standards under building code) ➢ Climate -resilient units (e.g., based on certifications that consider electrification, energy efficiency, and /or climate -friendly and carbon- responsible building techniques ) ➢ Deed-restricted affordable units The required share of units that must offer under -supplied housing options would vary across the different zones (see potential percentages by zone below in the summary of proposed residential standards). The requirement would provide incentives to include deed -restricted affordable units. While incentive s have not yet been confirmed, an example could include allowing those units to count double towards meeting the housing options requirement (in addition to financial incentives available for regulated affordable units). Th is requirement would also be structured to ensure that larger phased developments include units meeting housing options rules as development occurs, rather than deferring them to later phases.  Pedestrian -F riendly Design Standards: Residential development in all zones will be subject to design standards that prioritize pedestrian -friendly design on street -facing portions of the development . Examples of this include limitations on street -facing garages and driveway access, building width limits, and window and entrance requirements. The approach to these standards is described further in Section 4. Proposed Residential Standards The potential new residential areas in River Terrace 2.0 are summarized in brief in Exhibit 3 . Note that ranges are provided for some numerical standards that will be further calibrated as the land use map is refined to become a zoning map and as the standards themselves are refined to determine how compliance will be measured. Tigard River Terrace 2.0 Housing Plan 10 Exhibit 3 . Summary of Proposed Standards in River Terrace 2.0 Residential Standards Purpose Direction for Clear and Objective Standards Lower Intensity Res. Medium Intensity Res. Higher Intensity Res. Overview of Intended Development A mix of small form residential lots allowing 1-3 units and other middle housing, with some undersupplied housing options Middle housing, small- lot single -unit detached housing, multi- plex housing with a substantial share of undersupplied housing options Larger-scale multi-unit housing and higher- intensity middle housing with some undersupplied housing options and options for small-scale commercial Allowed Residential and Nonresidential Development Dwelling Unit Types To allow and encourage a range of housing types that align with the intended scale and intensity of development Small Form Residential (up to 3 units), Cottage Cluster, Quad, Rowhouse (up to 4 per building) Small Form Residential (up to 3 units), Cottage Cluster, Quad, Rowhouse, Courtyard Unit, Multiplex, Quad, Rowhouse, Courtyard Unit, Multiplex, Apartment Undersupplied Housing Option Requirement To include housing that serves a range of households with different housing needs integrated within future neighborhoods. Outside range: 5-25% of units Likely range: 10-15% of units Outside range: 20-50% of units Likely range: 25-35% of units Likely range: 15-25% of units Tigard River Terrace 2.0 Housing Plan 11 Standards Purpose Direction for Clear and Objective Standards Lower Intensity Res. Medium Intensity Res. Higher Intensity Res. Nonresidential uses To provide opportunities for compatible nonresidential uses that meet residents’ needs within future neighborhoods. Childcare, institutional Childcare, institutional, small “corner store” allowed abutting a Collector Street or Neighborhood Route Childcare, institutional, small ground floor commercial or “corner store” allowed abutting a Collector Street or Neighborhood Route, accessory commercial uses Scale and Intensity Minimum Density per Project (du/net acre) To ensure compact development at transit- supportive densities and deliver an overall average of 20 units per acre across RT 2.0 [12-16] [18-20] [24-28] Maximum Height To create a building scale that is pedestrian - friendly and encourages active transportation 2.5 stories (3 stories as a bonus) 2.5 to 3 stories (4 stories as a bonus) 3 stories (4 or 5 stories as a bonus) Setbacks (front) 5-20 feet 5-15 feet 0-10 feet Maximum Building Width at Street House-Scale Rowhouse-Scale 1/4-block max. width Apartment- Scale, 1/2-block max. width (or other articulation / break) Commercial and Mixed -Use Areas To implement the Concept Plan goals for walkable, neighborhood -serving commercial development, the preliminary recommendation is to designate three areas for commercial development - one larger area that will consist of primarily commercial uses, with very little stand -alone residential development, and two smaller mixed -use areas that would allow more flexible mixes of residential, commercial, or mixed -use development. Smaller mixed - Tigard River Terrace 2.0 Housing Plan 12 use areas include requirements for ground floor retail on key frontages that would align with commercial standards. The purpose of having one large area that allows very little residential use is to protect that land for future larger -scale commercial development of community-supported uses like a grocery store . Commercial development typically follows after much of the residential development has been completed ; if earlier development of this area is desired then incentives should be considered . One of the factors suggesting the attractiveness of this type of commercial area in River Terrace 2.0 is that m any of the adjacent areas that have recently been developed have planned for but not successfully delivered commercial areas, creating potential to capture demand from the housing in those areas as well as future residential in R iver Terrace 2.0. Exhibit 4 . Summary of Proposed Standards in River Terrace 2.0 Commercial/Mixed Use Standards Purpose Direction for Clear and Objective Standards Mixed-Use Commercial Overview of Intended Development Mixed -use buildings, neighborhood-serving commercial development, and higher -intensity residential development Community-serving commercial development, mixed-use buildings with substantial ground -floor commercial Allowed Residential and Nonresidential Development Non-Residential Use Types To provide opportunities for a range of commercial and nonresidential uses that meet the daily needs of nearby residents Childcare, Institutional, Retail, Services, Office/Employment, more flexible home -occupation options Childcare, Institutional, Retail, Services, Office/Employment Residential Allowance To balance residential uses with needed commercial and employment areas to support a walkable community Commercial ground floor frontage required on key street frontages; other areas allow standalone residential use using higher intensity residential zone residential development standards Only allowed in mixed -use buildings with ground floor commercial on the primary street frontage.3 Standalone residential use allowed for regulated affordable housing only.4 Scale and Intensity Height To create a building scale 3 stories (4 as a bonus) 3 stories (5 stories as a bonus) 3 Consistent with SB 1537 (2024), Sections 38 to 41. 4 Meets requirements of ORS 197A.445. Tigard River Terrace 2.0 Housing Plan 13 Standards Purpose Direction for Clear and Objective Standards Mixed-Use Commercial Building Width at Street that is pedestrian- friendly and encourages active transportation 1/2-block max. width (or other articulation / break) 1-block max. width Residential Density To ensure compact development at transit-supportive densities and deliver an overall average of 20 units per acre across RT 2.0 Same as higher intensity residential for standalone residential N/A Approval Processes Tigard will offer two development approval processes for most development in River Terrace 2.0. As required by law, a clear and objective path will be made available. In addition, where variation from the standards is desired, applicants may choose an alte rnate path through the Planned Development process. While this latter process will require more time in the permitting process, it will also create more flexibility to tailor a project the way the applicant feels is most fitting. This trade -off will be at the applicant’s discretion. Residential development in all zones will include an option to meet a set of clear and objective standards through a staff -level administrative review process . The concepts informing the clear and objective pathway are identified above in Sections 2 and 3. Specific final numerical requirements and clear and objective language will be established as part of the code drafting process. Alternatively, developers may choose a more flexible path through a discretionary review process. Residential standards listed in Section 2 may be relaxed or adjusted through the Planned Development process. This flexible option will allow variation from some of the clear and objective standards, provided that the development meets the purpose of the standards and provides public benefits that exceed minimum code requirements . Tigard River Terrace 2.0 Housing Plan 14 3. Preliminary Form -Based Code Approach Approach The key feature of the proposed form -based approach is the improvement of the walkability of the community through managing form elements not typically included in traditional zoning. The intent is to deliver housing goals for River Terrace 2.0 through a hybrid form - based approach with three key levels of regulation:  Zoning Districts will set the boundaries for areas treated similarly with regard to minimum required density, use , and housing types. Will be mapped like existing zoning districts. Specific parameters of these standards are outlined above in Section 2.  Frontage Types will set rules for the form of elements facing streets such location of parking, yard depth, yard landscaping, entrances, and windows. Concepts for frontage-based standards are further summarized below.  Dwelling Unit Types will apply the City’s existing housing types with different development and design standards, in some cases splitting existing categories into multiple subtypes with differing standards . The approach is further discussed below. Frontage Type Standards Frontage is a term used here to denote the relationship of a street and adjacent property. The following standards are proposed to be tied to frontage on different street types :  Options for site access or driveway entrances  Whether parking or service areas are allowed in front or side yards  Whether the site has landscaping or buffer behind the sidewalk (screening the building or other site elements) or buildings with entrances and windows There are several different street types included in the River Terrace 2.0 Community Plan which serve different purposes, including:  Arterial Roads. Major roads carrying primarily regional traffic . Scholls Ferry and Roy Rogers are arterials ; no new arterials are planned for River Terrace 2.0.  Collectors. Primary routes connecting to Arterial roads and providing connections throughout River Terrace 2.0.  Neighborhood Streets. Secondary routes connecting parts of the neighborhood to collectors and providing connections between adjoining neighborhoods. Tigard River Terrace 2.0 Housing Plan 15  Local Streets. Streets p roviding access to individual properties .  Access Streets. Local street alternatives or alleys that provide property access and space for utilities/services with minimal vehicle use s (these are addressed primarily through alleyway standards). Not all of the streets within River Terrace 2.0 have known locations at this time: future collectors have mapped routes, but locations of other more internal streets will be determined during subdivision review. The flexibility in tying standards to street type will allow developers and the City to apply appropriate standards as new streets are platted, without the need to rezone the property in order to apply additional rules for the relationship of the street and proposed yards and buildings, because they will be pre -packaged as part of the frontage rules. Exhibit 5 . Summary of Standards by Frontage Type FRONTAGE TYPES ACCESS/ DRIVEWAYS STREET INTERACTION PARKING/ SERVICE AREAS SETBACKS Arterial Roads None allowed Landscaping/ Buffers Parking Lots Located Beside or Behind Buildings Deeper Side Setbacks (min) Collector Roads None allowed Street -Facing Entrances and Windows No Parking or Service Areas Between Building and Street Front Setback (min/max) Neighborhood Routes and Key Bike/Ped Connection Streets Limited Access/ Driveways Street -Facing Entrances and Windows No Parking or Service Areas Between Building and Street Front Setback (min/max) Local and Access Streets Allowed/ Consolidated Street -Facing Entrances and Windows Parking Allowed in Driveways/ Parking Lots Located Beside or Behind Buildings Screened Service Areas Allowed Adjacent to Street Front Setback (min only) Note that alleys can be used to provide access to properties that cannot take access from other types of roads; alleys are not “frontages” in this context, as they typically abut the rear of a property. Parking and service areas will typically be oriented towards alleys where available. Housing Type Standards Tigard already uses a series of housing types to apply particular form -based rules within each zoning district. This technique varies the rules depending on the housing type. For the Tigard River Terrace 2.0 Housing Plan 16 purposes of supporting mixing housing types within a single proposed development, several new subtypes are proposed within the City’s existing set of dwelling unit types to manage the following:  The extent of single -unit dwellings  The scale of apartment buildings when mixed with other smaller building types  The potential for required ground floor commercial Exhibit 6 . Summary of Standards by Dwelling Unit Type DWELLING UNIT TYPES CONFIGURATION KEY DESIGN CONSIDERATIONS Accessory Dwelling Unit Attached or Detached Unit Size (max) Height (max) Small Form Residential [NEW subtypes] 1 Unit 1 Unit + ADU or 2 Units, 2 Units + ADU, 3 Units Lot Dimensions (min/max) Lot Coverage (max, variable with # of units) Rear Setback (min) Landscape Area (min) Cottage Cluster Detached Lot Dimensions (min/max) Courtyard/Common Open Space Area (min) Landscaping (min) Building Orientation Courtyard/Open Space Parking Area Design Pedestrian Access Unit size/floor area (max) Courtyard Unit Attached Lot Dimensions (min/max) Courtyard Area (min) Landscaping (min) Building Orientation (to courtyard/open space) Parking Area Design Pedestrian Access Unit size/floor area (max) Quads Stacked (2 Units Up, 2 Units Down) Lot Dimensions (min/max) Common Open Space Area (min) Landscaping (min) Parking Area Design Pedestrian Access Rowhouse [NEW subtypes] Attached Side to Side : All Street-Facing Attached Side to Side : Mixed Street + Internal - Facing Lot Dimensions (min/max) Height in Stories (max) Common Open Space Area (min) Landscaping (min) Parking Area Design Pedestrian Access Tigard River Terrace 2.0 Housing Plan 17 DWELLING UNIT TYPES CONFIGURATION KEY DESIGN CONSIDERATIONS Apartment [NEW subtypes] Multiplex Multi-Unit Lot Dimensions (min/max) Height in Stories (max) Common Open Space Area (min) Landscaping (min) Parking Area Design Pedestrian Access Mixed -Use Development With Ground Floor Commercial Lot Dimensions (min/max) Height in Stories (max) Parking Area Design Pedestrian Access Landscaping (min) Tigard River Terrace 2.0 Housing Plan 18 4. Complementary Strategies The 2021 River Terrace 2.0 Concept Plan set ambitious goals for affordability and diverse housing types in this new UGB expansion area. In most housing markets it is difficult to achieve a fine -grained housing mix at a variety of price points without intentional interventions like public investment, incentives, or targeted programs. The City of Tigard has made a commitment to achieving these goals and can proactively implement strategies that support housing diversity, affordability, and density targets. The recommended strategies in this report build on both the Concept Plan and the 2019 Tigard Affordable Housing Pla n, which outlines strategies to support housing affordability citywide. It also includes recommendations that build on strategies the City has implemented in the years since those plans and focuses on those most likely to have the greatest impact in a gree nfield development setting. It is also informed by recent similar efforts by other jurisdictions seeking to support affordability and/or spec ific housing options in new development areas, including Beaverton, Wilsonville, Bend, and Hood River. Recommended strategies fall into four categories of potential tools:  Local Funding Sources and Direct Financial Support . Providing local funding for desired housing options is often the most direct way that jurisdictions can guide development toward community goals. However, finite resources, restrictions from different funding sources, and competing citywide priorities can limit the flexibility and scale of these tools.  Financial Incentives & Cost Savings. Beyond direct funding for housing development, there are several incentives and cost saving options that can encourage affordable housing and middle housing. While incentives are not guaranteed to produce desired units, they can influence what types of housing are feasible or appealing for developers.  Programs and Other Initiatives . A range of local efforts like technical assistance and building partnerships can also support housing goals. These actions typically help to facilitate a range of private or nonprofit sector partnerships. They are often effective when paired with other strategies like local funding or incentive programs.  Regulatory Incentives . Flexibility in standards or additional allowances can reduce costs, increase certainty for projects, and make a wider range of housing more financially feasible for developers. Like financial incentives, these incentives do not guarantee that desired housing types will be built but can make them more feasible. Oregon state law already requires jurisdictions to provide additional regulatory flexibility and incentives for affordable housing in several ways. Tigard is compliant with these requirements but could integrate additional considerations or flexibility in the plan area. Section 2 of this report covers density and zoning recommendations designed to support housing goals. Tigard River Terrace 2.0 Housing Plan 19 Recommended Strategies The following recommendations describe strategies that the City could use to maximize impact in River Terrace 2.0. Some actions build on existing housing strategies that are available citywide or being used elsewhere in Tigard with modifications to make them stronger tools for achieving specific plan goals. Others may have broader citywide implications that should be carefully balanced with other objectives. Key strategies for achieving the River Terrace 2.0 Concept Plan goals include:  Use funding from the City’s existing Construction Excise Tax (CET) that supports the City’s affordable housing programs to offer financial incentives or gap financing for deed-restricted affordable housing (in addition to existing exemptions from System Development Charges).  Scale any new area -specific system development charges based on the size of a housing unit to reduce the impact of those fees on middle housing and smaller housing units. Consider using CET to “buy down” existing citywide SDCs for middle housing and smaller housing units .  Modify the City’s existing Middle Housing Revolving Loan Fund program terms to make it a more valuable incentive and a more powerful tool to support desired middle housing development.  Explore property tax exemption programs for low-cost homeownership housing, mixed-income housing, and/or vertical mixed -use development.  If the City offers tax exemptions for low -cost homeownership housing or mixed - income housing, consider expanding exemptions from system development charges for affordable housing to apply to affordable units covered under those programs .  Use public benefits as part of the planned development process to incentivize desired outcomes in exchange for flexibility on other standards.  Support community land trust participation through capacity building and support. Each of these strategies alone can be effective for achieving housing mix and/or affordability goals. Implementing a range of actions can help to provide multiple pathways for incentivizing desired housing types for market -rate developers and reducing challenges for affordable housing providers. 1. Use CET funds for financial incentives . gap financing , or pre- development costs . CET is an existing source of local funding for housing incentives and affordability programs. The City of Tigard currently imposes a 1% Construction Excise Tax (CET) on commercial and residential developments (assessed on the value of construction) to generate funding for affordable housing. Certain improvements are currently exempted, such as affordable housing, ADUs, school improvements, and care facilities. Tigard River Terrace 2.0 Housing Plan 20 Tigard’s CET already backfills SDC exemptions for affordable housing, supports affordable home ownership, and provides a flexible source of funds to allow the city to pursue the strategies in its Affordable Housing Plan . Planning staff estimates that CET will generate roughly $500,000 per year going forward, which can be leveraged in River Terrace 2.0. CET could be used intentionally in River Terrace 2.0, but since the resource is shared throughout Tigard , funds spent in River Terrace 2.0 must be balanced a gainst affordable housing needs in other areas of the city. As a powerful tool for direct local funding, the City should pursue allocating CET revenue to fund incentives or gap financing for affordable housing in the River Terrace 2.0 area , including pre-development costs to reduce risks for affordable housing development . The City may make this allocation based on the estimated future CET revenues from market -rate development in River Terrace 2.0 (“capturing” the value of future development) or using available CET to proactively ensure funding. These investments co uld support upfront elements of affordable housing that can often be difficult to finance from common funding sources like Low Income Housing Tax Credits (LIHTC). These include site acquisition fees, entitlement, or other specific costs that affordable housing development faces. The City could offer this support through pre -development grants or zero -cost services to cover due diligence and vetting preliminary designs. 2. Apply new system development charges based on the size of a housing unit. The cost of SDCs tends to impact smaller and lower -cost units more than larger and more expensive ones. For middle housing in Tigard, total SDCs per unit are roughly 75% of the amount for single -unit detached housing. Depending on the type of middle housing and other aspects of these units, costs for SDCs can still be proportionately higher. This contributes to difficulties for making middle housing types feasible and achieving plan goals for a fine -grained housing mix throughout River Terrace 2.0. New infrastructure funding sources (e.g., area -specific supplemental SDCs or other infrastructure fees) will likely be needed to pay for infrastructure development in River Terrace 2.0. As part of establishing the methodology and rate structure for any new fees, this project will at a minimum continue the existing pattern of differentiating rates for single-unit detached and middle housing types . The City should also consider tiered SDCs by unit size, particularly where there is evidence that smaller units will have less impact on public infrastructure. This adjustment would only impact the incremental new fees in River Terrace 2.0, not existing SDCs with citywide rates. The City could potentially use CET (Strategy 1) or other funding sources to “buy down” the cost of existing SDCs for smaller units and/or middle housing in River Terrace 2.0. Tigard River Terrace 2.0 Housing Plan 21 3. Modify the City’s existing Middle Housing Revolving Loan Fund program terms . The City of Tigard currently offers a Middle Housing Revolving Loan Fund that provides a direct funding source for middle housing. However, it has not yet been used for any projects since its inception in 2021. The program includes short -term construction loans to develop for-sale middle housing that meet small form and square footage requirements. The fund can be used for acquisition, pre -development (including infrastructure), and construction. At least 30% of the developed units must be affordable to buy ers at 100% of area median income (AMI) or below and made available first to buyers through specific affordable homeownership nonprofits. If 100% of units are offered at this affordability level, the development is eligible for an interest rate reduction. City staff estimates that the fund could finance one or two modest -sized middle housing projects at a time. The City should consider modifying the program eligibility requirements and engaging with developers to make it a more effective program for promoting middle housing either in River Terrace 2.0 or citywide. This may include adjustments like increasing the income threshold for affordability, expanding the program to apply to rental middle housing, and/or adjusting loan terms to make the program more attractive to developers. 4 . Explore property tax exemption programs . There are several state-enabled, locally-adopted programs that provide partial property tax exemptions for specific types of qualifying development that could align with Tigard’s goals for River Terrace 2.0. Additional information on these programs and how they could apply within R iver Terrace 2.0 is provided below. Property tax exemptions reduce general fund revenue, but cities can set a limit for the amount of foregone revenue on an annual basis or apply a unit cap. SINGLE UNIT HOUSING PROPERTY TAX EXEMPTION Note: This program is also called ‘HOLTE’ or Homebuyer Opportunity Limited Tax Exemption HOLTE provides a 10-year exemption on the improvement (building) value of qualifying new or rehabilitated for -sale housing. Any housing type (including single -unit detached, middle housing, and condominiums) may qualify if the units are sold individually, prov ided the sales price is no more than 120% of the city’s median sales price. Cities may include required design elements or public benefits that would be required for qualifying properties , such as minimum bedroom count, income qualification requirements, o wner occupancy requirements, and green building requirements. This program supports affordable homeownership for low- and moderate -income households by reducing their property tax bill and increasing their borrowing power. However, the expiration of the abatement after 10 years can create challenges for homeowners if not supported through that transition. While the a ffordability does not necessarily last over the long-term (unless the program is limited to buyers working with a CLT or nonprofit Tigard River Terrace 2.0 Housing Plan 22 developer), by incentivizing smaller entry -level units, it increases the supply of such units that are likely to remain comparatively more affordable than larger units over time. HOLTE does not create an effective incentive for developers on its own, since the tax abatement goes to the homebuyer, but it can be paired with other incentives such as SDC exemptions, downpayment assistance, or other programs. It could be offered for middle housing in River Terrace 2.0 that meets the sales price criteria and additional income - related or other criteria. The exemption applies only to City taxes (which represent a relatively small share of the total tax rate) unless there is sufficient suppo rt from overlapping taxing districts to apply the exemption to all districts. MULTIPLE UNIT PROPERTY TAX EXEMPTION (MUPTE) Note: This program is sometimes called ‘MULTE’ or Multiple -Unit Limited Tax Exemption MUPTE provides a 10 -year partial property tax exemption on new or rehabilitated multi-unit rental housing (or middle housing rentals like duplexes, triplexes, etc.) that meets locally set criteria. It can be used for market-rate multi-unit or middle housing with specific features located in certain geographies (such as core areas, light rail station areas, or transit - oriented areas), or for mixed -income or fully regulated affordable housing. If used for housing with affordability restrictions, the exemption can last longer than 10 years and continue as long as the restrictions remain in place. This program is flexible, with City discretion over many aspects of eligibility, including the level of affordability requirements, the minimum number of units in the property, and any design requirements or other public benefits required. Regardless of the local eligibility criteria, the exemption applies to 100% of the residential portion of the property’s improvement value but does not apply to the land value.5 A number of cities in Oregon have implemented tax abatement programs under these statutes, though the program names vary between jurisdictions. Some cities use the program to incentivize affordable housing or housing in specific areas with specific design features rather than affordability. MUPTE can provide an effective incentive if the affordability or public benefit requirements are established appropriately and if there is sufficient support from overlapping taxing districts for the exemption to apply to all districts. MUPTE reduces gener al fund revenues for the City, and (if there is sufficient support from other districts) for all overlapping taxing districts. Because the City is planning for future transit service through the River Terrace 2.0 area, Tigard should explore designating portions of the area for MUPTE as a transit -oriented area (defined in statute as “an area defined in regional or local transportation plans to be within one-quarter mile of a fixed route transit service”). The City should also consider the exemption as an incentive for small -scale rental housing (e.g., multiplex) development, for 5 This program applies only to the City’s taxes unless the boards of other taxing districts representing at least 51% of the combined levy agree to the exemption, in which case all districts are included. Tigard River Terrace 2.0 Housing Plan 23 rental middle housing or multi-unit offering climate -friendly design (e.g., green building certification), and/or for mixed -income rental housing. VERTICAL HOUSING DEVELOPMENT ZONES A Vertical Housing Development Zone (VHDZ) provides a 10 -year property tax abatement for qualifying multi -story mixed-use development. The abatement is scaled to the share of residential use in the building (roughly 20 percent of the building value exempt per floor of residential use) but requires ground floor commercial use (at least 50 percent of the ground floor that fronts a primary public street must be committed to nonresidential use). The program also offers a small additional tax abatement for affor dable or mixed-income housing. Tigard’s VHDZ program has been moderately successful in supporting market -rate mixed- use development in the areas where it is currently available —Downtown Tigard and the Tigard Triangle. The additional affordability incentives associated with VHDZ are gene rally not enough to incentivize mixed -income or affordable housing development. The City should consider adopting one or more new VHDZs in River Terrace 2.0 in relevant areas. This would be most appropriate in the planned neighborhood mixed -use nodes and/or in the larger planned commercial area. 5. Consider expanding SDC exemptions for affordable housing. SDCs are one -time fees charged on development to help pay for the public facilities (transportation, water, sewer, stormwater, and parks) required to meet growth-related needs. Tigard currently offers exemptions for ADUs6 and affordable housing7 on City Transportation and Parks SDCs. Other SDCs (including City water SDCs, sanitary sewer and stormwater SDCs set by Clean Water Services and Washington County’s Transportation Development Tax ) do not currently offer comparable exemptions ,8 but rates are generally set outside of the City’s control. Middle housing already generally pays lower rates than single - unit detached housing for most SDCs.9 The City also collects SDCs later in the development process than many other jurisdictions, which reduces developers’ financing costs associated with the SDCs. An exemption for these fees is a financial incentive that can help make affordable development more feasible, but often not sufficient on its own to fully offset the higher costs and lower returns associated with income -restricted housing. In Tigard, SDCs overall add roughly $25,000 to $50,000 per unit to development costs depending on housing type. Exempting SDCs for income -restricted affordable housing can help reduce the funding gap 6 To qualify, the ADU must be within city limits, 1,000 sq ft or less, and have a restrictive covenant stating that it will not be used as an STR for 10 years. 7 To qualify, the affordable unit must have an agreement or contract of affordability, be affordable at or below 80% AMI, and remain regulated affordable for 20 years. 8 If ADUs share a meter with the primary unit, there is only one fee for water, sanitary, and stormwater SDCs but TDT still applies. 9 Tigard SDC Rate Sheet: https://www.tigard-or.gov/home/showpublisheddocument/96/638569101383070000 Tigard River Terrace 2.0 Housing Plan 24 for affordable housing. The value of the existing exemptions and reductions is approximately $14,000 per unit, which represents roughly half of the total cost of SDCs for multi-unit buildings or ADUs. The City should consider extending the existing exemption for affordable housing to units that qualify under other affordability programs but would not meet the existing affordability criteria, such as the units that qualify for tax exemption programs if they are implemented (see Strategy 4 above). Like reduced fees for smaller units (Strategy 2), the City could also explore using CET (Strategy 1) or other funding sources to “buy down” or backfill these costs. 6. Use public benefits as part of the planned development process . Section 2 of this report details an approach to density and zoning in Rive r Terrace 2.0, including considerations for two types of plan review processes: a clear and objective pathway and a discretionary review option. The discretionary pathway allows a mechanism for greater flexibility when development meets established objectiv es for the area. Tigard’s existing planned development process requires that development provides some form of public benefit to warrant the requested flexibility. Examples of public benefits could include affordable units, public open space, green building features, accessibility features, and others as allowed by the development code . The City should continue to require the inclusion of public benefits in planned development s for the discretionary pathway in River Terrace 2.0 . Existing p lanned development regulations could be modified to require or incentiviz e certain types of public benefits be provided in River Terrace 2.0 planned developments that align with Concept Plan goals. While this might not ensure that a developer will choose to provide one type of public benefit over another unless explicitly required , it presents an opportunity for negotiation between City staff and developers about more flexible standards. 7. Support community l and t rust participation and capacity building. A Community Land Trust (CLT) is a model where a nonprofit community organization owns land and provides long -term ground leases to low -income households to purchase the homes on the land, agreeing to purchase prices, resale prices, equity capture, and other terms. The CLT model lowers the cost of homeownership by reducing or eliminatin g the land acquisition cost (and sometimes other costs) from the building ownership costs and decreases the likelihood of displacement in areas where land values are increasin g. The City has an existing partnership with Proud Ground as part of the Middle Housing Revolving Loan Fund to provide down payment assistance to homebuyers (Strategy 3). However, limited capacity with nonprofit partners can limit the impact of housing support initiatives. The City should consider strategies to ease capacity issues with Proud Ground and other partners, such as offering support for pre -development and planning processes. Tigard River Terrace 2.0 Housing Plan 25 Additional Strategies Analyzed Exhibit 7 8 summarizes the full list of strategies evaluated, including existing, planned, and potential strategies that could address goals for desired housing types and/or income - qualified housing. Planned strategies are identified in the River Terrace 2.0 Concept Plan and are currently being developed within other components of this project. Some existing housing strategies are available citywide and will automatically apply within the River Terrace 2.0 area. The City could make potential modifications to some of these actions to make them stronger tools for achieving plan goals (detailed below with releva nt actions). Other existing strategies are being used elsewhere in Tigard and could be applied w ithin River Terrace 2.0 but would require the City to intentionally implement them in the plan area (marked with an asterisk (*) below). Some actions would have flexibility to be applied to desired housing types and/or income -qualified housing depending on how the City configures a program. Strategies shown in grey text below were evaluated as lower priority actions. Appendix C includes additional detail for existing and lower priority strategies. Exhibit 7 . Summary Assessment of Existing and Potential Strategies TYPE STRATEGIES APPLICABLE GOALS STATUS DESIRED TYPES INCOME QUALIFIED Local Funding Sources and Direct Financial Support Construction Excise Tax (CET) X X Existing * Land Acquisition & Site Control X X Existing* Middle Housing Revolving Loan Fund X X Existing Accessory Dwelling Unit (ADU ) Financing X Potential Tax Increment Financing (TIF ) District Infrastructure Investments & Development Assistance X X Potential Financial Incentives & Cost Savings System Development Charge (SDC) Exemption s & Discounts X X Existing / Planned Vertical Housing Development Zone (VHDZ) X Existing * Site Readiness & Infrastructure Investments X X Potential CET Exemption & Discounts X X Existing Non-Profit Low Income Housing Property Tax Exemption X Existing Multiple Unit Property Tax Exemption (MUPTE) (sometimes called ‘MULTE,’ Multiple Unit Limited Tax Exemption) X X Potential Tigard River Terrace 2.0 Housing Plan 26 TYPE STRATEGIES APPLICABLE GOALS STATUS DESIRED TYPES INCOME QUALIFIED Single Unit Housing Property Tax Exemption (sometimes called ‘HOLTE,’ Homebuyer Opportunity Limited Tax Exemption) X X Potential Small Home Construction Incentive X Potential Development Fee Reductions for Affordable Housing X Potential Regulatory Incentives Incentive Zoning to Support Affordable Housing X Existing / Planned Zoning for Multi -unit Housing X Planned Annexation Agreements X Potential Programs and Other Initiatives Support Community Land Trust Participation X Potential Match-Making & Information Sharing X X Existing *Existing citywide strategy that the City would need to choose to apply in River Terrace 2.0. Tigard River Terrace 2.0 Housing Plan 27 Appendix A . Summary of State and Regional Requirements State Housing Goals Oregon has had a statewide planning program since 1973. This program is built on 19 Statewide Planning Goals that cover a wide range of topics. Goal 10 guides housing planning in Oregon and establishes the overarching objective “to provide for the housing needs of citizens of the state.” (OAR 660 -015-0000(10)) Goal 10 guides the approach for Oregon jurisdictions to plan for housing needs and implement hou sing initiatives. As required by state law, Tigard has adopted its Comprehensive Plan including housing policies to implement the applicable statewide goals at a local level. State Statutes and Rules Key sections of Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR) that relate to housing are summarized below. The City of Tigard’s existing Community Development Code is consistent with these requirements. They are identified here to ens ure new regulations for River Terrace 2.0 maintain consistency . The table below summarizes these relevant sections with an emphasis on sections which have changed with recent legislation and relevance for River Terrace 2.0 as an area planning effort. Exhibit 1. Applicable State Statutes and Rules ORS/OAR REQUIREMENTS SUMMARY RELEVANCE FOR RT2.0 Clear and Objective Standards, Optional discretionary pathways ORS 197.307(4) & (6) OAR 660-008-0015 Cities may only adopt and apply clear and objective standards, conditions, and procedures for housing development within UGBs. These may not create ‘unreasonable cost or delay.’ Discretionary pathways for approval processes must meet required statutory conditions. This includes retaining the option for a clear and objective process and compliance with statewide goals. Approval processes that have Tigard’s existing Community Development Code (CDC) is consistent with these requirements. New standards for River Terrace 2.0 must comply with this rule and provide clear and objective standards related to housing. This includes subdivision, partition, and engineering standards, where providing clear and objective standards can be more challeng ing. Any discretionary pathways (e.g., Tigard River Terrace 2.0 Housing Plan 28 ORS/OAR REQUIREMENTS SUMMARY RELEVANCE FOR RT2.0 discretionary standards must still at minimum authorize the same density level in the applicable zone. planned developments) must be optional. Middle Housing in Master Planned Communities ORS 197.758 OAR 660, Division 46 All cities with a population of 25,000 or more (including Tigard) must allow “middle housing” (including duplexes, triplexes, quadplexes, cottage clusters, and townhouses) in ‘areas zoned for residential use that allow for the development of detached single-family dwellings’ within a UGB. Siting and design standards for middle housing must not discourage the development of Middle Housing through unreasonable costs or delay, based on specific criteria defined in rule. New urban areas like River Terrace 2.0 have specific rules that allow cities to regulate development of middle housing by allowing development of all middle housing types in OAR 660-046 and/or providing urban water, sanitary sewer, stormwater, and transpor tation systems that accommodate at least 20 du/net acre. Jurisdictions may require applications for residential development within new urban areas to develop a mix of residential types (including at least two middle housing types beyond duplexes). Jurisdic tions may also provide variable rate The City of Tigard adopted new standards to allow for a wider range of middle housing in 2018 before the requirements of HB2001 took effect. The City made additional adjustments to be in compliance with HB2001 in 2022. River Terrace 2.0 is considered a Master Planned Community. The City intends to allow a full range of middle housing types, plan infrastructure for at least 20 du/ac, and require a mix of housing types. The City may also consider use of variable fees for infrastructure in this area . The City will need to structure housing mix requirements appropriately to ensure that they meet the requirements of the rules. Tigard River Terrace 2.0 Housing Plan 29 ORS/OAR REQUIREMENTS SUMMARY RELEVANCE FOR RT2.0 infrastructure fees, SDCs, or impact fee s to incentivize middle housing. Middle Housing Land Divisions ORS 92.031 Middle housing land divisions that meet specific statutory requirements must be approved by cities and counties through an expedited land division process. This includes applications that result in exactly one dwelling unit on each resulting lot or parcel. Tigard CDC Chapter 18.840 Sublot Plats is the city’s local implementation of this requirement. Middle housing land divisions must be done sequentially and cannot be combined with a partition or subdivision application under the current code and state statute . There is currently legislation pending that would allow concurrent middle housing land divisions with subdivisions. If passed, the city could explore streamlining this process by allowing concurrent applications . Planning for partition and subdivision requirements in River Terrace 2 .0 should consider the interaction with Middle Housing Land Divisions. Accessory Dwelling Units ORS 197.312(5) OAR 660-046-0205 A city above a population threshold of 2,500 may not prohibit the development of at least one accessory dwelling unit (ADU) per detached single - family dwelling. Tigard meets the threshold for a Large City (25,000 or more residents) and may allow ADUs on parcels with duplexes, triplexes, or quadplexes. ADUs are defined as ‘an interior, attached or detached Tigard’s Community Development Code allows for up to two ADUs per property (one detached) with standards regulating their size, height, setback, and lot coverage. The City offers a streamlined permitting process with no land use approval requirement . Development standards in River Terrace 2.0 will also need to include allowances for ADUs. Tigard River Terrace 2.0 Housing Plan 30 ORS/OAR REQUIREMENTS SUMMARY RELEVANCE FOR RT2.0 residential structure that is used in connection with or that is accessory to a single -family dwelling.’ Jurisdictions must have ‘reasonable local regulations relating to siting and design’ but may maintain owner -occupancy or off-street parking requirement s. Affordable Housing in Commercial and Industrial Zones and Siting ORS 197.308, 197.286 to 197.314 Local governments are limited in the standards and conditions of approval that may apply to certain affordable housing. They are required to allow development of such housing on lands not zoned for residential uses and at increased densities. Affordable housing 10 owned by a public agency or nonprofit must be allowed without a zone change or conditional use permit on commercial, religious, or public land within the UGB. SB8 (which passed in 2021) authorized this state rule and created a statewide density bonus for affordable housing. This requires local governments to approve heights and densities for affordable housing either in consistency with an existing local afforda ble housing bonuses or up to 200% percentage of existing density Affordable housing development must be allowed throughout River Terrace 2.0 including commercially zoned areas. State rules for affordable housing density bonuses must also apply for any applicable projects in River Terrace 2.0. 10 defined as properties that are ‘available to own or rent to families with incomes of 80 percent or less of the area median income… based on information from the United States Department of Housing and Urban Development; or the average of all units on the p roperty is made available to families with incomes of 60 percent or less of the area median income.’ Tigard River Terrace 2.0 Housing Plan 31 ORS/OAR REQUIREMENTS SUMMARY RELEVANCE FOR RT2.0 and additional floors. This incentive is scaled based on existing density of the property. Child Care and Rental Homes ORS 90.385, 329A.280, 329A.330 Oregon SB 599 passed in 2023 prohibits property owners from restricting tenants from using residential dwellings as a family childcare home. Residential dwellings in River Terrace 2.0 must be permitted for use as a family childcare home. Limited Land Use Decisions for Zoning Adjustments ORS 197.195 SB 1537 was passed by the Oregon legislature in 2024, which includes a requirement for local governments to approve certain adjustments to land use regulations for housing development within the UGB as a limited land use decision. This applies for development of housing on land zoned for residential or mixed use that will do at least one of the following: enable development of housing that is not otherwise feasible (due to cost or delay) under unadjusted land use regulations, reduce the sale or rental price per unit, increase the number of housing units in the application, enable provision of accessibility or visitability features that would not otherwise be feasible, or create affordable units in alignment with ORS 456.270 to 456.29 5. Applicable standards may be adjusted to the extent detailed These standards for approving adjustments to land use regulations for eligible types of housing development will apply within River Terrace 2.0. If a property owner or developer applies for an adjustment that meets the criteria, the City must approve the request. The city is currently applying for an exemption to the state process and would provide for the adjustments through the land use process. Tigard River Terrace 2.0 Housing Plan 32 ORS/OAR REQUIREMENTS SUMMARY RELEVANCE FOR RT2.0 in the legislation including setbacks, landscaping, parking minimums, minimum or maximum lot sizes, lot coverage, building height, and design standards. Flexibility for Ground Floor Commercial Requirements ORS 197.195 SB 1537 also requires that local governments provide adjustments for housing that meets certain criteria (see above) to allow for ground floor residential uses in commercial or mixed-use areas that otherwise require ground floor commercial. One building face may retain non-residential requirements. Currently, these provisions are scheduled to sunset on January 2, 2032. This requirement means that commercial areas of River Terrace 2.0 will not be able to exclude ground floor residential if it meets the criteria of SB 1537. Metropolitan Housing Rule ORS 197.040 OAR 660-007-0030, 660-007-0035 Jurisdictions in the Metro region must provide for an overall minimum density in their residentially zoned land and allow for at least 50 percent of new housing units to be attached or multi-unit units. Tigard is included in the list of cities in the Metro region required to provide for an overall density of ten or more dwelling units per net buildable acre. Tigard already complies with these rules, and the planned density and mix for River Terrace 2.0 will ensure the City maintains compliance. Sources: Oregon Revised Statues, DLCD Key Housing Statues and Legislation, Tigard Community Development Code Tigard River Terrace 2.0 Housing Plan 33 Metro Rules Metro is the regional government body for Clackamas, Multnomah, and Washington Counties which assesses the capacity of the urban growth boundary (UGB) at least every six years and, if necessary, increases it to ensure the region’s capacity for housing and employment for the next 20 years. Tigard is within Metro’s jurisdiction. Metro’s 2040 Growth Concept is a 50 -year plan for growth in the Portland metropolitan area, adopted by the Metro Council in 1995. Metro guides growth and consistency with Oregon Planning Goal 10. Metro does this through Title 1 its Urban Growth Management Functional Plan (UGMFP). Each jurisdiction within the Metro area is required to determine its housing capacity and adopt minimum density requirements that meet Title 1. The U GMFP guides requirements for existing land and land added to the Metro UGB. Exhibit 2 summarizes key rules related to housing development and new master planned areas added to the UGB like River Terrace 2.0. Exhibit 2. Urban Growth Management Functional Plan Requirements UGMFP RULES SUMMARY RELEVANCE FOR RT2.0 Housing Capacity and Densities 3.07.120(b) Cities and counties within Metro must adopt minimum dwelling unit densities for each zone in which dwelling units are permitted (except for mixed-use zones). The City of Tigard is compliant with minimum densities in its residential development standards; these must also be consistent for housing development in River Terrace 2.0 . Accessory Dwelling Units 3.07.120(g) Consistent with state law (detailed above) cities within Metro must allow at least one ADU for each detached single - family dwelling and may be subject to some reasonable regulation for siting and design. Development standards in River Terrace 2.0 will also need to include allowances for ADUs in the master planned area. Conditions of Approval 3.07.1455, 3.07.1120, 3.07.620 Ordinance No. 23 - 1488 Land added to the Metro UGB is subject to specific conditions, including assignment of a jurisdiction for adopting amendments, comprehensive plans, and land use regulations to allow urbanization. In 2021, the City of Tigard submitted a proposal to the Metro Planning Department seeking to add approximately 490.6 acres of land in River Terrace 2.0 to the UGB through Metro’s mid-cycle amendment process with the concept plan consistent with Title 11. Tigard River Terrace 2.0 Housing Plan 34 Jurisdictions must establish design type designations consistent with Metro’s 2040 Growth Concept within two years. The City of Tigard is required to complete a comprehensive planning process in coordination with Metro Planning and Development staff for land added to the UGB by Ord. 23 -1488 by February 2027. This process must include broad -based and equitable public eng agement and address: • Concentrating mixed -use and higher density development in existing or planned centers • Increasing use of transit • Increasing active transportation options Conditions of Approval for River Terrace 2.0 require that the City plan for at least 3,000 homes in the newly added area, which will be added as a Neighborhood in Metro’s Growth Concept Map . The City may also propose the addition of Corridors. These rules also require that River Terrace 2.0 must be consistent with standards adopted by CWS that reduce and mitigate erosion impacts caused by stormwater. Tigard River Terrace 2.0 Housing Plan 35 Appendix B. CAC Engagement Activity For the third meeting of the River Terrace 2.0 Community Advisory Committee, the group participated in an activity to consider distribution of different housing priorities. The group was split into three smaller groups with one staff notetaker for each. Ea ch team was given a set of markers that had one or more of the housing types on them along with the density provided. The group was then meant to place the markers on a game board representing the neighborhood “map” to decide how best they would layout the housing mix for RT2. They were tasked with considering what housing types should go where and reaching a housing density of 20 u/a or at least 1,000 units for the whole board. Housing Activity Discussion Results GROUP 1 Group 1, placed 1,004 units. Group 1 thought it would be good to place higher density near the main street. They thought this would make the neighborhood safer, and keep more people closer to transit. This could be especially helpful for people who are younger and may be more likely t o take transit. They also thought this could help invite people into the Tigard River Terrace 2.0 Housing Plan 36 neighborhood. Group 1 wanted to keep lower density units (like cottage clusters) further back in the neighborhood, and provide more family friendly units here. This also means that the lower density units would be closer to natural areas which would have less of an impact on wildlife. This also keeps wildlife further from traffic for protection. Density would be closer to services and parks for better access. A main priority for this group is that the neighborhood be inviting. They see this in mixed use are as that are welcoming with trees, a courtyard, and easy access to parks and trails. GROUP 2 Group 2, placed 1,004 units with one open space for pocket parks. Equal split between rentals and owner occupied. Group 2 decided to maximize the number of people who can be near nature/parks and put higher density here. They used some single family units with ADU throughout. Group 2 really prioritized a mix of height profiles and configurations, with no monolith bloc ks. Tigard River Terrace 2.0 Housing Plan 37 GROUP 3 Group 3, placed 1,024 with one free square. Group 3 placed the housing types that come with greenspace (single detached, cottage cluster, courtyard) further from the shared greenspaces like parks and natural area. They would like to provide access to this public greenspace for apartments, multiplex or others that don’t have their own private area. This group went for a highly mixed neighborhood with the same types not appearing next to each other. They want a lot of smaller units and only placed single family units that come with an ADU. They would l ike many ADUs for elderly family members to be close by. They would also like some ADUs to be near the commercial areas, so older people or those with disabilities can still access services. This group suggested that having some of the single family units near the main streets might also help keep costs down on those units, making it more accessible to lower -income families. The priority for this group was mostly on affordability and also climate, but they were not concerned with market feasibility. Tigard River Terrace 2.0 Housing Plan 38 Appendix C . Additional Housing Strategies The City of Tigard has additional tools available for supporting development of affordable housing and diverse housing types desired in River Terrace 2.0 , beyond the priority recommendations listed in Section 4. Some of these strategies are already applicable for development citywide. CET Exemptions & Discounts Description: In Tigard, ADUs and affordable housing (80% AMI or less) are fully exempt from the CET (described above); middle housing receives a 75% discount on the CET. These options slightly reduce the cost of development by approximately 1% of the permit value of construction. Impact: CET exemptions and discounts in Tigard intend to incentivize and eliminate barriers to development types not supported by the current housing market. The amount of the exemption/discount is relatively small (roughly $1,200 to $2,300 per affordable housing unit based on typical permit value per unit) but is targeted to housing types that are most cost sensitive. Status and Considerations: This tool is available on an ongoing basis for affordable housing, ADUs, and middle housing in Tigard. The City could consider expanding the full exemption to middle housing eligible for the Middle Housing Revolving Loan Fund either in River Terrace 2.0 o r citywide. References: • City of Tigard Code, Chapter 3.90: https://ecode360.com/43650013#43650031 • Tigard Affordable Housing Plan, 2019 Nonprofit Low -Income Housing Property Tax Exemption Description: Tigard Municipal Code Chapter 3.50 allows nonprofit -owned low-income housing properties to qualify for a property tax exemption. To qualify as low -income, the initial occupant(s) must have income at or below 60% AMI, then no more than 80% AMI in the subsequent, consecutive years that they occupy the unit. The exemption application must be filed annually, but the exemption may last as long as the property qualifies. It can also apply to land held by nonprofits for future low -income housing development. Impacts: In 2024, City Council granted exemption to 15 non -profit, low-income housing owned and operated by Community Partners for Affordable Housing (CPAH), Reach, New Tigard River Terrace 2.0 Housing Plan 39 Narrative, NW Housing Alternatives, and Resident Resources. This reduce d general fund revenues by $405,235.11 Status and Considerations: This exemption can currently support nonprofit affordable housing development in River Terrace 2.0, as in the rest of the city. If the City were able to support a nonprofit in acquiring land in River Terrace 2.0, the exemption would reduce their holding costs during pre -development. References: • City of Tigard Code, Chapter 3.50, https://ecode360.com/43649669 Zoning for Multi -Unit Housing Description: Most units developed through the most prominent funding source for affordable housing in the United States today (the Low -Income Housing Tax Credit or LIHTC) are built as apartments (multi-unit rental housing).12 LIHTC developers generally must achieve sufficient density to justify pursuing a project, satisfy program requirements, and attract other public financing sources to make the project financially viable. As a result, affordable housing development under thi s program typically tends towards larger apartment buildings. Although regulated affordable housing may come in other forms through other funding sources (including Oregon’s Local Innovation and Fast Track or LIFT program), allowing for multi-unit housing and minimizing development barriers in the code can support affordability goals by ensuring LIHTC -funding projects do not face regulatory obstacles. Impact: Zoning that permits multi-unit housing outright can remove regulatory barriers for income-qualified development. Development would still need to secure land and financing but would expand the range of sites that could be suitable. Status and Considerations: This project is establishing zoning for River Terrace 2.0, which will include specifications for where and how multi-unit housing can be built in the area. This project will ensure that zoning allows multi-unit development at a scale that is efficient for LIHTC-funded development, both in commercial areas (where affordable housing must be allowed under state law) and in some or all residential areas in River Terrace 2.0. References: • Wilsonville Frog Pond East and South Affordable Housing Analysis, 2022 • Bend Stevens Road Tract Concept Plan Affordable Housing Memorandum , 2022 11City Council Business Meeting (April 2024), https://public.destinyhosted.com/tigardocs/2024/CCBSNS/20240402_2323/5465_tax_exemption_matrix.pd 12 Urban Institute 2023 https://www.urban.org/urban -wire/lihtc-provides-much-needed-affordable -housing -not- enough-address-todays-market-demands. Tigard River Terrace 2.0 Housing Plan 40 Incentive Zoning to Support Affordable Housing Description: Incentive zoning seeks to encourage developers to provide a community benefit (such as affordable housing), in exchange for the ability to build a project that would not otherwise be allowed by the code. State law already requires additional regulatory flexibility and allowances for affordable housing as a baseline, including adjustments to setbacks, landscaping, parking minimums, minimum or maximum lot sizes, lot coverage, building height, and design standards.13 Impact: Zoning incentives can support affordable housing development by allowing it to be built at higher intensity than market -rate development, allowing for land costs to be distributed across more units, and/or removing other requirements that could increase development costs. Status and Considerations: The City already has incentives in its code such as density and height bonuses and expedited review processes available for regulated affordable housing (which are now superseded by state requirements). Opportunities for incentive zoning in River Terrace 2.0 could focus on flexibility on building scale, tree preservation, housing mix, or other requirements in addition to or instead of maximum density, given that the density targets for the area are above what is typical for most m arket -rate development. References • Tigard Affordable Housing Plan, 2019 • Beaverton Cooper Mountain Community Plan, 202 4 Match-Making & Information Sharing Description: The City can play a proactive role in c onnecting affordable housing developers and developers experienced in building middle housing to development opportunities . Impact: Alleviates some of the capacity burden on smaller and non -profit developers associated with seeking out opportunities and information. Increases likelihood of executing on the River Terrace 2.0 vision with intentional outreach to and partnership with deve lopers aligned with the vision. Status and Considerations : The City of Tigard has engaged affordable housing developers and developers experienced in building middle housing in the planning process for River Terrace 2.0. The City does not currently have full visibility into ongoing land assembly activity in River Terrace 2.0 but could reach out to property owners to attempt to identify those that might be willing to partner wi th or sell to a nonprofit or middle housing developer. In the meantime, preparing developers through educat ion about the vision and the available funds and incentives is a good starting point. 13 Cities must provide density and height bonuses for affordable housing under ORS 197A.445(9), and additional flexibility on certain types of standards for affordable housing and other qualifying housing development as a temporary measure through 2032 pursuant to SB 1537 (2024), Sections 38 -41 . Tigard River Terrace 2.0 Housing Plan 41 References: • Tigard River Terrace 2.0 Concept Plan, 2021 Land Acquisition / Site Control Description: Involves purchasing land for affordable housing with the option to bank the property for extended periods of time without development plans to preserve for future use as affordable housing or other strategies to support site control for affordable housing developers. There are several potential approaches including: • Purchase properties for the purpose of building affordable housing and convey that land to affordable housing developers. • Provide funds (grants or loans) to support land banking done by another organization (such as a Community Land Trust or affordable housing developer) with the purpose of building affordable housing in the future. • Ask the current owner to ground lease the property to the City and have the development pay for it in future or seek an option on a property rather than acquiring it outright. Impact: Site control allows the City to determine the type of development that occurs or to connect property to a developer that will build in line with the City’s vision. If sites are purchased early, before land prices escalate fully, this can reduce costs for affordable housing development. Land acquisition can be a key step in enabling affordable housing. Considerations : Acquisition requires a funding source, identification of a willing seller, and a disposition strategy. The City of Tigard has pursued land acquisition and disposition on a limited basis primarily in existing TIF districts. Acquiring and banking land in th e River Terrace 2.0 area would require an intentional decision and site selection process before moving forward. The City could use its funds (e.g., CET, CDBG, or other) to assist. References: • Tigard River Terrace 2.0 Concept Plan, 2021 • Tigard Affordable Housing Plan, 2019 • Wilsonville Frog Pond East and South Affordable Housing Analysis, 2022 • Beaverton Cooper Mountain Community Plan Market Analysis, 2020 • Hood River Affordable Housing Strategy, 2022 Site Readiness & Infrastructure Investments Description: Funding or construction of infrastructure or other site development actions that prepare the site for development. The City could identify outside funding sources to pay for key infrastructure needed to serve sites that are committed to affordable or mixed -income housing development. The City could also potentially build key infrastructure improvements Tigard River Terrace 2.0 Housing Plan 42 directly to reduce the time and uncertainty associated with infrastructure design, permitting, and construction. Impact: City-led site readiness would remove significant costs and unknowns associated with the pre-development phase and development completion timeline. This strategy is especially effective for challenging sites with slopes or other difficult -to-develop featur es. These cost savings for the development can reduce the overall cost of the housing unit(s). Considerations : This w ould require an outside funding source for infrastructure and a mechanism to ensure that the sites benefitting from the investment deliver affordable housing or other needed housing types. References: • Tigard River Terrace 2.0 Concept Plan, 2021 • Hood River Affordable Housing Strategy, 2022 Small Home Construction Incentive Description: City of Hood River launched a Small Home Construction Incentive that reimburses small home developers who spend more than 7% of the home’s construction cost on development fees. The reimbursement is paid when the project is completed and put on the tax rolls. The incentive is funded with the additional tax revenue generated from each new home through an existing TIF district . Impact: SDC rates often do not vary with the size of the home. This can result in small er home types paying a higher share of construction cost in development fees than a large single -family home (in Hood River, this was estimated at 14% for smaller homes vs. around 7% for large single -family homes). This incentive remove s an unintended barrier to the creation of smaller homes that are often more attainable for first -time home buyers. Considerations: The program is new and untested to date. Tigard could implement a similar program, but it overlaps with existing programs such as SDC reductions and the Middle Housing Revolving Loan Fund and may be duplicative of those programs. However, the City could p otentially use CET funds to further “buy down” SDCs or other development fees for small housing units in River Terrace 2.0. References: • Hood River Newsletter, Fall 2024 : https://cityofhoodriver.gov/addressing -housing- needs-fall-2024/ Development Fee Reductions for Affordable Housing Description: Reduce or exempt development fees, such as permit fees , for regulated affordable housing . Impact: Reducing or exempting certain development fees or permit fees for affordable housing can reduce the upfront cost of development. Building permit fees in Tigard can cost Tigard River Terrace 2.0 Housing Plan 43 roughly $500 to $5,000 per unit for residential development given estimated permit values and current fees. Other fees are variable depending on the specifics of the project. Considerations: Although this strategy was evaluated in Tigard’s Affordable Housing Plan, it ultimately was not recommended because its relatively small impact towards reducing development costs. The Plan found that Permit fees generally represent a lower share of overall cost to the developer than SDCs, sometimes by a factor of five or more, and therefore fee reductions will tend to have a proportionately lower impact than SDC reductions. References: • Tigard Affordable Housing Plan, 2019 Tax Increment Financing (TIF District) Infrastructure Investments and Development Assistance Description: TIF Districts are tools that allow jurisdictions to make investments that address identified problems in specifically defined areas based on the growth in property value in the area. In Oregon, these districts must be established within a geographic bounda ry and include a corresponding plan and report to be adopted by the local governing body of a jurisdiction. These materials must demonstrate that the TIF District meets the definition of a “blighted area”14 and include required elements such as a description of current conditions, proposed projects, and financial analysis. There are legal limitations on the amount of a jurisdiction’s area and assessed value that can be included within TIF districts. TIF dist ricts allow for funding capital investments, including infrastructure and development assistance programs that encourage private investment in the area. Impact: A TIF district can provide substantial funding for infrastructure investments and development assistance programs, depending on its scale and the pace of growth in the area. Development assistance and infrastructure can be targeted to help overcome barrier s for new development that meets certain local goals. TIF districts can also support affordable housing development, but because such development often does not pay property taxes, this must be balanced against investments that support increases in taxable value to help repay the investments over time. Considerations: Tigard currently has two TIF districts in City Center (Downtown) and the Tigard Triangle. Both have been relatively successful in supporting public and private investment in these areas through infrastructure investments and development assistance programs. Given the limitations on TIF, further analysis would be needed to determine whether an additional TIF district would be possible for River Terrace 2.0. TIF districts in greenfield areas can be challenging because even with bonding there a re limits on the jurisdiction’s ability to invest in needed infrastructure or other supports until development 14 “Blighted areas” are defined in ORS 457.010 as “areas that, by reason of deterioration, faulty planning, inadequate or improper facilities, deleterious land use or the existence of unsafe structures, or any combination of these factors, are detrimental to the safety, health or welfare of the community ” Tigard River Terrace 2.0 Housing Plan 44 begins to generate additional property value. However, Hood River adopted a TIF district to support development in the Westside Concept Plan expansion area that will support infrastructure investments and development incentives to support middle housing. References: • Oregon City Urban Renewal Study, Urban Renewal Development Assistance Programs, https://mccmeetingspublic.blob.core.usgovcloudapi.net/oregoncity -meet- 44ea0f5aad8b4b119f5dfb0d8ff21a64/ITEM -Attachment -001- 4d64654fa22740d48c232abeb3d4e377.pdf • A New Tigard Triangle, Planning for Equitable Economic Development: https://www.tigard - or.gov/home/showpublisheddocument/1156/637624825843800000 • Tigard Website, https://www.tigard -or.gov/your - government/departments/community -development/housing/affordable -housing • Oregon Revised Statutes Chapter 467 – Urban Renewal: https://www.oregonlegislature.gov/bills_laws/ors/ors457.html ADU Financing Description: Collaborate with local nonprofits such as Craft3 to provide affordable loans to homeowners interested in adding an ADU to existing single -family home lots. Craft3’s loan programs offer interest rates that vary by household income, with the lowest rates for homeowners who agree to rent their ADU at an affordable rate to households with incomes less than 80% of the area median. Impact: ADU financing could support future homeowners to increase housing options in River Terrace 2.0. However, lots may to be too small to accommodate ADUs if not included with the initial development. Lending options have also expanded for homeowners looking for ADUs since this option was initially considered as a strategy including through community development financial institutions (CDFIs). Considerations: City of Tigard already offers SDC and CET exemptions for ADUs as well as a Revolving Loan Fund for middle housing. The existing resources are aimed at developers in a greenfield context, whereas a new financing program could target homeowners developing ADUs. References: • Tigard River Terrace 2.0 Concept Plan, 2021 Annexation Agreements Description: Use annexation agreements to negotiate affordable housing commitments from property owners when land is later developed. The City can negotiate a form of an inclusionary policy that is tailored to the greenfield development area and selected developer’s needs. Tigard River Terrace 2.0 Housing Plan 45 Impact: The ability to secure affordable housing commitments from property owners through annexation agreements depends on the circumstances. Considerations: Effectiveness of a nnexation agreements will be impacted by the timeline for annexation. The City intends to annex the area all at once, making annexation agreements unlikely to be a viable option. References • Beaverton Cooper Mountain Community Plan, 202 4 The 5 E’s –Tigard’s Community Promise: Equity ⚫Environment ⚫Economy ⚫Engagement ⚫Excellence Presented by Trinity Miller, Associate Planner | June 2, 2025 The 5 E’s –Tigard’s Community Promise: Equity ⚫Environment ⚫Economy ⚫Engagement ⚫Excellence Tigard HOME (Housing, Opportunity, Mobility and Enterprise) •Long-range planning project will deliver policy and code amendment recommendations for Tigard’s residential neighborhoods. •Facilitate flourishing self-contained communities where housing, economic, and entertainment options are easily accessible to a variety of mobility types (walking, biking, rolling). •Seek community input to determine how to provide community members with more options for entertainment, employment, amenities, services, and housing at a neighborhood appropriate scale. •Project was awarded grant funds from Metro The 5 E’s –Tigard’s Community Promise: Equity ⚫Environment ⚫Economy ⚫Engagement ⚫Excellence Purpose and Need •Public engagement for long range planning projects in Tigard has consistently indicated that residents desire: •More amenities within walking distance of their home; •More freedom regarding how they use their home or property; •More straightforward processes for sharing what they make with their neighbors; and •More attractive and safe pedestrian connections. The 5 E’s –Tigard’s Community Promise: Equity ⚫Environment ⚫Economy ⚫Engagement ⚫Excellence •Currently, limited ability to become complete neighborhoods •Lack of walkable access to commercial amenities, work or services. •Mitigate potential nuisances and hazards “Sea of Yellow” Residential Zones Becoming Complete Neighborhoods The 5 E’s –Tigard’s Community Promise: Equity ⚫Environment ⚫Economy ⚫Engagement ⚫Excellence This project aims to: •Bring more nearby shops and services to neighborhoods •Expand home and property use options •Simplify neighborhood business rules •Create safer, more connected walking paths •Reduce climate impacts through a reduction of vehicle miles traveled (VMT) Tigard HOME Goal The 5 E’s –Tigard’s Community Promise: Equity ⚫Environment ⚫Economy ⚫Engagement ⚫Excellence Outside of Project Scope •Urban Agriculture & Livestock (Adopted November 2022) •Employment and industrial areas (Tigard MADE) •Plan Districts and mixed-use zoning districts The 5 E’s –Tigard’s Community Promise: Equity ⚫Environment ⚫Economy ⚫Engagement ⚫Excellence Engagement Plan Hosting Tables Pop-up Events Community Based Organization Outreach Community Dinners The 5 E’s – Tigard’s Community Promise: Equity ⚫ Environment ⚫ Economy ⚫ Engagement ⚫ Excellence Wednesday, June 18th 5 PM – 7 PM Universal Plaza •Join the Community Development staff for a dinner and conversation about the Tigard HOME project! •Want to help shape self-contained neighborhoods in Tigard? Upcoming CD Get Together The 5 E’s – Tigard’s Community Promise: Equity ⚫ Environment ⚫ Economy ⚫ Engagement ⚫ Excellence Thank you!