Housing Statutory Compliance

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Across Oregon, communities are facing a significant housing shortage. In recent legislative sessions, the State has adopted policies to increase housing supply, allow more housing types in neighborhoods, and streamline approval processes so homes can be built more quickly.

The Wilsonville Housing Statutory Compliance Project will update the City’s Development Code to align with new housing legislation adopted by the Oregon Legislature in 2025 and 2026. These updates respond to three state laws, Senate Bill 974 and House Bill 2138 in 2025 and HB 4037 in 2026, that aim to help Oregon communities produce more housing and remove barriers that slow housing development. In making these updates, the project will also further Wilsonville’s Housing Production Strategy by updating the City’s land use review process for residential development.

Wilsonville is required by the State of Oregon to update its local regulations to comply with these laws. This project will ensure that Wilsonville’s Development Code reflects the new state requirements while continuing to support the community’s planning goals.

As we update the City’s development process, we want to learn more about how you want to stay informed about development in Wilsonville! Please take this single question survey to provide feedback on project notices.


The project is organized into two parts, each focused on implementing state law.

Part 1: Residential Review Process

We are currently in this phase!

This phase focuses on updating the City’s review process for new residential development, and must be complete by July 1, 2026. This phase includes an assessment of the Development Code for compliance with SB 974 and work sessions with the Planning Commission and City Council to get feedback on how to best meet statutory requirements. Code updates include:

  • Changes to the review process for residential development that allow for initial decisions on a development application without a public hearing
  • Updates that allow for minor modifications to existing development without a public hearing
  • Edits that ensure consistency with State law in processing timelines for development applications
  • A 100-foot notification radius for mailed development notices
  • Consolidation of the Development Review Board into a single panel with seven members

Please see links under Key Dates to watch prior Planning Commission and City Council work sessions to get up to speed on the project!

Part 2: Other Required Updates

We are headed here!

Phase 2 will focus on implementing HB 2138. This phase will occur from spring 2026 through the end of the year and includes the following areas of focus:

  • Refined definitions and allowances for residential housing
  • New incentives for affordable and accessible housing in middle housing development
  • Minor updates to land division processes for middle housing
  • Creation of clear and objective standards for tree removal

Please check back for updates on this project and for more information on opportunities to provide feedback.

Across Oregon, communities are facing a significant housing shortage. In recent legislative sessions, the State has adopted policies to increase housing supply, allow more housing types in neighborhoods, and streamline approval processes so homes can be built more quickly.

The Wilsonville Housing Statutory Compliance Project will update the City’s Development Code to align with new housing legislation adopted by the Oregon Legislature in 2025 and 2026. These updates respond to three state laws, Senate Bill 974 and House Bill 2138 in 2025 and HB 4037 in 2026, that aim to help Oregon communities produce more housing and remove barriers that slow housing development. In making these updates, the project will also further Wilsonville’s Housing Production Strategy by updating the City’s land use review process for residential development.

Wilsonville is required by the State of Oregon to update its local regulations to comply with these laws. This project will ensure that Wilsonville’s Development Code reflects the new state requirements while continuing to support the community’s planning goals.

As we update the City’s development process, we want to learn more about how you want to stay informed about development in Wilsonville! Please take this single question survey to provide feedback on project notices.


The project is organized into two parts, each focused on implementing state law.

Part 1: Residential Review Process

We are currently in this phase!

This phase focuses on updating the City’s review process for new residential development, and must be complete by July 1, 2026. This phase includes an assessment of the Development Code for compliance with SB 974 and work sessions with the Planning Commission and City Council to get feedback on how to best meet statutory requirements. Code updates include:

  • Changes to the review process for residential development that allow for initial decisions on a development application without a public hearing
  • Updates that allow for minor modifications to existing development without a public hearing
  • Edits that ensure consistency with State law in processing timelines for development applications
  • A 100-foot notification radius for mailed development notices
  • Consolidation of the Development Review Board into a single panel with seven members

Please see links under Key Dates to watch prior Planning Commission and City Council work sessions to get up to speed on the project!

Part 2: Other Required Updates

We are headed here!

Phase 2 will focus on implementing HB 2138. This phase will occur from spring 2026 through the end of the year and includes the following areas of focus:

  • Refined definitions and allowances for residential housing
  • New incentives for affordable and accessible housing in middle housing development
  • Minor updates to land division processes for middle housing
  • Creation of clear and objective standards for tree removal

Please check back for updates on this project and for more information on opportunities to provide feedback.

  • Learn More About the Legislation

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    Senate Bill 974 (2025)

    SB 974 focuses on streamlining the development review process and encouraging housing in areas already planned for residential use, particularly within Urban Growth Boundaries (UGBs). SB 974 requires jurisdictions to utilize an administrative review process for zone changes that increase residential density, variances to residential standards and planned unit developments. In Wilsonville, these requirements would apply to most new residential developments.

    House Bill 4037 (2026)

    HB 4037 is focused on the processing of residential development permit applications meeting clear and objective standards. The bill requires cities to allow all residential development applications meeting clear and objective standards to be processed without an initial public hearing (hearings for appeals are still allowed). In addition, mailed public notice of these applications is limited to 100 feet for developments with under 20 units and 500 feet for 20 units and over. Only an applicant may appeal a decision of these residential development applications.

    House Bill 2138 (2025)

    HB 2138 builds on Oregon’s earlier middle housing legislation by removing remaining barriers to building diverse housing types in residential neighborhoods.

    “Middle housing” refers to housing types between single-family homes and large apartment buildings, such as duplexes, triplexes and fourplexes, cottage clusters, townhomes, and accessory dwelling units (ADUs).

    Key elements of HB 2138 include:

    Expanding Opportunities for Middle Housing

    HB 2138 requires local governments to allow all middle housing types in residential zones in cities above certain population thresholds, including cities within the Portland metropolitan region. The law also clarifies definitions and allows existing homes or duplexes to remain on properties that add middle housing.

    Reducing Development Barriers

    The law removes several regulatory barriers that have limited middle housing development, including limiting when traffic impact analyses can be required for middle housing, restricting additional fees or exactions beyond standard system development charges, and allowing more flexibility in how cottage clusters and townhomes are designed.

    Incentives for Affordable and Accessible Housing

    HB 2138 provides a density bonus when middle housing developments include affordable units or accessible units. This allows additional housing units beyond what would normally be permitted.

    Updates to Land Division and Development Processes

    The law also updates procedures for middle housing land divisions, allowing greater flexibility in how properties can be divided to support home ownership opportunities.

    Additional changes allow tentative plans to be submitted before or at the same time as building permits. They also make certain expedited land division procedures optional rather than mandatory and they simplify application processes, limiting opportunities for procedural delays.

    Other Updates

    HB 2138 also allows greater density for single-room occupancy (SRO) housing and requires tree removal regulations related to housing development to be clear and objective.

    The Wilsonville Housing Statutory Compliance Project will ensure the City’s Development Code reflects these new requirements while continuing to support thoughtful growth and livable neighborhoods.

    Senate Bill 974 (2025)

    SB 974 focuses on streamlining the development review process and encouraging housing in areas already planned for residential use, particularly within Urban Growth Boundaries (UGBs). SB 974 requires jurisdictions to utilize an administrative review process for zone changes that increase residential density, variances to residential standards and planned unit developments. In Wilsonville, these requirements would apply to most new residential developments.

    House Bill 4037 (2026)

    HB 4037 is focused on the processing of residential development permit applications meeting clear and objective standards. The bill requires cities to allow all residential development applications meeting clear and objective standards to be processed without an initial public hearing (hearings for appeals are still allowed). In addition, mailed public notice of these applications is limited to 100 feet for developments with under 20 units and 500 feet for 20 units and over. Only an applicant may appeal a decision of these residential development applications.

    House Bill 2138 (2025)

    HB 2138 builds on Oregon’s earlier middle housing legislation by removing remaining barriers to building diverse housing types in residential neighborhoods.

    “Middle housing” refers to housing types between single-family homes and large apartment buildings, such as duplexes, triplexes and fourplexes, cottage clusters, townhomes, and accessory dwelling units (ADUs).

    Key elements of HB 2138 include:

    Expanding Opportunities for Middle Housing

    HB 2138 requires local governments to allow all middle housing types in residential zones in cities above certain population thresholds, including cities within the Portland metropolitan region. The law also clarifies definitions and allows existing homes or duplexes to remain on properties that add middle housing.

    Reducing Development Barriers

    The law removes several regulatory barriers that have limited middle housing development, including limiting when traffic impact analyses can be required for middle housing, restricting additional fees or exactions beyond standard system development charges, and allowing more flexibility in how cottage clusters and townhomes are designed.

    Incentives for Affordable and Accessible Housing

    HB 2138 provides a density bonus when middle housing developments include affordable units or accessible units. This allows additional housing units beyond what would normally be permitted.

    Updates to Land Division and Development Processes

    The law also updates procedures for middle housing land divisions, allowing greater flexibility in how properties can be divided to support home ownership opportunities.

    Additional changes allow tentative plans to be submitted before or at the same time as building permits. They also make certain expedited land division procedures optional rather than mandatory and they simplify application processes, limiting opportunities for procedural delays.

    Other Updates

    HB 2138 also allows greater density for single-room occupancy (SRO) housing and requires tree removal regulations related to housing development to be clear and objective.

    The Wilsonville Housing Statutory Compliance Project will ensure the City’s Development Code reflects these new requirements while continuing to support thoughtful growth and livable neighborhoods.

Page last updated: 28 Apr 2026, 11:04 AM