Learn More About the Legislation
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.
