Eugene staff preview middle‑housing code changes to speed housing production and meet state mandates
May 20, 2026 | Eugene , Lane County, Oregon
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City of Eugene planning staff on a public webinar previewed a first package of proposed land‑use code changes intended to accelerate middle‑housing development and comply with recent state legislation, while reserving larger incentives for later adoption packages.
The webinar presentation, led by city staff from the Urban Growth Strategies team, said the 2026 Oregon Housing Needs Analysis requires Eugene to plan for nearly 26,000 new dwelling units over the next 20 years. "Using the 2026 Oregon housing needs analysis, we know that Eugene will need to support the production of almost 26,000 new dwelling units over the next 20 years," a staff presenter said, and added that the city must increase annual production to about 1,600 units per year for the next decade to meet that need.
Why it matters: staff and presenters said rising costs and declining federal resources make the increase difficult without code and program changes. The first adoption package for 2026 focuses on middle‑housing code amendments that staff say are required to meet House Bill 2138 and to adopt portions of the state's model housing code for cities over 25,000 residents.
Key proposals and incentives
- Streamlining and technical fixes: staff described numerous technical clarifications to align Eugene's code with the state's model code and to reduce procedural barriers that delay infill projects.
- New housing types and flexibility: the draft would add or expand allowances for single‑room occupancy and a micro‑village housing type, permit more daycare and residential‑care uses in additional zones, and eliminate some prescriptive architectural requirements for townhouses to improve design flexibility.
- Height and site changes: one proposal would increase the maximum building height in R1 low‑density residential zones from 30 feet to 35 feet to allow what staff described as a full third floor of living space.
- Incentives tied to affordability and accessibility: under the draft implementing HB 2138, developments that include at least one accessible unit or one home‑ownership unit affordable at up to 120% of area median income could receive one to two bonus units and relief from certain development standards. "In those cases, those developments could add one or two additional bonus units and get reduced development standards," a presenter said.
- Middle‑housing land divisions: staff explained companion rules deriving from Senate Bill 458 that would make it easier to create separate lots for individual units within a middle‑housing project (for example, enabling individual ownership of a unit in a fourplex) without adding development rights.
Permitting and procedural changes
Staff said several statutory changes—including HB 2138, SB 974, and the forthcoming implementation of HB 4037—require procedural updates. City staff described expedited processes for certain residential land‑use applications, reduced noticing for middle‑housing land divisions and limits on third‑party appeals for those specific land divisions, and proposed temporary extensions for some land‑use approvals (similar to prior responses to the Great Recession and the COVID‑19 pandemic).
On timelines and building permits, staff said they plan to exempt some existing elements (for example, existing driveways) from certain middle‑housing standards and to streamline adjustment reviews to reduce common sources of delay in plan review.
Affordable housing question and upcoming packages
Participants asked how package one would close the city’s shortfall in subsidized affordable housing (staff said Eugene now produces about 100 subsidized units per year but needs roughly 700 annually to meet the ONA's lower‑income target). Staff responded that package one is primarily intended to meet immediate legislative requirements and to add incentives aimed at middle‑housing projects (including the bonus units tied to affordability up to 120% AMI). Deeper subsidies and additional financial incentives remain under consideration for package two and the 2027 adoption package, which staff said will include a contextualized housing‑need analysis and a housing production strategy.
Public process and next steps
Staff said a track‑changes code version and a plain‑language "code concepts" summary will be posted; the planning commission will hold a work session May 26, an additional info session is scheduled May 27, and a planning commission public hearing is set for June 23 (the planning commission will make a recommendation to city council; council action is expected in the fall). Staff also noted a June 15 city council public hearing is scheduled for a related housing production incentives package from community development partners.
What remains unsettled
Staff acknowledged outstanding technical questions—such as how SB 1537 adjustments would interact with multiple‑unit planned development (MUPD) approvals—and said they will investigate whether package language needs to adjust for any conflicts.
The public record is open and testimony may be submitted by email, mail or by spoken testimony at the June 23 planning commission hearing; staff urged interested parties to sign up for the Engage Eugene mailing list for updates.
Ending: The webinar closed after a Q&A; staff reiterated upcoming meeting dates and contact options for further questions.
The webinar presentation, led by city staff from the Urban Growth Strategies team, said the 2026 Oregon Housing Needs Analysis requires Eugene to plan for nearly 26,000 new dwelling units over the next 20 years. "Using the 2026 Oregon housing needs analysis, we know that Eugene will need to support the production of almost 26,000 new dwelling units over the next 20 years," a staff presenter said, and added that the city must increase annual production to about 1,600 units per year for the next decade to meet that need.
Why it matters: staff and presenters said rising costs and declining federal resources make the increase difficult without code and program changes. The first adoption package for 2026 focuses on middle‑housing code amendments that staff say are required to meet House Bill 2138 and to adopt portions of the state's model housing code for cities over 25,000 residents.
Key proposals and incentives
- Streamlining and technical fixes: staff described numerous technical clarifications to align Eugene's code with the state's model code and to reduce procedural barriers that delay infill projects.
- New housing types and flexibility: the draft would add or expand allowances for single‑room occupancy and a micro‑village housing type, permit more daycare and residential‑care uses in additional zones, and eliminate some prescriptive architectural requirements for townhouses to improve design flexibility.
- Height and site changes: one proposal would increase the maximum building height in R1 low‑density residential zones from 30 feet to 35 feet to allow what staff described as a full third floor of living space.
- Incentives tied to affordability and accessibility: under the draft implementing HB 2138, developments that include at least one accessible unit or one home‑ownership unit affordable at up to 120% of area median income could receive one to two bonus units and relief from certain development standards. "In those cases, those developments could add one or two additional bonus units and get reduced development standards," a presenter said.
- Middle‑housing land divisions: staff explained companion rules deriving from Senate Bill 458 that would make it easier to create separate lots for individual units within a middle‑housing project (for example, enabling individual ownership of a unit in a fourplex) without adding development rights.
Permitting and procedural changes
Staff said several statutory changes—including HB 2138, SB 974, and the forthcoming implementation of HB 4037—require procedural updates. City staff described expedited processes for certain residential land‑use applications, reduced noticing for middle‑housing land divisions and limits on third‑party appeals for those specific land divisions, and proposed temporary extensions for some land‑use approvals (similar to prior responses to the Great Recession and the COVID‑19 pandemic).
On timelines and building permits, staff said they plan to exempt some existing elements (for example, existing driveways) from certain middle‑housing standards and to streamline adjustment reviews to reduce common sources of delay in plan review.
Affordable housing question and upcoming packages
Participants asked how package one would close the city’s shortfall in subsidized affordable housing (staff said Eugene now produces about 100 subsidized units per year but needs roughly 700 annually to meet the ONA's lower‑income target). Staff responded that package one is primarily intended to meet immediate legislative requirements and to add incentives aimed at middle‑housing projects (including the bonus units tied to affordability up to 120% AMI). Deeper subsidies and additional financial incentives remain under consideration for package two and the 2027 adoption package, which staff said will include a contextualized housing‑need analysis and a housing production strategy.
Public process and next steps
Staff said a track‑changes code version and a plain‑language "code concepts" summary will be posted; the planning commission will hold a work session May 26, an additional info session is scheduled May 27, and a planning commission public hearing is set for June 23 (the planning commission will make a recommendation to city council; council action is expected in the fall). Staff also noted a June 15 city council public hearing is scheduled for a related housing production incentives package from community development partners.
What remains unsettled
Staff acknowledged outstanding technical questions—such as how SB 1537 adjustments would interact with multiple‑unit planned development (MUPD) approvals—and said they will investigate whether package language needs to adjust for any conflicts.
The public record is open and testimony may be submitted by email, mail or by spoken testimony at the June 23 planning commission hearing; staff urged interested parties to sign up for the Engage Eugene mailing list for updates.
Ending: The webinar closed after a Q&A; staff reiterated upcoming meeting dates and contact options for further questions.
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