Representative Alissa Keny-Guyer, Chair House Committee on Human Services and Housing Oregon State Legislature 900 Court Street Salem, OR 97301

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1 PO Bx Prtland, OR PHONE: (503) Mnday, March 13, 2017 Representative Alissa Keny-Guyer, Chair Huse Cmmittee n Human Services and Husing Oregn State Legislature 900 Curt Street Salem, OR RE: Oregn Chapter f the American Planning Assciatin testimny t the Huse Cmmittee n Human Services and Husing regarding HB 3012, HB 2937, HB 2938, and HB Dear Chair Keny-Guyer and members f the Cmmittee, The Oregn Chapter f the American Planning Assciatin (OAPA) is an independent, statewide, nt-fr-prfit educatinal rganizatin with 850 members that prvides leadership in the develpment f vital cmmunities by advcating excellence in cmmunity planning, prmting educatin and citizen empwerment, and prviding the tls and supprt necessary t meet the challenges f grwth and change. OAPA has reviewed HB 3012, HB 2937, HB 2938, and HB 2456 that wuld all add husing ADUs, recreatinal vehicles, r affrdable husing t land in unincrprated areas (utside f cities) and are ppsed t the bills as written and have the fllwing cncerns1 with the bills as drafted: Each f the bills (especially HB 3012, which wuld allw a Cunty t designate an existing histric dwelling built befre 1950 t be an accessry dwelling unit and allw the prperty wner t build a new dwelling unit) adds husing utside f incrprated cities at densities that may cnflict with Gal 14 and the Supreme Curt Case (1000 Friends f Oregn vs. Land Cnservatin and Develpment Cmmissin and Curry Cunty, 724 P.2d 268, 301 Or.App. 447 at 447 (1986)) that determined minimum lt size f at least tw acres. Additinal density in rural areas may verburden existing infrastructure and public services (such as plice, fire, rads, emergency services, etc.). Additinal density in rural areas culd negatively impact water quality with an increase in septic systems. Affrdable husing in rural areas can increase transprtatin csts fr lw incme residents as they are much farther away frm schls, shpping, emplyment, and 1 The issues listed in this letter were riginally identified by the Assciatin f Oregn Cunty Planning Directrs. We agree with their assessment f the issues and believe the issues they raised has implicatins fr all fur f the bills included in this testimny. That memrandum is attached.

2 OAPA, Page 2 ther services. The additinal husing may be used fr shrt-term rental, instead f lng-term husing, bth f which can increase the pssibility f cnflicts between residents and farmers and fresters using cmmnly accepted practices fr farming and frestry. We respectfully ask that the Cmmittee amend the bills t address the issues listed abve and cnsider: Limit the number f dwelling units (ADU, RV, r affrdable husing (excluding already allwable farm wrker husing) t ne unit. Require the additinal dwelling unit (ADU, RV, r affrdable husing) be lcated n the same lt r parcel as the primary dwelling. Require the additinal dwelling unit (ADU, RV, r affrdable husing) and the parcel be in cmpliance with all DEQ s n-site wastewater standards. Require a recrded deed restrictin (if applicable, may nt be necessary with the placement f an RV as allwed in HB 2938) that acknwledges resurces uses in the vicinity, and an agreement t cmply with adpted standards. Require the additinal dwelling unit (ADU, RV, r affrdable husing) t use the existing well (r share a well). OAPA als asks that the bills explicitly authrize Cunties t regulate the znes in which additinal dwelling units (ADU, RV, r affrdable husing) are allwed, alng with siting standards, dwelling unit size, restricting shrt-term rentals, and wner-ccupied requirements fr ne f the dwellings. Thank yu again fr the pprtunity t testify n these bills. Sincerely, Jeannine Rustad, JD, President Oregn Chapter f the American Planning Assciatin

3 MEMO TO: FROM: Mark Nystrm, AOC Assciate f Oregn Cunty Planning Directrs Angie Brewer, AOCPD President DATE: February 17, 2017 RE: Rural Accessry Dwelling Units (ADU S) The Assciatin f Oregn Cunty Planning Directrs (AOCPD) understands legislatin t allw ADU s in rural areas utside f Urban Grwth Bundaries will be cnsidered by the 2017 Oregn Legislature. AOCPD has develped a list f questins and ptential benefits and impacts, a recmmendatin, and cnceptual develpment standards t infrm the discussin. Questins It is necessary t answer at least the fllwing questins in rder fr AOCPD t prvide infrmed cmments n specific legislative prpsals pertaining t rural ADU s. Prblem Statement: What cncern r prblems are rural ADU s intended t slve r address? Lcal Cntrl: Will cunties be granted lcal cntrl in deciding whether r nt t permit ADU s, the znes in which they are permitted and prhibited, and the regulatins gverning their develpment? Zning: In what znes will rural ADU s be allwed and hw (utright permitted, permitted subject t standards, cnditinal use permits)? Farm and Frest Znes: Will ADU s be allwed in resurce (farm and frest) znes? If allwed, hw will ADU s be regulated n prperties that have a primary dwelling, farm help dwelling(s), and/r a temprary care dwelling? Shrt-Term Rentals: Will ADU s be permitted r prhibited frm being used fr shrt term rentals (Air BnB, VRBO). Limitatins r Standards: If rural ADUs are mandatry, will they be subject t limitatins r standards impsed by the state r cunties? 1

4 Ptential Benefits f Rural ADUs An abundance f literature and experiences frm cmmunities acrss the cuntry demnstrates the value f ADUs in urban areas. Many f thse psitives are applicable t rural Oregn. This sectin highlights sme ptential benefits: Increases husing stck. Increases rental units. Prvides multigeneratinal living pprtunities. Prvides the ptential t increase the affrdability f husing, such as: Prperty wners are able t purchase r maintain a hme with rental incme frm the ADU r frm the primary dwelling if living in the ADU. ADUs are smaller than the primary dwelling, resulting in lwer rental, maintenance, and utility csts. Prvides pprtunities fr revitalizatin allwing sme grwth in areas that have lst ppulatin. Prvides an incentive t legalize existing, unpermitted secnd dwelling units in cunties acrss the state. Des nt require public financial resurces r prperty t increase husing supply. Ptential Cncerns and Impacts f Rural ADUs Creates ptential t verburden infrastructure and public services (plice, fire, emergency services, rad, utilities, schls, etc.). Increases the number f septic systems negatively impacting grundwater quality and, impacts (reduces) the availability f replacement areas. Smaller lts may nt have adequate rm t accmmdate a replacement system. Existing septic systems may need t be upgraded r replaced per DEQ rules. Rural prperties ften lack cnvenient access t amenities, grcery stres, ther resurces, and medical facilities. Public transprtatin is lacking and nt easily accessible, if at all. Creates increased density in rural znes, which is nt cnsistent with the intent f the lw density rural znes, particularly if lcated at the minimum setback f a prperty line near a hme n an adjacent prperty. May change the character f rural neighbrhds and cmmunities. May nt be used fr rural affrdable husing, but rather fr shrt term vacatin rentals (i.e., AirBnB, VRBO, etc.), defeating a ptential intended purpse f the legislatin. The existence f a rental, r the ability t add a rental unit t the prperty increases the mnetary value f the prperty. In turn, in rder t recup csts, the prperty wner may need t charge mre rent fr the ADU, which may negate intent f prviding mre affrdable husing ptins. In additin the value f the prperty increases thus ptentially reducing its ultimate affrdability. EFU may be impacted; a farmer may farm less f their prperty because they wuld be able t supplement their incme with rental incme f the ADU. Additinal dwellings create additinal impacts and cnflicts with farming and frest practice uses, and wildlife habitat and management, allwed within the resurce znes. AOCPD Recmmendatin 2

5 The AOCPD recmmends making ADU s permissive, thereby allwing cunties the latitude f deciding whether r nt t permit them, the znes in which they are permitted and prhibited, and all regulatins gverning their develpment (the same as ADU s in cities). If the Legislature mandates accessry dwelling units, the AOCPD recmmends that cunties be authrized t determine standards r limitatins listed belw r, at a minimum, included in the legislatin. Limit the number f ADU s t ne (1) that can be placed n a lt f recrd. Require the ADU be lcated n the same lt r parcel as the primary dwelling. Require the ADU and the parcel be in cmpliance with DEQ s n-site wastewater standards. Require that the ADU is hked up t the existing septic system, which may require expanding the system, etc. Fr land that is within a Grundwater Management Area r ther designatin where grundwater quality is knwn t have prblems, require prf that the septic system is pumped regularly (usually every 5 years depending upn the system and the sil absrptin, etc. OSU Extensin and DEQ have recmmended pumping intervals). A deed restrictin shall be recrded acknwledging resurce uses in the vicinity, if applicable, and an agreement t cmply with the adpted standards. Require the ADU t utilize the existing well (r a shared well). The intent is t prevent drilling a secnd, exempt well but t maintain flexibility s that a landwner culd drill a new well t be shared by the tw hmes, the primary and the ADU. Authrize cunties t: Determine the znes in which ADUs are allwed and prhibited. Establish siting standards addressing the layut and design f existing r prpsed imprvements including, but nt limited t buildings, structures, setbacks, access, parking, circulatin, utdr strage, landscaping areas, prximity t the primary dwelling, and ther design elements. Establish ADU size limits. Require a deed restrictin r restrictive cvenant limiting the ADU t be rented fr nt less than 30 cnsecutive days if the state r lcal legislative intent is t increase husing stck and/r t prvide affrdable husing. This wuld make it clear that a shrt-term vacatin rental wuld be prhibited. Require a deed restrictin be recrded acknwledging that the primary dwelling unit r the accessry dwelling unit be wner ccupied. Ptential Cnceptual Rural ADU Develpment Standards 3

6 In additin t the standards and limitatins listed abve, the AOCPD recmmends cnsideratin f the fllwing cnceptual develpment standards be cnsidered fr inclusin in legislatin, Oregn Administrative Rules, r lcal Cunty cdes t implement the state r lcal legislative intent (t be determined). Develpment standards may als help garner cnsensus n legislatin r rules frm varius interest grups. 1. Only allw ADU s in Rural Cmmunities, Urban Unincrprated Cmmunities, Rural Service areas, and Destinatin Resrts. These areas are typically mre dense, ften are served by urban services (e.g. sewer, water, transit, etc.), and may prvide additinal transprtatin chices and/r recreatinal pprtunities. 2. Shall cmply with lcal transprtatin and access standards. 3. Require an annual review f the permit/use, with r withut a fee. The purpse f the annual review is t dcument cmpliance with permit cnditins, especially t dcument water use (meter data which shuld als be shared with OWRD) and prf f septic system maintenance (with specific intervals fr pumping, e.g. every 5 years). 4. If allwed in EFU znes, limit the number f dwelling types that are allwed. Currently, there are several types f dwellings allwed: primary dwelling, farm help dwelling, temprary care r medical hardship dwelling, and an ADU. Thank yu fr yur cnsideratin f this infrmatin, we lk frward t wrking with yu n this issue. If the AOCPD can prvide any additinal infrmatin r participate in the legislative r rulemaking prcess, please cntact the AOCPD President, Angie Brewer, at angieb@c.wasc.r.us r (541)