OR HB2138

Expands middle housing requirements by requiring cities with 25,000+ population (and smaller cities in Metro) to allow duplexes, triplexes, quadplexes, cottage clusters, and townhouses on all residential lots; cities with 2,500-25,000 population must allow duplexes

Creates density bonuses allowing 1-2 additional dwelling units on qualifying lots when at least one unit is accessible or affordable (defined as purchasable by households below 120% median income with a 10-year affordability covenant)

Allows existing homes (single-unit, single-unit plus ADU, or duplex) to remain when adding middle housing units, with only new units required to meet siting/design standards

Streamlines land division process by establishing 63-day approval timeline for expedited land divisions, prohibiting traffic impact analysis requirements for most middle housing projects, and allowing concurrent submission of land division and building permit applications

Appropriates $2,391,599 for middle housing rulemaking and $1,500,000 for technical assistance grants; requires Land Conservation and Development Commission to adopt implementing rules by January 1, 2028