Agencies begin implementing Housing Needs Analysis

“Our department looks forward to rolling up our sleeves and working closely with local governments and our partner agencies to implement this critical reform to our state’s land use planning program,” said DLCD Director Brenda Bateman. “The factors that have contributed to our state’s current housing shortage are complex, I am proud of the role that DLCD and our commission is playing to get closer to a future where all Oregonians have access to housing that meets their unique needs.”

Bateman was referring to the Oregon Housing Needs Analysis (OHNA), a new component to Oregon’s statewide land use planning system intended to facilitate housing production, affordability and choice to meet housing needs for Oregonians statewide. Three state agencies have vital roles in implementing the Oregon Housing Needs Analysis (OHNA). Oregon Department of Land Conservation and Development (DLCD), Department of Administrative Services (DAS) and Oregon Housing and Community Services (OHCS) are undertaking various tasks outlined by House Bill 2001 (2023).

The Land Conservation and Development Commission (LCDC) unanimously adopted the first set of rules DLCD will use to implement comprehensive, system-wide housing planning reforms to make meaningful progress in addressing Oregon’s housing crisis in December 2024. DLCD aims to reform the implementation of housing planning from a narrow focus on zoning and land capacity towards a more comprehensive framework that considers the state’s specific housing needs. The new approach emphasizes the role state and local governments play in taking action to promote housing production, affordability, and choice within communities across Oregon. LCDC will adopt additional rules associated with the legislation by January 2026. Information about this rulemaking effort is available on the DLCD website.

DAS developed a methodology to estimate the state’s total number of housing units needed over a 20-year time period and set housing production benchmarks for cities with 10,000 or more people. DAS published the methodology and production targets at the beginning of the month and will do so annually.

“OHNA represents a deeply analytical approach toward statewide land use planning for both housing and urbanization,” said Carl Riccadonna, state chief economist. Carl leads the Office of Economic Analysis at the Department of Administrative Services. “This is the first time that a statewide methodology has been implemented and considers more components than prior methodologies enacted at the local level. In balancing priorities of responsible land stewardship and equitable economic development, Oregon state government takes an important step toward alleviating a nation-wide housing affordability crisis and securing the economic future of all Oregonians.”

OHCS developed a housing production dashboard to monitor local governments’ progress towards its housing production targets. Additionally, OHCS established indicators for monitoring equitable housing outcomes by local governments. OHCS will publish the production dashboard and the housing equity indicators annually, starting with the first release on Jan. 1.

“We are incredibly proud of the collaboration with other state agencies, local partners, and nonprofit organizations that helped us create these tools to measure housing progress in Oregon,” said OHCS Executive Director Andrea Bell. “Creating affordable housing is not just about building structures, it’s about communities coming together with the collective goal to help one another.”