Lake Oswego Planning Commission Work Session on Code Audit and Housing – September 28, 2026

The Lake Oswego Planning Commission met on September 28, 2026, at 7:00 p.m. for a regular meeting that included a city council update, neighborhood association announcements, adoption of findings for a land use case, and a fourth work session on the code audit and amendments for housing and business (PP 25-0002). The meeting was chaired by Vice Chair James Bruce, with Commissioners Avishon, Guinea, Call, Sly, Twing, and Vice Chair Bruce present. Commissioner Avishon initially abstained from the findings vote due to not attending the original hearing, but the vote was retaken and approved.

City Council Update

• Councilor Verdick reported on several city matters: (1) A new city manager, Denzel Maxwell, will start on Monday, September 30. (2) An update on the wastewater treatment plant, with the council deliberating on a rate increase—either a one-time large increase or a gradual increase over ten years. No decision has been made. (3) Republic Services has increased staff and resolved garbage and recycling issues; apologies were issued for prior service problems. (4) The Arts Council is active: the August Trunk sculpture (the elephant on Boone's Ferry) requires maintenance; the Ferry Tree art piece at George Rogers Park is being decommissioned, with plans for 3D renderings to archive it; a new art piece was unveiled at the library. (5) Municipal grants will now be awarded once a year instead of twice. (6) Updates on e-bike and micro-mobility device regulations are underway to improve safety and control.

Neighborhood Association Announcements

• The Palisades Neighborhood Association, along with four other neighborhoods, will co-host a city council candidate forum on October 23, 2026, at 6:30 p.m. at Park Academy (1915 South Shore Boulevard). Questions will be submitted by neighborhood associations. Contact Chris Durke, Palisades Chair, for involvement.
• The Old Town Neighborhood Association announced its new website: oldtownlakeoswego.org. The site will provide neighborhood news, blog updates, upcoming meetings, city council candidate forum information, and fun activities.

Findings for LU 26-0019

• The draft findings for this land use case were distributed earlier. A motion to approve was made and seconded; a voice vote was taken with all ayes, and the findings were approved. Later, during Other Business, Commissioner Guinea raised a procedural question: Commissioner Avishon was not present at the original hearing and had not reviewed the record. To ensure proper procedure, the vote was retaken. Commissioner Call made a new motion, seconded by Commissioner Guinea. The findings were approved with Commissioner Avishon abstaining.

Work Session on Code Audit and Amendments for Housing and Business (PP 25-0002)

• Senior Planner Evan Franstead introduced the project team, including consultants Lee Oligode (3J Consulting) and Karen Tolstad (Veritas Collaborations). The code audit is part of the economic development strategy and housing production strategy, alongside a separate rezoning for housing project. The audit focuses on removing barriers to housing and economic development while retaining quality standards, streamlining the code, and ensuring compliance with state legislation.
• Key findings from focus groups and interviews: The current code is difficult for applicants and staff due to complexity, numerous neighborhood overlays (at least 52 zone combinations), conflicting standards, and barriers to middle housing (e.g., commercial building code for triplexes/quadplexes). Initial recommendations include reorganizing the code, combining design standards, streamlining overlays, addressing housing development standards, and improving business use categories.
• Legislative compliance updates: New state laws effective July 2026 and January 2027 require updates to procedures for housing applications, new housing types (including single room occupancies), and updated rules for cottage clusters and middle housing (e.g., floor area averaging, reduced minimum lot sizes). The team will distinguish mandatory state requirements from discretionary local choices.
• Public involvement strategy: A draft plan emphasizes educational outreach, casual engagement (e.g., QR codes at parks, library events, bus stops) to reach busy residents and underrepresented groups. The goal is to gather input on key policy choices as the audit progresses. Commissioners stressed the importance of engaging the general public who may not attend formal meetings.
• Discussion on housing need numbers: Staff noted the city's 2023 housing needs analysis projected ~2,000 new units over 20 years, but the state's new Oregon Housing Needs Analysis (OHNA) methodology indicates a need of ~4,850 units. The city aims to plan for the higher number to avoid underproducing. Commissioners questioned the discrepancy and requested clarity on mandatory vs. discretionary changes. Staff confirmed that the code audit will include a table labeling recommendations as legislative mandates, local policy, or best practices.
• Additional topics: The audit will identify existing requirements that add cost or delay (e.g., material standards, dimensional rules). The commission discussed the evolution of neighborhood overlays and the need to prevent future complexity. Commissioner Guinea referenced a new state report (SB 1537) highlighting fragmentation in housing production policies.
• Next steps: The first Technical Advisory Committee (TAC) meeting will occur at the end of October. The consultant team will work on the code audit and action plan through early 2026. The next commission work session on this topic is scheduled for November 23, 2026, with a city council briefing on November 3, 2026.

Other Business

• Commissioner Guinea raised a procedural point regarding the adoption of findings earlier in the meeting. Since Commissioner Avishon was absent for the original hearing, she abstained. The vote was retaken, and the findings were approved with one abstention.

Schedule Update

• October 12, 2026: Work session on the rezoning for housing project, led by Associate Planner Michael McNamee.
• October 13, 2026: Citizens Advisory Committee (CAC) meeting.
• October 20, 2026: City council study session on Foothills.
• October 26, 2026: Work session on Foothills progress, including schematic plans, massing, 3D views, financial feasibility, and density analysis.
• November 9, 2026: Remote meeting to begin planning the 2027 work plan.

Key Outcomes

• Findings for LU 26-0019 approved (motion by Commissioner Call, second by Commissioner Guinea; vote: 4 ayes, 0 nays, 1 abstention (Commissioner Avishon)).
• Direction for code audit: Staff and consultants received feedback to include clear labeling of mandatory vs. discretionary changes, focus on cost-effective improvements, and implement a broad public engagement strategy targeting underrepresented groups. The commission emphasized the need to plan for the higher housing need projection (4,850 units) and to avoid future code complexity.
• TAC formation: The Technical Advisory Committee will have its first meeting in late October 2026, with a representative from DLCD invited.