Eugene Planning Commission <br />September 17, 2024 <br />Page 9 <br /> <br />“No development shall occur on land above an elevation of 901 feet except that <br />either middle housing or one single-unit dwelling may be built on any lot in <br />existence as of August 1, 2001. <br /> <br />The HO decision does not suggest specific condition language, but the staff recommended <br />language is: <br /> <br />“No development of middle housing, single-unit dwellings, or any other <br />development, including but not limited to land divisions, may occur on any land <br />above 901-feet in elevation.” <br /> <br />The HO has incorrectly analyzed the relationship between the Middle Housing Statute and the <br />901-foot prohibition in the code. The HO approached this issue the same as the staff – simply <br />concluding it is OK for the City to use overlay zones to limit Middle Housing rights created by <br />the statute. The Middle Housing Statute always applies directly. The HO concedes that the <br />operative phrase in the statute allows Middle Housing “in areas zoned for residential use that <br />allow for the development of detached single-family dwellings.” Decision 43 para 6. That right is <br />subject to a short list of exceptions that allow the City to apply its own limiting regulations. <br />Here the entire site has R-1 base zoning that allows single family detached dwellings. It is just <br />the overlay zone that imposes the elevation prohibition. The question is whether the statute <br />allows the City to use its overlay zone to make some parts of the R-1 area off limits to Middle <br />Housing? The City does not argue that its /PD overlay limitation above 901 is within any of the <br />exceptions stated in the statute that allow the City to apply its own regulations to limit Middle <br />Housing. The /PD regulations are plainly not within the statutory exceptions. The City simply <br />assumes that it can limit Middle Housing as it pleases with the /PD overlay. <br /> <br />This project can be approved with or without the 901-foot limitation being applied. If the City <br />applies the prohibition the applicant can have that reviewed by LUBA. LUBA will apply the <br />standard methodology for determining the relationship between the statute and this overlay zone, <br />without any deference to the city position. The City must apply the same interpretive <br />methodology here; that has not been done by either the staff or the HO. <br /> <br />The only correct approach is for the City to examine the text, context and legislative history of <br />the Middle Housing Statute to determine the intent of the legislature in adopting the Middle <br />Housing Statute. The methodology for doing that is stated in PGE v. Bureau of Labor and <br />Industries, 317 Or 606, 859 P2d 1143 (1993), and State v. Gaines, 346 Or 160, 171, 206 P3d <br />1042 (2009). The City has not followed that methodology yet. <br /> <br />The applicant provided a full PGE/Gaines analysis in the first discussion point at pages 3-14 of <br />its Second Post Hearing Open Record Letter (August 14) to answer the following question: <br /> <br />“May the City use standards in its overlay zones that stick to R-1 zoned property <br />in the South Hills to negate or limit Middle Housing rights created by the statute? <br />More specifically in this instance, may the City apply the standard in its /PD