Oregon 2026 Regular Session

Oregon Senate Bill SB1578

Introduced
2/2/26  
Refer
2/2/26  

Caption

Allows counties with a population density of less than 30 people per square mile to rezone up to 50 acres to be divided and developed for residential dwellings of at least five units per acre.

Summary

SB 1578 would create a new, temporary rural housing rezoning program for Oregon counties with very low population density. In counties with fewer than 30 people per square mile, the bill would allow rezoning of up to 50 acres total for residential development, even if the land is otherwise subject to agricultural or forest land planning rules, so long as the land is outside an urban growth boundary and meets other conditions. The rezoned land would have to be developed at an average density of at least five dwelling units per acre, with units no larger than 1,200 square feet and not used for vacation occupancy. The county governing body would retain final approval authority, and participating counties would have to report annually to the Department of Land Conservation and Development on acreage rezoned, housing units built, and price data. The bill also expands rural accessory dwelling unit options. It would allow counties to permit a new single-unit dwelling on certain rural residential lots with a historic home, on the condition that the historic home is converted into an accessory dwelling unit after the new home is completed. Separately, it increases the maximum size of a rural accessory dwelling unit from 900 square feet to 2,500 square feet and keeps limits on location, water supply, fire protection, setbacks, and use as a vacation rental. It also updates related land-use definitions and standards in several statutes, including provisions governing rural residential development, emergency shelters, and housing approval standards. SB 1578 would affect Oregon land use law by carving out new authority for counties to rezone rural land for housing and by broadening the circumstances under which accessory dwelling units may be built in rural residential areas. It amends ORS 197.783, 197A.400, 197.791, 215.490, 215.495, and 215.501, and adds a new section to ORS chapter 215. The measure also imposes a deed restriction requirement for rezoned land that acknowledges protected farm, forest, and rangeland practices and limits nuisance claims against those uses. The new rezoning authority would sunset on January 2, 2034. The overall sentiment reflected in the bill materials is pro-housing and pro-rural development, with the measure framed as a way to increase housing supply in sparsely populated counties and make better use of rural parcels. Because there are no committee transcripts or recorded votes available in the provided materials, there is no direct evidence of debate or formal support/opposition in committee. The bill was still in committee when the session adjourned, so it did not advance to final passage in the available record. The main points of contention likely center on land use and rural resource protection. The bill overrides or relaxes some existing planning constraints for a limited class of counties, which may concern opponents who prioritize farmland preservation, forestland protection, and limits on rural sprawl. The deed restriction limiting nuisance claims suggests an effort to address conflicts between new rural residents and existing agricultural operations, indicating that farm and ranch interests are a key stakeholder group. Other likely concerns include the size of allowed accessory dwelling units, the potential for increased development pressure on rural infrastructure, water supply, fire safety, and whether the bill could alter the character of rural areas.

Impact

SB 1578 would amend Oregon’s land use and housing statutes to authorize a narrow class of very low-density counties to rezone up to 50 acres for higher-density residential development and to expand rural accessory dwelling unit allowances. It would also modify related rules for rural residential areas, emergency shelters, and housing approval standards, while adding reporting requirements and a sunset date. The bill would primarily affect county land-use decision-making, rural property owners, developers, and adjacent farm/forest operators.

Sentiment

The bill appears generally supportive of housing production, especially in rural areas, and is structured as a targeted expansion of local authority rather than a broad statewide mandate. No committee testimony or votes were provided, so there is no documented split in the record; however, the bill’s design suggests an attempt to balance housing access with safeguards for resource lands, fire safety, and existing agricultural uses.

Contention

Likely contention focuses on whether the bill goes too far in weakening protections for farmland and forestland by allowing rezoning for residential use outside urban growth boundaries. Rural landowners and housing advocates may support the added flexibility, while farm, forestry, and land-use preservation interests may object to the potential for sprawl, conflicts with resource uses, and pressure on water and emergency services. The deed restriction limiting nuisance claims indicates concern about disputes between new residents and established agricultural operations, and the enlarged ADU allowance may also draw scrutiny over density, infrastructure, and long-term rural land-use impacts.

Companion Bills

No companion bills found.

Previously Filed As

OR SB1199

Relating to the development of housing in rural counties.

OR HB2422

Relating to residential rural use of lands.

OR SB1133

Relating to accessory dwelling units.

OR SB498

Relating to accessory dwelling units.

OR HB3903

Relating to parking minimums for residential development.

OR SB75

Relating to wildfire hazard requirements for nonurban dwellings.

OR SB940

Relating to rural residential lands.

OR HB3757

Relating to division of rural lands for dwellings.

OR HB3144

Relating to dwellings.

OR SB522

Relating to clustered resource dwellings.

Similar Bills

No similar bills found.