Section 197A.NEW - [Newly enacted section not yet numbered] Mandatory adjustments exemption process(1) A local government may apply to the Housing Accountability and Production Office for an exemption to section 38 of this 2024 Act only as provided in this section. After the application is made, section 38 of this 2024 Act does not apply to the applicant until the office denies the application or revokes the exemption.(2) To qualify for an exemption under this section, the local government must demonstrate that: (a) The local government reviews requested design and development adjustments for all applications for the development of housing that are under the jurisdiction of that local government;(b) All listed development and design adjustments under section 38 (4) and (5) of this 2024 Act are eligible for an adjustment under the local government's process; and(c)(A) Within the previous 5 years the city has approved 90 percent of received adjustment requests; or(B) The adjustment process is flexible and accommodates project needs as demonstrated by testimonials of housing developers who have utilized the adjustment process within the previous five years.(3) Upon receipt of an application under this section, the office shall allow for public comment on the application for a period of no less than 45 days. The office shall enter a final order on the adjustment exemption within 120 days of receiving the application. The approval of an application may not be appealed.(4) In approving an exemption, the office may establish conditions of approval requiring that the city demonstrate that it continues to meet the criteria under subsection (2) of this section.(5) Local governments with an approved or pending exemption under this section shall clearly and consistently notify applicants, including prospective applicants seeking to request an adjustment, that are engaged in housing development: (a) That the local government is employing a local process in lieu of section 38 of this 2024 Act;(b) Of the development and design standards for which an applicant may request an adjustment in a housing development application; and(c) Of the applicable criteria for the adjustment application.(6) In response to a complaint and following an investigation, the office may issue an order revoking an exemption issued under this section if the office determines that the local government is: (a) Not approving adjustments as required by the local process or the terms of the exemption;(b) Engaging in a pattern or practice of violating housing-related statutes or implementing policies that create unreasonable cost or delays to housing production under ORS 197.320 (13)(a); or(c) Failing to comply with conditions of approval adopted under subsection (4) of this section.Added by 2024 Ch. 110,§ 39, eff. 6/6/2024, op. 1/1/2025.