Streamlined, but Not Simple: Oregon’s House Bill 4037

This article was originally published in the Daily Journal of Commerce on September 1, 2026. 

Oregon’s residential development community is beginning to see the effects of House Bill 4037 (2026), which became fully effective on July 1.

For developers, the most important feature of HB 4037 is procedural certainty. For qualifying housing applications that proceed under clear and objective standards, local governments must use a streamlined process that limits notice, eliminates required pre-decision hearings, and restricts local appeals.

How HB 4037 changes the process

For qualifying housing applications proceeding under the clear and objective approval path (per ORS 197A.400(1)), HB 4037 sharply limits the public process:

• notice is limited to owners of record within 100 feet of the subject property, or 500 feet for developments of 20 units or more;
• no public hearing may be required before the application is decided; and
• any local appeal may be offered only to the applicant.

HB 4037 applies directly statewide to qualifying housing applications, regardless of the local jurisdiction. Because many local development codes have not yet been updated to reflect HB 4037, applicants should not assume that the procedures stated in the local code control. Where HB 4037 applies, the application should expressly request that the local government apply HB 4037’s notice, hearing, and appeal limitations directly.

HB 4037’s procedural changes, along with other housing legislation over the past few years, such as the mandatory granting of certain adjustments provided in Senate Bill 1537 (2024), help make the path to approving development more streamlined and certain, which in turn helps provide Oregonians with much-needed housing.

What HB 4037 does not do

While HB 4037 is a welcome change, it does not remove every entitlement risk. There are still gaps in the process where there is opportunity for significant uncertainty, risk, and delay to arise, including:

• Mixed-use projects — When housing is a part of a mixed-use development, there is some uncertainty about whether the streamlined process applies to the entire project or only to the residential component. Local governments may seek to apply discretionary reviews to nonresidential elements.
• Rezoning — Sites for residential development often require a zoning map amendment to allow for residential use or to increase the development potential (height, density, lot coverage, etc.). The lengthy and discretionary rezoning process is unchanged by HB 4037. However, SB 974 (2025) may provide some relief to qualifying zone changes that increase density, because it replaces the initial public hearing with a written comment period, although a public hearing on appeal may be provided.
• Projects that include a discretionary review — HB 4037 applies only to residential projects that are proposed under clear and objective standards. If the housing developer opts to pursue a discretionary review (such as an adjustment or planned unit development) or site constraints require one, then the new streamlined review created by HB 4037 does not apply. Here also, SB 974 may provide relief to some projects. This is because for qualifying applications, it replaces the initial public hearing with a written comment period, although a public hearing on appeal may be provided.

Conclusions and takeaways

HB 4037 is a meaningful step toward a more predictable entitlement process for qualifying housing developments. For projects that can proceed under clear and objective standards, the law significantly narrows the public process by limiting notice, eliminating required pre-decision hearings, and restricting local appeals to the applicant.

The practical benefit, however, depends on project structure. Developers should evaluate early whether the proposed development can remain within the clear and objective approval path, or whether rezoning, mixed-use components, adjustments, planned unit development review, or other discretionary approvals may take the project outside HB 4037’s streamlined procedures.