As four new townhomes are nearing completion at 457 NE 74th Avenue, the property’s developer applied for a Middle Housing Land Division (MHLD) to create distinct lots for each home. This form of property segmentation allows for common-wall construction that avoids Home Owner Association (HOA) fees and creates clearly defined boundaries between neighbors.
Crews began constructing these new homes in October and quickly completed principal framing, sealing up the exterior so work could proceed inside the units. This level of completion enabled the developer to pursue an MHLD lot division, which requires the builder to have units constructed to a state where an as-built survey of buildings and underground services can occur before the City approves the final plat. Although developers can only start the MHLD process after submitting permits, the process is guaranteed to be fast, according to Oregon state law. The City must either approve or deny the application within 63 days.

An MHLD is reserved for specified housing types and does not apply to vacant lots or non-residential development. Lots segmented in this way must have existing buildings or structures under construction to qualify. The buildings can be attached or detached duplexes, triplex, fourplex, and Cottage Cluster developments. Unlike traditional lot divisions, MHLD does not require street access or a private road for all units. In the previous City code, all lots needed street access through complicated lot lines or easements. As with this project on NE 74th, MHLD-created properties can reside behind other lots without street access. Only the front home at 457 NE 74th Avenue directly connects to the sidewalk and utilities. The other three units have a walkway and utility easements.

Each MHLD-created lot has to contain one residence. However, those lots do not need to be the same size. The back property at 451 NE 74th Avenue is larger than all the others, with significantly larger yard space. It also contains a shared drywell for onsite rainwater management. The middle two units have equal land area, access, and yard space.
MHLD is an integral part of Portland’s recent Residential Infill code updates that allow people to create more housing on existing properties. Creating independent lots in this creative way eliminates added monthly costs that some homeowners pay to an HOA for shared property maintenance. It can also simplify the mortgage process and neighbor relations by not having an extra level of governance over one’s land. Many newer infill developments across Portland are already using MHLD, which may indicate that changes brought about by the Residential Infill Project are succeeding in the City’s efforts to create more housing. Look for these four townhouses to become available for purchase in 2024.
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