ALERT: New Happy Valley, Oregon Parking Laws

The City of Happy Valley, Oregon recently enacted a new ordinance impacting multifamily housing of 5 or more units. Under the ordinance, parking shall be “unbundled” from rent, which means that “parking cannot be included in the rental/lease/purchase price.” Meaning, that for properties with 5 or more units, renters must be offered the option to pay for a parking space separately from their rent. The ordinance went into effect on June 30, 2025, and to our knowledge, no input from housing providers was sought by the Happy Valley City Council.

Last week, Happy Valley also sent out an informational letter that included additional requirements not contained in the ordinance. Items in the letter that are not included in the ordinance itself included:

Direction that, “as of June 30, 2025,” the ordinance applies to “new leases or rental agreements;”

Clarification that renters must “pay a minimum of $130.00 per stall each month” in addition to their rent for any onsite parking space.

Our office can find no language in the ordinance itself to authorize the City’s mandate that housing providers must charge their renters $130.00 per month, which raises questions about the mandate’s enforceability.

The City appears to be relying on a guidance document from the Oregon Department of Land Conservation as it relates to an Oregon Administrative Rule impacting parking. This guidance directs Cities to enforce unbundling requirements in the same manner as other violations of the development code. Enforcement may be based on code enforcement used for land use, nuisance, and other jurisdictional ordinances.

If you have not already received these materials, click this link to download a copy of the ordinance and the City’s explanatory letter for review. You'll want to connect with your legal counsel with any questions for compliance with these directives from Happy Valley.