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News

ARTICLE

Date ArticleType
1/27/2022 Member News

HBA Shares Concerns with the City of North Plains on Proposed SDC Increases, Encourages Adoption of SDC Deferral Program


On January 21, HBA submitted a letter to the City of North Plains detailing our concern with a proposed substantial increase in system development charges. The substantial increase, offered in a report by FCS Group detailing the justification for the increase, would add $11,384 to the cost of a new single-family home. The increase is spread across three systems, water ($992, 9%), transportation ($2,215, 303%) and parks ($8,350, 125%). According to the NAHB 2021 “Priced Out” study, the increase in Parks SDCs alone would price 8,225 Metro area residents out of a North Plains home. Taken as a whole, the SDC package would price 11,384 residents out.

The Oregon Home Builders Association, our state-affiliated organization, and HBA championed and helped pass SDC program legislation in 1991 and still believe in the value of SDCs as a tool to support and promote responsible growth in Oregon. However, we also believe they must be reasonable and not create an undue cost burden for future homeowners. As such, during the housing crisis we are experiencing, we believe the proposed increases are substantial, excessive and have a direct impact on affordability.

HBA has asked the city to consider lower fee increases especially in the parks category, in light of the housing crisis and the less critical need for park infrastructure. In addition, HBA staff is asking for adoption of a SDC deferral program and the increases to be implemented incrementally over two years to help ease the burden of such a large change.

To learn more about HBA's work in North Plains or on SDC reform, contact Ryan Makinster at ryanm@hbapdx.org.

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