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Date ArticleType
6/29/2022 Member News

Portland ADU SDC Waiver Program Sunset Delayed Due to Feedback from Stakeholders Including HBA Builders, PBUD Members, and Others


Recently, Portland infrastructure department staff released a proposal to sunset the Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver program. Due to loud and consistent feedback from stakeholders including, HBA Builders, PBUD members and others over the past few months, the decision has been made to table the immediate sunset of the waiver program and to continue a dialogue over the next 6-12 months.

With the passage of RIP 1 & 2, as well as the middle housing regulations required by HB 2001 and SB 458, staff was concerned that similar housing types were being treated differently due to semantics. “Is this an ADU and house or is it two units of a detached duplex?” Although intended to correct a perceived issue, the sunset could possibly have broader policy changes not envisioned in the original proposal.

Builders have highlighted the need for an SDC deferral or other incentive program to continue the current development of ADUs. They informed staff that ADUs do not usually qualify for traditional financing and that the city’s SDC loan program isn’t a viable alternative for homeowners who wish to pursue ADU development on their lot. With a 60,000+ unit deficit of homes in the Portland Metro area, it is imperative that all housing types continue to be built and encouraged and many have voiced concern that removal of the deferral will seriously curb or even stop ADU development in Portland.

HBA hosted Portland department staff, PBUD members and other stakeholders on June 28, 2022 for a zoom meeting to discuss these concerns and exchange ideas for creating a successful replacement program.

To learn more about this proposal, the continuing process for discussion of a replacement program or general ADU development in Portland questions, contact Ryan Makinster at ryanm@hbapdx.org.