March 19, 2018
Portland Parks & Recreation (PP&R) and Portland Bureau of Transportation (PBOT)
Update on SDCs for Residential Additions
Beginning July 1, 2018, Portland Parks & Recreation and the Portland Bureau of Transportation will assess development fees for additions to residential units by the amount of square footage in each structure.
The new fee structure comes after both bureaus reassessed the way fees were determined. These system development charges, or SDCs, allow bureaus to recoup the cost of current and future City services that will be provided when new residential units go up.
The new SDCs are implemented through each bureau’s administrative rules. Both bureaus made the changes so that the new rules are consistent. To allow time for notification to the development community, the new policies will begin July 1, 2018.
The new PP&R administrative rule and PBOT administrative rule will exempt SDCs on residential additions smaller than 800 square feet.
Additions of 800 square feet or more of new residential space, that will move the dwelling unit into a new SDC size category, will be assessed based on their new size category and credited for the previous use based on the previous size category.
Example: A 1,000 square-foot home adding 800 square feet, totaling 1,800 square feet
||Parks & Recreation
(July 1, 2017 to June 30, 2018)
|Bureau of Transportation
(Jan. 1, 2018 to June 30, 2018)
|Assessment of 1,800 sq. ft.
||1,700 to 2,199 sq. ft. - $12,551
||≥1,200 sq. ft. - $5,140
|Credit for SDC value of
original 1,000 sq. ft. dwelling
|Total SDCs for
800 sq. ft. addition
More about SDCs
Parks SDCs are one of the main sources of funding which Portland Parks & Recreation utilizes to acquire and develop new parks, and add or expand features in existing parks. Contributions from construction projects across Portland have helped fund new projects throughout the city. See some recent projects that were funded by SDCs.
Transportation SDCs are one-time fees paid by developers when they build a new residential or commercial development. The fee covers part of the cost of building transportation facilities to serve new development—things like roads, sidewalks and other facilities that get people to where they need to go. TSDCs are intended to support new development by making investments to alleviate the increased demand on our transportation system.
System Development Charges can be financed by loan or deferral contracts, as outlined in City Code section 17.14. Upon notification that an applicant has been assessed a SDC fee, they may request to pay by a loan or deferral contract, at which point the Bureau(s) will prepare the contract for signature. Please contact PP&R or PBOT staff if you have any questions about PP&R or PBOT SDCs:
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