April 1, 2019
Deadline to Finalize ADU Permits Submitted for
Review Prior to July 31, 2018 is June 30, 2020
The Portland City Council views construction of Additional Dwelling Units (ADUs) as an essential component of meeting the City of Portland’s housing density goals. Building permits submitted to the Bureau of Development Services that include new dwelling units are charged System Development Charges (SDC). These fees, which are assessed by the Water Bureau, Portland Parks and Recreation, Bureau of Environmental Services, and Portland Bureau of Transportation, are to help offset the impact that project will have on the City’s infrastructure. To encourage development and increase housing stock, the Portland City Council began waiving SDC fees assessed to ADU permits in 2010. Last year, City Council revised the SDC waiver and reaffirmed a deadline for previously approved ADUs to complete construction.
If you applied for a permit to construct an ADU on or before July 31, 2018, your project must be constructed and receive final inspection approval by June 30, 2020. If your ADU project completion occurs on or after July 1, 2020, you will either need to pay SDC fees or comply with newly adopted rules of the ADU SDC Waiver Programs. If you intend to use the completed ADU, or any other structure on the lot, as an accessory short-term rental within the first 10 years of the final approval of the building permit, you will not be eligible for the SDC ADU Waiver Program and City Bureaus may collect applicable SDC fees.
When planning your project, please be mindful of this deadline. Although ADUs are typically smaller than single family residences, construction and inspections of an ADU does not happen on a shrunken schedule.
Participation in the SDC ADU Waiver Program requires a $400 processing fee paid to the City’s Revenue Division of the Office of Management and Finance. The SDC ADU Waiver Program also requires a Restrictive Covenant to be recorded with the Multnomah County Recorder’s Office stating that you agree not to use any structure on the lot (including the ADU) as an accessory short-term rental for 10 years after final approval of the building permit. If the ADU is used as an accessory short-term rental at any time during the 10-year period, any waived SDC fees must be repaid at 150% of the then-current SDC rate. Specific guidelines on the new ADU SDC Waiver Program may be found here.
Zoning regulations related to ADUs, where they can be constructed and applicable design parameters are available in the Portland Zoning Code, Chapter 33.205. More information of System Development Charges can be found here.
Have questions about whether your ADU project is subject to the deadline for final inspection approval? Contact Christy Pierce at 503-823-7916 or Christine.Pierce@portlandoregon.gov.
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