Please note:
- There is a separate SDC waiver program for accessory dwelling units.
- The Portland Housing Bureau grants exemptions to SDCs for building new housing units that meet certain affordability requirements.
The SDC exemptions described on this web page apply to other types of new housing units.
In July 2025, the Portland City Council adopted an ordinance that temporarily exempts newly created housing units from SDCs. The goal of this ordinance is to promote the creation of 5,000 new housing units over a three-year period. This temporary SDC exemption applies to most permits for new housing units issued from Aug. 15, 2025, through Sept. 30, 2028.
Please read:
- Section J of Portland City Code Chapter 17.14.070 ("Temporary exemption for residential housing projects")
- The administrative rule that describes how the temporary SDC exemption program is administered
Where full SDC exemptions apply
Permits for new dwelling units and congregate living facilities are exempt from SDCs under the following conditions:
- The dwelling unit is not an accessory dwelling unit or caretaker quarters, as those terms are used in Title 33 of Portland City Code, or a transient lodging facility as defined in Section 24.31.010; and
- A building permit has not been issued before Aug. 15, 2025, and will not be issued after Sept. 30, 2028.
Congregate living facilities are defined in the 2022 Oregon Structural Specialty Code as, “A building or part thereof that contains sleeping units where residents share bathroom or kitchen facilities, or both.”
Within 12 months of the issuance of the permit, the applicant must receive an approved:
- Foundation/concrete pour inspection for housing in a new building, or
- Insulation and vapor barrier inspection for conversion of space to housing in an existing building.
This inspection requirement is waived if, before the building permit is issued, the applicant submits to the City a construction completion guarantee from an accredited financial institution.
SDC exemptions in mixed-use buildings
If the new dwelling units or congregate living facility are part of a development that contains other uses or occupancies, areas of the building that are not housing may also be exempt from certain SDCs. Specifically, SDCs for stormwater, residential water meters, and irrigation water meters would be exempted for the entire development. All other SDCs will be charged as usual for those non-housing spaces.
When an SDC exemption may be revoked
If a permit applicant fails to receive an approved inspection, as described above, within 12 months of the issuance of the building permit, and if the permit applicant did not submit a construction completion guarantee from an accredited financial institution before the permit was issued, the City may terminate the SDC exemption and require payment of all previously exempt portions of SDCs, based on rates in effect on the date of the submittal of the complete building permit application, before the City will issue a certificate of occupancy or temporary certificate of occupancy.
If, in the future, there is a proposed change of use or occupancy of a dwelling unit that was granted an SDC exemption through this temporary program, the City may, before issuing the permit for that change of occupancy, collect SDCs for the proposed change of use or occupancy at the rates in effect at the time of the application to permit the proposed use or occupancy change.
What types of charges does this exemption include?
SDCs for new development include fees related to expanding public infrastructure for sewer, water, parks, and transportation to accommodate the additional demand on those services. To learn more, please check out Permitting & Development's web page on SDCs.
It is important to note that applicants must pay different types of one-time fees at the time of permit issuance. While SDCs are one-time fees that must be paid to the City at the time of permit issuance, not every one-time fee is an SDC. Projects that qualify for this temporary SDC exemption may still need to pay other one-time fees, such as Construction Excise Taxes and permit review fees among others.
Is an application needed to qualify for this SDC exemption?
This SDC exemption for new dwelling units or congregate living facilities does not require an application. The permit applicant will need to submit basic information about the proposed housing development as part of the permit review. The property owner must acknowledge and agree to the terms and conditions of the SDC exemption or formally decline the SDC exemption through the form below.
The SDC waiver program that applies to accessory dwelling units requires an application. The SDC exemption administered by the Portland Housing Bureau for affordable housing units also requires an application.
Does this SDC exemption for new dwelling units apply to alterations of existing dwelling units?
Any construction project that creates one or more new dwelling units, except ADUs and transient use projects, are eligible for this new SDC exemption. Alterations and additions to existing buildings may qualify for the SDC exemption if that work creates one or more new dwelling units.
If a permit for a new dwelling unit was issued before Aug. 15, 2025, can this SDC exemption apply retroactively?
No. This SDC exemption only applies to qualifying permits issued from Aug. 15, 2025, through Sept. 30, 2028.
If I have a batch residential permit for multiple housing units, do I need to pay for all of the permits in the batch before I receive my permit?
Yes. Your permits will not be issued until all permits in the batch are paid for.
Who can I talk with to find out more information?
- If you have a qualifying permit application under review or in approved to issue status: Please contact the permit technician who is assigned to your permit.
- If you have not yet applied for a permit that may qualify for this SDC exemption:
- Please contact Portland Permitting & Development at 503-823-7300 or through this form, or
- Schedule a free 15-minute appointment with a permit technician to discuss your proposed project and ask whether it may qualify for this SDC exemption.