System Development Charges (SDCs)

Fees
System development charges help offset the project impacts on the City’s storm and sanitary sewer systems, parks and recreation facilities, water and street systems. Read about charges for new development, additions and changes of use. Also called community impact fees and traffic impact fees.
On this page

System development charge forms 

If system development charges apply to your project, you need to complete a system development charge form when you apply for your building permit. If you get a commercial building permit, fill out the commercial system development charge form. If you get a residential building permit, fill out the residential system development charge form. 

Who charges fees and why

Environmental Services Required Sewer Connection ProgramCharges cover the cost of increased use. The charges reimburse Environmental Services for the infrastructure necessary for development.
Portland Parks and RecreationCharges cover a portion of the cost to provide for parks and recreation facilities to serve new development.
Transportation Charges cover the cost for transportation facilities needed to serve new development and the people who occupy or use the new development.
WaterCharges cover the cost for the new development’s share of water system capacity.

When you might pay system development charges 

You may have to pay SDCs when:

  • Accessory Dwelling Units (ADU) are added
  • Addition of commercial floor area
  • Increased number of plumbing fixture units
  • Increasing the size of a water meter
  • New or additional square feet of residential or commercial occupancy are built
  • New stormwater or sanitary connections are proposed
  • A development proposal results in additional volume to existing connections
  • The project creates new redeveloped impervious area
  • There is a change of use or occupancy

For special projects such as microunits or shared kitchens, please contact us to verify which fee applies.


Environmental Services system development charges

Rates effective July 1, 2024–June 30, 2025

Sanitary sewer system development charges

Occupancy type*Rate per drainage fixture unit
Residential$327
Tier 1 Occupancies$545
Tier 2 Occupancies$726
Tier 3 Occupancies$1,245

*Occupancy types are listed in ENB-4.05 – Administrative Rules for Sanitary and Stormwater System Development Charges.

Stormwater system development charges

$507 per 1,000 square feet of stormwater billable area


Parks and Recreation system development charges 

Rates effective July 1, 2024–June 30, 2025

Dwelling unit typeNon-central CityCentral City
Less than 700 square feet$7,527.00$5,952.00
700-1,199 square feet$11,259.00$8,903.00
1,200-1,699 square feet$13,537.00$10,703.00
1,700-2,199 square feet$15,370.00$12,153.00
2,200 or more square feet$17,016.00$13,454.00
Commercial use and occupancy codeNon-central City
(per sq. ft.)
Central City
(per sq. ft.)
Occupancy group codes reference
Hospital/convalescent hospital/institutional day care$2.52$3.23I-1, I-2, I-4
Office/bank$2.39$3.03B
Retail/restaurant/nightclub$1.88$2.60M, A-2
Industrial/school/assembly hall/motel/hotel$1.19$1.52A-1, A-3, A-4, E, F, H, Non-Dwelling Unit R (R-1)
Warehouse/storage/parking garage/mausoleum$0.26$0.33S, U

Read more about Parks system development charges.


Transportation system development charges

Rates for SDCs are effective July 1, 2022–June 30, 2024, or until amended. Rates are for Citywide system development charges only; additional fees apply if located within an overlay area.

Residential

TypeUnitPer unit
Single Family (1,200 SF or larger)dwelling$5,882.00
Single Family (1,199 SF or smaller)dwelling$2,941.00
Multi Family (2 or more units)dwelling$2,894.00
Senior Housing/Asst Living/Nursing Homedwelling/bed$1,492.00

Commercial services

TypeUnitPer unit
Banksq ft/GFA$42.98
Day Caresq ft/GFA$7.86
Hotel/Motelroom$3,959.00
Service Station/Fuel SalesVFP$35,322.00
Movie Theater/Event Hallsq ft/GFA$14.83
Carwashwash stall$20,663.00
Health Clubsq ft/GFA$17.82

Commercial: institutional

TypeUnitPer unit
School, K-12sq ft/GFA$5.76
University/College/Jr Collegestudent$671.00
Churchsq ft/GFA$2.67
Hospitalsq ft/GFA$4.73
Parkacre$537.00

Commercial: restaurant

TypeUnitPer unit
Restaurant (stand-alone)sq ft/GFA$33.50
Quick Service Restaurant (drive-through)sq ft/GFA$105.48

Commercial: retail

TypeUnitPer unit
Shopping/Retailsq ft/GFA$13.13
Convenience Marketsq ft/GFA$103.77
Free-Standing Retail Store/Supermarketsq ft/GFA$26.87
Car Sales New/Usedsq ft/GFA$11.85

Commercial: office

TypeUnitPer unit
Administrative Officesq ft/GFA$6.08
Medical Office/Clinicsq ft/GFA$18.05

Industrial

GFA: Gross Floor Area | VFP: Vehicle Fueling Position
TypeUnitPer unit
Light Industrial/Manufacturingsq ft/GFA$3.94
Warehousing/Storagesq ft/GFA$1.13
Self Storagesq ft/GFA$1.12

Read more about Transportation system development charges.


Water system development charges

SDC rates effective through June 30, 2024.

Meter sizeCharge
5/8"$4,563.00
3/4"$6,844.00
1"$11,407.00
1.5"$22,814.00
2"$36,502.00
3"$68,442.00
4"$114,069.00
6"$228,139.00
8"$365,022.00
10"$656,126.00

When the Water Bureau permanently removes an existing meter and a new meter is installed on the same site, Water applies a credit for the old meter to the new SDCs.

Dedicated fire lines are not assessed a system development charge.

Read more about the Portland Water Bureau's system development charges.


Alternate rate and fee calculation

Parks

If you want us to use an alternate number of persons per dwelling unit for residential development, or resident equivalents for nonresidential development other than those used in the City’s Parks SDC Methodology Report, you must submit analyzed and certified documentation by a suitable and competent professional. Alternative system development charge rate calculations must be based on analysis of occupancy of classes of structures, not on the intended occupancy of a particular new development. Use Alternative SDC Rate Request Form PSDC-6 and include it with the application.

Transportation

If you want us to use trip generation rates other than those used in the City’s Transportation SDC Ordinance and Rate Study, you must submit data certified by a professional traffic engineer. Use Request for Alternate Trip Generation Rate and SDC Calculation Form TSDC-3 to submit the data and attach it to the application. Institutional development (educational and medical campuses) may elect to base system development charges on annual changes in trip generation. In this case, use Institutional Development of Special Trip Generation Rate and SDC Calculation Form TSDC-4.

Optional credit for providing qualified public improvements

Parks

To reduce the amount of your Parks system development charge, you may donate property or improvements to certain qualified park facilities in the City of Portland. Use Request for Parks SDC Credit for Qualified Public Improvement, Form PSDC-7 to submit a request, and attach it to your System Development Charge Form.

Transportation

If you want to reduce the amount of your Transportation system development charge, you may make improvements to specific transportation facilities in the City of Portland. Use Request for Credit for Qualified Public Improvement Form TSDC-5 to submit the data, and attach it to your System Development Charge Form.

Payment methods and timing of SDCs

The City will give you a Notification of SDC Fees if you are required to pay any charges for your development.

For all system development charges (SDCs)

  • Pay by cash, check, money order or credit card at the time the City issues a building permit.
  • Water SDCs are due when water services are purchased. Pay by check, money order or credit card.
  • Request a deferral of fee payment for 6, 9, or 12 months, depending on the project valuation, by signing a deferral contract. Interest shall accrue at the City’s interim rate during the deferral period and will be payable, along with the deferred amount, upon the end of the deferral period. There is a non-refundable $50.00 finance fee.*
  • Through June 30, 2025, projects providing new housing units may elect to pay in full 24 months from when the permit is issued without interest. Failure to pay TSDC in full within 24 months will result in the accrual of interest at the City’s default interest rate, calculated from the day of permit issuance.
  • Transfer SDC credits (contact respective bureaus for more information).
  • Request a loan contract by completing and signing an installment contract to pay the SDCs in monthly or bi-annual installments over 5, 10, or 20 years.
  • Special note: The City secures a loan or deferral by recording a lien on the benefited property. The lien remains in effect until the SDCs are paid in full. The City charges a non-refundable processing fee to cover the expense of setting up a loan or deferral. The installment contract must be signed by the property owner of record before the City authorizes a loan or deferral for the systems development charge.

If you need help with system development charges 

If you need help with or have questions about your system development charge, please call the appropriate department in the Contacts listed on this webpage. 

Contact the Portland Housing Bureau about the SDC Exemption Program for affordable housing

For more information, call the Portland Housing Bureau, visit the Portland Housing website or email Portland Housing for affordable housing exemption inquiries.

How SDCs are calculated 

Environmental Services 

Rates are for either the class and number of residential units or they are related to the size of a commercial project. Sanitary rates are calculated from equivalent dwelling units. Commercial equivalent dwelling units are estimated from the number and type of plumbing fixture units.

A table of the equivalencies for plumbing fixture units to equivalent dwelling units is available upon request from Environmental Services. Stormwater SDCs are based on the square feet of impervious area in the project and the number of trips the new property is expected to generate (using trip generation number used by Transportation).

Parks and Recreation

The rate is based on the type and size of building. Demolition credits may apply if demolition was within 36 months of the new permit intake date. SDCs apply to new construction, changes of use, and projects to expand existing use.

Transportation

The rate for each mode of transportation is based on the following:

  1. amount of money the City needs to collect over the next 10 years to increase the City’s transportation system to accommodate growth-related trips.
  2. The projected City growth in the next 10 years. The SDC rate is multiplied by the number of trips your proposed land use generates based on nationally compiled statistics.
  3. Additional Transportation SDC fees may be assessed on development that is located within certain “overlay” areas. To determine if a development is within an “overlay” area, or for further information, contact Transportation.

Water

The rate is based on the size of meter installed. Meter size is determined by the number of plumbing fixtures installed at the property. Fire lines are exempt from SDC fees.

System development charges rate changes 

City of Portland fees and charges are adjusted annually for inflation at the beginning of the fiscal year on July 1. City departments that charge SDCs may also change the rates at other times, but particularly at their SDC Review Cycle, which is different for each area of the City.

Reduce your system development charges

Transportation and Parks each offer an optional alternate rate and fee calculation. Environmental Services Stormwater SDCs can be reduced by reducing the number of square feet of impervious area, such as with the use of vegetation or pervious pavement.

System development charges credits available

Credits for providing qualified public improvements are available. You must complete the correct credit form and attach it to the SDC Form. Credits include:

  • Environmental Services: gives credits for any equivalent dwelling units purchased with prior use of the property. Environmental Services credits follow a property and are not transferable.
  • Parks: allows credits if you convey qualified property or facilities to Parks and Recreation, subject to approval.
  • Transportation: allows credits if you participate in constructing certain types of street improvements, or change building use to one that reduces trips by more than 15%. Contact Transportation for an SDC list of capital projects and learn what projects qualify for a credit.
  • Water: gives credit for water services that are permanently removed. Credit is applied towards the SDC fee of a new metered service. Credits are not transferable.

Transfer, give or sell your SDC credits to someone else

Some credits may be transferred, given away or sold:

  • Parks: Some provisions are available to use credits on subsequent phases of the original development, or on other projects. Provisions are outlined in Parks SDC code.
  • Transportation: SDC Credit Transfers will be issued by the City, and are transferable to other persons and available for use on the same parcel, as credit for payment of Transportation SDCs only. Credits may only be used for development upon the same parcel from which the credit originated. Credits are good for a period of 10 years.
  • Environmental Services and Water do not transfer credits.

SDC exemptions available

  • Portland Housing: Contact Housing to inquire about the SDC Exemption Program for affordable housing or visit the Housing website.
  • Transportation: Remodels of buildings less than 3,000 sq. ft. with no change of occupancy are exempt. Buildings between 3,001 and 5,000 sq. ft. are assessed on a graded scale. Exemptions are available for qualifying affordable housing projects.
  • Environmental Services, Parks and Water: Exemptions are available for qualifying affordable housing and campus housing projects. Parks has additional exemptions outlined in City Code 17.13.060 (review the related webpage for more information).

Portland Permitting & Development and system development charges

SDCs are development-related fees, assessed to some projects. While the building permit is issued by Portland Permitting & Development, SDCs are associated with the impact the project will have on the need for additional development of specific portions of the City’s infrastructure. Other City departments are charged with the mission of planning and maintaining Portland’s streets, sidewalks, transit, water service, sanitary sewer system and parks. These services are partially funded through specific SDC fees.

Fee schedules and valuation methods

All information provided here is subject to change.