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The ADU SDC Waiver Program provides an incentive to build ADUs for residential use. More ADUs mean an increased housing capacity in Portland.
This waiver program is for new ADUs that are owner-occupied or rented on a month-to-month basis or longer. It does not include ADUs built to be accessory short-term rentals or rented on a less-than-monthly basis.
The ADU SDC Waiver Program approval process is part of permit review. An approved waiver results in a binding 10-year agreement. This agreement is between the City of Portland and all the property owners who own the property during the covenant’s life span.
The program requires property owners who are building an ADU to sign a covenant. The covenant states the ADU and the house will not be rented as a short-term rental for 10 years.
Apply for an ADU SDC waiver by email
To apply, fill out and scan the application below as one document. Then email it to the City of Portland Revenue Division at aducovenant@portlandoregon.gov. Please put the permit number in the subject line of the email. Be sure to follow the instructions in the application packet carefully:
The Revenue Division developed the application instructions to help ensure approval. Applicants who follow the application instructions have a 99% approval rate. Not following instructions or giving us incorrect information may result in delays.
About the ADU SDC waiver program
The Revenue Division administers the waiver program. We're independent reviewers of the program’s application/covenant. Once your application is approved, we add the covenant to the permitting system. After that, Portland Permitting & Development and any SDC bureaus can see it.
Revenue has strict review policies. There are restrictions on the type of information we can share.
Accessory short-term rentals (ASTRs) are not eligible for ADU SDC waivers
An ASTR is a structure of up to five bedrooms that can be rented for less than one month. They are often advertised on platforms such as Airbnb. Read more about short term rental permits.
The ADU SDC Waiver Program applies to the entire property. During the 10-year period of the covenant, no structure on the property can be a short-term rental. This includes single bedrooms in the main house. Offering any structure on the property on a short-term rental platform is a violation.
The ADU SDC Waiver Program starts the day of final inspection approval. Once 10 years pass, the property is no longer subject to the SDC waiver program. The property owner will then have the option of offering short-term rentals.
Find out if a property with an ADU is in the ADU SDC Waiver Program
Permit records in Portland Maps show if the ADU SDC Waiver Program applies to a property. Once you identify the ADU's permit, select it to see if the Revenue Division was a reviewer. If the Revenue Bureau reviewed it, you will see “Covenant Recorded” in the list.
Recorder of the covenant - responsibilities and fees
If a developer builds a home with an internal ADU, the recorder of the covenant would typically be the developer and not the property owner.
Covenants are tied to the property, not the individual who signs and records the covenant. This means that developers aren't liable if an owner later violates a covenant.
Revoking the covenant is contrary to the purpose of the ADU SDC Waiver Program. That's because the whole point is to increase the supply of housing in Portland. Revoking the covenant requires a payment of 150% of the current SDC fees. That's the same rate for violating the covenant.
Get help with an ADU SDC waiver application
Please email any questions to the Revenue Division at aducovenant@portlandoregon.gov. We will make every effort to quickly respond with clear and helpful information. Please note that Portland Permitting & Development doesn't approve ADU SDC Waiver Program applications.
There's no official due date for presenting documents to the Revenue Division. Completing the waiver program application early in the permitting process can help the process go more smoothly.
The information on this webpage is also available as a PDF: