Introduction to the TSDC Program Update

Introducing the TSDC Update

What are Transportation System Development Charges?

The Portland Bureau of Transportation (PBOT) is updating the Transportation System Development Charge (TSDC) program. TSDCs are one-time charges for new development. These payments help fund growth-related transportation projects that add capacity and improve streets, sidewalks, bikeways, and transit facilities—ensuring that infrastructure keeps pace to serve new residents and workers.

Why update TSDCs now?

PBOT updates the TSDC program every 10 years. The program was first created in 1997 and was last updated in 2017. This update will:

• Ensure TSDCs support the city's transportation, housing, and climate goals while supporting new development 
• Coordinate with the update to the Transportation System Plan (TSP) 
• Examine how TSDCs interact with other development-related requirements and fees and look for ways to improve predictability and administration

Changes with this update

The update provides an opportunity to refine the program's technical components. This includes rate calculation methodology, eligibility criteria, and payment structures. Key areas under review include:

• Land use categories and associated rates 
• Discounts and exemptions 
• Credit policy 
• Options for financing and deferring SDC payments 
• How TSDC funds are spent

Work to date

Evaluating our current TSDC program

The project team has completed three memos evaluating the current TSDC program (2017-present). The memos explore:

• The transportation projects PBOT has funded with TSDCs 
• How PBOT combined TSDCs with other revenue sources
• How TSDC expenditures align with growth and development in Portland 
• Utilization of TSDC discounts and exemptions by developers 
• How Portland's TSDCs and other development fees compare to other jurisdictions in Oregon

The project team has also done some initial outreach to stakeholders about the current program, with more to come in 2027.

See the memos and a summary of key findings on the TSDC Update web page.

What's next

Portland Parks and Recreation (PP&R) is also updating their SDC program. PBOT and PP&R are exploring ways to align efforts over the next year, including working together on methodology updates and stakeholder engagement.

In 2027, the project team will seek input from developers, jurisdictional partners, housing advocates, transportation groups, and other interested parties. You can learn about opportunities to get involved by checking our web page, subscribing to the email list, or contacting the project manager.

Visit the TSDC Update website

Sign up for the TSDC Update email list