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The Portland Bureau of Transportation (PBOT) updates its program for Transportation System Development Charges (TSDCs) every 10 years. The 2027 update is underway.
Why this update?
The Portland Bureau of Transportation (PBOT) updates its program for Transportation System Development Charges (TSDCs) every 10 years. This includes updating methodology, rates, and project lists to reflect Portland's current needs and future growth patterns. PBOT's last update to the program was in 2017. The city began work on the 2027 update in summer of 2025.
The 2027 update will ensure the program remains fair, transparent, and aligned with city goals. It also allows the city to review and refine the rate calculation methodology, exemptions, and discounts, and to update the list of projects that can be funded by TSDCs. Updating the TSDC program is a collaborative process involving city planners, developers, community members, and policy committees. A collaborative approach ensures the program aligns with the City's broader goals like sustainability, accessibility, and livability.
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Project timeline
The current TSDC project list and rate study will expire in 2027. The new project list and rate study must be completed and approved by City Council no later than June 30, 2027. PBOT selected a consultant team to lead the TSDC program update and started work in summer, 2025.
The timeline is aligned with the 2045 Transportation System Plan (TSP) update, allowing coordination of the project list and funding program.
What do these funds pay for?
TSDCs directly fund improvements to our roads, sidewalks, bike lanes, crossings, and transit system. TSDCs are the only revenue source dedicated to increasing the capacity of the transportation system. These funds ensure that as Portland grows and new homes and services are added, they are connected to safe streets that support reliable, affordable travel options.
This short video helps explain how system development charges work:
Since 2017, more than $79 million in TSDC revenue has helped deliver over 75 major capital projects citywide. Across the city, the largest concentrations of TSDC expenditures were downtown and in East Portland, including large investments in major projects such as SE Division Street Transit Improvements, 82nd Avenue improvements, Naito Parkway Corridor Improvements, Central City multimodal improvements, and Post Office Blocks Transportation Improvements. There were also many smaller projects in Southwest, Northeast, and North Portland.
The TSDC program helps ensure that new housing is supported by the sidewalks, streets, and transit connections residents need—reducing household transportation costs, improving access to opportunity, and creating vibrant neighborhoods that work for everyone. TSDC-funded transportation improvements help spur new housing and employment opportunities by providing the infrastructure that makes development more feasible and connected into the community. Some examples include:
- From 2017–2025, TSDCs contributed $16.5 million toward transit and multimodal improvements along the Division Corridor, where 1,400 housing units and 94,000 square feet of office/retail were added.
- From 2004-2025, TSDCs contributed $26.5 million to construct new streets and support multimodal connectivity in South Waterfront/North Macadam, where 5,000 housing units and 630,000 square feet of office/retail development were added.
- From 2014–2025, TSDCs contributed $2.9 million to construct new streets and improve the grid in Slabtown, supporting 1,200 housing units and 36,500 square feet of office/retail.
TSDCs often serve as local match funds to unlock millions more in state and federal transportation grants. Since 2017, TSDCs have covered just over a quarter of the cost of projects on the project list. They were supplemented with other local funds, like the local gas tax known as Fixing our Streets. More than half (56%) of the cost of the project list came from grants and other outside sources.
Supporting housing and affordability
PBOT's TSDC program is designed to balance the need for transportation infrastructure with Portland's commitment to housing affordability. Affordable housing has long been exempt from TSDCs. In response to the housing crisis, the city has also adopted a three-year exemption for all types of housing construction.
The chart below compares TSDC spending to new housing units in the four Portland City Council districts. Overall, TSDC expenditures align fairly well with growth and new development across Portland. PBOT spent a relatively higher portion of TSDC funds on projects in District 1, East Portland, while District 2 saw a higher portion of the city's new residential units than of TSDC spending.
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