Transportation System Development Charge 2027 Program Update

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. 

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What do these funds pay for?

TSDCs directly fund improvements to our roads, sidewalks, bike lanes, crossings, and transit system. These improvements expand capacity and make it safer for everyone traveling throughout Portland. 

Since 2017, more than $79 million in TSDC revenue has helped deliver major capital projects citywide, often serving as local match funds to unlock millions more in state and federal transportation grants. These funds ensure that as Portland grows and new homes and services are added, they are connected by a safe and reliable transportation system. And these improvements often spur new housing and employment opportunities by providing the infrastructure that makes development more feasible and connected into the community.

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 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.

Who is involved?

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.    

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. 

The timeline is aligned with the 2045 Transportation System Plan (TSP) update, allowing coordination of the project list and funding program.

What is happening now?

PBOT selected a consultant team to lead the TSDC program update and started work in summer, 2025.

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