TL;DR (generated, confidence: high)

The ADU SDC Waiver Program offers property owners a 10-year incentive to build owner-occupied or long-term rental ADUs, requiring a covenant that prohibits short-term rentals on the entire property during the waiver period.

Key points:

Program applies to new ADUs that are owner-occupied or rented month-to-month or longer; excludes accessory short-term rentals (ASTRs) and sub-monthly leases (Apply for an Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver ↗)
Approved waiver creates binding 10-year covenant between City of Portland and all property owners during the agreement's lifespan (Apply for an Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver ↗)
Covenant requires ADU and primary house cannot be rented as short-term rentals for 10 years (Apply for an Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver ↗)
Apply by email to aducovenant@portlandoregon.gov with permit number in subject line; applicants following instructions have 99% approval rate (Apply for an Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver ↗)
Revenue Division administers program independently; once approved, covenant is added to permitting system visible to Portland Permitting & Development and SDC bureaus (Apply for an Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver ↗)
During 10-year period, no structure on property can be short-term rental, including single bedrooms in main house; restriction lifts after covenant expires (Apply for an Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver ↗)
Program duration starts at final inspection approval date; check Portland Maps permit records for 'Covenant Recorded' designation to verify property eligibility (Apply for an Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver ↗)

Entities: program: ADU SDC Waiver Program | housing_type: Accessory Dwelling Unit (ADU) · Accessory Short-Term Rental (ASTR) | agency: Revenue Division · Portland Permitting & Development | email: aducovenant@portlandoregon.gov | system: Portland Maps | duration: 10 years

Apply for an Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver

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Source: Apply for an Accessory Dwelling Unit (ADU) System Development Charge (SDC) Waiver ↗ Last modified: Sun, 19 Apr 2026 20:05:36 GMT

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.