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Temporary system development charge exemptions for new housing units

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Source: Temporary system development charge exemptions for new housing units ↗ Last modified: Sun, 19 Apr 2026 20:05:13 GMT

Please note:

The SDC exemptions described on this web page apply to other types of new housing units.

In July 2025, the Portland City Council adopted an ordinance ↗ that temporarily exempts newly created housing units from SDCs. The goal of this ordinance is to promote the creation of 5,000 new housing units over a three-year period. This temporary SDC exemption applies to most permits for new housing units issued from Aug. 15, 2025, through Sept. 30, 2028.  

Please read:

Where full SDC exemptions apply

Permits for new dwelling units and congregate living facilities are exempt from SDCs under the following conditions:

  1. The dwelling unit is not an accessory dwelling unit or caretaker quarters, as those terms are used in Title 33 of Portland City Code, or a transient lodging facility as defined in Section 24.31.010; and
  2. A building permit has not been issued before Aug. 15, 2025, and will not be issued after Sept. 30, 2028.

Congregate living facilities are defined in the 2022 Oregon Structural Specialty Code ↗ as, “A building or part thereof that contains sleeping units where residents share bathroom or kitchen facilities, or both.”

Within 12 months of the issuance of the permit, the applicant must receive an approved:

  1. Foundation/concrete pour inspection for housing in a new building, or
  2. Insulation and vapor barrier inspection for conversion of space to housing in an existing building.

This inspection requirement is waived if, before the building permit is issued, the applicant submits to the City a construction completion guarantee from an accredited financial institution.

SDC exemptions in mixed-use buildings

If the new dwelling units or congregate living facility are part of a development that contains other uses or occupancies, areas of the building that are not housing may also be exempt from certain SDCs. Specifically, SDCs for stormwater, residential water meters, and irrigation water meters would be exempted for the entire development. All other SDCs will be charged as usual for those non-housing spaces.