Housing Services:
System Development Charge Exemption/ Fee Waivers

SDC Exemption Guidelines

Summary

New development within the City of Portland contributes to the need forcapacity increases for transportation systems, parks and recreation facilities, and water works systems. Therefore, new development should contribute to the funding of such capacity increase improvements. System Development Charges (SDC) incurred upon new housing units will fund a portion of the needed capacity increases in the City of Portland.

System Development Charge Exemptions are intended to reduce the development costs for residential units that are made affordable to homeowners and low-income renter households by exempting developers from paying SDC fees levied by the City of Portland. Only those units meeting the requirements will receive the exemption.

The Portland Development Commission (PDC) has been charged with the administration and monitoring of the System Development Charge Exemption Program for Affordable Housing for the City's Office of Transportation, Bureau of Water Works, Bureau of Environmental Services and Bureau of Parks and Recreation. The SDC Exemption Program consists of four separate exemption programs.

Transportation Exemption for Affordable Housing
Water Exemption for Affordable Housing
Parks Exemption for Affordable Housing
Bureau of Environmental Services Exemption for Affordable Housing

Application Submittal

**Submit the following paperwork to PDC after submittal of your plans to the Permit Center, but before you pull your permits so that you may present the SDC Exemption letter to the City Office (Transportation, Water, Bureau of Environmental Services or Parks) in lieu of making an SDC payment.

A fully completed SDC Exemption application for each permit number. One application can be used to apply for exemptions from all four bureaus.
Required exhibits:
- Articles of Incorporation
- Corporate Resolution (grants signature authority on behalf of the organization)
Recording Fee for each application. Please make check payable to Multnomah County Recorder.

Application Review & Issuing of Exemption Letters

The PDC Program Administrator will review the application upon receipt. Theprocessing time for the application requires three to five business days.
PDC will notify the applicant contact and schedule an appointment to sign the Regulatory Agreement.
After the Regulatory Agreement is signed, the Project Sponsor will then receive the SDC Exemption Letters. Every Exemption letter is subject to final approval by the City Bureaus. It is the applicant’s responsibility to present SDC Exemption Letters to Bureaus. Bureaus will not refund paid System Development Charges.

Qualifications

Exemption Program Summary Matrix (PDF, 18 kb)

All units receiving the SDC Exemption must demonstrate site control and meet the following affordability requirements:

Water, Parks, Transportation and Bureau of Environmental Services (BES):
- Rental: 60% or below Median Family Income (MFI)
- Homeownership: 100% or below MFI
- If the project has units that do not qualify for the exemption or a commercial component, the exemption will be based on a percentage of the total SDC fee

Compliance Requirements

The PDC requires documentation to evidence the Project Sponsor's compliance with the requirements of the Exemption Program.

How To Comply With A Regulatory Agreement (PDF, 62 kb)

Rental projects:

The PDC conducts annual audits of projects that have received exemptions. Project Sponsors should be prepared to document tenant income and rents at the PDC's request.

Homeownership projects:

Submit PDC Homeowner Compliance Form, (PDF, 90 kb).

Escrow:

Please fax us a demand request by submitting the SDC Demand Statement Request (PDF, 23 kb).

PDC Staff Contact Information

Marilyn Hurtley or Dory Van Bockel
SDC Program Administrator
503-823-3270 or e-mail

*	Are you aware of the Limited Tax Abatement (LTA) Program for Single Family New Construction? If your property is a single family detached or row house, and located in a "Designated Distressed Area," you may be able to provide the new homeowner with substantial property tax savings.