Portland offers a System Development Charge (SDC) waiver for qualifying new accessory dwelling units used as residences. The waiver is subject to permit review and a recorded covenant that affects the property. It is not a general waiver of building-permit fees, utility work, or every charge connected with a project, and the City page does not state one fixed dollar value for the waived SDCs.
Check the use rules before applying
The City’s page describes eligible ADUs as owner-occupied or rented for residential use on a month-to-month or longer basis. Short-term rental use and rental periods shorter than one month do not qualify under the published use terms.
The property owners must sign a binding ten-year covenant. It applies across the property and its structures, not only to the new ADU. The restriction begins at final inspection, and no structure on the property may be used as a short-term rental during the covenant period. A homeowner considering a short-term rental in another dwelling on the same lot should review this whole-property condition before applying.
The City also describes a consequence if the covenant is revoked or violated: charges may be assessed at 150% of the current SDC fees. Confirm the current covenant language and financial consequence with Portland before accepting the restriction.
Follow the City’s application route
The waiver involves review of the building-permit application. The City directs applicants to provide the permit number and permit-application materials to the Revenue Division. Revenue Division, rather than Portland Permitting & Development, approves the SDC waiver. The City says applying early can help with review and does not publish a fixed application deadline on the cited page.
Keep the permit review and waiver decision together in the project schedule. Ask Revenue Division which documents it currently needs, when to submit them, whether the particular ADU use fits the covenant, and which SDC amounts the waiver would cover. Do not assume that a building permit alone completes the waiver process.
Confirm the rest of the project budget
An SDC waiver addresses only the charges covered by the City’s waiver decision. Confirm ordinary permit fees, utility connection or capacity costs, and any other local fees separately. A waiver does not establish zoning compliance, building approval, utility capacity, or permission to occupy.
For an overview of fee and technical assistance types, see the fee-waiver and assistance guide. For development and utility charge distinctions, see the charge guide.