Why this is the most important call you make early
SDCs are one-time fees the city collects on a new dwelling to fund the public infrastructure (sewer, water, transportation, parks, schools) the new household will use. Two things make Portland different from what most older blog posts tell you:
- The 2018 ADU SDC waiver is still active. It didn't expire — City Council restructured it in 2018 around a 10-year covenant: if you sign that the ADU and primary house won't be operated as short-term rentals for 10 years, the city waives the per-bureau SDCs. PP&D's program page reports a ~99% approval rate for compliant applications.
- A citywide housing-SDC exemption is also in effect for any housing unit permitted between 2025-08-15 and 2028-09-30, on top of the ADU-specific waiver.
Most owner-occupied or long-term-rental DADUs end up paying close to zero SDCs through one of these two paths. The $30K-$50K horror-story numbers floating around assume the waiver expired. It didn't.
Where the money goes at full rate (PP&D's 2023 sample)
PP&D publishes a sample-fee table for a new detached ADU (rates effective 2023-07-01). The SDC subtotal:
- BES (sanitary): ~$6,640 ← largest single SDC
- Parks: ~$7,100
- PBOT (transportation): ~$2,940
- PWB (water): ~$2,280
- BES (stormwater): sample shows $0; depends on impervious area
- School district pass-through: varies
Total SDCs at full rate: ~$18,960 for the sample case. Add permit fees and plan check and the published all-in lands around $36,720.
Your number can be higher (larger unit, more trip generation per PBOT, stormwater above the SIM threshold, a pricier school district) or lower (waiver/exemption applies). PP&D's per-bureau fee schedules are the binding sources — the number above is one published example, not your invoice.
How to do it
- Add up the per-unit rates that apply. Open PP&D's SDC fee-schedule hub and follow the per-bureau links (BES, PWB, PBOT, Parks, school district pass-through). Sum them. That's your full-rate baseline.
- Check waiver eligibility. Read the ADU SDC Waiver page. The covenant rules out short-term rental of either unit for 10 years and requires owner-occupancy or month-to-month leasing. If you can live with that, the application is free (email to PP&D's Revenue Division).
- Check the 2025-2028 exemption. If your permit issues between 2025-08-15 and 2028-09-30, see whether the citywide exemption applies — it can zero out SDCs even on units that don't qualify for the ADU waiver.
- For the binding number, you'll get a written estimate at the pre-application conference (step 3.1) or at intake.
What moves the SDC bill
- Waiver / exemption eligibility — the big lever; takes you from ~$18K to near zero.
- Unit size — most charges scale with bedrooms or square footage.
- Demolition credit — removing an existing dwelling can earn partial credit.
- Affordability covenant — separate, longer-term restriction that reduces certain SDCs.
Lock the waiver decision in first. Nothing else moves the budget like it does.
Where this information came from
- Portland PP&D — Apply for an ADU SDC Waiver · retrieved April 23, 2026
- Portland PP&D — New Detached ADU Sample Fees · retrieved April 23, 2026
- Portland PP&D — System Development Charges (current fee schedules + per-bureau links) · retrieved April 23, 2026