Photo: Getty Images

In a unified and unanimous move to accelerate housing construction, the Portland City Council approved a temporary System Development Charges (SDCs) exemption on new residential projects. This exemption, a key component of the city’s ambitious 5,000 Unit Challenge, will be in effect for three years.

"I'm proud that our City Council has taken decisive action on a simple yet transformative plan to exempt fees that have long stifled essential development," said Mayor Keith Wilson. "By temporarily eliminating these SDCs, we're slashing construction costs by thousands and converting stalled projects into homes for Portlanders. This bold move reaffirms that Portland is open for business and committed to pioneering solutions for our current and future housing needs."

This policy change comes at a time when Portland developers stand at the ready to launch numerous multi-family projects. Feedback from developers and industry partners indicates that additional fees have previously hindered projects from advancing. With this exemption, the City aims to reduce financial barriers, stimulate residential construction, and address the ongoing housing affordability crisis. In doing so, the initiative reinforces Portland’s long-term housing production by building on existing housing programs and strengthening the property tax base.

“I believe in a vision for Oregon and for Portland where everyone can afford a home, where people can live in the places they want and still make ends meet at the end of the month,” Governor Tina Kotek said. "This vote signals that the Portland City Council understands the urgency of the moment and are rising to meet it."

The exemption is also seen as a strategic investment in the city’s broader economic renaissance. The temporary relief from SDC fees is expected to encourage private-sector investment and deepen the construction workforce in Portland—key ingredients for sustained long-term growth and stability.

"Portland has to build as much housing as possible as quickly as possible," said Councilor Mitch Green. "This is a signal we need to be sending, and temporarily waiving SDCs can result in a wave of new construction that may ease the housing crisis and help grow our tax revenue base. If it doesn’t, then we don’t lose anything. I support Council actions that enable jobs growth, housing development, and trust in the City’s ability to lead."

Today’s SDC exemption builds on a series of targeted actions to catalyze multifamily housing across Portland. Mayor Wilson has committed to modernizing Portland's permitting infrastructure by rebooting the Self-Certification Program and launching a new Third-Party Plan Review system. These tools aim to reduce approval times and help builders break ground faster, which are critical steps in lowering costs and increasing housing supply.

Additionally, the Mayor is investing in the transformation of commercial properties into middle-income housing. A $15 million Notice of Funding Opportunity will be released later this year to support conversion projects in the Central City.

For information on system development charges exemptions and whether they may apply to your project, please visit: portland.gov/housingSDCs.

Source: City of Portland

Sarge