Big News for Portland Developers: SDC Fee Waivers Through 2028

July 22, 2025

If you’re building housing in Portland, you know System Development Charges (SDCs) can seriously affect your bottom line. But there’s a major shift in 2025:

Portland City Council just approved a 3-year SDC fee waiver for qualifying housing projects — a bold move that could open the door for more infill and middle housing development through mid-2028. That’s a major win for infill developers, non-profits, and first-time buyer builders working to create accessible housing.

Here’s why this matters:

The Portland Housing Bureau’s SDC Exemption Program already allows developers to waive SDC fees if homes are sold or rented to income-qualified households.

Now, with this new 3-year citywide fee waiver, the financial barrier to building affordable and middle housing is even lower.

This pairs perfectly with the Residential Infill Project (RIP2), which allows up to 6 units on single-dwelling lots — giving builders more flexibility and more incentive to go affordable.

With SDCs often ranging from $20K to $40K per unit, this temporary waiver can make the difference between pencil-out and pass.

If you're working on:

• A cottage cluster or missing middle project
• Modular townhomes for income-qualified buyers
• Affordable infill on underutilized lots

…Now’s the time to act.

Let’s talk strategy, timelines, and how to take advantage of this rare window of opportunity.

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