How to Leverage the Portland Housing Bureau's SDC Exemption

Buying your first home in Portland is a big step—and with rising housing costs, every dollar counts. One tool that many first-time buyers overlook is the Portland Housing Bureau’s (PHB) System Development Charge (SDC) Exemption Program. This program can save you tens of thousands of dollars and make homeownership more attainable.

What Is the PHB SDC Exemption?

When a new home is built in Portland, developers are typically required to pay System Development Charges (SDCs). These fees—sometimes $20,000 or more—help cover the cost of city infrastructure like parks, transportation, and water systems.

The PHB’s SDC Exemption Program waives those fees if the new home is sold to an eligible homebuyer as their primary residence. That means the cost savings can be passed directly on to you.

Who Qualifies?

The program is designed to help first-time and income-eligible buyers. Generally, you must:

• Be a first-time homebuyer (or not have owned a home in the last three years).
• Meet household income limits set by PHB (based on family size). Up to a family of four is $148k.
• Use the home as your primary residence.
• Purchase a property that’s part of the program (not every new construction home qualifies).

Why It Matters

• Lower purchase price: If the developer doesn’t have to pay SDCs, they can list the home at a more affordable price.
• More buying power: Lower costs free up your budget for closing costs, furniture, or future renovations.
• Stability: The program ensures these homes stay affordable to first-time buyers, rather than going straight to investors.

How to Leverage It as a Buyer

1. Work with a knowledgeable agent – Not all agents know how to identify PHB SDC Exemption properties. Having someone who understands the process is key.
2. Check the PHB approved project list – The City maintains a list of exempt properties. Keep an eye out for new listings.
3. Get pre-approved early – These homes can sell quickly. Having financing ready gives you an advantage.
4. Confirm eligibility – Make sure you meet income and residency requirements before making an offer.
5. Plan for resale restrictions – The program may have requirements on how long you must live in the home before selling.

The Bottom Line

1. Confirm eligibility – Make sure you meet income and residency requirements before making an offer.
2. Plan for resale restrictions – The program may have requirements on how long you must live in the home before selling.

Summary

The PHB SDC Exemption Program is a powerful but underutilized resource for Portland’s first-time homebuyers. By reducing development fees, it directly lowers the price of certain new homes and opens the door to ownership opportunities that might otherwise be out of reach.

If you’re a first-time buyer in Portland, this program could be your ticket into the market—but only if you know where to look.

Want to know if you qualify or see what PHB SDC Exemption homes are currently available in Portland? Reach out—I can help you navigate the process and find opportunities before they hit the broader market.