Portland is temporarily waiving tens of millions of dollars in development fees in an effort to encourage new housing construction across the city.
A new report from Portland Permitting & Development shows the city could ultimately waive about $32.7 million in system development charges, or SDCs, if all projects currently participating in the housing incentive program move forward.
System development charges are fees typically assessed on new construction projects to help pay for public infrastructure improvements needed to support growth, including roads, sewer systems, parks and water infrastructure.
City officials say the temporary waiver is intended to reduce development costs and make housing projects more financially feasible during a period of high construction costs and tight financing conditions.
As of Jan. 15, projects representing 1,720 housing units had entered the program, which aims to encourage construction of 5,000 homes over three years.
So far, 265 housing units have fully qualified for the exemption, representing about $6.7 million in waived fees, according to the city’s report.
Another group of projects representing more than 200 housing units has received building permits and is expected to qualify for the exemption once construction milestones are reached.
Priya Dhanapal, deputy city administrator for public works, said the program reflects the city’s effort to support housing development while balancing infrastructure needs.
“Public Works bureaus rely on system development charges to fund infrastructure that supports Portland’s growth, and this program redirects some of those resources to help advance much-needed housing development,” Dhanapal said.
Development fees can add tens of thousands of dollars to the cost of building each housing unit, making it difficult for some projects to move forward during periods of rising construction costs.
By temporarily eliminating those fees, city officials hope to help developers overcome financial barriers and move more housing projects into construction.
The incentive program applies to most residential permits issued between Aug. 15, 2025, and Sept. 30, 2028, and requires participating projects to meet specific eligibility requirements and construction timelines.
Officials say the program is one of several tools the city is using to address Portland’s housing shortage and encourage new residential development.
