Because new housing development within the City of Portland increases the need for transportation systems, parks and recreation facilities, and water works systems, new housing developments incur System Development Charges (SDCs) to fund a portion of the City's system improvements and capacity increases.

The SDC Exemption Program assists developers by reducing their development costs when building affordable residential housing. Developers are exempt from paying SDCs levied by the City of Portland only when these units meet program requirements. The SDC Exemption Program consists of four types of exemptions, and the Portland Housing Bureau (PHB) is charged with the administration and monitoring of each: transportation, water, parks and environmental services. Learn more about SDCs.