ADU SDC Reduction Program

The Program

City-assessed SDC charges will be reduced by 50% for new ADU building permits during the period of December 1, 2020 through June 1, 2022.  This includes  fees for Transportation, Sanitary Sewer Collection, Stormwater, and Parks.; it does not include Sanitary Sewer Treatment.

There’s more!  After the SDC fees are reduced by 50%, the City’s Housing Opportunity Fund will pick up the remaining 50%, including the Sanitary Sewer Treatment fee.

The program applies to new ADU building permits only; existing ADUs do not qualify.

How do I qualify?

To qualify for ADU SDC fee reduction, the  property owner must agree to:

· Not use the ADU as a short-term rental (renting to overnight guests for fewer than 30 consecutive days) for a period of 10 years from the City’s acceptance of the application;

· Execute a Restrictive Covenant (view sample(PDF, 457KB)), record it with Jackson County at your expense, and file it with the City prior to issuance of permit; and

· Report rents annually to the City and certify that the ADU was not used as a short-term rental

What happens if I default?

If the property owner defaults, payment of the equivalent to the reduced SDC fees with accrued interest will be due in full.  If not paid within 60 days, an 18% interest charge will be applied effective at the end of the month in which the payment is due.

About the Housing Opportunity Fund

The Housing Opportunity Fund (HOF) will fund the remaining SDC fees after the 50% reduction.  This portion of the program is funded by the Construction Excise Tax collected by the City .

The HOF will supplement the SDC reduction program for an 18 month period or until funds are exhausted, whichever occurs first.

Four permit-ready ADU plans are available to participants in this program:

• 364 square foot(PDF, 236KB) Studio
• 780 (total) square foot(PDF, 228KB) Studio over garage/workspace/storage
• 660 square foot(PDF, 209KB) 1 bedroom
• 660 square foot(PDF, 471KB) fully accessible 1 bedroom

Use of these plans saves applicants the cost of the plan check fee as well as time and cost for design work.  If the applicant changes anything on the plans, additional plan review fees may apply.  Note that as with any other structure, ADUs built in certain parts of the City may require additional foundation design due to the presence of expansive soils. Ask the Building and Safety Department if you have any questions.

Participation in the permit-ready program does require submittal of an application and participants must agree not to use their ADU as short-term housing (AirBnB, VRBO, etc.) for a period of 10 years.

To request a full plan set, email planning@cityofmedford.org.  

An ADU SDC Reduction Request form and copy of the property deed with legal description must be submitted with your building permit application.  The form along with a sample covenant can be  downloaded from the City website(PDF, 457KB).