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.