ADU SDC Reduction Program

The Accessory Dwelling Unit (ADU) System Development Charge (SDC) Reduction program is designed to save property owners money and encourage building ADUs. 


Photo of residential home with ADU


The Medford Land Development Code (MLDC) defines Accessory Dwelling Units (ADUs) as a “...detached or attached dwelling unit that is additional and auxiliary to a single-family dwelling, and is on the same tax lot.”   Common names for ADUs include in-law suite, accessory apartment or second unit.

For a full list(PDF, 90KB) of the standards, see Medford Municipal Code, Chapter 10 (referred to as MLDC), Section 10.821.


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 30, 2023.  This includes fees for Transportation, Sanitary Sewer Collection, Stormwater, and Parks; it does not include Sanitary Sewer Treatment.  Note that building permit fees are not included in this program.

There’s more!  After the SDC fees are reduced by 50%, City Council dedicated additional funds to pick up the remaining 50%, including the Sanitary Sewer Treatment fee.  This part of the program will continue through June 30, 2023, or until the additional funds are exhausted, whichever occurs first.

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 Additional Funding 

City Council dedicated additional funding for the remaining SDC fees after the 50% reduction.  These funds will supplement the ADU SDC Reduction Program until June 30, 2023, or until funds are exhausted, whichever occurs first.


Permit Ready Plans


We have five permit-ready ADU plans available:


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 more information, email  

How to Apply

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).

Step 1.Download the Request Form

  • You'll find the form on our website(PDF, 457KB)
  • Review the sample SDC Exemption Covenant carefully
    • This is for your information only and is not part of the request form

Step 2.Fill out the form

  • Be sure to include your email address
    • This is how we will communicate with you
  • Attach a copy of the property deed or title report with your request
  • We need to see ownership and the legal description of the property; this information will be included in the SDC Exemption Covenant

Step 3.Submit the form with your building permit application

  • The ADU SDC Reduction Request form MUST be submitted with your permit application
    • Please do not include the sample SDC Exemption Covenant