System Development Charge (SDC) Deferral Program

 

On August 2, 2018, the Medford City Council approved a System Development Charge (SDC) Deferral Program that allows builders and developers of residential, commercial, and industrial properties to defer paying street, sewer, storm drain, and parks SDC fees.  Fees can be deferred until the property is sold or occupancy of the structure, whichever comes first.  A municipal lien in the amount of the assessed SDCs will be used to protect the City’s interests until time of payment.

For single-family residential development:

  • The full amount of SDCs can be deferred to time of sale, or time of actual occupancy, whichever occurs first. “Time of sale” refers to sale of a structure, not sale of a bare lot.
    • The deferral mechanism shall not be available if the total SDCs for a particular property are calculated to be over $500,000.

For multi-family residential development, commercial development, and industrial development:

  • If the total SDCs are $250,000 or less, the full amount of SDCs can be deferred to issuance of certificate of occupancy, time of sale, or time of actual occupancy, whichever occurs first.
    • If the total SDCs are between $250,001 and $500,000, then 30% of the SDCs shall be paid at time of building permit issuance, and the remainder can be deferred as set forth in MMC 3.739 subsection (5).
    • The deferral mechanism set forth in this section shall not be available if the total SDCs for a particular property are calculated to be over $500,000.

In circumstances where payment of SDCs has been deferred until time of sale, the SDCs shall be paid by the seller not the buyer.

SDCs deferred do not accrue interest until they are due. If not paid when due, SDCs will accrue interest from the month end of the due date at the rate of twelve percent (12%) per annum simple interest. The City Recorder shall have the authority to adjust the rate under the circumstances set forth in MMC Section 3.470(2).

 

SDC Deferral Frequently Asked Questions(PDF, 269KB)

SDC Deferral Request Form(PDF, 267KB)

 

To learn more, contact the Housing and Community Development Division via email athcd@cityofmedford.org or call 541-774-2380.

 

 

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