Development fees can add some $15,000 to the cost of building a home in Portland. Residents adding an accessory dwelling unit to their property won't need to worry about those expenses, as long as they don't use the limit for short-term rentals.
"The Portland City Council has moved aggressively to boost construction of more 'granny flats' or accessory dwelling units, by permanently eliminating costly development fees for those who build them," reports Steve Law.
The fee waiver has been in place since 2010, but the City Council vote makes the waiver permanent. The waivers are part of an incentive system that has spurred the growth of accessory dwelling units (ADUs) from 50 new units a year to 500, according to Law.
Law notes that the City Council set up the fee waiver to address a growing backlash against ADUs as some homeowners convert their ADUs into short-term rental unit. "The resolution adopted by the council…requires ADU builders to attest that they won't rent the units as short-term rentals for 10 years. If homeowners do rent them out via Airbnb or similar platforms during the ensuing decade, the SDC fees must be paid, along with a 50 percent penalty."
FULL STORY: City council agrees to end costly development fees for accessory dwelling units
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City of Albany
UCLA Lewis Center for Regional Policy Studies
Mpact (formerly Rail~Volution)
Chaddick Institute at DePaul University
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research