ADU Update for 2018

Will 2018 be the year of the ADU or will the SDC Waiver Expire?

The Portland ADU Service Development Charge (SDC) fee waiver is set to expire this summer. This wavier can save people who build an ADU up to $17,000 and has been in place for years. If it is not renewed and expires on 7/31/2018 as planned (and they have to be constructed and receive final inspection and certificate of occupancy by June 30, 2019), it will become much more challenging to build an ADU for most families. The waiver was introduced to help families ease the housing shortage by adding additional dwellings to our communities without changing the look and feel of our neighborhoods.

At SQFT Studios, we receive inquiries nearly every day about building ADUs in Portland and the surrounding region. We have some great information on our site here about the rules and regulations surrounding ADUs and there are several other great resources in Portland about this topic. The question on our minds is where is this trend going, and where will the Portland leadership take us.

According to market information, we have been receiving ADUs are still in hot demand. Whether they are to be used as short or long-term rentals, ADUs are still at the top of the list of recommended renovations for homeowners. Volatility in the short-term market (as tourism waxes and wanes, or seasonal effects create fluctuation) keeps reinforcing the argument for future proofing by building for flexibility of use.

ADUs have a higher price point than our stand-alone Guest Suites due to the kitchen requirement, space and storage needs, and the much more complex permitting process. If your budget won’t afford a full ADU, rest assured, Guest Suites rented through services like Airbnb (just one of the many options out there) that are stand-alone structures and not a bedroom in a shared house outperform other short-term rental types.

If you have questions we are here to listen and provide answers when we can. If you are interested in an ADU, now is the time – don’t delay if you want to guarantee the savings the SDC Waiver provides before it expires.

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