Portland Makes ADU Incentives Permanent

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.

1 minute read

May 9, 2018, 8:00 AM PDT

By James Brasuell @CasualBrasuell


Accessory Dwelling Unit

radcliffe dacanay / Flickr

"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."

Thursday, May 3, 2018 in Portland Tribune

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business