Portland City Council waived the System Development Charges (SDC) for Accessory Dwelling Units (ADU) for 3 years Wednesday March 3, 2010, saving the homeowner $14,000, on average, to develop an ADU. Council also voted to adopt the recommendations of RICAP5 which included a recommendation to increase the size limits for and ADU to 800 square feet or 75% of the primary structure, whichever is less.
Portland, OR “This couldn’t happen at a better time, given the significant hardships faced by builders and the construction industry, and in terms of our goals for sustainability in the community,” said Mayor Sam Adams.
For years the development of ADUs has been discouraged by punitively high SDC’s which can total as much as $20,000. Given the high cost of the average ADU, most consumers either didn’t do the project or chose to alter the project and not permit it as an ADU. The chance that an ADU would be permitted was reduced by the parsimonious size limitation. Many people who researched the idea of an ADU quickly realized that their primary residences were too small to develop an apartment with a reasonable footprint.
Removing barriers to the development of ADUs increases urban density, one of the primary aspects of the Urban Growth Boundry (UGB). This allows growth without sprawl, and falls neatly in line with Portland’s emphasis on public transportation. An ADU allows a homeowner to add value to their home while providing extra income in the form of rental revenue. Furthermore, the addition of an ADU to an existing single family home presents an opportunity for families to combine generations in the same home, allowing grandparents to live next to grandkids, allowing older folks to age-in-place.
Hammer and Hand has been active in the residential remodeling industry for more than 15 years. We have built scores of projects that could be used as ADUs. We look forward to the opportunity to building many more ADUs that add value to peoples’ homes and lives. We have developed examples of different examples of ADUs on paper, including designs and financial information, that demonstrate the tremendous value and opportunity created by the addition of an ADU. We work well with lending institutions when construction loans are involved. And we can recommend design professionals to create a plan tailored to your needs that maximizes your return on investment (ROI).
The recent regulation changes put an ADU within reach for almost any homeowner. Home builder Hammer and Hand can show you how to add value to your home while increasing your income by building an ADU. Learn more about building an accessory dwelling unit.