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What are System Development Charges?

System Development Charges, also known as SDCs, are fees paid when new development occurs for the cost of infrastructure needed to serve growth. SDCs pay for crucial infrastructure that is the backbone of the community: transportation, water and sewer systems.  These fees are necessary to provide adequate funding for growth-related capital improvements vital to maintaining the City's level of service in transportation, water and sewer and Bend Metropolitan Parks & Recreation's service in the city parks. (Reference: ORS 223.297 to 223.314)

The formula (or “methodology”) that sets the transportation, water and sewer charges for a particular development needs to be updated on a regular basis. The methodology looks at service needs and the impacts on each system by different types of development to establish a rate of the SDC for each system (sewer, water, and transportation) and a method for applying that rate to different developments. The updated methodology aims to advance housing affordability while still providing sufficient revenue to fund needed infrastructure.

SDC Exemptions

There are a variety of SDC exemptions available as outlined in Bend Code 12.10.120.  Highlighted here are exemptions for childcare, affordable housing and temporary shelters. 

SDC exemptions are available to licensed daycare and childcare facilities. The property owner will be required to enter into a childcare covenant which must be in place, with all associated fees paid, prior to issuance of the Certificate of Occupancy.

To apply for Childcare SDC Exemptions, download the Childcare SDC Exemption Application before completing fillable fields, then upload it to your project through the Online Permit Center.  When you are ready to apply for your covenant, apply for an agreement through the online portal (link)

To apply for an affordable housing SDC Exemption, or to learn more about other affordable housing programs, please see the Financial Tools section on the Affordable Housing Developer Resources webpage.

SDC Deferrals

The purpose of the SDC Deferral Program is to move the upfront cost of SDCs, typically due before a builder can obtain building permits, to a later date when the Certificate of Occupancy is approved without compromising the City’s capital infrastructure funds. Currently, deferrals are only available for multi-unit (3 or more) residential developments.  Effective January 1, 2025, the revised deferral program will be available for all other residential development. Effective January 1, 2026, the revised deferral program will be available for commercial development.

Please see our SDC Deferral Program memo for more information.

For step-by-step instructions on how to apply in Portal please see our SDC Deferral Program Portal Application Process.

When you are ready to pay your deferred SDCs, please see our How to Pay Your Deferred SDCs instructions.

SDC Loans

The default payment option for SDCs is payment in full at the time the building permit is issued. The Loan Application provides additional options including a 5-year installment loan and a 10-year installment loan.

Download the SDC Loan/Deferral Application before completing fillable fields, then upload to your project through the Online Permit Center.

SDC Objections and Appeals

To dispute an SDC charge amount, please contact development@bendoregon.gov.