Editorial: SDC change could encourage building of fourplexes

Published 1:23 pm Wednesday, December 13, 2017

Should builders of fourplexes pay the same system development charges as builders of single-family homes? That’s a question on the agenda Wednesday for Bend’s Affordable Housing Advisory Committee. It’s an early discussion without a formal proposal, according to Jim Long, the city’s affordable housing manager.

The move could make sense for water and sewer SDCs, although not for transportation. (Park SDCs are not controlled by the city and therefore not included in the discussion.)

The city has already made adjustments in SDCs for projects that are directly focused at affordable housing, which must meet specific requirements to keep occupant costs low over a long period of time.

This proposal would go further, giving a break without any of those requirements, simply to increase the number of fourplexes. The idea is that more units would help control the cost of housing by increasing the supply.

Long said the suggestion came from a local builder, who said the change would encourage more builders to build fourplexes. SDCs are often cited as a burden on builders that significantly increases the cost of building.

Under current rules, SDCs are:

• Water: $5,220 single-family; $8,874 fourplex.

• Sewer: $4,655; $14,896

• Transportation: $5,285; $12,992

• Parks: $7,358; $27,656

Long said another advantage of encouraging fourplexes is that financing them is easier for builders because they are treated the same as single-family homes, whereas larger units require more complex commercial financing.

Fourplexes use the same size pipe for water and sewer as a single-family home, Long said, supporting the argument they could be treated the same for water and sewer SDCs. The difference in the flow through those pipes is covered by the water and sewer bills paid by residents, meaning each unit would still be paying for its impact on the overall system.

Transportation SDCs however, can’t be justified in the same way, nor should the city consider reducing parking requirements.

A successful policy on this question will depend on whether the city can tailor the changes to preserve the essential idea behind SDCs: that they pay for the infrastructure costs that new housing requires from the city.

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