On February 7, Lake Oswego City Council passed a resolution to increase their Transportation SDC to the maximum defensible amount over the next 24 months. The phased implementation HBA supported will begin July 1, 2017. Submit for any Lake Oswego permits now to lock in the current rate.
The Lake Oswego City Council voted on February 7 to raise their Transportation SDC from $4,195 to $14,760 for single family homes over the next couple of years. The increase would primarily affect new developments within city limits, as one to one replacements are excluded from the increase. HBA began reviewing the methodologies used back in November and was very engaged on this issue, including submitting testimony to Council urging them to consider phased implementation, a delayed effective date, and a lower initial fee rate. While the City Council did agree to phased implementation and to not make the change effective immediately, the first increase will occur July 1, 2017 and the SDC will ultimately still raise to the proposed $14,760, the maximum defensible amount, within the next 24 months. Builders in Lake Oswego should submit for permits ahead of the July 1, 2017 date so they can lock in the current rate.
Excluding the SDCs associated with development in newly serviced UGB expansion areas, this vote places Lake Oswego with the highest cumulative SDC total in the region. Ultimately, the issue surrounding dramatic SDC increases in our regional jurisdiction requires a degree of involvement at the State Capitol to impose a modicum of restraint. Though HBA recognizes the need for infrastructure upgrades and funding strategies to achieve these shared goals, we will continue to promote policy refinements or alternatives that further housing affordability goals for younger residents and first-time home buyers.