System Development Charges

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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.

• Fee Schedules
• Water System Development Charges Methodology Report
• Transportation Development Charges Methodology Report
• Sewer Development Charges Methodology Report
• Limited update. Review the existing 2015 Sewer SDC methodology.
• Supplemental Sewer SDC for SEA Methodology Report
• Bend Municipal Code Chapter 12.10

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.

• Childcare SDC Exemption Application

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. Effective January 1, 2026, the SDC Deferral Program is available for all commercial and residential development (Parks SDCs can only be deferred for residential developments).

Please see the SDC Deferral Program memo below for more information.

Download the Application for System Development Charges (SDC) Deferral, see link below.  Upon completion of the application, upload completed application to the project through the Online Permit Center.  For step-by-step instructions on how to apply in Portal please download the SDC Deferral Program Portal Application Process.

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

• SDC Deferral Program Memo
• SDC Deferral Application
• SDC Deferral Program Portal Application Process
• How to Pay your Deferred SDCs

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 Application before completing fillable fields, then upload to your project through the Online Permit Center.

• SDC Loan Application

Please contact us at development@bendoregon.gov if you would like to discuss an SDC assessment or have questions about the appeals process.

 For information about filing a formal SDC Objection or SDC Appeal of City SDCs (Water, Sewer, or Transportation SDCs), please see Bend Code 12.10.170(C) Appeals for an overview of the appeals process.  See section 2.10 – System Development Charges of the Fee Schedule for current SDC Objection and SDC Appeal fees.  

 If you would like to formally appeal a Parks SDC assessment, contact the Bend Park and Recreation District.