HomeMy WebLinkAboutItem 02 SDC waiver for ADUs AGENDA ITEM SUMMARY Meeting Date: 4/15/2019
Meeting Type: Work Session
Staff Contact/Dept.: Sandy Belson Staff Phone No: 541-736-7135
Estimated Time: 10 min
S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Promote and Enhance our Hometown Feel
while Focusing on Livability and Environmental Quality ITEM TITLE: WAIVERS OF SYSTEM DEVELOPMENT CHARGES FOR ACCESSORY
DWELLING UNITS
ACTION REQUESTED: Provide staff direction as to whether or not to continue to waive system development charges (SDCs) for accessory dwelling units (ADUs)
ISSUE STATEMENT: As part of the City’s housing strategy, the Council has been encouraging construction of accessory dwelling units to:
Provide the opportunity to add accessible and affordable units to existing neighborhoods and in new residential areas;
Provide flexibility to accommodate changes in household size or
composition over the course of time, allowing for intergenerational living and on-site caretakers/assistants;
Make efficient use of residential land; and
Fit into the neighborhood while maintaining stability, property values, and,
in the case of low-density residential zones, the single-family residential appearance of the neighborhood
ATTACHMENTS: ATT1 – Council Briefing Memo
DISCUSSION/ FINANCIAL
IMPACT:
The SDC waiver has been in place since July 1, 2017, but the City did not start to
receive applications for ADUs until April 2018, after the development code was
amended to make it easier and potentially less expensive to add an ADU. The pace of applications has picked up significantly in the past few months. In total (2018-2019) we have received twelve land use applications for ADUs, eight of which
have progressed to applications for building permits and two of which are constructed. SDCs are waived at the time of application for building permit. Some
property owners have been motivated to submit land use applications this spring
knowing that the SDC waiver is scheduled to expire on July 1, 2019.
Staff continues to respond to inquiries about adding an ADU on a daily basis.
Although difficult to know for sure, one could estimate that the City may receive between ten and twenty applications for ADUs over the next fiscal year. The total
waiver of the city’s SDCs for ADUs could then range from $65,000 to $130,000. This is revenue that otherwise would have gone toward the city’s stormwater, sanitary sewer, and transportation infrastructure for system-wide improvements,
assuming the property owners would have built ADUs even if the SDCs would not have been waived. However, given conversations with property owners, staff understands that many of them would not have gone forward with the ADU if the
SDCs had not been waived. In those cases, the waiver is not actually resulting in lost revenue.
M E M O R A N D U M City of Springfield
Date: 4/15/2019
To: Gino Grimaldi COUNCIL
From: Tom Boyatt, Interim DPW Director
Sandy Belson, Interim CMD Manager
BRIEFING
Subject: Waiver of System Development Charges for Accessory Dwelling Units MEMORANDUM
ISSUE: As part of the City’s housing strategy, the Council has been encouraging construction
of accessory dwelling units to:
Provide the opportunity to add accessible and affordable units to existing neighborhoods and
in new residential areas;
Provide flexibility to accommodate changes in household size or composition over the
course of time, allowing for intergenerational living and on-site caretakers/assistants;
Make efficient use of residential land; and
Fit into the neighborhood while maintaining stability, property values, and, in the case of low-density residential zones, the single-family residential appearance of the neighborhood
COUNCIL GOALS/
MANDATE:
Promote and Enhance our Hometown Feel While Focusing on Livability and Environmental
Quality
BACKGROUND: On June 5, 2017, Council passed Resolution 2017-15 temporarily waiving the City’s system development charges (SDCs) for newly permitted accessory dwelling units
(ADUs) during the period from July 1, 2017 through June 30, 2017. At the City’s request, the Metropolitan Wastewater Management Commission (MWMC) decided to set aside funds to offset the payment of regional wastewater SDCs on behalf of property owners adding ADUs in
Springfield. The MWMC is willing to continue this program if the City continues to waive its SDCs. At the City’s request, the Springfield Utility Board reviewed the SDC methodology for
ADUs and decided to charge a subset of applicable SDCs for an ADU, reducing the charge by
$625 in most cases and $1997 for ADUs constructed at higher elevations. The Willamalane Parks and Recreation District initially responded that it would not waive SDCs, but is currently
reconsidering the City’s request.
Based on customer interactions at the front counter staff, we know that people who come in asking about ADUs are coming in because of the SDC waiver, thinking that they may be able to afford adding another dwelling unit to their property. Many do not proceed because even with
the waiver, the cost of construction and installing separate water and electric meters is more than they can afford. Some of these people end up adding on or converting existing garages or accessory structures to living space that utilize the existing utility connections that are not
separate dwelling units. Eleven people have gone forward with applying for ADUs and the interest continues. For this reason, staff thinks that the waiver of SDCs is working to encourage
the construction of ADUs. Furthermore, there is still a need for this type of housing.
RECOMMENDED ACTION: Provide staff direction to bring Council a resolution extending
the SDC waiver for ADUs for another year.
Attachment 1, Page 1 of 1