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ADU SDC Reduction Program

What is an ADU?

The Medford Land Development Code (MLDC) defines Accessory Dwelling Units (ADUs) as a “...detached or attached dwelling unit that is additional and auxiliary to a single-family dwelling, and is on the same tax lot.”   Common names for ADUs include in-law suite, accessory apartment or second unit.

For a full list of the standards, see Medford Municipal Code, Chapter 10 (referred to as MLDC), Section 10.821.

Download the Guide to Medford's ADU Standards, Permits & Fees brochure.

photo of accessory dwelling unit

 

The Program

City-assessed SDC charges will be reduced by 50% for new ADU building permits during the period of December 1, 2020 through June 1, 2022.  This includes  fees for Transportation, Sanitary Sewer Collection, Stormwater, and Parks; it does not include Sanitary Sewer Treatment.

There’s more!  After the SDC fees are reduced by 50%, the City’s Housing Opportunity Fund will pick up the remaining 50%, including the Sanitary Sewer Treatment fee.

The program applies to new ADU building permits only; existing ADUs do not qualify.

Download the ADU SDC Reduction Program brochure
 

Permit-Ready Plans

A permit-ready 364 square foot Studio plan set is available.  To request the full plan set, email planning@cityofmedford.org.  

More permit-ready plans are coming soon!
 

How do I qualify?

To qualify for ADU SDC fee reduction, the  property owner must agree to:
  • Not use the ADU as a short-term rental (renting to overnight guests for fewer than 30 consecutive days) for a period of 10 years from the City’s acceptance of the application;
  • Execute a Restrictive Covenant, record it with Jackson County at your expense, and file it with the City prior to issuance of permit; and
  • Report rents annually to the City and certify that the ADU was not used as a short-term rental

 

What happens if I default?

If the property owner defaults, payment of the equivalent to the reduced SDC fees with accrued interest will be due in full.  If not paid within 60 days, an 18% interest charge will be applied effective at the end of the month in which the payment is due.
 

About the Housing Opportunity Fund

The Housing Opportunity Fund (HOF) will fund the remaining SDC fees after the 50% reduction.  This portion of the program is funded by the Construction Excise Tax collected by the City .

The HOF will supplement the SDC reduction program for an 18 month period or until funds are exhausted, whichever occurs first.
 

How to apply

An ADU SDC Reduction Request form and copy of the property deed with legal description must be submitted with your building permit application.  The form along with a sample covenant can be  downloaded from the City website.

Download the request form
  • You'll find the form on our website
  • Review the sample SDC Exemption Covenant carefully
    • This is for your information only and is not part of the request form

Fill out the form
  • Be sure to include your email address
    • This is how we will communicate with you
  • Attach a copy of the property deed with your request 
    • We need the property's legal description to include with the SDC Exemption Covenant

Submit the form with your building permit application
  • The ADU SDC Reduction Request form and property deed MUST be submitted with your permit application
    • Please do not include the sample SDC Exemption Covenant
Additional Department Information

Planning Department Contacts

200 South Ivy Street, Lausmann Annex, Room 240
Medford, Oregon 97501
Phone: 541-774-2380
Fax: 541-618-1708
Email:
Hours: 8:00 a.m. - 5:00 p.m. Monday through Friday

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