HB 3040 Study of Fees on New/Existing Housing Development Permits

Signed into Law by Gov Brown on 07/19/21
Status (overview) of bill:https://olis.oregonlegislature.gov/liz/2021R1/Measures/Overview/HB3040

This bill requires the Housing and Community Services Department to conduct a comprehensive study of system development charges including the equity in housing development. Requires city, county or special district that maintains public website to include certain information regarding system development charges in manner readily accessible to general public.

Fiscal Responsibility
This measure is estimated to be $911,604 General Fund in 2021-23, including $86,171 in personal services for a limited duration Operations and Policy Analyst 2 position, and $825,433 in services and supplies to contract for administrative support, data collection and data analysis.

Limited Government
System development charges (SDCs) are one-time fees charged on new development, and certain types of redevelopment, to help pay for existing and planned infrastructure to serve the development. SDCs are one means available to local governments for financing growth. State law authorizes local governments (cities, counties, and special districts) to assess SDCs; specifies how, when, and for what improvements they can be imposed; and provides guidelines on the calculation and modification of SDCs. Depending on the project, SDCs may increase the budget of a project. House Bill 3040A requires the Oregon Housing and Community Services Department to conduct a comprehensive study of SDCs and provide a preliminary report by December 31, 2021 and a final report by June 1, 2022.

Local Control
The study shall address the impact of system development charges on overall housing costs and affordability and the equity of housing development. The methodologies used for setting fees, including differences in methodologies and rates for communities of different sizes and growth rates, stated separately for urban and rural communities. It’s aimed at a one-size-fits-all legislation proposal take local control away and what is best for a community.

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