2021 Oregon Revised Statutes
Volume : 06 - Local Government, Public Employees, Elections
Chapter 223 - Local Improvements and Works Generally
Section 223.297 - Policy.
The purpose of ORS 223.297 to 223.316 is to provide a uniform framework for the imposition of system development charges by local governments, to provide equitable funding for orderly growth and development in Oregon’s communities and to establish that the charges may be used only for capital improvements. [1989 c.449 §1; 1991 c.902 §25; 2003 c.765 §1; 2003 c.802 §17]
Note: 223.297 to 223.316 were added to and made a part of 223.205 to 223.295 by legislative action, but were not added to and made a part of the Bancroft Bonding Act. See section 10, chapter 449, Oregon Laws 1989.
Note: Section 1, chapter 544, Oregon Laws 2021, provides:
Sec. 1. Comprehensive study of system development charges. (1)(a) The Housing and Community Services Department, in consultation with the Department of Land Conservation and Development, the Department of Environmental Quality, the Department of Revenue and the Oregon Business Development Department, shall conduct a comprehensive study of system development charges as defined in ORS 223.299.
(b) The scope of the study shall include:
(A) The role that system development charges play as both cost drivers for market-rate housing and sources of revenue for infrastructure needed for housing;
(B) The full range of factors that contribute to system development charge fee rates; and
(C) All types of market-rate housing, including single-family, multifamily and manufactured housing.
(c)(A) The Housing and Community Services Department shall consult with local governments, special districts, developers, realtors and other persons as needed in conducting the study and ensure opportunities for input from other stakeholders and the general public.
(B) The Housing and Community Services Department may contract with a third party to complete the study, or any portion of the study.
(C) State and local public agencies shall comply with reasonable requests from the Housing and Community Services Department, or from a third party conducting the study or any portion of the study under contract with the Housing and Community Services Department, for information in furtherance of the study required under this section.
(2) The study shall address, at a minimum, the following:
(a) The history and role of system development charges in supporting residential development, including:
(A) 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.
(B) Which entities, whether public or private, bear the cost of system development charges and the degree to which costs are passed on to homebuyers.
(C) The impact of system development charges on overall housing costs and affordability and the equity of housing development.
(D) How system development charges compare to other housing cost drivers, including, but not limited to, the costs of land, labor and materials, utility rates, the costs of infrastructure and costs associated with regulatory compliance.
(E) The cost of carrying system development charge interest according to the size and nature of the development and the potential cost savings to private parties of deferring system development charge fee payments.
(F) The cost to public agencies of deferring system development charge fee payments, including potential unintended consequences of deferred payments and the need for remedies to address noncompliance.
(G) The potential costs and benefits to the public from system development charge fee payment deferrals and the transfer of carrying costs.
(b) How the availability of funding for capital improvements as defined in ORS 223.299, including federal, state, local and private sources, has affected system development charge fee rates.
(c) How the effects of Ballot Measures 5 and 50 on ad valorem property tax rates affect rate setting for system development charge fees.
(d) The costs of providing capital improvements as defined in ORS 223.299 needed for housing.
(e) The costs to public agencies of providing services needed for planning, inspecting and issuing permits for housing and how the costs affect system development charge fee rates.
(f) With respect to transparency, the degree to which:
(A) Public entities provide the public with sufficient information to understand system development charges, including how fee rates are set and how fee revenue is used, and whether the information is easily accessible and understandable.
(B) Private entities provide clear explanations to customers regarding the purposes and costs of system development charges.
(3) The Housing and Community Services Department shall submit, in the manner provided in ORS 192.245, to the interim legislative committees related to housing and economic recovery and prosperity:
(a) A preliminary report, no later than December 31, 2021; and
(b) A final report, no later than June 1, 2022. [2021 c.544 §1]
