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Attachment A <br />Potential Financial Incentives for ADUs February 2020 City of Eugene 3 February 12, 2020, Work Session – Item 1 <br />Description Legal Issues Administrative <br />Requirements <br />Estimated Cost Reduction <br />to Property Owner <br />Fiscal Impact to City of <br />Eugene <br />C. Scale SDCs <br />ADUs typically have lower <br />occupancy than single-family <br />detached homes and they <br />capitalize on existing <br />infrastructure. The SDC structure <br />could be modified to account for <br />the smaller impact that small, infill <br />development has on infrastructure <br />systems. <br /> <br />The City of Eugene and MWMC <br />have already lowered SDCs for <br />Transportation and Regional <br />Wastewater. The City is <br />considering a reduced Parks SDC <br />for ADUs. <br /> <br />EWEB changed its SDC policy in <br />2019, reducing the SDC for ADUs <br />by about half. <br /> <br />City Council would have to pass <br />an ordinance to change the SDC <br />structure <br />Staff estimate that the <br />administrative burden of <br />implementing a waiver is low <br />and could be incorporated into <br />the existing fee collection in <br />the permitting process. <br />Unknown. The avoided revenue would <br />depend on how individual SDCs <br />were scaled. <br />D. Waive building permit fees <br />Building permit fees are up-front <br />costs associated with almost any <br />type of construction and are <br />controlled by the City. The fees <br />cover staff time required to review <br />proposed projects and <br />improvements. <br />Waiving fees can be done through <br />an Administrative Order signed by <br />the City Manager. <br />Staff estimate that the <br />administrative burden of <br />implementing a waiver is low <br />and could be incorporated into <br />the permitting process. <br />About $3,500. <br /> <br />Building fees depend on the <br />complexity of the project, and <br />they vary across projects. This <br />figure is a rough estimate based <br />on ADUs permitted in 2018 and <br />2019. <br /> <br /> <br />Building Permit Services is 100% <br />fee supported, meaning that the <br />fee covers the staff time to do <br />reviews and inspections. Waiving <br />permit fees for ADUs would <br />require a subsidy from some other <br />source, such as increasing <br />building permit fees for other <br />building types, or rely on reserves. <br /> <br />If the City waived permit fees for <br />12 units (the number of <br />Transportation SDCs waived in <br />2019), it would forego about <br />$42,000 in revenue. <br /> <br /> <br /> <br />