HomeMy WebLinkAboutADU Incentives Presentation 2-12-20Incentives for ADUs
City of Eugene
February 12, 2020 1
Costs to build ADUs
Can vary widely, based on structure type
•Conversion
•Addition
•New construction
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Costs to build ADUs
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$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Building & On-Site
Improvements
Soft Costs SDCs Other Fees
Potential Incentives
•Property tax exemption
•Waive or scale SDCs
•Waive building permit fees
•Waive land use application fees
•Develop pre-approved building plans
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Property tax exemption
•Adding an ADU adds value, so the property’s
taxable value increases.
•Incremental increase in value varies widely,
with type of addition. Recent ADUs have
increased property taxes from $320 to
$2,200.
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Property tax exemption
Pros
•Reduces costs by
lowering property
taxes.
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Cons
•Legal landscape is
uncertain.
•Potential costs of
administering
program.
Waive or scale SDCs
City SDCs-about $6,000
•City wastewater
•Parks
•Stormwater
•Transportation-currently waived
Non-City SDCs-about $2,600
•MWMC -Regional wastewater
•EWEB –Water
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Waive or scale SDCs
Pros
•Reduce owner’s
costs by up to
$6,000.
•Low administrative
costs.
•No legal
complexities.
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Cons
•Could create
unfunded liabilities
for future
infrastructure
projects.
Waive building permit fees
•Building permit fees cover the cost to review
plans and conduct inspections, to ensure
building code requirements are met.
•Fees vary, depending on complexity of
project.
•ADU permit fees are typically about $3,500.
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Waive building permit fees
Pros
•Reduce owner’s
costs by about
$3,500.
•No legal
complexities.
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Cons
•Some other funding
source would be
required to cover
the cost of permit
review.
Waive land use application fees
•Land use applications are rarely required for
ADUs.
•The fee is about $600.
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Waive land use application fees
Pros
•Reduce some
owners’ costs by
about $600.
•Simple to
administer.
•No legal
complexities.
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Cons
•Would affect a very
small portion of
new ADUs.
Develop pre -approved plans
•City could create a library of pre-approved
building plans for stand-alone ADUs.
•Property owner could reduce development
costs:
•lower the cost of architectural drawings
•have lower building permit fees, as some
elements would be pre-approved.
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Develop pre -approved plans
Pros
•Reduce owner’s
design costs by
about $6,000.
•No legal
complexities.
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Cons
•Would only be
useful to properties
with no slope
issues.
Questions
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