[Ord. No. 1706, 9-5-1978; Ord. No. 1839, 8-17-1982; Repealed by Ord. No. 2030, 7-1-1991]
[Ord. No. 2030, 7-1-1991; amended 11-21-2023 by Ord. No. 2937]
1. The
system development charge is payable upon issuance of (a) a building
permit; (b) a permit to connect to the water system; (c) a permit
to connect to the sewer system; or (d) if the charge is due to a land
division, prior to recording of the final plat of the land division..
2. If
development is commenced or connection is made to the water or sewer
systems without an appropriate permit, the system development charge
is immediately payable upon the earliest date that a permit was required.
3. The
City Public Works Director shall collect the applicable system development
charge when a permit that allows the building or development of a
parcel is issued, when a connection to the water or sewer system of
the city is made, or prior to the issuance of the City's approval
of recording a land division final plat..
4. The City Public Works Director shall not issue such permit or allow such connection until the charge has been paid in full, or until provision for installment payments has been made pursuant to LOC §
39.06.101, or unless an exemption is granted pursuant to LOC §
39.06.105.
[Ord. No. 1706, 9-5-1978; Repealed by Ord. No. 2030, 7-1-1991]
[Ord. No. 2030, 7-1-1991]
1. When
a system development charge of $25 or more is due and collectible,
the owner of the parcel of land subject to the development charge
may apply for payment at least 10 semi-annual installments, to include
interest on the unpaid balance, in accordance with ORS
223.208.
2. The
City Finance Director shall provide application forms for installment
payments, which shall include a waiver of all rights to contest the
validity of the lien, except for the correction of computational errors.
3. An
applicant for installment payments shall have the burden of demonstrating
the applicant’s authority to assent to the imposition of a lien
on the parcel and that the interest of the applicant is adequate to
secure payment of the lien.
4. The
City Finance Director shall report to the City Manager the amount
of the system development charge, the dates on which the payments
are due, the name of the owner, and the description of the parcel.
5. The
City Manager shall docket the lien in the lien docket. From that time
the city shall have a lien upon the described parcel for the amount
of the system development charge, together with interest on the unpaid
balance at the rate established by resolution of the council. The
lien shall be enforceable in the manner provided in ORS Chapter 223.
[Ord. No. 2030, 7-1-1991; Ord. No. 2168, Amended, 6-2-1998; Ord. No. 2183, Amended, 2-16-1999; Ord. No. 2316, Amended, 3-5-2002; Ord. No. 2328, Amended, 8-6-2002; Ord. No. 2351, Amended, 2-18-2003; Ord. No. 2810, Amended, 12-4-2018; Ord. No. 2885, Amended, 2-1-2022]
1. Structures
and uses established and existing on or before July 1, 1991, are exempt
from a system development charge, except water and sewer charges,
to the extent of the structure or use then existing and to the extent
of the parcel of land as it is constituted on that date. Structures
and uses affected by this subsection shall pay the water or sewer
charges pursuant to the terms of this ordinance upon the receipt of
a permit to connect to the water or sewer system.
2. An
alteration, addition, replacement or change in use that does not increase
the parcel’s or structure’s use of the public improvement
facility is exempt from all portions of the system development charge
for that facility.
3. A system
development charge may be proportionately reduced if:
a. Evidence
indicates that the construction, alteration, addition, replacement
or change in use does not increase the parcel’s or structure’s
use of a system or systems to the degree calculated in or anticipated
by the methodology for the particular system development charge; and
b. Any
future construction, alteration, addition, replacement or change in
use that would or could increase the use of the system or systems
would require a development permit that would permit imposition of
a system development charge under this chapter.
4. The Parks and Recreation system development charge may be waived or reduced by the City where the City requires a developer to dedicate or reserve more than the minimum amount of open space pursuant to LOC Chapter
50 or where a property owner voluntarily donates a conservation easement pursuant to LOC §
59.04.015(1).
5. Affordable
Housing Exemptions.
a. The
following are exempt from payment of all system development charges,
so long as all conditions of this subsection (5) are met:
i. An accessory dwelling unit, as that term is defined in LOC §
50.10.003;
ii. A development where the units subject to the system development charge
exemption are continuously rented, leased or made available to low-income
households for an amount of rent plus expenses associated with occupancy,
such as utilities and fees, totaling not more than 30% of the household
occupant’s income level; “low-income” for purposes
of this exemption is 80% of Area Median Income or less according to
the Clackamas County Housing Authority’s "Income Limits" for
affordable housing, adjusted for household size; or
iii. A development where the units subject to the system development charge
exemption are sold to occupant households whose annual income is 80%
of Area Median Income or less according to the Clackamas County Housing
Authority’s "Income Limits" for affordable housing, adjusted
for household size, so long as all conditions of this subsection (5)(a)(iii)
are met:
A. Maximum initial purchase price shall be determined upon entering
the City of Lake Oswego Affordable Housing Program, with total monthly
housing costs including principal, interest, taxes, homeowners or
regular maintenance fees not exceeding 30% of the monthly income for
the targeted income level at 80% of Area Median Income or less. The
calculation of costs will assume an interest rate that is consistent
with the Oregon Bond Rate Advantage program as updated by the State
of Oregon Housing and Community Services Department.
B. Maximum resale price will be calculated using the current seller’s
initial purchase price plus an additional 0.125% of said initial purchase
price for each full month the current seller has owned the home (approximately
4.6% appreciation after three years).
C. The purchasers of the affordable housing units shall agree to the
City of Lake Oswego Housing Resale Restriction Agreement establishing
a period of affordability of not less than 30 years.
D. For housing financed by Farmer Home Administration (FHA) the affordability
shall be assured by the FHA’s recapture provisions which require
sellers to repay FHA for all the subsidies accrued during the period
the sellers resided in the housing unit.
b. The
building permit must be issued on February 1, 2022, or later.
c. In
the case of an accessory dwelling unit, the applicant must submit
a covenant, in a form approved by the City Attorney, that prohibits
for at least ten years the use of the accessory dwelling unit or any
other structure on the property as a premises rented to occupants
for fewer than 31 consecutive days, and includes provisions for monitoring
compliance.
d. In
the case of an affordable housing development, under subsection (5)(a)(ii)
or (5)(a)(iii) of this section, the applicant must apply to the Community
Development Department and be approved to enter the City of Lake Oswego
Affordable Housing Program. The applicant must also submit a covenant,
in a form approved by the City Attorney, that requires the development
to comply with all of the requirements of subsection (5)(a)(ii) or
(5)(a)(iii) of this section, as applicable, for a period of not less
than 30 years, and includes provisions for monitoring compliance.
e. The
applicant must record the covenant required under subsection (5)(c)
or (5)(d) of this section in the deed records for the property before
the City issues the building permit.
f. If
the covenant is violated, or if the covenant is terminated according
to its terms before the expiration date:
i. A processing fee will be imposed in an amount established by resolution
of the City Council.
ii. The exemption will be terminated and all previously exempt portions
of system development charges, plus the processing fee, together with
interest on the system development charges from the date of the building
permit at a rate established by the City Council, will become immediately
due and payable by the then-owner of the property.
iii. The City Manager shall furnish a notice of the violation or termination,
together with a statement of the charges and fees under this subsection
(5)(f), and a description of the objection and hearing process, to
the then-owner of the property in person or by certified mail, return
receipt requested, addressed to the owner at the last known address
as shown in the county property tax assessment records. If no objection
is filed with the City Recorder within 15 days from the date the notice
is mailed, the reinstated system development charges, processing fees,
interest, and all other charges under this subsection (5)(f) shall
be a lien against the property.
iv. If an objection is filed with the 15-day period, the City Council
shall hold a public hearing, upon not less than 15 days’ notice
to the owner, to consider the oral and written testimony and materials
provided by the City Manager, the owner, or other interested persons.
Following the hearing, the City Council shall determine whether the
terms of the covenant have been violated, or whether the covenant
has been terminated according to its terms before expiration, and,
if so, the amount of the fees and charges that are due and payable
under this subsection (5)(f). The amount determined by the City Council
shall be a lien against the property. The City Council’s decision
shall be final.
v. The City Manager shall docket the lien in the lien docket. The lien
will be enforceable in the manner provided in ORS Chapter 223.
vi. In addition to the above remedies, any failure to comply with the terms of the covenant shall be a civil violation, enforceable as provided in LOC Article
34.04.
[Ord. No. 1706, 9-5-1978; Repealed by Ord. No. 2030, 7-1-1991]
[Ord. No. 2030, 7-1-1991; Ord. No. 2048, 2-18-1992; Ord. No. 2095, Amended, 5-17-1994; Ord. No. 2168, Amended, 6-2-1998; Ord. No. 2547, Amended, 3-4-2010; Ord. No. 2351, Amended, 2-18-2003]
1. A system
development charge shall be imposed when a change of use of a parcel
or structure occurs, but credit shall be given in the amount of the
computed system development charge to the extent of the level of service
lawfully existing at the time of the change in use. No refund shall
be made on account of such credit resulting from a reduction in use
of the utility.
2. A credit shall be given for the cost of a qualified public improvement. A "qualified public improvement" means a capital improvement that is required as a condition of development approval, identified in the Capital Improvement Plan adopted pursuant to LOC §
39.04.071 and is either:
a. Not
located on or contiguous to property that is the subject of development
approval; or
b. Located
in whole or in part on or contiguous to property that is the subject
of development approval and required to be built larger or with greater
capacity than is necessary for the particular development project
to which the improvement fee is related.
3.
a. The
credit provided for in subsection 2 of this section shall be only
for the improvement fee charged for the type of improvement being
constructed, and credit for qualified public improvements under subsection
2(b) of this section may be granted only for the cost of that portion
of such improvement that is built larger or with greater capacity
than is necessary to serve the particular development project or property
to which the improvement fee is related. The applicant shall have
the burden of demonstrating that a particular improvement qualifies
for credit under subsection 2(b) of this section.
b. When the construction of a qualified public improvement gives rise to a credit amount greater than the improvement fee that would otherwise be levied against the project receiving development approval, the excess credit may be applied against improvement fees that accrue in subsequent phases of the original development project. This subsection shall not prohibit the City from providing a credit for a capital improvement not identified in the Capital Improvement Plan adopted pursuant to LOC §
39.04.071, or from providing a share of the cost of such improvement by other means, if the City so chooses.
c. Excess
credits shall be used within the time period provided in the phasing
schedule approved by the City for the project, but not later than
10 years from the date the credit is given.
4. A credit against one or more system development charges may be granted to a donor of a conservation easement as provided in LOC §
59.04.015.
5. Credit
shall not be transferable from one development to another except in
compliance with standards adopted by the City Council.
6. Credit
shall not be transferable from one type of capital improvement to
another.
7. Cash reimbursements of credits earned under subsections
2(b) of this section shall be made by the City only from the improvement fee portion of system development charges that are generated by the buildout of the development for which such credits are earned.