SDC Charges Waived For Toledo Housing Project

At a recent Toledo City Council meeting, city leaders took significant steps toward supporting affordable housing by advancing a System Development Charge (SDC) waiver for a Northwest Coastal Housing (NW Coastal Housing) project. The proposed development, located on Southeast Sturdavent Road aims to provide much-needed low-income housing for the community. The SDC waiver, valued at approximately $240,000, would relieve the project of certain fees typically assessed to new developments for infrastructure improvements.

The goal of the housing development is to bring much-needed workforce housing while addressing community concerns about safety, infrastructure, and environmental impact. Stiley reported that during planning meetings with the city, project leaders emphasized that the development will occupy just one acre of a larger parcel, leaving the majority of the natural area untouched. A comprehensive wetland delineation, funded by the city, confirmed that no wetlands will be affected by the construction.

The council heard from both project advocates and concerned citizens during the meeting. Sheila Stiley from NW Coastal Housing addressed the council, explaining that the project has enabled the city to secure significant funding for water and sewer infrastructure improvements—at no extra cost to local taxpayers. “It’s not costing the city extra money, not a dime,” Stiley said. “In fact, the city will generate revenue from the new homes through water and sewer charges, making this a win-win for Toledo.” The development will feature one- and two-bedroom units designed for local workers and seniors, helping to address the region’s housing shortage.

Unlike project-based voucher housing, these units will have fixed rents, though tenants with Section 8 vouchers may also qualify. Safety and traffic have been top priorities in the planning process. The city, county, and Oregon Department of Transportation (ODOT) are collaborating on a traffic study, with hopes of reducing speed limits and improving visibility near the site. Stiley added “Safety is key for everyone here.” Extensive soil and geological testing has been completed to ensure the site is suitable for construction. Additional fill will be brought in to raise the elevation and further stabilize the ground.

The project is still in its early stages, with groundbreaking expected in June 2026 and completion targeted for 2027. In the meantime, organizers are working to keep the community informed and involved, promising to share updated site photos and continue collaborating with local agencies. As Toledo prepares for growth, project leaders say their goal is to provide quality housing while respecting the area’s natural beauty and community values. “We want to make sure it’s done in a proper, respectable way,” they said. “This is about creating homes for people who work in our community and ensuring everyone benefits from the changes ahead.”

Mayor Cross explained that the waiver is structured to ensure the housing remains affordable for at least 30 years, after which the fees would be fully forgiven. The project has already secured substantial funding—over $9 million—and is on track to break ground in 2026. Public comment included concerns about the project’s location, specifically its proximity to a GP pipe and whether it lies within a FEMA flood zone. City officials addressed these issues, clarifying that the site is not under the pipe and is just outside the flood zone.

They also explained that the SDC waiver is a common tool used to encourage affordable housing and that the city’s planning commission had thoroughly vetted the project. Council members discussed the broader impact of the waiver, noting that while the city would forgo immediate revenue, the long-term benefits of increased affordable housing outweigh the costs. “It’s an investment in our future,” Cross remarked, highlighting the city’s commitment to addressing homelessness and housing insecurity.

The council ultimately directed city staff to draft a resolution and agreement for the SDC waiver, which will be brought back for final approval at a future meeting. The move was met with enthusiasm from both city officials and housing advocates, who see it as a critical step toward meeting the needs of Toledo’s most vulnerable residents. and is contingent on the project remaining affordable for 30 years.