Portland removed the owner-occupancy requirement for accessory dwelling units (ADUs) in 2017. Under current PCC 33.205, neither the primary home nor the ADU must be owner-occupied to obtain a permit. This made Portland one of the first U.S. cities to fully decouple ADUs from owner occupancy. Oregon HB 2001 (2019) and HB 2583 (2021) reinforced the policy statewide.
Portland's original ADU rules in PCC 33.205 required the property owner to live on-site (in either the main house or the ADU). The City Council removed that requirement in 2017 as part of the Residential Infill Project (RIP) policy direction, recognizing that owner-occupancy mandates suppressed ADU construction and created deed-restriction enforcement headaches. The current PCC 33.205.040 contains no owner-occupancy condition for permitting; an owner may build an ADU and rent both the primary dwelling and the ADU as long-term rentals. The only owner-occupancy linkage that remains is for short-term-rental (Type A/B) permits under PCC 33.207: a host renting an ADU on Airbnb-style platforms must reside on-site at least 270 days/year. Oregon HB 2001 (2019) and HB 2583 (2021) prohibit local owner-occupancy requirements for ADUs statewide, ratifying Portland's earlier policy choice. Portland also waives System Development Charges (SDCs) for ADUs under PCC Title 17.13, currently capped via Council resolution.
There is no penalty associated with owner-occupancy since the rule was removed. The only related enforcement is short-term-rental violations under PCC 33.207: operating an ADU as an STR without on-site host presence for 270+ days/year is a violation with fines starting at $1,000 per offense under PCC 33.207.080 and possible permit revocation.
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See how Portland's adu owner occupancy rules stack up against other locations.
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