Tigard, OR Accessory Structures: ADU Rental Restrictions (2026)

Tigard Municipal Code § 3.24.180.A attaches a rental condition to the system development charge exemption for accessory dwelling units. An ADU receiving the exemption under TMC 3.24.100.F may not be used as a short-term rental for a period of 10 years following approval of final inspection of the building permit for the ADU. The 10-year clock starts at approval of final inspection, not at permit issuance.

The condition is enforced through a recorded document. A restrictive covenant must be recorded and submitted to the city before the building permit is issued, so the builder cannot defer it until the ADU is finished. The exemption in § 3.24.100.F covers ADUs of 1,000 square feet or less that comply with § 3.24.180, and it waives city transportation and park SDCs only.

The program has an end date. Section 3.24.180.B repeals TMC 3.24.100.F on July 31, 2027, and says restrictive covenants recorded before that date remain in full force and effect. An owner who recorded a covenant before the repeal date stays bound for the full 10 years. The rule reaches only ADUs that took the exemption; the section does not print a short-term rental limit for ADUs that paid the full SDCs. It also does not print a limit on longer-term rentals.

The SDC chapter carries its own penalty clause. Under § 3.24.160, violation of Chapter 3.24 is a Class A infraction punishable by a fine not to exceed $500.00. Questions about the calculation of an SDC charge or credit go to the administrator, and an appeal must be filed with the city within 30 days of that decision under § 3.24.140.C, with the City Council deciding.