Why this article is important: Housing in California is in short supply, causing households to consolidate and pricing of homes to fail to adjust and offset heightened mortgage rates. This law cuts down on permit times for small housing developments in an effort by the legislature to speed up completion of housing and keep prices down.
Permit deadlines shortened to speed up completion
Legislation aimed at reducing permitting times and speeding up the construction process are typically aimed at large-scale developments. However, a new law enacted by Assembly Bill 1308 focuses on reducing permitting times for smaller, one-to-ten unit residential property.
The new codes require a local building department to conduct an inspection of permitted work within 10 business days of receiving notice of completion of the permitted work. [Calif. Health & Safety Code §17970.3(b)]
Further, the codes remove a provision allowing builders to hire private inspectors to complete inspections otherwise performed by the local agency.
The codes apply to both new residential construction and additions. However, the codes do not apply to renovations. [H & S §1790.3(a)]
When a building department fails to meet the 10-day deadline, they are in violation of the Housing Accountability Act and subject to fines of $10,000 or more per housing unit affected. [H & S §1790.3(c); Calif. Government Code §§65589.5(l); (m)]
The codes attempt to reduce the time span from project proposal to completion. Time costs valuable investment and resources, further aggravating the state’s housing shortage.
Real estate brokers are in a position to benefit from the rush of housing codes promoting growth, acting as:
seller agents for property developable by builders; andbuyer agents for sale of the builders’ finished product.
Related article:
California voters approve new measures to combat housing shortage locally