March 12, 2025

Key Takeaways from the Permitting Reform Report

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The Assembly Select Committee on Permitting Reform’s report outlines strategies to streamline California’s permitting process by reducing delays, improving coordination, and simplifying zoning codes, making affordable housing development more predictable and cost-effective.

Image: California Assembly Select Committee on Permitting Reform Report

Earlier this month, the Assembly Select Committee on Permitting Reform released a report outlining strategies to simplify and speed up the permitting process across California. The report highlights how reducing delays and cutting red tape can significantly lower development costs and make it easier to build affordable housing. By creating a more predictable and efficient process, these reforms could help get more housing developments off the ground faster.

The complex permitting process has been a major barrier to affordable housing development, and State legislation has made some progress in removing those barriers. However, at the local jurisdiction level, inconsistent local interpretation of the State laws, not transitioning to a more efficient and updated code enforcement process, prolonged review times, and multi-agency coordination challenges still create costly delays for affordable housing developments. 

Streamlining these processes can make affordable housing financially viable and speed up construction timelines. This would increase the housing supply while supporting economic growth through job creation and higher tax revenue. According to the report, several cities have successfully reduced permitting costs by adopting efficient approval systems:

  • San Jose: A digital permitting system allows developers to track applications in real-time, improving transparency and efficiency.
  • San Diego: By-right approvals for affordable housing projects have significantly shortened review times.
  • Los Angeles: The Transit-Oriented Communities (TOC) program has expedited the approval of over 10,000 affordable units near transit.
  • Sacramento: Pre-approved designs for accessory dwelling units (ADUs) have reduced permitting costs and homeowner wait times.
  • San Francisco: Environmental review reforms have cut entitlement times for affordable housing by 30%.

Scaling these approaches statewide could make affordable housing development more predictable and cost-effective.

Uncertainty in the application process for affordable housing development leads to unnecessary delays. The report identifies how cities can address this by standardizing application requirements and processing. Cities should align application checklists and ensure reasonable requirements to help housing development applications be deemed complete. Setting clear timelines for approvals is essential, as housing developments require multiple permits from different agencies. The report suggests improving coordination between utility providers, local agencies, and developers to prevent bottlenecks. Infrastructure permitting delays—related to electricity, water, and transportation—often slow down housing developments. Cities should improve interdepartmental and interagency coordination. 

Simplifying zoning codes can reduce approval times. For example, the average multifamily project in San Francisco takes over 500 days to permit and is over 1,000 pages long. By contrast, in Visalia, a fast-growing Central Valley city, the average multifamily project takes about 30 days to permit, and the planning code is 300 pages long. Reducing excessive regulations and discretionary reviews can streamline approvals and make housing development more efficient.

Post-entitlement delays add uncertainty and costs. To address this, cities should set firm deadlines. If deadlines are not met due to staffing capacity, third-party professionals should be considered when conducting plan checks. Building inspectors must also apply codes consistently rather than relying on outdated interpretations. Treating affordable housing developers as partners can lead to better outcomes in addressing housing needs in California. The Select Committee’s report highlights how permitting reforms lay the groundwork for housing development by reducing costs, eliminating delays, and creating a more efficient approval process. The report also identifies gaps and opportunities for cities to consider standardizing requirements, improving coordination, and simplifying zoning codes, making building affordable housing easier and more predictable.

To read the full report, click here.