Summary:

California’s housing crisis is not solely a matter of zoning and entitlements; it also involves the post-construction phase.  Delays in final inspections can leave entirely constructed homes unoccupied for weeks or even months, leading to increased costs and preventing occupancy.  Assembly Bill 1308 (AB 1308), authored by Assemblymember Josh Hoover, is a crucial step in addressing this issue.  It imposes strict timelines and accountability measures on local building departments under the Housing Accountability Act, aiming to eliminate this bottleneck.

Background

Under existing Law:

• Local building departments enforce the State Housing Law and California Building Standards Code.
• Developers pay permit fees and wait for inspections before receiving a Certificate of Occupancy.
• Historically, inspections could take 30–60 days or longer, creating uncertainty and delaying housing delivery.

These delays hit small-scale projects the hardest—such as duplexes or 10-unit infill developments—where carrying costs and financing terms are tight.  AB 1308 introduces a “shot clock” for inspections, specifically designed to speed up housing production for these projects, ensuring they are not left behind in the housing delivery process.

Key Provisions

✅ 10-Day Inspection Mandate

• Local building departments must complete final inspections within 10 business days after receiving notice that construction is complete and ready for review.
• Applies to:
• New residential projects with 1–10 units.
• Additions or remodels of existing buildings with ≤10 units.
• Buildings ≤40 feet in height.

✅ Fee Transparency

• Cities/counties must publish residential building permit fee schedules online for public access.

✅ Reimbursement for Delays

• If an inspection is not completed within 30 days, the applicant is entitled to permit fee reimbursement.

✅ Private Inspector Option

• If the estimated inspection timeframe exceeds 30 days, applicants may hire a licensed third-party inspector at their own expense.
• The inspector must submit an affidavit and compliance report to the building department.

✅ Housing Accountability Act Link

• Reinforces local compliance with state housing mandates by reducing discretionary delays in post-entitlement processes.

Impact

• Faster Occupancy: Reduces wait times for certificates of occupancy, enabling homes to go online sooner.
• Predictability for Developers: Improves project timelines and financing certainty.
• Accountability: Creates enforceable standards for local governments, aligning with broader housing reform efforts.
• Small-Scale Housing Boost: Supports infill development and modest projects often stalled by bureaucratic delays.  

Implementation Guide for Local Agencies

·         Update Inspection Protocols

o   Implement 10-day inspection timelines for qualifying projects.

·         Publish Fee Schedules

o   Ensure transparency on permit costs.

·         Prepare for Private Inspector Requests

o   Establish procedures for accepting third-party compliance reports.

·         Train Staff

o   Educate building officials on new statutory timelines and Housing Accountability Act implications.

Bottom Line

AB 1308 is a high-impact, low-cost reform that addresses one of the most overlooked barriers to housing delivery: inspection delays.  By enforcing timelines and offering alternatives, California is making the final step of housing production faster and more predictable.