Undoubtedly, one of the most significant obstacles in repositioning properties in California today is the bureaucratic red tape that often hampers construction projects. Onerous requirements and prolonged processes unnecessarily hinder and delay commerce. What used to take weeks can now stretch into months, and projects that were once measured in months can languish in regulatory limbo for years.
For instance, many building departments across cities mandate that basic plans be resubmitted after each review, refusing over-the-counter revisions that could save property owners precious time and resources. This process creates a backlog in these departments, which often results in lengthy queues, forcing landlords to patiently await their turn only to face repeated resubmissions. It's a real-life manifestation of Bill Murray's plight in the movie Groundhog Day.
To streamline this inefficient process, NAIOP recently co-authored Assembly Bill 2433 which was ultimately withdrawn in the California State Legislature after facing political opposition. This bill would have established clear timelines for permit processing and allowed for the conditional use of private professionals for plan-checking and inspections when local agencies are unable to meet these deadlines. It would have provided property owners with some relief from onerous wait times and helped overburdened City staff expedite the review process. Real estate professionals need to rally more vociferously behind initiatives such as Assembly Bill 2433 to effectively address these systemic challenges.
Beyond permitting, some building departments currently require their own inspections before property sale transactions can proceed. These inspections verify code compliance and ensure that city-imposed conditions are met before properties can change hands. This procedural requirement not only prolongs the escrow period significantly but also introduces uncertainties into deals. This regulation unnecessarily overreaches by having constrained city resources invade an area that should fall under the buyer's due diligence responsibilities.
At a time when cities should be supporting tenants and landlords navigating a challenging market, regulatory complexities often exacerbate an already turbulent environment. It's crucial for property owners to advocate for legislation that holds city regulators accountable, ensuring that plans are approved and processed in a timely manner for the benefit of businesses providing essential goods and services to our communities.
