City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01170 6/25/2024 Consent Item 6.
An Ordinance Relating to Extensions of Certain Building Permit Applications [Passed for Publication 06/18/2024]
File ID: 2024-01170
Location: Citywide
Recommendation: Adopt an Ordinance relating to extensions of certain building permit applications.
Contact: Tom Pace, Director of Community Development, (916) 808-2691, [email protected], Community Development Department Presenter: None
Attachments:
1-Description/Analysis
2-Ordinance
Description/Analysis
Issue Detail: The current post-pandemic economic conditions and high interest rates are delaying the start of construction of key housing and economic development projects, and the building permit applications for these projects are at risk of expiring.
Several high-valuation projects and key economic development projects filed building permit applications under the 2019 California Building Standards Code in December of 2022, just prior to the effective date of the 2022 California Building Standards Code, which became effective in January of 2023. If these permit applications are allowed to expire, the only way for the projects to move forward would be to start a new building permit application under the current (2022) California Building Standards Code. This would require redesigning aspects of the projects to meet the 2022 code requirements, which can cost millions of dollars in additional design and construction costs.
Building permit applications are subject to the requirements of the building standards code that is effective at the time the building permit application is filed. Staff believe that continuing to apply the requirements of the code that was effective when the building permit applications were filed (2019 code) would not impact the health or safety of building occupants or the general public.
File ID: 2024-01170 6/25/2024 Consent Item 6.
Because the processing, approval, and issuance of building permits represent a substantial investment of money, time, and effort toward the successful completion of these projects, expiration of these building permit applications represents a significant loss for the owners and the City. The City can protect against this potential loss and preserve "shovel-ready" development opportunities by granting additional time to the term of these permit applications.
Policy Considerations: Title 15 of the Sacramento City Code incorporates the requirements of the California Building Standards Code and regulates building-permit applications. Applications may expire after 180 days if a permit is not issued. Due to the current post-pandemic economic conditions and high interest rates, financing is in jeopardy for housing and key economic development projects.
Without financing, building-permit applicants are reluctant to complete the building permit issuance process and start construction. Providing additional time to keep these projects alive is consistent with City policies to facilitate housing development and economic development projects across the city.
Economic Impacts: It is anticipated that over $100 million of projects are potentially in jeopardy due to application expiration. Allowing these projects to proceed under the original applications could help ensure these projects are realized.
Environmental Considerations: This ordinance relates to an administrative activity of the local government that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project under the California Environmental Quality Act (CEQA). (Public Resources Code sections 21065 and 21080 and CEQA Guidelines section 15378(b)(4).) No CEQA review is required. CEQA Guidelines section 15060(c)(3).
Sustainability: Not applicable.
Commission/Committee Action: This ordinance was not reviewed by the Law and Legislation Committee due to the City Manager’s determination that urgent action is required to prevent the expiration of the affected building permit applications as allowed by section 13.B.1.b.(i) of the Council Rules of Procedure.
Rationale for Recommendation: In this challenging economic time, the city remains committed to facilitating development, especially for key economic development and housing projects. Adopting this Ordinance will preserve "shovel-ready" development opportunities by extending the term of these building permit applications and will provide the development community additional time to secure financing and finalize construction drawings allowing the projects to move forward These projects, once implemented, will add to the city’s tax rolls, provide needed housing, and increase the city’s economy.
Financial Considerations: None.
File ID: 2024-01170 6/25/2024 Consent Item 6.
Local Business Enterprise (LBE): Not applicable.
ORDINANCE NO.
Adopted by the Sacramento City Council
Date Adopted
AN ORDINANCE RELATING TO EXTENSIONS OF CERTAIN BUILDING-PERMIT APPLICATIONS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1. Findings.
The city council finds that the current post-pandemic economic conditions and high interest rates are delaying the start of construction of key housing and economic development projects, and the building-permit applications for these projects are at risk of expiring. Because the processing, approval, and issuance of building permits represent a substantial investment of money, time, and effort toward the successful completion of these projects, expiration of these building-permit applications represents a significant loss for the owners and the city. The city council desires to protect against this potential loss and preserve "shovel-ready" development opportunities by extending the expiration date of these building-permit applications.
SECTION 2. Application reactivation.
Notwithstanding anything to the contrary in title 15 of the Sacramento City Code, any building- permit application may be reactivated, if (1) it was not expired on May 31, 2024; and (2) it is either for a project with a construction valuation of $10,000,000 or more, as determined by the chief building official, or for a project that receives financial or other assistance through the City’s Office of Innovation and Economic Development. This section does not apply to applications for demolition permits, permits for fire equipment, minor permits, swimming-pool permits, sign permits, and permits related to a city enforcement action.
SECTION 3. Fees.
Any person who applies to reactivate a building-permit application pursuant to this ordinance, shall pay a processing fee in an amount established by resolution of the city council. A building permit issued under a building-permit application that is reactivated pursuant to this ordinance is subject to all city fees and charges that are payable upon issuance of a building permit in the amount in effect upon issuance of the building permit.
SECTION 4. Ordinance term.
This ordinance remains in effect until December 31, 2025, and on that date is repealed.