Third-Party Permit Review and Inspections

What are Third-Party Reviews and Inspections?

Many local governments impose procedural barriers–such as lengthy permit reviews and inspections–that delay or prevent the construction of new housing. Third-party permit review and inspection addresses these delays by allowing qualified private contractors to review building permit applications in place of a locality’s building official. These reviews are independent, unbiased assessments of construction quality, safety, and code compliance conducted by certified professionals unaffiliated with the builder, developer, or owner.

The Impact of Third-Party Reviews and Inspections

A faster approval timeline allows for quicker construction, helping meet demand while keeping housing costs down.

Private inspectors relieve capacity constraints faced by local governments and reduce permitting backlogs, which in turn speeds up construction and reduces overall development costs.

Plan approvals are often shaped by longstanding local practices or political pressures. Third party reviewers provide objective analysis, helping challenge assumptions and ensure projects are evaluated based on professional standards rather than local precedent alone.

Crafting Third-Party Review Policy

Provisions allowing or requiring third-party reviewers can play a key role by expediting project approvals, increasing predictability, and reducing strain on local agency capacity. These features are critical for getting legislation approved.

Policy Features to Aim For

Create a clear process and standard that allows eligible professionals to certify that their discretionary project application package meets the minimum development permit/approval submittal requirements.

Example Legislation
Example Language: "To apply for certification under such program, any inspector employed by an independent inspection firm shall hold a license or certificate issued under the provisions of section 29-262 of the general statutes.”

Clear review deadlines keep projects on schedule and help control construction costs. When permitting delays stretch for months or years, building costs rise, often forcing higher sale prices. Predictable timelines help prevent these cost increases.

Example Legislation
Example Language: “If a person engages a third-party plans examiner in lieu of examination by the local jurisdiction as authorized by subdivision (k)(2)(A), then the person, or the person's designee, shall submit the appropriate fee and a stamped and sealed copy of all plans that were examined to the local jurisdiction, and shall also provide…(C) No later than ten (10) business days after receipt of the documents required under subdivision (k)(2)(B), the local jurisdiction shall: (i) Approve the plans, if the plans comply with adopted codes; (ii) Provide to the person, or the person's designee, a report of deficiencies; or (iii) Request additional information necessary to ensure compliance with applicable codes."

Policy Features to Avoid

Avoid any limitation on the types of housing that can benefit from third-party permit review and inspections, including applying this right only to affordable or market-rate housing.

Avoid any efforts to require licensing or training requirements for third-party inspectors that go beyond the baseline required for city inspectors.

Implementation Guidance

Ensure the legislation has a clearly defined effective date in the near future.
Establish a clear outline for when third-party inspectors are permitted, such as when a locality’s inspectors cannot meet deadlines.
Include clauses that hold the local jurisdiction harmless from errors made by the third-party inspector.
Identify or create a clear enforcement mechanism that provides an appeals process or legal recourse when cases are denied (e.g. appeals board, third-party standing, referral to Attorney General’s Office).

Common Political Dynamics Around Third-Party Reviews and Inspections

Local governments often worry that outsourcing reviews and inspection to third-party contractors will undermine their authority over development standards. Remind your audience that final approval authority still remains with the local government.

Third-party reviewers and inspectors are credentialed professionals, meaning their inspections are equally as detailed and professional as those conducted by city staff.
Because third-party reviewers and inspectors must evaluate objective code compliance standards, their inspections will be accurate and rigorous.
Utilizing third-party reviewers inspectors can shave months off the project approval process, which saves money for developers and the locality.
Final application approvals must still occur through the same public process, regardless of whether the inspection is conducted by city staff or third-party contractors.

Home builders associations
Land developers associations
REALTOR(R) associations
Apartment associations
Architect associations
Independent inspectors

Local governments
Local government associations
Public employee unions
Build and code official associations

YIMBYs in the News

Our chapters are making headlines for their third-party review efforts to make housing more affordable. Check out their efforts!

YIMBY Hawai’i successfully advocated for a new county law that standardized the permitting process, ensuring approvals would no longer be delayed by inconsistent regulations.
- They also pushed Honolulu County to pass an ordinance making all permit applications that pass 90 days automatically approved.