Honolulu Grants Developers Self-Approval Privileges

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    Over a year since Honolulu City Council initiated a program aimed at tackling the backlog of building permit applications, the city’s permitting department director has indicated that the program is nearing its commencement. According to the Department of Planning and Permitting Director, Dawn Takeuchi Apuna, the delay in launching the program arises from persistent staffing shortages, an issue that has already kept some permit applications stuck for over a year.

    The accumulation of permits awaiting approval has a tangible impact on Honolulu, a city in dire need of additional housing. The slow approval process not only postpones construction but also complicates the process of securing financing for projects. Once implemented, this new program will allow builders to bypass the traditional review process by the Department of Planning and Permitting (DPP). Instead, the department will grant a permit based on the “self-certification” of an architect or engineer, affirming that their plans adhere to the city’s building codes. This is expected to expedite the commencement of construction projects significantly.

    Paul Lam, a developer specializing in affordable rental housing, anticipates that the program will expedite his operational timeline. “Upon acquiring land, instead of waiting a year or more for a construction permit, I’m hopeful self-certification will cut this down to months,” said Lam. “Cutting a year off the process could drastically increase the number of projects I complete,” he added.

    This program, however, only accommodates specific project types, including commercial interior renovations, projects on properties managed by the Department of Hawaiian Home Lands, and low-rise affordable rental housing—a type of development the City Council is keen to facilitate. The self-certification program targets merely the issuance of building permits; a post-construction inspection by DPP is mandatory before a certificate of occupancy is issued.

    Designed as a temporary measure, this program aims to alleviate the backlog while DPP works on replacing outdated software and filling numerous job vacancies. Nevertheless, projects approved through this initiative will still require approvals from other agencies, such as the Honolulu Board of Water Supply and the State Historic Preservation Division, thereby eliminating only the initial DPP review.

    “That’s the key delay,” remarked Lam. “This will allow DPP to manage other affairs as well.”

    Despite its aimed reduction of managerial burdens and response to staffing shortages, the rollout faced significant delays. The law permitting self-certification was passed in November 2023, sanctioned for four years. However, it took more than a year to establish the governing rules, contrary to initial estimates of three to nine months for rule creation.

    In a recent interview, Director Takeuchi Apuna explained that staff shortages are largely responsible for holdups within the department. “Twenty-five percent of our department’s positions remain vacant,” she stated.

    Council Member Tyler Dos Santos-Tam has been scrutinizing the program’s status, having sent multiple inquiries to the department about the program’s implementation and its effect on reducing the permit backlog. Takeuchi Apuna responded by stating that while the program hasn’t launched yet, it is anticipated to be operational by late February. However, as of this week, the launch is still pending.

    “We are unable to launch just yet,” Takeuchi Apuna mentioned, attributing the delay to the ongoing development of training videos and assessments for participating architects and engineers. She added, “We hope to offer self-certification classes shortly.”

    Geena Thielen, a developer sometimes collaborating with Lam, was unsurprised by the delays. “I laughed at the initial timeline provided,” she commented.

    The program’s scope is narrower than originally envisioned by Mayor Rick Blangiardi’s administration, which sought broader reductions in the permitting backlog. However, council members aligned with the opinion that DPP needed to ensure projects’ safety and limit the sporadic emergence of housing developments. Consequently, participation in the self-certification program is limited to select projects.

    In 2019, a push to encourage the development of affordable rental housing involved a bill waiving permit fees and temporarily exempting property taxes. Despite this, many targeted property owners lacked development expertise and submitted non-compliant plans, especially concerning fire safety and electrical standards.

    Developers aiming to construct low-rise affordable housing can only engage in self-certification if DPP has previously approved two of their projects and issued at least one occupancy certification. Lam and Thielen, experienced with larger projects, are amongst the limited group of developers eligible for this program.

    Expecting around 100 participants, Takeuchi Apuna assures that the program’s training will require only a day’s completion time. “While demand may stay limited, the program will fulfill the needs of eligible builders,” she concluded.

    Firms risk forfeiting self-certification privileges if implicated in bribery, subject to disciplinary action by the state, or if found submitting non-compliant plans. In 2021, a scandal involving bribery led to the conviction of several DPP employees and an architect. Should any individual face suspension or denial from the program, they may appeal to the DPP director, leading to a hearing with the city’s Building Board of Appeals, comprising industry professionals.