 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
municipal development; permits; review
Purpose
Authorizes third party reviews for single-family residential building permits and inspections relating to applications for building construction. Modifies municipal licensing time frame requirements.
Background
Municipalities must post time frames during which the municipality will either grant or deny each license required by an ordinance or code, with specified exceptions. The overall timeframe must separately state the administrative completeness review timeframe and the substantive review timeframe. During the substantive review timeframe, a municipality may make: 1) one comprehensive request for corrections; and 2) supplemental requests for corrections limited to previously identified issues, if the applicant fails to resolve an issue identified in the comprehensive request for corrections. The substantive review timeframe and overall timeframe are suspended from the date a request for corrections is issued until the date the municipality receives the corrections. A municipality may consider an application withdrawn if, by 30 days or more after the date of notice, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period. If a municipality does not issue the applicant a written or electronic notice granting or denying a license within the overall time frame or within mutually agreed on time frame extension, the municipality must refund to the applicant all fees charged for reviewing and acting on the application for the license and excuse payment of any fees that have not yet been paid.
The statutory requirements do not apply to a license that is: 1)
necessary for residential lot construction or development, including swimming
pools, hardscape and property walls, a subdivision or a master planned
community; 2) issued within seven working days after initial application
receipt; and 3) a permit that expires within 21 working days after issuance (A.R.S.
§ 9-835).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Third Party Reviews
1. Allows, if a municipality does not approve, conditionally approve or respond with required additions or revisions to an application for a single-family residential building permit within 15 working days after the date the application is submitted, any required review of the application to be performed by a qualified third party selected by the applicant.
2. Allows, if a municipality does not conduct an inspection for a single-family residential dwelling unit within two working days after an inspection request, the inspection to be performed by a qualified third party selected by the applicant.
3. Allows any of the following to be the qualified third party selected by the applicant to review the application or conduct the inspection:
a) a person who is certified to inspect buildings by an international council on model codes and standards for building safety with a credential specific to the residential code on single-family dwelling construction and who attends an annual class, if offered by the municipality, that exclusively reviews adopted code amendments related to single-family dwelling construction;
b) a registered engineer or architect; or
c) a person who is employed by a third party vendor identified on a list of approved vendors by the municipality, provided the list contains more than one vendor.
4. Prohibits a person with a financial or proprietary interest in the application or property that is subject of the application, other than compensation for the work performed, from being a qualified third party who reviews a single-family residential building permit or who performs an inspection.
5. Prohibits the applicant or a person whose work is the subject of the application from being a qualified third party who reviews a single-family residential building permit application or who performs an inspection.
6. Requires a third party who reviews a single-family residential building permit application or who performs an inspection to:
a) review the application or conduct the inspection, or both, and take all other related actions in accordance with all requirements adopted by the municipality where the application was submitted; and
b) provide notice to the municipality and the applicant of the results of the review or inspection.
7. Allows a municipality to prescribe a reasonable format for the notice required to be provided by a third party.
8. Prohibits a municipality from requesting or requiring an applicant to waive a deadline or other required procedure.
9. Allows a person to appeal any of the following:
a) a decision by the municipality to approve, conditionally approve or deny a single-family residential building permit application;
b) a decision made by a qualified third party authorized to review a residential building permit application;
c) the results of an inspection conducted by the municipality; or
d) the results of an inspection conducted by a qualified third party authorized to conduct an inspection.
10. Requires an appeal to be filed in a manner required by the municipality within 15 working days after the date of the decision or result being appealed.
11. Requires, if a decision is not rendered within 60 working days after the appeal is filed, the application that is the subject of the appeal to be deemed approved or the inspection that is the subject of the appeal to be waived.
12. Requires a municipality that issues a permit, approval or certificate of occupancy following a third party plan review or inspection to have qualified immunity in accordance with statute.
13. Stipulates that the applicant is responsible for any fees and costs associated with a third party review or inspection.
14. Requires the applicant to pay the fees and costs either directly to the third party vendor or in an agreed alternative manner.
15. Stipulates that the municipality is not responsible for assessing or collecting any fees or costs associated with a third party review or inspection.
16. Stipulates that the third party review requirements do not:
a) apply to applications required to comply with a hillside development ordinance or for floodplain reviews required by federal floodplain regulations; and
b) modify the authority of a building official to withhold a certificate of occupancy in accordance with the municipality's adopted codes and ordinances.
Municipal Licensing Time Frames
17. Requires a municipality, in establishing licensing time frames, to consider the third party review and inspection time frames.
18. Requires, within 10 working days after a request by the applicant, a municipality to meet or discuss with the applicant the request for corrections and provide sufficient information and instruction to allow the applicant to provide the requested corrections.
19. Prohibits, except for an application submitted in accordance with the municipal planning or zoning statutes, a municipality from denying a license application that is necessary for land development or building construction unless the municipality considers the application withdrawn.
a) the municipality makes more than one comprehensive written or electronic request for corrections and one supplemental written or electronic request for corrections limited to previously identified issues or in response to modifications made by the applicant; or
b) does not issue an applicant the written or electronic notice conditionally granting, rather than only granting or denying, a license within the overall times frames or a mutually agreed on time frame extension.
21. Prohibits a municipality from modifying, rescinding or requesting any subsequent modifications or revisions to an approved plan or permit for land development or building construction during construction if the construction is done in accordance with the approved plan or permit unless the modification or revision is:
a) required to address a field condition that was unknown when the plan or permit was reviewed;
b) made at the request of the applicant, the applicant's designee or a subsequent owner or owner's designee if the property that is the subject of the approved plan or permit changes ownership; or
c) made by the municipality to correct noncompliance with an objective code requirement that was not identified by a third party who conducted a plan review with any ambiguity or necessary interpretation to be construed in favor of the approved plan or permit.
22. Eliminates the exemption of licensing time frame requirements for the construction or development of a residential lot, including swimming pools, hardscape and property walls, subdivisions or master planned communities.
Miscellaneous
23. Defines application as a plan, permit or other document that is related to building construction and that is necessary for the construction of a single-family residential dwelling unit, excluding a certificate of occupancy.
24. Defines applicant as a person that is seeking approval or has received approval from a municipality for construction or land development activities.
25. Defines objective as involving no personal or subjective judgement and being uniformly verifiable by reference to an external and uniform benchmark, standard or criterion that is available and knowable to the applicant at the time the plans were submitted.
26. Makes technical and conforming changes.
27. Becomes effective on the general effective date.
Prepared by Senate Research
January 31, 2025
JT/ci