Challenges in Permitting and Inspections for Multifamily Units in Los Angeles: A Barrier to Progress

Introduction

Los Angeles is burdened by significant procedural challenges in the permitting and inspection process for multifamily units. The current system, characterized by a multitude of inspections for various trades, poses a formidable barrier to repairs and construction, leaving many units vacant for extended periods and preventing owners from undertaking desperately needed improvements (or doing so without permits). This article explores the complexities of the existing system and its impact on the ability to make essential changes, using the example of upgrading gas wall heaters to more efficient and environmentally friendly alternatives.

The Inspection Maze

Unlike residential projects containing 1-2 units that are inspected by a single “BMI Inspector” which benefit from a consistent relationship, multifamily units face a game of cat and mouse with a staggering number of inspections. For each trade involved, there is a separate inspection, and each inspection can be conducted by a different inspector. This not only prolongs the construction process many weeks, but also makes it challenging for property owners to navigate the system efficiently due to new and changing corrections. Additionally, because each inspector is specific to the trade assigned to them, they are exceptionally focused on the code and less focused on the outcome. 

Challenges in Making Change

The need for changes, especially those aimed at improving safety and environmental efficiency, is often thwarted by the intricate inspection process. Take the example of replacing gas wall heaters, the second-largest cause of fires in residential buildings, with a standard minisplit unit. Property owners must obtain approval from a plumber (to cap the existing gas line), electrical inspector, HVAC inspector, building inspector, and, in some cases, a HERS consultant. This cumbersome process adds significant time and cost to upgrades that could otherwise enhance living conditions and reduce environmental impact.

Costly Delays and Financial Implications

The time-consuming nature of the inspection process, exacerbated by a two-hour wait for each inspection in the City of Los Angeles, results in a minimum of 10 hours spent waiting for inspectors. With a conservative consulting fee of $150 per hour (low for the industry), the financial burden becomes substantial. Assuming each inspection takes two attempts to pass, the additional cost of waiting for inspections alone can exceed $1,500. This not only inflates the overall cost of upgrades but also deters property owners from investing in much-needed improvements. In one recent project, I personally endured 6 electrical inspections conducted by different inspectors at two hours a piece. The flummoxed owner attended the last three inspections because he blamed me for the repeated failures. After changing the electrical multiple times due to unclear and differing instructions, the owner strongly considered forging finaling the permit because in his words “we will never pass.” It is not irregular for me to meet clients in tears due to the inspection and permit process, which surely should not be the objective of any well meaning municipality. And this system as it is clearly does not work; as a result of these challenges we can deduce a vast majority of all HVAC units installed in the City are installed without permits. In 2022 (the most recent year with data) only 15,278 HVAC permits were issued in the City of Los Angeles. With over 4.8 million structures needing HVAC in the city (and even more when counting individual HVAC units) that would mean less than .4% of all buildings receive an upgraded HVAC system or repair with a permit in a given year. A typical HVAC system is rated for 10-15 years meaning we should expect to see roughly 1/15th of the units (6.6%) replaced in a given year. Even allowing for under-adoption of new HVAC units the number of permitted units in a given year is radically less than the number of installed units. We also have abundant evidence that permits do not get completed; of all permits issued in 2020 (assuming all projects from 2020 should be “complete”) a total of 68,840 permits were never finaled; thus evidence would suggest as many as 40% of all permits issued in this city are never completed!

The Impact on Low-Income Homes and Environmental Efficiency

The challenges posed by the current permitting and inspection system disproportionately affect low-income homes. For instance, upgrading to more efficient and environmentally friendly alternatives, such as mini-splits, becomes financially unviable due to the exorbitant costs associated with the inspection process. This hinders progress in addressing issues like cancer-causing methane combustion due to wall heaters, lack of air conditioning, and overall environmental inefficiency. And the change is not minimal; new HVAC units are 400% more efficient than existing gas wall heaters.

Judge Renovations in Totality

If the city must be involved at all (see other writings in this blog), Inspectors should judge renovations on a “totality of circumstances” approach that considers the safety and environmental fitness of the existing apartment compared to any renovation. While this should not be an excuse for shoddy workmanship and dangerous conditions, the City should provide consistent documentation to contractors on minimum health and safety standards, practical guides to meet those codes in standards in common situations, and allow for meaningful improvements to offset improvements that have a lesser impact. The building codes are not well suited for application to renovation projects.

Conclusion

The multifamily unit permitting and inspection system in Los Angeles presents a formidable challenge, hindering repairs and construction and leaving many units vacant for extended periods. The complex and time-consuming inspection process, coupled with significant financial implications, discourages property owners from making essential improvements that benefit their tenants. It is crucial for policymakers and stakeholders to reconsider and streamline the existing system to foster progress, encourage upgrades, and ensure a safer and more environmentally friendly living environment for all residents. 

As a contractor, I haven’t ever charged an owner more to do things “by the code” and I would prefer my projects to be “blessed” by the imprimatur of a city permit. It is truly a source of pride. But the data suggest the system is broken with no political will to fix it.