New 10-Day ‘Shot Clock’ Aims To Speed New Homes to Market

Anyone familiar with the shot clock in basketball knows that the player must shoot before time runs out. It’s a turnover otherwise.

Applying that same shot clock concept to final inspections for residential construction, any failure by local governments to meet the deadline benefits third-party private inspection companies.

California lawmakers passed Assembly Bill 1308 to mandate a 10-day “shot clock” for local building departments to conduct final inspections on new residential projects of one to 10 units. The legislation awaiting Gov. Gavin Newsom's signature marks a key victory for housing advocates seeking to remove inertia that has long stymied housing construction and made affordability a major problem.

Texas, North Carolina, and Florida have taken similar steps to speed up the permitting process. Georgia enacted a law five years ago to speed up the permitting and inspection process.

The California legislation directly targets delays in the post-entitlement phase of construction, where completed homes can sit empty for months while awaiting a final sign-off and certificate of occupancy.

Delays in local government inspections for completed housing developments are listed as a significant roadblock in the housing production pipeline,” State Assemblyman Josh Hoover told a Senate committee in July. “Lengthy delays at this stage create uncertainty for developers and increase costs for homeowners.”

Having homes sit empty directly affects a homebuilder’s bottom line because they can’t close on the house and receive final payment, which can be particularly problematic for small builders.

Sponsored by the housing advocacy group California YIMBY, AB 1308 is part of a growing legislative effort to impose "shot clocks" on various stages of the housing approval and construction process in the state.

These measures aim to hold local agencies accountable for making timely decisions and taking prompt actions. The bill addresses a different phase than other recent laws that have focused on speeding up the initial permitting process.

If a local jurisdiction fails to meet the 10-day inspection deadline, the bill allows builders to hire a qualified third-party professional to conduct the inspection, ensuring that finished projects are not left in limbo. This provision is intended to give applicants a reliable path to avoid unnecessary and costly delays.

The measure is one of several bills under consideration that would streamline post-entitlement permits and inspections, reflecting a broader legislative focus on tackling administrative hurdles that contribute to California's housing shortage.

Other recently passed laws, such as AB 130, established a 60-day shot clock for local agencies to approve or deny ministerial housing projects—those that require only non-discretionary review. While those laws focus on speeding up initial permit approvals, AB 1308 specifically addresses the final inspection phase, ensuring that completed homes can get to market faster.