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Department of Building and Safety / Permit Related Services / Fee Update

Council File 26-0163

Under review — the city is moving forward with phased fee increases for building permits and inspections to close a structural funding gap, with the first phase approved by Budget and Finance in June. The plan now awaits Planning Committee review before a full Council vote.

Introduced
2026-02-06
Last changed
2026-06-18
Status
open
Expires
2028-06-16
Committee
Budget and Finance Committee
Initiated by
Department of Building and Safety

Brief

The Department of Building and Safety has proposed updates to fees for permit-related services. The file was introduced in February 2026 and has progressed through both the Planning and Land Use Management Committee (approved April 2026) and the Budget and Finance Committee (approved as amended in June 2026). The matter is now pending final consideration in the Planning and Land Use Management Committee following the most recent Budget and Finance Committee transmission.

Full summary

The Department of Building and Safety is proposing increases to building permit and inspection fees, Board of Building and Safety Commissioners fees, and Residential Property Report fees. The department's Enterprise Fund — which is supposed to be fully self-supporting through fee revenue — is running a structural deficit, and the proposed adjustments are designed to bring it back to cost recovery. The department estimates the changes would generate approximately $42 million in additional annual revenue, though that alone would not fully close the gap; a separate ordinance addressing plan check fees is still forthcoming. Rather than implement all changes at once, the Budget and Finance Committee approved a phased approach on June 16, 2026, on a motion introduced by Councilmember Yaroslavsky and seconded by Councilmember Hernandez. Phase 1, which the committee authorized, covers fees applicable to Express Permits. Phases 2 and 3, covering broader categories of commercial and residential permits, will follow in subsequent ordinance amendments. The rationale for phasing is that it allows the department to begin recovering costs sooner, without waiting for a comprehensive benchmarking study of fees against other Los Angeles County non-contract cities — a study that could take a year or more to complete. Delaying all changes pending that study, the department argues, would forfeit at least $42 million in projected revenue. The committee also directed the DBS to report back on two additional items: the average processing timelines for commercial and residential permits across all three phases, and potential ways the department could reach revenue neutrality without raising fees, including self-certification efficiencies, technology improvements, and elimination of redundant processes. The Budget and Finance Committee vote was 3-0 (Yaroslavsky, Blumenfield, and Hernandez in favor; Hutt and McOsker absent). Following that approval, the file was transmitted to the Planning and Land Use Management Committee on June 18, 2026 for consideration of the June 15 DBS report. The file remains pending there and has not yet gone to the full Council for a final vote. The file does not expire until June 2028.

Activity (13)

  • 2026-06-18 Budget and Finance Committee transmitted Council File to Planning and Land Use Management Committee for consideration of the Department of Building and Safety report dated June 15, 2026.
  • 2026-06-16 Department of Building and Safety document(s) referred to Budget and Finance Committee; Planning and Land Use Management Committee.
  • 2026-06-16 Budget and Finance Committee approved as amended .
  • 2026-06-15 Document submitted by Department of Building and Safety, dated June 15, 2026.
  • 2026-06-12 Budget and Finance Committee scheduled item for committee meeting on June 16, 2026.
  • 2026-06-04 Budget and Finance Committee approved as amended .
  • 2026-06-02 Budget and Finance Committee scheduled item for committee meeting on June 4, 2026.
  • 2026-04-14 Planning and Land Use Management Committee approved item(s) .
  • 2026-04-10 Planning and Land Use Management Committee scheduled item for committee meeting on April 14, 2026.
  • 2026-02-26 Department of Building and Safety document(s) referred to Budget and Finance Committee; Planning and Land Use Management Committee.
  • 2026-02-26 Document submitted by Department of Building and Safety, dated February 24, 2026.
  • 2026-02-10 Department of Building and Safety document(s) referred to Budget and Finance Committee; Planning and Land Use Management Committee.
  • 2026-02-06 Document submitted by Department of Building and Safety, dated February 6, 2026.

Documents (10)

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