DBI presents site-permit redesign, major-projects update and a projected $2 million shortfall

Department of Building Inspection leadership briefed the commission on multiple operational items April 19, including a proposed site-permit redesign, major permit activity, inspection performance and a finance update that projects a net deficit for the year.

Director Patrick O'Riordan said DBI and the permit center are holding a stakeholder feedback session on April 19 about a plan to bifurcate the site-permit process—planning would oversee entitlement while DBI would focus on permit review and issuance—with the aim of substantially reducing timelines for new housing. DBI plans to report back after stakeholder outreach and introduce legislation for Board consideration.

On projects, DBI reported an application in March for a 126-unit affordable housing project at 3485 Cesar Chavez (valuation reported in the transcript) and issuance of a $23.5 million permit for an expansion at University High School at 3150 California Street. DBI also finalized four high-value projects totaling more than $78 million and adding 108 housing units, including a 108-unit affordable project at 500 Turk.

Deputy Director Alex Koskinen presented the finance report: DBI projects $52.8 million in revenue for the year—about 9% below budget—and expects to spend $87.5 million, producing an estimated $2.0 million net shortfall to be covered from fund balance. Koskinen said inspection-related and permit-volume declines contributed to slower revenue; he also noted an anticipated $300,000 expense to fund contractor reviews of facade-engineering reports related to the high-rise inspection work. The department is completing a fee study (estimated 1–2 months) and may propose an across-the-board fee adjustment to meet budget deadlines.

Chief Building Inspector Matthew Green reported strong inspection performance in March: building, electrical and plumbing divisions conducted 11,382 inspections and met targets on timeliness and complaint response rates. Commissioners and a public commenter asked detailed questions about grant and interdepartmental-service variances in the finance tables; DBI said it will follow up with specific figures.