By Dan Kennedy
NAIOP NJ members — commercial real estate owners and developers — along with design professionals and building departments, are aware of the lengthy time it takes for the government to review design construction documents and issue building permits.
Transition reports from the last few governors and blue-ribbon panels have highlighted delays that make investing in New Jersey challenging, and this has long been a concern within the private sector. Both in my career and as the chair of my local planning and zoning board, I have witnessed firsthand the challenges that both small and large developers face when applying for a building permit to break ground. For applicants of all sizes — whether for a commercial real estate project or a farm market — time lost is money lost.
Why does it take so long to get a permit in New Jersey?
In the 1990s, the American Institute of Architects commissioned PricewaterhouseCoopers or PwC to study the impact of permit processing times and the reasons behind the delays. Their findings from that study remain relevant today.
To be fair, all parties involved in the permitting process share some responsibility for the delays. While simpler projects — such as fences or equipment replacements — can be managed through “over the counter” applications, building permits require more time.
PwC’s report identified a key challenge to timely permit approvals: the public sector’s reluctance to rely on the judgment of licensed architects and engineers who prepare construction applications and supporting documents, and who certify that these submissions comply with prevailing standards.
This unnecessary reluctance causes costly delays with profound and destructive consequences:
- Owners and developers lose income because delays prevent them from making their buildings operational in a timely manner.
- Contractors and builders may face price increases for supplies, materials and equipment.
- Time lost to delays means municipalities and counties miss out on valuable tax revenue.
Everyone involved in the construction process suffers from slow permit approvals.
While local jurisdictions review thousands of construction permit applications for all types of projects, which places great pressure on understaffed local governments, licensed architects and engineers are uniquely positioned to alleviate this pressure and speed the approval process. These licensed professionals intimately know the building code and construction document requirements.
Finally — progress
After years of advocacy by NAIOP NJ, Acting Gov. Nicholas P. Scutari recently signed the New Jersey Design Professional Self-Certification Act (S3402/A4350) into law. This new law will allow licensed architects and engineers to self-certify that a construction application meets building code requirements.
The implications are significant. Depending on a project’s size and complexity, some permit approvals can now be made in a matter of days.
This legislative victory was achieved by NAIOP NJ and a core group of allied partners who worked closely with the governor’s office and legislative leaders.
The new law directs the commissioner of the New Jersey Department of Community Affairs to establish a program in which the commissioner certifies architects or engineers who meet certain criteria as qualified design professionals. This certification allows them to take responsibility for a construction project’s compliance with the state’s Uniform Construction Code and to self-certify that an application for a construction permit, along with the plans and specifications, complies with the UCC and other applicable laws.
Initially, the legislation focuses on repair, renovation, alteration and reconstruction projects, as defined by the UCC, within select use groups with square footage limitations. However, the Legislature wisely empowered the commissioner to extend the self-certification program to additional categories of work through further regulations.
The new law requires an enforcing agency to accept a self-certified permit application and accompanying documents; conduct a supervisory check to acknowledge receipt of all materials required under the UCC; and issue a permit within one to five calendar days following receipt of the submission, depending on the scope of the project.
Start small and build success
This new law is a promising starting point and should begin helping commercial office buildings accommodate new tenants more quickly by early 2025.
A major factor behind the new law was a legislative ally who understands the role of commercial development in creating jobs and opportunities for New Jerseyans. As president of Tri-Form Construction, Assemblyman Robert J. Karabinchak clearly recognized the benefits to both the private and public sectors. His efforts were supported by the Governor’s Office, Assembly Speaker Craig J. Coughlin and Senate President Nicholas P. Scutari.
I have full confidence in DCA Commissioner Jacquelyn A. Suárez and her team to establish the program through which the commissioner will certify architects or engineers as qualified design professionals.
Over the coming months and years, this program will continue to evolve and expand. This is an idea whose time has come.
Dan Kennedy is CEO of the New Jersey chapter of NAIOP, the Commercial Real Estate Development Association, which is the state’s leading organization for owners, developers and related professionals in office, commercial, industrial and mixed-use real estate. NAIOP NJ advocates for responsible development that creates jobs and benefits for communities where New Jersey residents work, live and play. He is a licensed professional planner with a MCRP from Rutgers University’s Edward J. Bloustein School of Planning & Public Policy and a B.S. in environmental science from the University of Delaware.
