Builders Say Dallas Permit Process Needs Stress Test Before Market Picks Up Again

Builders rejoiced in January when the Dallas Development Services Department reported that it was caught up on permits and didn’t have anything in the queue older than 15 days. 

There’s little doubt things have improved since Andrew Espinoza took over as chief building inspector last year, but not everyone is satisfied with the speed of the “same-day permit” program and pay-to-play hourly fees. 

Dallas residents commenting in a Facebook group say they’ve waited two to three days for a same-day permit. 

“The struggle is real,” one resident wrote. 

“So much for the 24-hour build permit,” wrote another. 

Dallas Builders Association Executive Officer Phil Crone criticized the problems that occurred when permitting nightmares began during the COVID-19 pandemic in 2020. He also, however, has been quick to point out the improvements. 

Builders are now spending significantly less money and seeing a quicker turnaround, Crone explained. 

“Every day of delay costs $200 to $300 per project,” he said. “Getting out in two weeks as opposed to three or four months is a lifesaver.”

The numbers speak for themselves: Espinoza points to performance measures, the department’s latest economic impact report, and saturation of new construction starts when asked how the department is doing.

Builders Say Backlog is Still in Good Shape

The permitting backlog remains cleared and “just about everything is coming out in about a couple of weeks, especially from builders who know the system and its nuances,” Crone told CandysDirt.com last week. 

“Most of the problems we are now seeing come at the confluence of two or more different departments,” Crone said. “In other words, when entities like [Dallas Water Utilities], Planning, or Fire are needed along the way, especially on development items, you often find some gridlock.” 

The Development Services Department now has an online dashboard where builders can monitor the status of their permits and see how quickly other construction permits are moving through the system. 

“The dashboard is an outstanding resource,” Crone said. “My only complaint is that the data speaks to the fate of the permits that were approved in a particular month as opposed to the ones that came in during a particular month. I’d rather see what became of all of the permits submitted in February in terms of how long they took and how many reviews they needed. That data is more actionable for the industry.”

Proposed Improvements For Development Services

As Crone transitions from Dallas BA to a new job with Leading Builders of America in July, he said he hopes to see the Development Services Department continue to improve. 

“With Development Services poised to move into a new building soon, I’d strongly encourage city leadership to ensure that the Development Services Department can actually attend to all of the services inherent to development,” Crone said. “I know that sounds simplistic, but that’s how the city is going to succeed long-term here. Specifically, that means having liaisons from the water department who know their system and can be a concierge for a system that is not conducive for builders to work in. Also, having clear guidance on how to navigate certain issues such as fire hydrant proximity and other challenges when people try to build near aging and outdated infrastructure, which the city has plenty of. The Matrix Consulting Study has some good realignment recommendations along these lines.”

Espinoza told CandysDirt.com last week that the department’s move to 7800 North Stemmons Freeway is scheduled for the end of May. 

“The move will be done in phases, and we hope to be fully moved in by the end of summer,” he said. “We recognize that the moving process may pose some logistical issues for our customers as our operations will be temporarily housed in separate buildings. We vow to do our very best to minimize any inconveniences that may arise.”

Crone further pointed out that Development Services should be involved in the ForwardDallas comprehensive plan update. 

“They are the ones who have to enforce it and reconcile it with the built environment so they should have a prominent seat at the table,” Crone said. “Finally, the city has to find a way to attract and retain top talent. In particular, engineers. Development Services should have broad latitude on hiring, firing, and rewarding good performance. It is budgeted like an enterprise fund, it needs to operate like one.” 

The city is doing a good job keeping up with 200 to 250 inbound permits monthly, Crone said, but what happens when the market shifts?

“They should do a stress test to see how they’ll do and what they’d need if it went to 300 or 400 monthly,” he said. “That stress test would be worthwhile now before the market picks back up.”

Additionally, the Dallas Builders Association, whose members sit on an advisory board that consults with Espinoza on ways to improve, has suggested process upgrades such as a more sensible way to evaluate sidewalk waivers and not duplicating the work of third parties such as foundation engineers.