Resolution criteria

This market will resolve to "Yes" if California Assembly Bill 1308 (AB 1308) is enacted into law by December 31, 2026. Enactment occurs when the bill is passed by both the California State Assembly and Senate and is signed by the Governor. If the bill fails to pass either chamber, is vetoed without an override, or is not signed into law by the specified date, the market will resolve to "No."

Background

AB 1308, introduced by Assembly Member Josh Hoover on February 21, 2025, aims to expedite the home-building process in California by addressing delays in residential building inspections. The bill proposes the following key changes:

• Fee Transparency: Requires local building departments to prepare and publicly post residential building permit fee schedules on their websites.

• Inspection Timelines: Mandates that local building departments provide an estimated timeframe for completing inspections upon receiving a notice of completion. If the department cannot conduct the inspection within 30 days, the permittee is entitled to a reimbursement of permit fees.

• Third-Party Inspections: Allows permit applicants to hire licensed and certified third-party inspectors to perform final inspections if the local government cannot complete them within the specified 30-day period. The local building department must review the third-party inspection report and issue a certificate of occupancy or equivalent final approval within 14 days.

These provisions are intended to streamline the inspection process, reduce delays, and bring new homes to market more quickly. For more details, refer to the bill text: AB 1308 Bill Text.

Considerations

• Legislative Process: As of April 30, 2025, AB 1308 has progressed through committee stages and is pending in the Assembly Appropriations Committee. The bill's advancement through the legislative process and potential amendments may influence its final form and enactment status.

• Impact on Housing Development: If enacted, AB 1308 could significantly affect housing development timelines and costs by reducing inspection-related delays. Stakeholders in the construction and real estate sectors should monitor the bill's progress and prepare for potential changes in inspection procedures.

• Opposition and Support: The bill has garnered support from housing advocacy groups like California YIMBY, which emphasizes its potential to expedite home availability. However, there may be opposition from local governments concerned about the implications of third-party inspections and fee reimbursements. Understanding the positions of various stakeholders can provide insight into the bill's likelihood of passage.