Collier County private inspections fray sparks Florida turf war

Florida’s new push to accelerate homebuilding is hitting up a familiar wall of resistance in the Naples area: local resistance.

Instead of fighting over zoning, the battle is about permitting. Private-provider inspectors say Collier County officials have thwarted third-party inspections required under state law.

State lawmakers strengthened that law last year. It took effect July 1.

Florida, like many states around the country, passed laws to speed up permitting, including allowing third-party inspections and private providers. Changes include putting in so-called permitting shot clocks to replace processes that drag out with a process that ensures certainty.

Collier County is the first notable case of resistance to inspections conducted by private providers. Inspectors say the county is layering on additional inspections, documentation and fees instead of easing permitting, as the law requires. That is driving up costs and delays for inspectors and builders, contrary to the law’s intent.

Inspectors also cite a legal opinion from the Florida Attorney General’s Office backing their position.

The county did not respond to questions about the permitting department’s actions.

Building boom

Collier County emerged from the COVID-19 pandemic as one of Florida’s housing-supply winners, adding new construction. Residential building permits peaked in 2021 at 6,766, according to Census data.

But the boom has cooled. Building permits dropped to 2,736 last year, down sharply from the 2021 peak.

Building permits have surged this year, driven mostly by multifamily projects, while single-family permits have plateaued.

Demand eclipsed supply as domestic in-migrants looked to make their home in Florida, exacerbating an affordability problem. State lawmakers addressed it through the 2023 Live Local Act, focused mainly on zoning changes to boost workforce-housing supply.

Lawmakers have tweaked permitting procedures too; Florida has allowed third-party inspections since 2002. Last year, lawmakers expanded private-provider options for certain residential trade permits. They also imposed a five-business-day decision deadline on local building departments to cut permitting delays.

“It was geared towards removing ambiguity and making the process more efficient,” said Ian Cohen, chief operating officer of virtual inspection company Inspected.com. “Everyone knows in this industry, you have to jump through tons of hoops to get a permit issued, and it shouldn’t be that way.”

In Collier County, one building official, however, is “anti-third party or private provider, and is contravening the new statute,” Cohen added.

What the law says

A July legal opinion from the Florida Attorney General’s Office reinforces that point.

The law “prohibits a local enforcement agency, local building official, or local government from requiring a building department to perform additional local inspections or site visits that replicate inspections already performed by a duly retained private provider, as a condition for closing out a permit,” Greg Slemp, Florida deputy attorney general, wrote in a response to questions posed by state Rep. Chip LaMarca.

The opinion says local governments may not impose policies, standards or procedures more stringent than state law.

The dispute matters because Collier County already has a third-party inspection company under contract. That complicates the debate. The real issue is not whether the county can use outside inspection expertise, but whether applicants can use a private provider under state law without extra local requirements.

County officials may argue that they retain responsibilities to protect public safety and verify code compliance. The state law does not eliminate those duties.

It permits audits and lets local officials inspect to see whether a private provider skipped required inspections. But the opinion draws a line between oversight and duplication.

For builders and property owners, the stakes can be financial. Carrying costs accumulate while a project waits for final approval, and delays can postpone closings, construction draws and occupancy.

Under the attorney general’s interpretation, local governments may still charge a permit fee when applicants use private providers. But they must reduce the fee by the savings from not performing the inspection or plan review themselves. The law does not allow punitive administrative fees.

“Any fees collected by a county or municipality in excess of what is permitted under (the law) are unauthorized and must be refunded to the party who paid the unauthorized excess fees,” Slemp wrote.