What are the time limitations for permit applications in Chicago?

Occasionally a project gets put on hold. Maybe ownership is revising how a project is being financed or maybe the design needs to be modified because cost estimates came in high. Regardless of the reason, MAPS will be asked the following question: How long can we put a project on hold before we need to start over with a new permit?

The answer to this question depends on which stage the project is at in the permitting process. This blog breaks down the nuances of the scenarios we most often encounter. A handy summary table is provided at the end.

A permit deposit has been paid but the project has not been submitted for review

In this instance you have 120 days to submit drawings for permit review before the project expires. The clock starts counting down from the day that the permit deposit payment is made. A 90 day extension can be sought from DOB if approaching the 120 day limitation. Also, DOB often has the ability to recover an expired application if it has been expired for less than 90 days. However, recovery of an expired application within this timeframe is at DOB’s discretion. If an expired application cannot be recovered, the permit deposit fee would be forfeited and cannot be applied to a future application.

The project has been submitted for permit review but the permit has not been issued.

The Administrative Provisions of the 2019 Chicago Construction Codes has language that addresses this scenario. That code section is copied below.

Section 14A-4-410.4.1

If all deficiencies identified pursuant to Section 14A-4-410.4 are not corrected within 120 days of the notification, the application will be deemed, by operation of law, to be withdrawn by the applicant, and any permit fee deposit paid is forfeited to the City.

Exception: Upon receipt of a written request from the applicant before the date for correcting deficiencies, and for good cause shown the building official may extend, to a date certain, not exceeding 90 days, the period to cure the deficiencies identified in the notification.

This code section is saying a project will expire if review comments are not addressed within 120 days. It is important to note that the 120 day clock does not begin until the full cycle of review is complete which is denoted by the project task being sent back to the applicant in ProjectDox. Typically comments will not all be issued at once; they will be provided as each discipline review is completed. Even if you have started to receive review comments, the 120 day clock has not yet started if there are additional reviews still pending for that review cycle.

If you do have the review task and a project is approaching the 120 day limitation, the exception to Section 14A-4-410.4.1 allows for a request of an extension of up to 90 days.

The permit has received all required approvals and a permit fee has been issued.

Once all required approvals have been entered into both Projectdox and E-plan (aka Hansen) by reviewers, the DOB project manager will issue a permit fee. This fee must be paid within 120 days. This time limitation is not dictated anywhere in the Administrative Code but has been confirmed with DOB.

The permit fee has been paid for but construction has not started.

At this stage the permit is considered issued and released. Construction may begin. However, even with a permit in hand, sometimes there is a need to delay the start of construction. How long can the start of construction be delayed at this point? The Administrative Provisions have language that addresses this situation.

Section 14A-4-413.9 Suspension

If the work authorized by a permit is not started within 180 days after issuance of the permit, the permit is suspended, and work may not proceed unless the permit is reinstated. For permits other than the stand-alone permits provided for in Section 14A-4-412.1, if none of the inspections required by Section 14A-5-502 are requested within 180 days after issuance of the permit, the permit is suspended, and work may not proceed unless the permit is reinstated. If the work authorized by a permit ceases for a cumulative period of 365 days after the start of construction, or there is a period of 365 days without an inspection being requested, the permit is suspended, and work may not proceed unless the permit is reinstated. The building official must collect a fee as provided in Table 14A-12-1204.1 before reinstating a suspended permit.

Section 14A-4-413.9.1 Extension of time or reinstatement

For each permit, the building official may grant up to two extensions of time or reinstatements, for periods of 180 days each, prior to the start of construction activities, and up to four extensions of time or reinstatements, for periods of 180 days each, after the start of construction activities, provided that the cumulative duration of extensions of time and reinstatements for the same permit or group of related permits may not exceed 720 days. The building official must collect a fee as provided in Table 14A-12-1204.1 before granting an extension of time or reinstatement.

There are two pieces of information from these sections that are relevant to the time between having a permit-in-hand and the start of construction . First, once a permit is issued, construction must begin within 180 days or it will be suspended. Secondly, these sections set a clear guideline for what is to be considered evidence for the start of construction: an inspection must be requested. For example, it is not enough to simply set a backhoe on your site or install a construction fence. Construction must have progressed to an extent that one can request an inspection within 180 days. So really, it is more apt to say an inspection must be requested within 180 days of permit payment, rather than start of construction.

The project goes on hold after the start of construction.

The code sections cited in the previous scenario also contain the time limitations for when a project starts construction but then goes on hold. If the project goes on hold after the initial inspection, work must resume within 365 days in order to avoid permit suspension (again by way of an inspection request).

A permit can be extended by 180 days at this stage. Similarly, a permit can be reinstated for another 180 days if the permit lapses and becomes suspended. Both have effectively the same outcome. They both extend the construction clock by 180 days but it is important to remember that they both also require a fee to be paid that is equivalent to 25% of the original permit fee. That can be a large fee depending on the original permit fee amount.

There are maximum limitations to the amount of time a permit can go on hold after permit issuance, even when accounting for extensions and reinstatements. Once these maximum limitations are hit, the permit is considered expired and cannot be reinstated. This is outlined in the final code section below.

Section 14A-4-413.10 Expiration

If the work authorized by a permit is not started within 540 days after issuance of the permit, the permit is void and may not be reinstated. If the work authorized by a permit ceases for a consecutive period of 730 days, the permit is void and may not be reinstated.

Permit time limitations are dependent on the phase of the project. The limitations are generous and there are opportunities for extensions. The vast majority of projects will be able to work within these timeframes without issue. If your project is starting to get near a timeline limitation, the best course of action is often to start a dialogue with DOB. MAPS can assist with this communication and will ensure the right people at the city are engaged so that no issues arise with your permit if there is a need for a temporary pause in the permit or construction timeline. Please refer to MAPS’ permit time-limit summary table below.

(1) If the work authorized by a permit is not started within 540 days after issuance of the permit, the permit is void and may not be reinstate.

(2) If the work authorized by a permit ceases for a consecutive period of 730 days, the permit is void and may not be reinstated.

The content of this blog is the opinion of MAP Strategies at the time of publication.