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 get 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 what stage the project is at in the permitting process. This post 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 can typically recover an expired application if it has expired for less than 90 days. 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 have 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are not corrected within 120 days of the notification, the application will be deemed, by operation of law, to be withdrawn by the applicant, and any permit fee deposit paid is forfeited to the City.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.

Breaking this code section down, this is saying that 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. Chicago’s permit review process works in cycles. What this means is that, in almost all instances, project teams will have access to the majority of review comments prior to the return of the project task to the applicant, which begins the 120-day countdown.

If a project is approaching the 120-day limitation, the Exception to Section 14A-4-410.4.1 allows for a request for an extension of up to 90 days.

The permit has been issued but construction has not started

Again, the Administrative Provisions has 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 12A-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 permit 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 is a lot of information to pull from these sections. First, these sections make clear that construction work must begin within 180 days of permit issuance in order for a permit to remain valid. It is important to understand there is a difference between permit issuance and permit release. The easiest way to think of permit issuance is to think of it as being synonymous to the project manager issuing the permit fee. If you have the permit fee, then the permit is issued. However, permit issuance does not mean that a permit is in-hand. Payment of the permit fee must be made before the city will release the permit to be posted onsite. So in short, the difference between permit issuance and permit release is whether or not the permit fee has been paid. Some people might try to extend the amount of time they have to start construction by delaying the payment of the permit fee. This delay tactic is based on the misconception of when the permit is considered to be issued and is not an allowance set forth in the code. MAPS does not advocate for this strategy.

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 and declare that as evidence that you have started construction work. Construction must have progressed to the extent that one can request an inspection within 180 days.

The project goes on hold after the start of construction

The 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 amount. That can be a large fee depending on the amount of the original permit.

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 12A-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, regardless of the phase. The vast majority of projects will be able to work within these timeframes without issue. If your project is starting to 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 work. 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.