Four years after a Honolulu audit faulted the city permitting department for excessive delays, a follow-up report finds the city has followed some, but not all, of its recommendations for improvement. 

The original audit, released in January 2020, found that Honolulu was unable to meet the demands of the construction industry for building permits. The report cited prolonged review times and lax controls that gave applicants a leg up in the department’s appointment system, among other problems. It made 16 recommendations. 

The Department of Planning and Permitting is in the process of addressing several of the issues identified but hasn’t completed all its goals, according to a status update published by Honolulu Auditor Arushi Kumar on Tuesday evening. 

The department is working to develop standard operating procedures and signed a contract with a new software company last month, according to the report. However, that software won’t be fully implemented for another 18 months to two years, the report says. And the office still requires better internal controls, including an in-house audit function, and needs to improve permitting efficiency.

In a written response to the auditor, DPP Director Dawn Takeuchi Apuna agreed with the findings.

“DPP is singularly focused and committed to address the long-standing systemic causes of permitting process inefficiencies and deficiencies in order to provide the public, commercial, and residential development communities with timely and effective permitting reviews,” she said.

“DPP is unwavering in its commitment to complete the remaining recommendations as we drive systemic improvements and efficiencies in Honolulu’s building permit application system.”

Despite the department’s efforts, Honolulu’s permit review times today are markedly worse than when the original audit was conducted. 

During the original audit review period from 2014 to 2018, residential permits got the OK from DPP within an average of 108 days, or three and a half months. As of January, residential projects are waiting almost twice as long, about six months.

Commercial projects during the original audit period were taking, on average, 265 days. Now those applicants wait an average of 411 days – well over a year. 

Nevertheless, the audit follow-up noted signs of improvement in some areas.

A backlog in DPP’s queue for prescreening – which vets plans for formatting issues – was taking six months in late 2022. With new technology, it now takes five days. However, DPP data shows the next stage of plan review is now taking longer than it was in 2022.

The report notes that DPP has made strides when it comes to solar permits, which represent 60% of residential applications. In 2022, the department created a separate application process and prioritized these projects. 

DPP has also implemented a notification system to let applicants know when their project is approaching a 365-day expiration deadline. Permits not approved or picked up within that time period can, by law, be rejected and have to start the onerous review process from the beginning. Now, applicants will be notified and can request an extension, the audit follow-up said.

The auditor’s office previously recommended, and reiterated in the new report, that DPP should prioritize applications based on complexity. In response, DPP noted its segregation of solar permits but told the auditor that replicating that system for other types of jobs isn’t feasible at this time.

“For more specialized permitting processes to be created, DPP must attain appropriate staffing levels, provide sufficient training, and reengineer fundamental processes,” the audit said.

The original audit noted that DPP plan reviewers – the key workers who assess and approve building permit applications – are less skilled and lower-paid than their counterparts in jurisdictions on the mainland. The updated report states that DPP is assessing its job descriptions to better align with actual job duties.

In addition, the department is doing a better job of collecting fees from third-party plan reviewers, according to the updated report. Previously, the department was leaving thousands of dollars of fees uncollected. And the department has improved its website, with more guidance for the public about the permitting process.

Recommendations about promoting fairness in DPP’s online appointment system are no longer relevant, the follow-up report said. The department stopped using the system in 2020.