Sacramento officials are trying to cut red tape in the city’s permitting processes, confronting a common complaint among developers who say prolonged approvals can delay housing and challenge businesses.
The city launched an effort last year to streamline permitting — one of Mayor Kevin McCarty’s campaign promises — and city staff told the council Tuesday evening that they have made progress.
The city completes 98.5% of plan reviews on time, and 97% of building inspections on time and will attempt, in the coming months, to reduce the timelines even further, staff told council. Sacramento launched a small business liaison program, will run a “Permitting 101” class in March and is piloting expanded hours for the Community Development Department’s public counter, increasing to five days a week, up from three.
Some developers said at Tuesday’s meeting that Sacramento’s permitting system is more efficient than other California jurisdictions. Still, multiple builders called on the city to make further improvements. Several described instances of waiting months for various approvals, delaying projects, business openings and lease payments.
The effort comes as high interest rates and tariffs have created other headwinds for development. And the city’s attempts to ease permitting will be an ongoing process with no real end — unless the city achieves its housing goals, Councilmember Phil Pluckebaum said during the meeting.
“A lot of what we’re trying to do is to create conditions that are favorable to the outcomes that we’re trying to achieve,” Pluckebaum said. “And that’s a difficult measure to be held accountable for.”
The city issued 2,387 housing permits in 2024, according to previous Sacramento Bee reporting. To meet an eight-year goal of building 45,580 new units by 2029, it would have needed to issue 5,698 permits. Figures for 2025 aren’t yet available.
John Vignocchi, CEO of an association of local businesses called Region Business and managing partner for the Sacramento development firm Urban Capital, said the streamlining effort has created a welcome “mindset shift.”
Still, he added, “there are still a lot of little things that can be improved… we’ve got to keep the pedal to the metal.”
Many of the city’s changes so far will assist with infill development and accessory dwelling units, or ADUs, said Tim Murphy, president and CEO of the North State Building Industry Association, in an interview ahead of the meeting.
Murphy said he would like to now see more attention on streamlining single-family housing.
“These processes are definitely a step in the right direction. But in order to address the amount of needed housing in the city of Sacramento, they have to keep their foot on the gas,” Murphy said. “The old maxim, that time equals money, is true.”
Officials said the effort would be an ongoing process.
“This is a living, breathing, evergreen project,” McCarty said during the meeting. “We’re doing a fine job in this, but let’s keep at it.”
This story was originally published February 25, 2026 at 12:05 PM.
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Annika Merrilees is a business reporter for The Sacramento Bee. She previously spent five years covering business and health care for the St. Louis Post-Dispatch.