As the recession continues, developers and contractors increasingly find themselves dealing with delays and having to reapply for development permits and approvals in order to finish projects. As a result, a new law has been enacted to address the challenge of expiring development and construction permits and to reduce the risk of eroding collateral for lending institutions. On August 5, 2009, Governor Perdue signed into law the "Permit Extension of 2009" Act. Please click here to read the Act. This Act effectively extends the life of certain construction and development approvals until December 31, 2010. 

The construction and development approvals to which the Act applies are:

• Any sketch plan, preliminary plat, subdivision plat, site plan or building permit issued by a county.
• Any sketch plan, preliminary plat, subdivision plat, site plan, development agreement, building permit or certificate of appropriateness issued by a local municipality.
• Certain environmental permits and approvals, including:
  • findings of no significant impact;
  • erosion and sedimentation control plans;
  • Coastal Area Management Act (CAMA) development permits (issued in coastal counties);
  • any water or wastewater permit;
  • any stream origination or water quality certification; and
  • any air quality permit.
• Any building permit issued under the State Building Code.

If a developer or contractor is in possession of one of these approvals, and that approval is valid at any point between January 1, 2008 and December 31, 2010, this Act delays the expiration of that approval until no earlier than December 31, 2010. In effect, this Act revives construction permits and development approvals that on their face may have already expired and ensures that if a developer or contractor obtains a development approval either this year or next, that that approval will be effective until at least the end of 2010. This automatic extension has a foreseeable benefit for the construction and environmental industries, local governments, State agencies, and lending institutions. Nothing in the Act is intended to supersede federal approvals or requirements, and nothing affects the ability of the State or local governments to revoke or modify a permit or approval. 

For more information on how the Permit Extension of 2009 Act may impact you or your business, please feel free to contact Anthony Fox, Bobby Sullivan, Susan Matthews or Mary Katherine Stukes.