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Governor's bill that would let developers hire own building inspectors, raising concerns

Downtown Nashville construction with crane
Home building construction
Gov. Bill Lee
Posted at 5:51 PM, Mar 05, 2024
and last updated 2024-03-10 12:26:12-04

NASHVILLE, Tenn. (WTVF) — Builders say it's all about saving money and cutting costs. But codes officials insist the focus should instead be on safety and making sure the job is done right.

All of this is over a bill Gov. Bill Lee is personally trying to get passed this session.

It would change the way buildings are built in Tennessee, not so much how they're built, but who is making sure they're built to certain standards and that they're safe.

But, not everyone agrees these changes are good or even needed.

There are so many new homes being built and skyscrapers going up that some say state and local inspectors can't keep up.

"I think if there wasn’t a problem, there probably wouldn’t need to be a policy solution," Rachel Blackhurst with NAIOP Nashville told NewsChannel 5 Investigates.

NAIOP is a commercial real estate development organization whose members include developers, builders, and contractors.

The group wants state lawmakers to pass a bill that would not only streamline but speed up the building permit and inspection process.

"People should know that the reason for this is just delays are very costly (and) the cost gets passed down. It gets passed down to folks wanting to purchase a new affordable home," Blackhurst said.

The bill would allow developers and builders to hire their own outside people to review plans, do inspections, and issue permits required during the building process, tasks normally handled by local codes and building officials or the state fire marshal's office.

The bill is a pet project of Gov. Lee whose family's longtime construction company, the Lee Company, does HVAC, plumbing, and electrical work in both homes and businesses.

And the governor personally made a pitch for his legislation during his recent State of the State speech.

"Building delays drive up the cost of homes and businesses for all Tennesseans," the governor told lawmakers during his February speech.

He continued, "This year, we are proposing statewide permitting reform to accelerate building times, lower costs, and safely streamline construction in Tennessee."

But the Tennessee Building Officials Association says there are a lot of problems with the governor's proposed legislation.

"We are against the bill," Monty Kapavik told NewsChannel 5 Investigates.

Kapavik is on the board of the Tennessee Building Officials Association and is the building official in Nolensville, which has seen significant growth in recent years. But typically, he said, they can turn around permit and inspection requests in less than 24 hours.

"Are you aware of any widespread major delays happening in permitting across the state?" NewsChannel 5 Investigates asked Kapavik.

"I’m not personally aware of any," he replied.

So we asked the organization representing developers and builders.

"Why do you all say there is a problem?" we asked Rachel Blackhurst with NAIOP.

"I think there are lots of places around the state where absolutely you can get call up and get your permit and get your inspection done in 24 hours. But there are times when it is really backed up and this creates the option to relieve that back up," she responded.

"I am not sure speed is better," Building Official Monty Kapavik shared.

Kapavik said the bigger issue is safety.

"Nobody generally likes the Codes people because our job is to constantly say, 'No, this doesn’t comply.' So we routinely tell builders to do what they haven’t done. And we routinely tell builders to do what they don’t want to do.," Kapavik explained.

"What about the third-party inspectors, do you think they will be as likely to say these same things and point out the same problems?" we wondered.

"I hope so," Kapavik said.

Still Kapavik worries that third-party inspectors could be tempted to overlook things or let things slide so builders and developers might hire them again for other projects.

During his State of the State speech, Gov. Lee said this as he promoted his legislation:

"Take it from someone who spent 35 years in the construction industry. A bureaucratic permitting process is bad for everybody but the government."

Lee did not respond to our requests for an interview.

But the construction industry said we have nothing to worry about.

"If someone catches a bad actor out there, there's someone else who can say 'okay, that person doesn't get to do this'," Rachel Blackhurst suggested.

Building officials are concerned that third-party inspectors will not face the same intense scrutiny from the state that they do. The Tennessee Municipal League proposed a number of changes to the bill that were supported by the Tennessee Building Officials Association. For example, they wanted certain standards for the outside inspectors to ensure they're qualified to do these sorts of inspections. Most of the recommendations, however, were rejected by the Governor's staff.

This bill is moving quickly through the legislature. It was approved by the full Senate Monday night and is currently making its way through the House.