If you're managing permitting operations for a city or county anywhere in the United States, California just changed the game. Two new laws signed by Governor Newsom in 2025—Assembly Bill 920 and Assembly Bill 253—are setting a precedent that will ripple across the nation, transforming how local governments handle residential development permits.
The bottom line? California is requiring municipalities to modernize their permitting infrastructure, with strict deadlines and real consequences for non-compliance. And if history tells us anything, what starts in California rarely stays in California.
What You Need to Know Right Now
AB 920 mandates that California cities and counties with populations over 150,000 must establish centralized online permit portals by January 1, 2028. No exceptions.
AB 253 introduces enforcement teeth: if your agency can't complete permit reviews within 30 days for small residential projects (10 units or fewer), developers can bypass your office entirely and use licensed third-party reviewers.
Let that sink in. For the first time, a state is allowing developers to circumvent slow municipal permitting processes. Your jurisdiction could lose control of permit review if you can't keep pace.
Why This Matters Beyond California's Borders
The Pattern Is Clear
California has consistently been the policy trendsetter for the nation. Environmental standards, consumer privacy protections, workplace regulations—what begins in Sacramento often becomes the standard nationwide within 5-10 years. Digital permitting requirements are following the same trajectory.
The Housing Crisis Is Universal
While California's affordability challenges dominate headlines, housing shortages are squeezing communities from Texas to Tennessee, from Arizona to North Carolina. States facing similar pressures are already examining California's legislative approach as a potential model.
Population Thresholds Will Expand
AB 920 currently applies to jurisdictions with 150,000+ residents, but that's just phase one. As the system proves effective, expect California to lower that threshold. More importantly, expect other states to adopt similar mandates targeting even smaller municipalities.
Federal Pressure Is Building
The federal government has repeatedly emphasized streamlined local permitting as critical to housing affordability. Future infrastructure or housing grants may very well come with digital permitting requirements attached—making proactive modernization not just smart, but financially strategic.
Breaking Down the Laws
AB 920: The Digital Infrastructure Mandate
Passed with unanimous bipartisan support (75-0 in the Assembly, 37-0 in the Senate), AB 920 requires qualifying municipalities to provide:
- Centralized online portals where applicants can submit all housing development applications electronically
- Real-time tracking so developers can monitor application status 24/7
- Complete digital workflows from initial submission through final approval
- Deadline: January 1, 2028
This isn't about adding a file upload button to your website. This is about reimagining your entire permitting infrastructure for the digital age.
AB 253: The Performance Accountability Act
AB 253 creates meaningful consequences for permitting delays:
- Applies to residential projects of 10 units or fewer
- Triggers when permit review exceeds 30 days
- Allows developers to engage certified third-party reviewers
- Transfers review authority outside municipal control
This represents a fundamental power shift. Municipalities that can't process permits efficiently will lose discretion over local development review.
The Dual Pressure System
Together, these laws create a carrot-and-stick approach:
AB 920 provides the roadmap: "Here's what modern permitting infrastructure looks like"
AB 253 provides the motivation: "Meet these standards, or lose control of the process"
For local government leaders, the message is unambiguous: digital transformation isn't optional anymore.
What This Means for Your Municipality
If You're in California (150,000+ Population)
You have until January 1, 2028 to implement a compliant online permitting system. That might sound like time to spare, but consider:
- Procurement processes for government software typically take 6-12 months
- Implementation and staff training require another 6-9 months
- Data migration and system integration add 3-6 months
- You'll want several months for testing and refinement
In reality, municipalities need to start the selection process now to meet the deadline comfortably.
If You're Outside California
You're not off the hook. You have a strategic window to:
- Get ahead of similar legislation in your state
- Improve permit processing times before mandates arrive
- Attract development with modern, efficient systems
- Meet citizen expectations for digital government services
Smart municipalities recognize that digital permitting isn't just about compliance—it's about competitive advantage.
The Broader Context: Why Permitting Modernization Matters
The Cost of Delay
A 2024 National Association of Home Builders survey revealed that permitting delays average 7-9 months nationally, with some markets experiencing waits exceeding a year. Each month of delay adds thousands of dollars to housing costs, ultimately passed on to buyers and renters.
The Transparency Gap
Today's citizens expect to interact with government services as seamlessly as they shop online or manage their banking. When permitting processes remain opaque, paper-based, and unpredictable, the gap between expectations and reality creates frustration for applicants and staff alike.
Economic Development Competition
Jurisdictions compete for quality development. Online permitting systems send a clear signal: "We're business-friendly. We're efficient. We're ready for investment." Conversely, outdated processes push developers to more welcoming markets.
How GOGov Supports Digital Permitting Transformation
At GOGov, we've spent years helping municipalities nationwide transition to modern online permitting systems. We understand the unique challenges local governments face—limited budgets, diverse stakeholder needs, legacy systems, and staff capacity constraints.
Our permit management platform provides everything AB 920 requires and more:
✓ Fully online application submission with document upload and e-signature capabilities
✓ Real-time status tracking so applicants always know where their permit stands
✓ Configurable workflows that adapt to your jurisdiction's specific processes
✓ Integrated fee calculation and payment processing
✓ Automated notifications keeping applicants and staff informed
✓ Comprehensive reporting to identify bottlenecks and measure performance
✓ Mobile-responsive design for access anywhere, anytime
Most importantly, we provide dedicated implementation support to ensure your team transitions smoothly, with training, documentation, and ongoing assistance every step of the way.
Learn more about GOGov's online permitting solutions →
The Time to Act Is Now
Whether California's mandates apply directly to your jurisdiction or not, the trend is unmistakable: digital government services are becoming the standard, not the exception. Municipalities that wait for mandates will scramble to comply. Those that act proactively will gain competitive advantages in attracting development, serving citizens, and operating efficiently.
The question isn't whether your jurisdiction will adopt online permitting—it's whether you'll be ready when the mandate arrives, or caught unprepared.
The digital future of permitting is here. Is your municipality ready?
Ready to Explore Digital Permitting for Your Municipality?
Schedule a free consultation with our team to see how GOGov can help you modernize your permitting operations—whether you're facing California's deadlines or simply want to serve your community more effectively.
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