City Manager Agenda Item · 20260803 Streamlining Permitting Final

City of Cambridge Streamlining the Residential Permitting Process Community Development August 3, 2026 1

Executive summary Context: City Council directed the Community Development Department (CDD) and the Inspectional Services Department (ISD) to streamline the permitting process. CDD staff met with internal staff and external (developers, architects, etc.) stakeholders to identify further opportunities. Pain points: Stakeholders identified challenges in 3 key buckets of the permitting process today: - Policy: redundant, unclear, or overly burdensome regulations - Process: inconsistencies in forms, poor sequencing of events, and delayed reviews - Communication: external parties struggle to understand process and lack a consolidated source of information Proposed solution: To address the pain points in the current process, recommend the following 3 areas of action: 1) Update regulations to simplify, improve clarity, and add flexibility: Revise regulations in consultation with developers and city officials 2) Continue to streamline the review process: Process flow changes to improve internal operations and turnaround times for reviews 3) Improve communication and education materials to reduce errors and incomplete submissions: Consolidate access to information + provide enhanced clarity around process, timelines, and point of contact Path forward: Recommend implementing a series of near-term actions to alleviate critical pain points today while preparing long-term efforts including AI solutions, larger process enhancements, and more complex policy changes CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT 2

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT 3 The full development process spans four broad stages, but today we’re focused on just building permit submittal and review 1 Site acquired Applicant has acquired or identified a site in their existing portfolio for the development project 2 Pre-permitting reviews and approvals Prior to building permit submittal, the applicant may need to complete any of the following pre-permitting reviews depending on project context: ▪ Historic review: Cambridge Historical Commission (CHC) ▪ Conservation review: Department of Public Works (DPW) ▪ Flood resilience review: Department of Public Works (DPW) ▪ Special permit or advisory consultation: Community Development Department (CDD) ▪ Neighborhood notification meeting ▪ Demolition permit: Inspectional Services Department (ISD) 1. Applicability varies by project (not every review is triggered) and done concurrently 2. For completeness 4 Construction After building permit issuance, the applicant may begin construction, which could take 1-3+ years Start construction Inspections (periodically) Certificate of Occupancy Issued 3 Building permit submittal and review To begin construction, the applicant must be issued a building permit (application online in OpenGov) Pre-application departmental reviews1 Pay fee (30-day clock starts) ISD review Permit issued CDD ISD2 DPW CHC Fire Housing Focus today

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT Incomplete or incorrect applications can lead to delayed reviews 4 Issues with submitted applications can lead to significant delays in processing time 10x Incomplete or inaccurate submissions can lead to review times exceeding 10 times the average1 Sources: 1. Multi-family (3+ unit) permit data, 2024-2026. Includes all active or completed permits in the time range 85% When an application is delayed by a process with missing information, that delay often encompasses 85%+ of the total review time1 These incomplete or inaccurate applications are often a result of lack of clarity on the process / requirements upfront with the developer team

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT While most permits are issued in a reasonable timeframe, the city can partner with developers to further improve speed to issuance 5 2 6 5 4 1 4 2 3 3 1 0 1 2 3 4 5 6 [24,44] [44,64] [64,84] [84,104] [104,124] [124,144] [144,164] [164,184] [184,204] [204,224] [224,244] [244,264] 0 0 # of business days # of permits Note: ISD issued 102 new building permits for new construction between 1/1/24 and 6/30/26; 31 of which were for multi-family Group 1: Ideal timing (55% today) Reflects reasonable processing time and interaction with developers Group 2: Aim to improve (32% today) Permits typically processed in acceptable amount of time, but further improvements may allow shift to group 1 timing Group 3: Outliers (13% today) Projects with more nuance than the average; improvements can help, but these may naturally take longer

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT 6 While the City is prepared to pull all available levers to increase housing production, permitting also matters tremendously in a dense, urban core ▪Providing consistent, robust funding for all affordable housing from sources like property taxes, building permit and short-term rental fees, the maximum CPA fund contribution, and incentive zoning ▪Strategically repositioning City properties for housing (e.g., 35 Cherry Street) City efforts to increase housing production…. ... Importance of permitting in a dense City Zoning and land use ▪Created the Inclusionary Housing Program, leveraging market-rate production for affordable units ▪Allowed residential development in all zoning districts (2001) ▪Rezoned for redevelopment of former commercial/industrial sites to housing ▪Rezoned special redevelopment areas to require mixed-use with housing ▪Adopted the Affordable Housing Overlay (AHO), providing a streamlined, by- right permitting for 100% affordable development ▪Eliminated parking minimums (2022) ▪Adopted citywide multifamily as-of-right zoning (2025) Funding & investment Fire and life safety: Close-set, shared-wall buildings require strict adherence to fire and life-safety codes to protect nearby properties Sewer and stormwater capacity: New development adds load to aging, shared infrastructure; unmanaged flows can cause backups for neighbors Traffic and curb impacts: Added trips and deliveries affect an already- congested street network shared by many residents Tree canopy and green space: Mature trees and green infrastructure are a limited, shared resource that can be affected by work on adjoining lots Flood resilience: Closely built lots mean stormwater and flooding on one site can directly affect neighboring properties Construction impacts on neighbors: Noise, dust, and street/sidewalk closures are felt by more residents when buildings are close together

Recent Progress Multifamily zoning – eliminated discretionary process for most multifamily development Simultaneous building permit pre-application reviews – Departmental reviews (CDD, DPW, Housing, Fire, etc.) happen at the same time rather than sequentially ISD short form – simple application for minor projects that can be reviewed by admin staff, freeing up inspector time for more complex reviews Regular interdepartmental coordination - staff from departments involved in permitting meet regularly to discuss active projects CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT 7

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT In response to the council’s direction to streamline the permitting process, CDD and ISD have engaged internal and external stakeholders 8 POR 2025 #163 gave direction to CDD and ISD to streamline the permitting process CDD and ISD engaged internal and external stakeholders to identify pain points + potential solutions to the process 1 2 3 4 5 Review insights today Draft a shortlist of policies and processes to assess Meet with appropriate departments to workshop this list Refine list based on staff feedback Refine list based on developer feedback Meet with developers and architects to workshop this list 6 Review and workshop list with appropriate departments

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT Both internal and external stakeholders identified pain points in 3 key buckets of the permitting process 9 Pain points Internal External Solution area Policy • Redundant regulations lead to duplicative work • City has made good progress in reducing regulatory barriers in recent years • Many regulations feel too restrictive and can lead to churn • Inclusionary, green building and bike parking add most significant costs • Cambridge has done better job responding to dev input than other cities recently Clearer, simpler, more flexible requirements Process • Inconsistent forms (spread across OpenGov, paper, other sites, etc.) • Strong coordination amongst departments • Developers feel some reviews take too long • “Fatal flaws” flagged too late • Biggest asset is staff, viewed as professional, experienced, & move projects forward • OpenGov an improvement on prior permitting system Streamlined reviews Comms • Incomplete applications lead to increased staff and permitting time • Lack of single source of info creates more questions for staff to answer • Unclear point of contact through the process • Process feels unpredictable • Lack of clarity on process Reduced Submission Errors 1 2 3

Proposed solutions CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT 10

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT Proposed three-pronged approach to address pain points in the permit process today 11 Approach Short-term Medium-term Long-term Clearer, simpler, more flexible requirements • Streamline green building requirements for residential & mixed-use buildings • Conduct comprehensive review of demo delay ordinance • Issue updated stormwater regulations • Review Green roof zoning • Fix inconsistencies between zoning and building codes • Review zoning building and site plan reqs in19.50 to clarify and add flexibility • Update TIS Regulations • Review inclusionary study • Update bike parking requirement • Review Green Factor Streamlined reviews • Add required attachments to building permit application • Utilize Project Review Coordination meetings prior to permit • Add descriptions and timelines to permit workflow steps • Review and streamline Traffic Impact Study process • Move all apps to OpenGov • Revisit plan for Planning Board visual mockup • One project manager to be main city point of contact for applications Reduced Submission Errors • Publish FAQs and permitting guides • Provide a matrix of different permit and ordinance thresholds • Provide a typical process map • Consolidate to a central permitting website • Updated application checklists for each permit and review • Publish clarifications on confusing policy • Add AI chatbot to central permitting website • Create custom, AI-made process maps for each permit applicant • Regular continuing education sessions with ISD 1 2 3

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT Update regulations to simplify, improve clarity, and add flexibility 12 1 Timing Action Department Council Action? Short Align zoning green building review with building permit stretch code review and fossil fuel free ordinance for residential and exempt the commercial portion of mixed-use projects CDD Yes Issue updated stormwater regulations to clarify thresholds, particularly for by- right development DPW No Conduct comprehensive review of demo delay ordinance CHC Yes Medium Review green roof requirements to determine if necessary, given Green Factor and competing rooftop requirements CDD Yes Review TIS regulations CDOT No Update19.50 building and site plan requirements for clarity and flexibility CDD Yes Fix inconsistencies between building and zoning code – definition of first floor and story exemptions CDD, ISD Yes Long Review inclusionary zoning study currently underway Housing Yes Review Green Factor requirements for applicability to existing buildings and paved commercial sites CDD Yes Update bike parking requirements CDOT, CDD Yes

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT Continue to streamline the review process 13 2 Timing Action Department Council Action? Short Add required attachments to building permit application with descriptions of required documents and links to templates/forms All No Institutionalize Project Review Coordination meetings with applicant prior to building permit All No Add descriptions and timelines to building permit workflow steps All No Medium Review and streamline Traffic Impact Study process CDOT No Move applications to OpenGov CHC, CDD No Revisit need for Planning Board visual mockup CDD No Long One project manager to be main city point of contact All No

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT Improve communication and education materials to reduce errors and incomplete submissions 14 3 Timing Action Department Council Action? Short Publish FAQs and permitting guides CDD No Provide a matrix of review thresholds CDD No Create a typical process map that shows the order of applications and reviews prior to building permit application CDD No Medium Central Permitting Website that links to all applications, checklists, and other permitting info All No Updated application checklists for each permit and review All No Publish clarifications on confusing regulations and processes ISD No Long AI chatbot on permitting website to answer developer questions / direct to resources All No ISD to hold regular continuing education sessions for contractors ISD No Automated process map / checklist for developers based on their needs All No

CITY OF CAMBRIDGE | COMMUNITY DEVELOPMENT DEPARTMENT Next steps 15 ➢Get feedback from City Council ➢Implement set of short-term actions by November 1, 2026 ➢Begin implementation of medium-term initiatives, goal to complete by February 1, 2027 ➢Notify stakeholders involved in this process of our planned path forward ➢Continue discussions with external stakeholders and test communication materials with focus groups ➢Begin to look at streamlining permitting process for small businesses