March 3, 2026
By Hart M. Passman and Hannah R. Saed
As the last installment of our series analyzing the legislative components of Governor Pritzker’s proposed housing agenda, the Building Up Illinois Developments (BUILD) initiative, this alert focuses on Senate Bill 4063, introduced by Senator Laura Ellman on February 19, 2026. Identical language is included in the omnibus BUILD legislation, filed on the same day as House Bill 5626 in the Illinois House by Representative Kam Buckner.
SB 4063 amends the Illinois Municipal Code to impose mandatory timelines on municipal plan review and building inspections, and to create a statewide framework authorizing applicants to retain qualified third-party plan reviewers and inspectors when municipalities fail to meet the new deadlines. Like its companion bill in the House, SB 4063 expressly limits home rule authority, applying to all municipalities, including home rule units.
Key Elements of SB 4063
SB 4063 adds a new Division 31.2 (Building Inspections) to Article 11 of the Illinois Municipal Code, establishing uniform statewide requirements governing local plan review and inspection timelines, third-party review rights, fee obligations, and conflict-of-interest rules.
Mandatory Plan Review Timelines
Under SB 4063, municipalities must complete initial plan review within the following deadlines after receipt of a complete application:
- 15 business days for one-family or two-family residential projects.
- 30 business days for any multifamily, mixed-use, or commercial project.
- 10 business days for any subsequent review cycle after the applicant submits revisions in response to the initial comments.
Municipalities must issue “written comments or approval” within the applicable deadline. Failure to meet any of these deadlines triggers the applicant’s right to retain a qualified third-party plan reviewer.
Mandatory Inspection Timelines
Municipalities must conduct any required inspection within two business days after receiving a request to inspect. Failure to do so triggers the applicant’s right to retain a qualified third-party inspector.
Third-Party Plan Review and Inspection Framework
When a municipality misses any of the new deadlines, the applicant will have the right to engage a “qualified third-party plan reviewer” or “qualified third-party inspector,” defined as a licensed Illinois architect or engineer who holds a current certification from the International Code Council, the National Fire Protection Association, or the International Association of Plumbing and Mechanical Officials, or their successors. If the applicant exercises this right, the municipality must then abide by the following additional obligations:
- If the third-party reviewer finds that the application satisfies the applicable building codes, the municipality must accept the third-party plan review.
- The municipality must then issue the requested permit within two business days after receiving a compliant third-party plan review, and may not impose additional review cycles, comments, or delays.
- If the third-party inspector finds that the property is compliant with applicable codes, the municipality must accept the third-party inspection report, and must issue any required approval, certificate, or authorization within one business day.
- Municipalities may require reasonable documentation confirming that a third-party reviewer or inspector holds current and active licensure and certification.
Retained Municipal Authority
SB 4063 preserves limited municipal oversight authority. Municipalities retain the right to define what constitutes a “complete application” for a building permit, under their own local codes and regulations. Municipalities also retain the ability to audit any third-party plan review or inspection for code compliance, and retain authority to issue stop-work orders, withhold certificates of occupancy, and pursue enforcement actions for noncompliance, even after accepting a third-party review. However, a local audit may not delay permit issuance or authorization. If a municipality identifies material noncompliance, it may pursue enforcement actions and report findings to the Department of Financial and Professional Regulation or the relevant credentialing organization.
Fee Limitations
SB 4063 imposes meaningful restrictions on fee collection by municipalities when third-party review or inspection is used. Municipalities may not charge plan review or inspection fees for any portion of the process performed by a third party. If an applicant uses third-party review for only a portion of the process, the municipality must proportionally reduce its own fees.
Conflict-of-Interest Rules
The bill includes specific conflict-of-interest disqualifications for third-party reviewers and inspectors. A third-party plan reviewer may not review plans if the reviewer, or the reviewer’s employer, was involved in preparing the plans, or if the plans relate to property owned by the reviewer or the reviewer’s employer. Similarly, a third-party inspector may not inspect work that the inspector, or the inspector’s employer, planned, performed, or owns. All third-party professionals must disclose any potential conflict of interest to both the applicant and the municipality before accepting an engagement.
Practical Impacts for Municipalities
If enacted as introduced, SB 4063 would represent a significant change to the way municipalities manage their building permit and inspection functions. A municipality experiencing staffing shortages or high application volumes may struggle to consistently meet these deadlines, placing it at risk of being effectively bypassed by third-party reviewers.
The prohibition on collecting fees for any portion of the review performed by a third party, combined with the requirement to reduce fees proportionally, could create revenue shortfalls for municipalities, particularly if a significant share of reviews is completed by third parties due to missed deadlines.
The current version of the legislation does not specify an effective date. Under the Illinois Effective Date of Laws Act, if the legislation is passed during the Spring 2026 Legislative Session (before June 1), it would take effect on January 1, 2027. To prepare for this proposed set of new rules, municipalities should begin assessing their current plan review and inspection workflows, including average processing times by project type, staffing capacity, and fee structures, to identify potential compliance gaps before the law takes effect. The combination of mandatory timelines, loss of supplemental review authority once a deadline is missed, and fee limitations will require municipalities to rethink how they staff and fund their permitting operations.
As the legislative session progresses, this proposed legislation will likely continue to evolve through ongoing review and negotiation. We will continue to monitor developments and keep our clients apprised of changes to the bill and the potential impact on local development controls. In the meantime, please contact Hart Passman, Hannah Saed, or any other Elrod Friedman attorney for additional guidance on third-party plan review or other components of the BUILD initiative.