Entitled land: what an approval holds and how it expires

An entitlement is the approval of a specific project on a specific site: its units, height and conditions. It raises the land's value only for as long as it stays valid and buildable, and the rules that apply to it can change after it is granted.

What an approval holds

The approved program, the conditions attached to it, the environmental clearance and the timeline to act on it. A building permit and construction start are usually needed before the approval's expiration date.

Vesting

Vesting locks the rules that apply to a project. In California, a preliminary application under SB 330 (Gov. Code 65941.1) vests the ordinances in effect on the date it is complete, for the life of the application, subject to its own deadlines; other states use vested rights statutes or development agreements.

The owner's choice

An owner holding an unbuilt approval decides whether to build it, sell the site with it, or re-entitle under a newer program that permits more. The read compares the approved program with what the code allows today, the cost to build each, and the value of the land with each approval.

Questions

Do entitlements expire?

Yes. An approval sets a deadline to obtain permits or start construction, after which it lapses unless it is extended.

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