(b) Notwithstanding any other law, with respect to a building permit, grading permit, or other approval from a city or county building department for the rehabilitation of real property improvements that are or will be employee housing for agricultural employees, or from a city or county health department for the operation, construction, or repair of a water system or waste disposal system servicing employee housing for agricultural employees, all of the following processing requirements shall apply:

1. (1) The local building or health department shall have up to 60 calendar days to approve or deny a complete application or permit request accompanied by applicable fees, or a shorter time period if required by the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code). The local building or health department may deny an application or permit request on procedural grounds only if the denial occurs within 30 calendar days and the denial includes an itemization of the procedural defects. The local building or health department may deny an application or permit request on substantive grounds if the denial includes an itemization of all substantive defects.
2. (2) If the local building or health department does not approve or deny the application or permit request within the period prescribed by paragraph (1), then the Department of Housing and Community Development may approve the application or permit request if it determines that the plans are consistent with all applicable building codes and health and safety requirements. At that time, the applicant may initiate any work consistent with the application or permit approved pursuant to this subdivision. Upon completion of the work, any other state or local agency shall accept the improvements as if the local building or health department had approved them. However, if that other local agency identifies any defects that would have resulted in that agency’s disapproval of the improvements or plans for improvement, the agency may identify those defects and the applicant shall correct them. The local building or health department shall inspect the plans and improvements prior to and during rehabilitation and issue a certificate of completion if the work is consistent with the plans and all applicable building codes and health and safety requirements.