As a shortage of affordable housing plagues California, the state’s mandates that developers pay prevailing wage on most taxpayer-subsidized low-income housing projects are a source of contentious debate.
The cost of constructing low-income housing in California now averages $332,000 per unit. In an effort to determine the causes of high price tags on these projects, in 2014 the state released a report that officially said the impact of prevailing wage couldn’t be determined.
But one of the consultants hired to do the study says that projects that paid prevailing wage were 11% more expensive to build. Labor economists were able to convince the state of enough uncertainties in the prevailing wage analysis so that the study didn’t reach a firm conclusion on the issue, according to the Los Angeles Times.
The prevailing wage requirement continues to have strong support in the state legislature. Governor Jerry Brown’s housing plan failed last year in large part because of the Building Trades’ opposition to a relaxation of prevailing wage requirements, the Times says. This year, legislators have introduced more limited versions of Brown’s proposal that include prevailing wage requirements.
Related Stories
Codes and Standards | Dec 4, 2017
Trump tax proposal would kill historic tax credits
Developers would lose up to 20% discounts on some redevelopment projects.
Codes and Standards | Nov 30, 2017
Asheville, N.C. rezoning favors pedestrians, could change city’s character
Focus is on layout and look of new buildings rather than use.
Codes and Standards | Nov 29, 2017
Many New York City landlords have not addressed new flood codes
City revised building codes after Superstorm Sandy, but many owners not required to upgrade.
Codes and Standards | Nov 28, 2017
Nail-Laminated timber Canadian design and construction guide released
Includes practical strategies and guidance with lessons from real-life projects.
Codes and Standards | Nov 27, 2017
New standard to monitor building sealing performance
Increased understanding of how materials act when stretched and compressed is the goal.
Codes and Standards | Nov 27, 2017
Denver voters approve green roof mandate
Buildings of 25,000 sf or larger required to install vegetative roof or PVs.
Codes and Standards | Nov 21, 2017
USGBC adopts ‘RELi’ resilient building and design standard
The standard prescribes methods for designing more resilient buildings and communities.
Codes and Standards | Nov 21, 2017
Updated material transparency web site and hazardous building materials list unveiled
Improved versions of tools aimed at use of healthier construction supplies.
Codes and Standards | Nov 16, 2017
White roofing isn’t always the best choice
Adverse effects include heat reflection onto nearby walls.
Codes and Standards | Nov 15, 2017
U.S. finalizes tariffs on Canadian softwood lumber
The duties would add 20% or more to cost if trade negotiators can’t find common ground.