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
| Sep 7, 2012
Lorain, Ohio considers halting downtown construction while it works out development plan
Construction would stop downtown for six months while Lorain, Ohio officials consider a development plan for the city, according to new legislation.
| Sep 7, 2012
Business, labor groups push for easing of California’s Environmental Quality Act
Business and labor groups have combined forces to push for a change to California's Environmental Quality Act, specifically its complex review process for building and construction projects.
| Sep 7, 2012
Twenty years later, Florida contractors cite Hurricane Andrew as construction game-changer
Remarking on the 20th anniversary of Hurricane Andrew, which devastated south Florida; contractors are noting the storm’s impact on their industry—including the state’s adoption of tougher building codes.
| Sep 7, 2012
At risk for nine types of natural disasters, Texas trails most coastal states on building codes
Texas has the most diverse weather risk in the country, with exposure to nine different types of natural disasters.
| Aug 30, 2012
OSHA plans new crane-safety standards for demolition and underground work
The new rule will streamline OSHA’s standards by eliminating the separate cranes and derricks standard currently used for underground and demolition work.
| Aug 30, 2012
Federal government cancels defense contracts worth $2.15 billion
This action may foreshadow federal spending cuts scheduled for year's end if Congress takes no action on the federal budget.
| Aug 30, 2012
Public comment period is open for CRRC-1 standard
The CRRC-1 standard covers specimen preparation and test methods for measuring the initial and aged solar reflectance and thermal emittance of roofing products.
| Aug 30, 2012
LEED system's footprint reaches 2 billion sf, with 7 billion sf in the pipeline
About 7 billion more sf of commercial space is expected in the pipeline.
| Aug 30, 2012
Georgia drops LEED wood source standard on state projects
Currently, LEED green building standards only accept timber products certified by the Forest Stewardship Council (FSC).
| Aug 21, 2012
AGC offers second edition of the Federal Government Contractor: Ethics & Compliance Programs manual
This publication helps contractors appreciate the grounds for an alleged violation of the expected standards of business conduct and ethics, and to develop, implement, and document an effective ethics and compliance program.