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 10, 2019
Utilities rolling out more grid-interactive efficient building programs
Focus is on energy savings and demand flexibility.
Codes and Standards | Dec 9, 2019
Canada’s Zero Carbon Building Standard reports first 10 certifications
Projects include new and existing offices, schools, and warehouses.
Codes and Standards | Dec 6, 2019
New research examines flood mitigation policies in the U.S.
Thirteen states or cities have adopted effective measures; some restricting development in vulnerable areas.
Codes and Standards | Dec 5, 2019
USGBC unveils vision for LEED Positive
Roadmap will lay foundation for a future LEED that is regenerative.
Codes and Standards | Dec 5, 2019
Report shows reducing embodied carbon can save money and help mitigate climate change
Embodied carbon now accounts for 11% of global greenhouse gas emissions.
Codes and Standards | Dec 5, 2019
Dubai, London and New York are 2019’s ‘Construction Mega Cities’
From 2007 to 2025, GlobalData expects the cities’ combined gross domestic product (GDP) to increase by more than US$8 trillion to US$20.4 trillion.
Codes and Standards | Dec 2, 2019
New GBCI certification recognizes expertise in sustainability
Provides third-party verification of competency to ‘making the world more economically, socially, and environmentally sustainable.’
Codes and Standards | Dec 2, 2019
New tool allows users to learn how to reduce embodied carbon
Calculator delivers first digitized EPDs.
Codes and Standards | Dec 2, 2019
Trade group challenges St. Petersburg, Fla., ordinance on construction contract mandates
Legality of requirement to hire apprentices, disadvantaged workers at issue.
Building Owners | Dec 2, 2019
What building owners and AEC teams need to know about New York’s Climate Mobilization Act
On April 18, 2019, the New York City Council passed the Climate Mobilization Act, a suite of laws aimed to meet the city’s commitment to achieving carbon neutrality by 2050.
