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 | May 20, 2019
Effort launched to develop better process for zero-carbon retrofits in multifamily sector
Rocky Mountain Institute, Dept. of Energy, California Energy Commission join forces.
Codes and Standards | May 20, 2019
Property lenders shouldn’t invest for 30 years in most of Florida, expert warns
Climate ignorance driving some ‘insane’ deals.
Codes and Standards | May 17, 2019
NIMBYism is the biggest multifamily construction barrier
National Apartment Assn. report assesses reasons for difficulty in creating more apartments.
Codes and Standards | May 17, 2019
Dept. of Energy to award up to $33.5 million for advanced construction R&D
Focus is on techniques to reduce energy bills.
Codes and Standards | May 16, 2019
Mixed reviews on targeted tax break for San Francisco neighborhood
“Twitter tax break” may have worsened some of the area’s problems.
Codes and Standards | May 15, 2019
OSHA inspections to increase, says Secretary of Labor
Newly hired inspectors getting up to speed.
Codes and Standards | May 14, 2019
Database records more than 1,360 K-12 school shooting incidents since 1970
Naval Postgraduate School program maps locations nationwide.
Codes and Standards | May 13, 2019
In many cities, downtown housing comes with a hefty premium
Urban core living costs hundreds of thousands more in largest U.S. cities.
Codes and Standards | May 7, 2019
San Francisco plan would require largest commercial buildings to use 100% renewable electricity
First in the U.S. mandate would be phased in from 2022 to 2030.
Codes and Standards | May 7, 2019
ABC says best practices can improve construction companies’ safety by 680%
Daily ‘toolbox safety talks’ were most effective safety measures.
