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 | Mar 5, 2019
Persistent flooding having economic impact on coastal cities
Atlantic City, Annapolis among communities affected.
Codes and Standards | Mar 1, 2019
$1 billion Boston hospital project to include extensive disaster resiliency features
Mass. General expansion will be designed for four days of shelter in place.
Codes and Standards | Mar 1, 2019
U.S. cities have become more dangerous for bicyclists and pedestrians
Reduced speed limits, traffic calming, better education seen as keys to improvement.
Codes and Standards | Feb 28, 2019
High-income renters now the fastest-growing housing market segment
Growth is fastest in mid-sized cities with strong economies.
Codes and Standards | Feb 27, 2019
Katerra launches software platform for ‘entire lifecycle of the building process’
Firm is accepting industry applicants to test the product.
Codes and Standards | Feb 26, 2019
AAMA updates two specifications for test methods related to seismic drift
For evaluating window wall, curtain wall and storefront systems.
Codes and Standards | Feb 22, 2019
California’s carbon reduction goals to be aided by programs to convert heating, hot water systems
Switch from propane to electricity is critical to plan.
Codes and Standards | Feb 21, 2019
Researchers develop software that can calculate potential solar energy yield at any location
Accounts for dynamic shading from trees, buildings and other structures.
Codes and Standards | Feb 20, 2019
Hospitals not making much progress in reducing their carbon footprint
Energy benchmarking survey shows flat emissions pattern over past 20 years.
Codes and Standards | Feb 15, 2019
Super Bowl stadium helps alleviate Atlanta’s flood problems
Capacity to store more than 2 million gallons of storm water on site.
