PROTECT CONSTRUCTION JOBS; STOP PROPOSED PREVAILING WAGE MANDATE

 AB 199 (Chu; D-San Jose), a legislative proposal which poses a huge threat to the entire construction industry by mandating the payment of Prevailing Wages for private residential projects in California, this week passed the Assembly Labor and Employment committee on a partisan 5-1 vote.  The bill next moves to the Assembly Appropriations Committee, where we will continue to oppose the bill.

Requiring private construction to pay Prevailing Wage would be financially devastating for new project development, the entire construction industry, and will further drive-up the costs of housing.

Housing costs are being driven by a severe shortage of housing. Our state is only adding 80,000 new housing units annually – 100,000 units short what is needed to meet demand and lower costs.

The average single family home now costs $440,000 – two and a half times the national average.

Rents are also 50 percent higher than the rest of the country, with monthly rents for a two-bedroom apartment in Los Angeles and San Francisco ranging from $2,600 to $4,550.

We must defeat this proposal as it will hurt our industry and it will skyrocket housing costs.

The commercial real estate industry cares deeply about this issue for several reasons, but importantly if advocates succeed with this measure this year, our projects will be targeted next.

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