URGENT CALL TO ACTION! California’s Building Industry is reaching out to everyone urge our state legislators to OPPOSE AB199!

Background:  California Assemblymember Kansen Chu (D-San Jose) has introduced legislation that would overturn current law and would mandate higher labor and housing costs on new apartments and housing in California, posing a grave threat to the entire construction industry.  It is estimated by Beacon Economics that if passed, AB199 would add approximately 46% to the cost of new residential construction!  In a state where housing supply and affordability is a key issue, we must act now.  WHA is contributing to the effort to oppose this measure, but we need everyone’s assistance to help defeat this bill.

At issue here is the use of “prevailing wage” labor, in other words, union labor, for privately developed projects.  Prevailing wage rules have existed for years for public projects where a state agency, redevelopment agency, or local public housing authority is involved with a project, even if on private land and built by a private developer.  This bill would instead redefine what is considered a “Public Works” project.  It would require private residential projects on private property to be declared Public Works projects that are the result of an agreement with the state or a political subdivision (e.g. city, county or state approval).  Since all projects require such approval, the prevailing wage requirement would affect all new residential projects.

In addition to dramatically increased home prices, AB199 would result in the loss of tens of thousands of jobs to employees within the construction industry.  As the cost of construction skyrockets, new projects will become infeasible and projects will be abandoned.

Already, the state’s housing shortage (currently at least 2 million units per year) costs us more that $140 billion per year in lost economic input (including investment and consumption of goods and services).  AB199 would significantly worsen this problem.  Without additional housing stock, companies will find it more difficult to grow, retain and hire qualified employees.

With a severe reduction in units produced, state and local governments will lose millions in permit fees and property tax revenue, resulting in less funding for vital services such as schools, safety and health care.

AB199 is a terrible idea.  We all must contact our State Assemblymember, State Senator, and the Governor’s office today to make our voices heard.  Please share this with your friends, neighbors and colleagues as it really affects us all.

To contact your California State Legislator to oppose the prevailing wage requirement for private development and AB199, please click on the following link:

http://act.careabouthousing.org/

Note: Be sure to use your home address as this reflects your member of the legislature.