AB 199 (Chu; D-San Jose) is 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.

Such a requirement would be financially devastating for new project development and the entire construction industry.

Additionally, in California, housing costs are being driven by a severe shortage of housing. California is only adding 80,000 new housing units annually – 100,000 units short of 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 rent 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.

Contact your California State Legislator, today, to encourage that they oppose AB 199 by clicking here.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)