Marin Builders Opposes Bill that Would Increase Costs and Delays for Residential Construction

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March 23, 2017
Below is the letter Marin Builders is sending to the state.
Here is a template of a letter you can use to send your own.
Here is the letter from the broad coalition opposing this bill.

RE: Assembly Bill 199 – Prevailing Wage on Private Residential Construction - OPPOSE
 
Dear Chairman Thurmond:
 
On behalf of, the Marin Builders Association, we are writing to voice our strong opposition to Assembly Bill 199 which will be heard in Labor and Employment Committee.  AB 199 would mandate the payment of prevailing wage on private residential construction which would be devastating for the building industry and all related industries – it would exacerbate the state’s housing crisis rather than improve it by causing housing to either not be built or to be so expensive that few could afford to buy a home.
 
The Marin Builders Association serves the construction industry by promoting high ethical and professional standards, providing quality services to our members, and working responsibly with our community for the enhancement of the building industry. Since 1958, Marin Builders Association has worked on behalf of our members to help build our community. AB 199 would be detrimental to our members and our community.

In the interest of maintaining the bidding processes and natural competitive balance that currently serve the construction industry fairly and impartially, the Marin Builders Association is opposed to any Project Labor Agreements that are discriminatory in nature and utilize public funds.It is undeniable that most Project Labor Agreements create a bidding process that is less competitive, and less inclusive. In addition, PLA's can generate yet another level of administration and bureaucracy to a process that is already heavily regulated. 

The current crisis in housing supply goes hand in hand with a crisis in affordability. California ranks 49th out of the 50 states in housing units per capita and ranks dead last among states in ability to deliver an affordable home to prospective first-time purchasers.  The evidence is clear – our county and state needs more, not fewer, houses at prices that the majority of Californians can afford.
 
AB 199 will make the problem worse.  A 2005 report out of UC Berkeley found that paying prevailing wages increased costs by 37%.  That increase in the cost to produce a house will negatively impact home prices – that is, if the houses are even built in the first place. 
We ask you to please vote “no” on AB 199 and to be a part of the solution to the housing crisis instead of being a part of the problem.
Respectfully,

Rick Wells
Chief Executive Officer
Contact:
Rick Wells, CEO
rick@marinbuilders.org, (415) 462-1220
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