Governor Gavin Newsom signed Senate Bill 1383 on Wednesday, a measure introduced by State Senator Jesse Arreguín to close a loophole that allowed some large housing projects to sidestep local labor standards. The new law requires any development at least 85 feet tall to comply with local mandates such as apprenticeship programs, health‑care coverage for workers, and prevailing‑wage requirements.
Background on the Berkeley ordinance
Berkeley’s 2024 ordinance, championed by Arreguín while he was mayor, mandated that builders of major projects provide paid apprenticeship opportunities and health‑care benefits to employees. Unions in the building trades praised the rule, saying it would expand job‑training pipelines and ensure that workers performing dangerous tasks have coverage if injured.
Developer opposition and the density‑bonus loophole
Developers Laconia Development and Collab Home argued that they could exempt two of their projects – a 23‑story tower at 2029 University Avenue and a 20‑story building at 2425 Durant Avenue – from the labor mandates by invoking California’s “density bonus” law. That law permits developers to bypass certain local regulations if a portion of the project is set aside for affordable housing. While traditionally used to exceed height or parking limits, the bonus has also been leveraged to avoid cost‑increasing requirements such as health‑care and apprenticeship provisions.
Collab Home additionally used the density bonus to sidestep the prevailing‑wage rule that applies to major projects in Berkeley’s Southside neighborhood near the university. Critics said the developers were exploiting a loophole to cut labor costs, while the Berkeley City Council reluctantly approved the projects earlier this year.
What SB 1383 changes
SB 1383 blocks developers of projects that are at least 85 feet tall from claiming density‑bonus exemptions from the labor standards. The law does not retroactively affect the two Berkeley projects that prompted its passage, as they have already received permits. However, it preserves a narrower exemption for smaller developments – those of at least 50,000 square feet – meaning many mid‑size projects can still use the bonus to avoid the health‑care and apprenticeship requirements.
Arreguín said, “SB 1383 ensures that increasing our housing supply does not come at the expense of worker health and safety, a good‑paying job, or construction quality.” The statement underscores the administration’s commitment to protecting the construction workforce while still encouraging affordable housing.
Implications for California’s housing market
Supporters argue the law strikes a balance: it preserves the incentive for developers to include affordable units while preventing the erosion of essential worker protections. By targeting only the tallest projects, the bill aims to safeguard jobs on the most costly, high‑rise constructions where labor expenses are a significant portion of the budget.
Opponents warn that the added costs could make some large projects financially unfeasible, potentially slowing the pace of new housing in a state already facing a severe affordability crisis. They contend that the density‑bonus program was originally designed to accelerate construction, and tighter restrictions may undermine that goal.
Local reaction
Berkeley City Council members who voted for the original projects expressed mixed feelings. Some acknowledged the need for worker protections, while others emphasized the importance of maintaining a robust pipeline of new housing to meet demand.
Unions welcomed the new law, noting that apprenticeship programs not only provide skilled labor for current projects but also build a pipeline of qualified workers for future construction needs across the state.
Next steps
The law takes effect immediately, and developers planning new high‑rise projects in California will need to incorporate the mandated labor standards into their budgets. The state will monitor compliance and may consider further adjustments if the balance between housing production and worker protection proves unsustainable.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
