Please ensure Javascript is enabled for purposes of website accessibility

Thai Fighter Jet Bombs Cambodian Targets as Border Battle Escalates

4 hours ago

Wrestling Legend Hulk Hogan Dies at 71, TMZ Reports

7 hours ago

TikTok Will Go Dark in US Without Chinese Approval of Sale Deal, Lutnick Says

8 hours ago

Meme Stock Surge Underlines Market Froth, Mostly Centered on Retail Investors

8 hours ago

Fresno County Authorities Still Searching for Missing Mother and Infant

8 hours ago

California Releases Teacher Data. It Shows Big Rise in Hispanic Teachers

8 hours ago

Biting a Bat and 5 Other Wild Moments From Ozzy Osbourne’s Life

9 hours ago

Henry Thompson Did Wonders for Fresno Airport, Leaves ‘Incredibly Big Shoes to Fill’

1 day ago
Change in law could increase home prices
David Taub Website photo 2024
By David Taub, Senior Reporter
Published 8 years ago on
March 9, 2017

Share

A bill circulating in Sacramento could make home buying just a little bit harder. AB 199 would apply prevailing wages for labor building private homes, with those in the building industry saying that would have a drastic effect on home prices.

Prevailing wages are similar to a state-mandated minimum wage, except they only apply to public works construction projects. What AB 199 would do is classify private home building on private land as public works projects if they receive any type of benefit, such as a fee credit for building a park or water line. That could trigger the prevailing wage rate, as some have argued.

Assemblyman Kansen Chu (D-San Jose) is proposing AB 199, titled “Public works: private residential projects.” It changes Section 1720 Section 1 (c)(1) of the Labor Code, to read:

Private residential projects built on private property are not subject to the requirements of this chapter unless the projects are built pursuant to an agreement with a state agency, redevelopment agency, or local public housing authority. the state or a political subdivision.

Mike Prandini, president of the local Building Industry Association of Fresno/Madera Counties says the difference in prevailing wage and market rates is double. He estimates that would increase the cost of a 2000-square foot home would be $40,000.

Chuck Riojas, Financial Secretary/Treasurer of the Fresno, Madera, Kings and Tulare Counties Building & Construction Trades Council, AFL-CIO does not believe prevailing wage rates will cause labor rates to increase. “People working for less are working for under the market rate are selling themselves short for what their labor is worth. Prevailing rate is market rate,” Riojas says.

According to public documents and GV Wire research, there are differences in the rates. An HVAC technician would see a 47% jump in wages and benefits; for an electrician, that number jumps at least 55%

“You would be pricing a lot of people out of the market and in addition you would be raising rents considerably too,” Prandini warns.

Estimates range widely of how much this would increase overall costs. Analyst group Xpera says 30%. The California Builders Industry Association says 37%.  Beacon Economics says a similar proposal in Los Angeles increased costs 46%.

So, a house going for $325,000? That could now become $422,500 at the very least. GV Wire spoke with Beacon Economics analyst Robert Kleinhenz, who sees AB 199 causing an adverse effect on the home building industry.

“A measure such as this could easily increase the cost of that new construction…could really temper the levels of construction, which are already pretty moderate and well below what we’ve seen in the last decade. And, so, it can have a lot of adverse effects all the way around in the local economy,” he tells GV Wire.

Assemblyman Kansen Chu, in a statement to GV Wire says:

“I authored AB 199 to ensure workers receive their fair wages owed to them by law. Our prevailing wage laws were established to provide equity, ensuring construction workers are compensated fairly on projects paid for fully or in-part by public money. This bill will clear up any ambiguity for stakeholders involved in the development of a public project as it relates to our prevailing wage requirements.”

In November, Chu won re-election to the assembly, now serving his second term. Union labor was some of his top financial supporters. A partial list includes:

California State Council of Laborers PAC Small Contributor Committee                    $17,000

State Building and Construction Trades Council of Cal PAC                                             $8,500

State Building and Construction Trades Council of Cal                                                      $8,500

California Labor Federation, Committee on Political Education                                    $4,200

The first committee in Sacramento to hear the bill isn’t one that deals with housing, but rather the Labor & Employment committee. That takes place Wednesday, March 15 at 1:30p at the Capitol.

Contact David Taub

Phone: 559-492-4037 / e-mail

[Disclosure: GV Wire is owned by Granville Homes. This story covers AB 199, on which Granville is expected to take a stand. GV Wire operates independently. This story was not subject to corporate approval. Some of the video in this story was shot on property owned by Granville.]

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno Brewery Teams With Japanese Sister City on Rice Lager Release

DON'T MISS

US Justice Department Official Meets Epstein Associate Maxwell

DON'T MISS

Clovis Police Arrest Two in Mail Theft During Organized Retail Crime Detail

DON'T MISS

California Political Lobbying Firm Agrees to Settle Federal Fraud Allegations

DON'T MISS

Lara Trump Skips North Carolina US Senate Race, Clears Way for Cooper Versus Whatley

DON'T MISS

Madera County Authorities Dismantle Illegal Marijuana Grow Operation

DON'T MISS

Israel and US Recall Teams From Gaza Truce Talks, US Says Hamas Not Showing Good Faith

DON'T MISS

How Long Will Fresno’s Resort-Like Summer Weather Continue?

DON'T MISS

Tulare County Judge Reduces Sentence for Teen Convicted in Killing Orosi Teacher

DON'T MISS

Thai Fighter Jet Bombs Cambodian Targets as Border Battle Escalates

UP NEXT

California Political Lobbying Firm Agrees to Settle Federal Fraud Allegations

UP NEXT

Tulare County Judge Reduces Sentence for Teen Convicted in Killing Orosi Teacher

UP NEXT

West Coast Rapper YG to Perform at 2025 Big Fresno Fair

UP NEXT

California Cannot Require Background Checks to Buy Ammunition, US Appeals Court Rules

UP NEXT

Valley Crime Stoppers’ Most Wanted Person of the Day: Cesar Fernandez

UP NEXT

Tulare County Gang Member Booked in Attempted Murder of Two Teens

UP NEXT

Fresno County Authorities Still Searching for Missing Mother and Infant

UP NEXT

Protesters in Tel Aviv Call for Israel to End Hunger and Gaza War

UP NEXT

Karbassi Fears Costco Could Move to Madera After Fresno Project Halted by Court

UP NEXT

Clovis Police to Hold DUI Checkpoint on Friday

David Taub,
Senior Reporter
Curiosity drives David Taub. The award-winning journalist might be shy, but feels mighty with a recorder in his hand. He doesn't see it his job to "hold public officials accountable," but does see it to provide readers (and voters) the information needed to make intelligent choices. Taub has been honored with several writing awards from the California News Publishers Association. He's just happy to have his stories read. Joining GV Wire in 2016, Taub covers politics, government and elections, mainly in the Fresno/Clovis area. He also writes columns about local eateries (Appetite for Fresno), pro wrestling (Off the Bottom Rope), and media (Media Man). Prior to joining the online news source, Taub worked as a radio producer for KMJ and PowerTalk 96.7 in Fresno. He also worked as an assignment editor for KCOY-TV in Santa Maria, California, and KSEE-TV in Fresno. He has also worked behind the scenes for several sports broadcasts, including the NCAA basketball tournament, and the Super Bowl. When not spending time with his family, Taub loves to officially score Fresno Grizzlies games. Growing up in the San Francisco Bay Area, Taub is a die-hard Giants and 49ers fan. He graduated from the University of Michigan with dual degrees in communications and political science. Go Blue! You can contact David at 559-492-4037 or at Send an Email

California Political Lobbying Firm Agrees to Settle Federal Fraud Allegations

2 hours ago

Lara Trump Skips North Carolina US Senate Race, Clears Way for Cooper Versus Whatley

2 hours ago

Madera County Authorities Dismantle Illegal Marijuana Grow Operation

2 hours ago

Israel and US Recall Teams From Gaza Truce Talks, US Says Hamas Not Showing Good Faith

3 hours ago

How Long Will Fresno’s Resort-Like Summer Weather Continue?

3 hours ago

Tulare County Judge Reduces Sentence for Teen Convicted in Killing Orosi Teacher

4 hours ago

Thai Fighter Jet Bombs Cambodian Targets as Border Battle Escalates

4 hours ago

West Coast Rapper YG to Perform at 2025 Big Fresno Fair

5 hours ago

California Cannot Require Background Checks to Buy Ammunition, US Appeals Court Rules

6 hours ago

Wrestling Legend Hulk Hogan Dies at 71, TMZ Reports

7 hours ago

Fresno Brewery Teams With Japanese Sister City on Rice Lager Release

A Fresno brewery is celebrating international friendship with the release of a Japanese-inspired rice lager, created in partnership with Sou...

50 minutes ago

50 minutes ago

Fresno Brewery Teams With Japanese Sister City on Rice Lager Release

Jeffrey Epstein associate Ghislaine Maxwell stands at the podium to address Judge Alison Nathan during her sentencing in a courtroom sketch in New York City, U.S. June 28, 2022. (Reuters File)
1 hour ago

US Justice Department Official Meets Epstein Associate Maxwell

2 hours ago

Clovis Police Arrest Two in Mail Theft During Organized Retail Crime Detail

2 hours ago

California Political Lobbying Firm Agrees to Settle Federal Fraud Allegations

Lara Trump, daughter-in-law of U.S. President Donald Trump, looks on, before President Trump signs the "Genius Act", which will develop regulatory framework for stablecoin cryptocurrencies and expand oversight of the industry, at the White House in Washington, D.C., U.S., July 18, 2025. (Reuters File)
2 hours ago

Lara Trump Skips North Carolina US Senate Race, Clears Way for Cooper Versus Whatley

Authorities in Madera County eradicated more than 1,600 marijuana plants during a search of an illegal grow operation in Raymond. (Madera County SO)
2 hours ago

Madera County Authorities Dismantle Illegal Marijuana Grow Operation

An explosion in Gaza is seen from the Israeli side of the Israel-Gaza border, July 24, 2025. (Reuters/Amir Cohen)
3 hours ago

Israel and US Recall Teams From Gaza Truce Talks, US Says Hamas Not Showing Good Faith

3 hours ago

How Long Will Fresno’s Resort-Like Summer Weather Continue?

Help continue the work that gets you the news that matters most.

Search

Send this to a friend